Australian telematics market reaches maturity


Thursday, 13 November, 2014

According to recent research results from Frost & Sullivan, the commercial vehicle (CV) telematics market in Australia has reached the mature stage, particularly in basic solutions such as track and trace. Vijay Rao, Frost and Sullivan’s research director, automotive and transportation Asia Pacific, says that the market is highly fragmented and under-penetrated in terms of usage of advanced fleet management system (FMS) solutions.

The analysis projects a compound annual growth rate of 25% by 2020 for the Australian CV telematics market.

Rao said that the Australian trucking industry comprises numerous small fleet operators that have less than 10 vehicles. He added that the benefits of telematics to such a fleet may be limited and these fleet operators have been traditionally slow to computerise, thereby limiting the appeal of telematics.

“Addressing this segment of the market with appealing and appropriate products for their operations remains a challenge,” he added.

He also said that Australia has diverse industries, with the presence of the mining industry, food and beverage industry, emergency services and the logistics firms. Each of these sectors requires telematics for diverse functions, he added.

“Basic telematics-enabled FMS solutions in Australia is prevalent through the mass adoption of track-and-trace solutions. However, more advanced FMS solutions are primarily employed only by large trucking fleet operators and sizable mining operations,” he said.

Rao said that the need for efficient and reliable freight movement will boost market for FMS solutions. He added that increasing concern for driver safety also augments the demand for commercial vehicles telematics.

Frost & Sullivan offers complimentary access to more information on this research here.

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