Sydney, Australia – August 8, 2006 – In its quest to increase profitability, efficiency and reduce costs, the intensely competitive Australian trucking industry is becoming a lucrative segment for the commercial vehicle telematics systems market.
Major participants in the trucking industry will lead the way in the application of telematics, while the smaller market participants anticipate adopting telematics in a phased manner.
The demand for telematics expects to increase, with manufacturing and the retail sectors implementing Just-in-time (JIT) practices, which require real-time information on cargo delivery status. The use of telematics will also help the trucking firms distinguish themselves from other market participants.
New analysis from Frost & Sullivan (www.transportation.frost.com), finds that the Australia Commercial Vehicle Telematics Market earned revenues of US$24.0 million in 2005 and it estimates to reach US$60.7 million in 2012.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Australia commercial vehicle telematics market, then send an e-mail to Alice Chia, Corporate Communications, at email@example.com with your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, we will send the overview via e-mail.
“Trucking companies are also concerned about rising fuel prices and they expect the implementation of telematics in vehicles to help minimize this cost,” observes Frost & Sullivan Research Associate Mr. Satish Kumar Sampath. “Besides the demand from the industry, the decreasing costs of telematics systems and favorable government regulations are likely to keep the market buoyant.”
Despite market optimism, Australian Telematics Service Providers (TSPs) need to realize that they are involved in an emerging market and they have to conduct campaigns to increase product knowledge among consumers.
“In comparison to other developed markets such as the North American and European telematics market, the Australian market is in its infancy stage. Product knowledge and consumer awareness is very low,” states Mr. Sampath. “The benefits associated with telematics are low even among the fleet operators and the trucking industry that constitute a major portion of the end users.”
Systems manufacturers and TSPs should create awareness and promote the utility of their systems to increase both unit shipment and revenues.
While conventional telematics systems already provide fleet managers with real-time information about the vehicle’s location, new products enable the monitoring of various engine parameters. This enables the fleet managers to take preventive measures before serious damage can occur to the vehicle.
With the diversified range of commercial vehicle applications, market participants have to provide customized telematics solutions for each end-user segment. For example, cargo monitoring is crucial for commercial vehicles transporting biohazardous materials, whereas vehicle parameter monitoring is essential in the mining industry due to the use of high-cost commercial vehicles.
Apart from the basic function of vehicle tracking, service providers have started offering greater value-added features such as driver safety, vehicle condition monitoring and cargo monitoring to meet the varied requirements. Offering multifunctional systems enhances the value of the product, thus leading to increased sales and higher revenue.
The commercial vehicle telematics market obtains revenues from TSPs, Original Equipment Manufacturers (OEMs), hardware manufacturers, content and airtime providers, software developers and wireless device suppliers. However, TSPs contribute the bulk of the revenues.
“The telematics services segment is expected to be a constant source of revenue, with immense scope for further growth by offering superior content,” notes Mr. Sampath. “This potential is especially visible in the wireless communication sector and call center operations.”
The Australia Commercial Vehicle Telematics Market is part of the Asia Pacific Logistics Subscription, which also includes research in the following markets: Strategic Analysis of the ASEAN 3 Third Party Logistics Markets, Strategic Analysis of 3PL Markets in the Indian FMCG Sector and Strategic Analysis of Third Party Logistics Markets in India. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants. Interviews with the press are available.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit www.frost.com
Australia Commercial Vehicle Telematics Market
4E35 - 18
Corporate Communications – Asia Pacific
Corporate Communications – North America
Corporate Communications – Europe
Corporate Communications – Australia
Corporate Communications - India