SYDNEY, Nov. 7, 2014 /PRNewswire/ -- The commercial vehicle (CV) telematics market in Australia is in the mature stage, especially in basic solution such as track and trace, although the market remains highly fragmented, says Frost & Sullivan.
Mr. Vijay Rao, Research Director, Automotive & Transportation Practice, Asia Pacific at Frost & Sullivan said that the Australian CV telematics is also under penetrated in terms of usage of advanced fleet management systems (FMS) solutions.
New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of Commercial Vehicle Telematics Market in Australia revealed that the Australian commercial vehicle (CV) telematics market is likely to grow at a compound annual growth rate of 25 per cent by 2020.
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Mr. 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 computerize, 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.
Mr. Rao said that the need for efficient and reliable freight movement will boost market for fleet management systems solutions. He added that increasing concern for driver's safety also augments the demand for commercial vehicles telematics.
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SOURCE Frost & Sullivan