A recent study from Frost & Sullivan finds that the market for light commercial vehicle (LCV) fleet telematics solutions will grow aggressively over the next few years as fleet managers continue to seek an edge in terms of fuel efficiency and other cost-reduction drivers.
The company's report forecasts the LCV telematics market to grow to $1.1 billion in 2018, up from $585 million in 2011. Most fleets' needs are currently being met with ‘basic track and trace solutions,’ Frost & Sullivan says, but a shift to more robust fleet management solutions (FMS) is likely.
‘Geared towards reducing fuel costs and improving efficiency in business, fleet owners are looking at adopting telematics as a tool to monitor vehicle idle time and seamlessly integrate business processes,’ says Nandini Tare, a Frost & Sullivan analyst. ‘This not only leads to higher demand, but also maintains pressure on pricing points, due to the current economic condition.’
Approximately 80% of fleets have fewer than 10 vehicles, and full FMS technologies have not yet penetrated these organizations. Instead, they have been adopting telematics as a tracking solution, according to Frost & Sullivan. Large fleets are better positioned to take advantage of FMS.
FMS vendors are integrating various functionalities, such as route planning, work order management and workforce management, into their solutions to provide efficient business solutions. Vendors that can offer suitable solutions with flexible pricing options for various types of fleets will have a ‘positive impact on the industry in the coming years.’
‘The role of telematics tools have evolved from mere tracking of vehicles to tracking mobile resources and improving business and asset management,’ says Tare. ‘As the ecosystem matures, blended solutions will encompass basic track and trace, as well as complex, wide-ranging systems that cater to all fleet sizes and business goals.’
For more information on Frost & Sullivan's work, click HERE.