Fleet Management Services Propelling the Commercial Telematics Market
Commercial Telematics have found uses in a variety of industries. The major application is in the automotive industry. Commercial Telematics also finds applications Telecom, insurance, Commercial Service and Logistics segments. With commercial Telematics growing at a rapid pace, along with decreased cost of services because of technological innovations, new applications for this market will be developed.
As companies like BMW, Toyota and GM build cars with inbuilt telematics systems for monitoring the driver, commercial telematics is a growing market. Commercial Telematics industry consists of a diverse range of products and services. These services include remote diagnostics, usage based insurance, safety and security services, navigation, emergency notification, infotainment and fleet management. The growing demand for operational efficiencies in the industry is set to drive adoption of fleet management telematics. With rising fuel prices fuel monitoring systems are finding more use in fleet management systems.
Fleet management involves overseeing commercial motor vehicles such as cars, trains, buses or planes. Telematics are used in this sector as a tracking and maintenance tool. GPS devices, navigation systems and diagnostic systems are all used in the fleet management telematics. Fleet management solutions based on enhanced telematics services are being used to increase efficiency by reducing costs, improving reliability and safety and improving fuel consumption and vehicle performance. Fleet management is a major market for telematics industry and the market is growing at a high rate. The increasing fuel costs also drive the fleet management telematics as fuel monitoring software is used in conjunction with car diagnostic tools to increase reliability and efficiency. The rise of cloud-based software usage in fleet management has decreased management costs for this service. Driven by these factors, the adoption of fleet management services is set to be on rise, propelling telematics growth.
Companies have in recent years shifted focus from reducing operational cost to improving operational efficiency as a method to improve their profitability. This has led to increased installation of fleet management telematics in logistics and fleet management companies. Companies are also looking to fleet management services to monitor driver behavior in order to improve the efficiency of this aspect. Traditionally, truck driver monitoring included factors such as speed and vehicle location; however, with the advent of telematics monitoring has become more intrusive with features such as speed, braking and cornering techniques as well as route times, hours of service and fuel-monitoring data. This has led to increased utilization by companies looking to improve the efficiency of their delivery services. In recent years companies have raised concerns about their fleet’s environmental impact. However for companies concerned with their environmental footprint, changes to the manufacturing process are time consuming and expensive. Fleet management services can be a quick solution to this arduous problem. The declining price for telematics hardware systems is also set to increase adoption of fleet management. The reducing price will lead to increased adoption in cost sensitive APAC and South American markets. The declining prices along with organizational concerns regarding operational efficiency and environmental impact are set to propel adoption of telematics.
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