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Trailer Telematics Increasingly Being Perceived as a Catalyst for Fleet Optimisation, Finds Frost & Sullivan


News provided by

Frost & Sullivan

03 Jul, 2012, 10:00 GMT

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- Trailer Telematics Transitioning from being viewed only as a Service to an Integral Part of Every Fleet's Business Model

LONDON, July 3, 2012 /PRNewswire/ -- The trailer telematics market is fast developing into a major growth engine for the commercial vehicles telematics market in Europe. Immense opportunities await telematics vendors as a majority of the trailer population in Europe (as well as North America) remains underpenetrated.

Within the trailer telematics market, trailer location and tracking is the most developed application. However, security concerns and the need for effective mobile asset monitoring and management are creating several new applications that are positioned in the growth development phase. The cost of trailer telematics hardware is declining, and fleets and leasing companies, along with their customers, are realising the benefits of several emerging telematics solutions.

New analysis from Frost & Sullivan (http://www.automotive.frost.com), Strategic Analysis of the European Trailer Telematics Market, finds that the potential size of the market is vast and not fully penetrated; less than 5 per cent in a pool of approximately 2.3 million trailers. However, this is estimated to rise to 18.2 per cent in a pool of nearly 3.1 million trailers in 2017. The research examines the penetration of telematics in trailers, especially in reefer, dry box, tanker, curtain sider and flatbed trailers.

"Consolidation, horizontal collaboration and joint ventures among logistics operators is expected to increase the need for an integrated supply chain solutions provider providing end-to-end asset visibility," notes Frost & Sullivan Senior Research Analyst Niranjan Manohar.

To stay in business and survive competition, fleets must maximise efficiency in all aspects of their operations. Fleets are becoming aware of the tremendous productivity maximisation benefits that trailer telematics can offer to their day-to-day operations, thereby reducing costs.

As trailers are an integral part of freight movement, enhancing elements such as productivity, security, and utilisation of these mobile assets that haul the bulk of industrial and consumer goods in Europe, is emerging as a key issue.

"As the fleets' and leasing companies' operations get increasingly interfaced with that of their customers, the need for effective trailer tracking for productivity improvement is more critical now than ever before," explains Manohar.

Efforts are being made to standardise enabling technologies and to absorb steady price declines, without compromising on profitability. In the medium-term, price-sensitiveness of the market is expected to ensure a future where price declines in both hardware and services market will be evident.

"Aftermarket vendors are re-thinking their strategies and have decided to form partnerships with other trailer telematics vendors to market and test their respective low- to high-end trailer solutions, allowing them to gauge and understand the industry know how's," remarks Manohar.

Ultimately, telematics vendors offering services that are reliable and superior in quality are expected to be the most sought after. Participants will need to provide the right product and service mix to strengthen their value proposition.

If you are interested in more information on Frost Sullivan's study Strategic Analysis of the European Trailer Telematics Market, please send an e-mail with your contact details to Katja Feick, Corporate Communications, at katja.feick@frost.com.

Strategic Analysis of the European Trailer Telematics Market is part of the Automotive & Transportation (M754) Growth Partnership Service programme, which also includes research in the following markets: Strategic Analysis of North American Medium and Heavy-duty Commercial Vehicle Telematics Market, Strategic Analysis of North American Trailer Telematics Market and Strategic Update of European Medium and Heavy-duty Commercial Vehicle Telematics Market. All research included in subscriptions provide detailed market opportunities and industry trends that have been 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 organization 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?

Contact Us: Start the discussion
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Contact:
Katja Feick
Corporate Communications – Europe
P: +49 (0) 69 7703343
E: katja.feick@frost.com
http://www.frost.com
www.twitter.com/frost_sullivan
www.facebook.com/FrostandSullivan

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