-- Recurring revenue streams and new service offerings however will trigger opportunities for market growth
LONDON, Oct. 2, 2013 /PRNewswire/ -- The European light commercial vehicle (LCV) telematics market is largely untapped. Overall penetration of telematics in the 29 million LCVs in operation in Europe is just 6.2 per cent, which presents immense opportunities for telematics vendors as well as original equipment manufacturers (OEMs).
New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the European Light Commercial Vehicle Telematics Market, finds that catering to the demand for customised telematics solutions will provide the impetus for higher revenues. The study estimates market revenues to go up from €1.10 billion in 2012 to €3.10 billion in 2019.
Hardware costs are steadily declining, and to boost the use of telematics in LCVs, several aftermarket vendors are offering subscriptions with no upfront cost while distributing the hardware and services cost over set contract periods.
"The market, mainly dominated by these independent aftermarket telematics solution providers, is witnessing the entry of OEMs that provide solutions covered by warranties and supported through dealership networks," said Frost & Sullivan Automotive and Transportation Industry Analyst Niranjan Manohar. "These systems are popular as they are available through modular subscription schemes and allow customers to upgrade or downgrade their service level requirements."
Beyond 2015, legislations that mandate new cars to be equipped with eCall devices will facilitate the entry of more OEMs with new offerings in the LCV telematics space, further aiding market development. The advent of telematics as a standard line-fit in medium and heavy CVs will hasten the introduction of next-generation services such as real-time information on traffic and parking in LCVs.
Currently, however, the absence of an established OEM base is depriving the market of the product volumes necessary to fuel penetration in new vehicles. Moreover, low awareness among small- and medium-sized fleets in Europe curbs adoption. The unique needs of various industries within service clusters will add to the challenge of ensuring unified customer awareness.
Focus on finding the right product, service and finance mix for the right customer will help retain existing consumers and attract new ones. Hardware and software maintenance contracts must be promoted and the range of company-relevant applications widened to spur recurring revenue.
"The proliferation of smartphones and tablets has afforded a means of accessing information in real-time with an easy-to-upgrade and easy-to-use platform, driving fleet management solutions vendors to offer apps," noted Niranjan Manohar. "Predictive analytics using big data will also be the key differentiator, as supplying actionable information to optimise field force management enhances customer service."
If you are interested in more information on Frost & Sullivan's study Strategic Analysis of the European Light Commercial Vehicle Telematics Market, please send an e-mail to Katja Feick, Corporate Communications, at email@example.com, with your full contact details.
Strategic Analysis of the European Light Commercial Vehicle Telematics Market (M880) is part of the Automotive & Transportation Growth Partnership Service program. Frost & Sullivan's related research services include: Strategic Update of the North American Light Commercial Vehicle Telematics Market, and Comparative Analysis of the European and the North American Commercial Vehicle Telematics Markets. All research services included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants.
Our "Growth Partnership" supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.
- The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.
- The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.
For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organisation prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?
Corporate Communications – Europe
P: +49 (0) 69 7703343
Twitter: @Frost_Sullivan or @FS_Automotive
Join our Forum on LinkedIn: Future of Mobility
SOURCE Frost & Sullivan