Proving the Business Case for the Internet of Things

Australian commercial vehicle telematics market to grow 25% to 2020: Frost & Sullivan

Iain Morris
November 12, 2014

The commercial vehicle telematics market in Australia is set to grow at a compound annual rate of 25% between now and 2020, according to new research from Frost & Sullivan.

Although the market is at a mature stage of development – especially when it comes to basic solutions such as track and trace – it remains highly fragmented, according to the market-research company.

It also appears to be relatively “under penetrated” in terms of usage of advanced fleet management systems, says Vijay Rao, a research director with Frost & Sullivan’s automotive and transportation practice in the Asia-Pacific.

According to Rao, the Australian trucking industry currently comprises numerous small fleet operators that have fewer than ten vehicles each.

The benefits to these players of telematics may be limited, adds Rao, and they have typically been slow to “computerize”, limiting the appeal of telematics technology.

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

Rao also noted that Australia has a number of very diverse industries – including mining, food and beverages, emergency services and logistics – and that each of those sectors requires telematics for diverse functions.

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

The need for efficient and reliable freight movement is expected to boost the market for FMS solutions, according to Frost & Sullivan’s analysis.
Increasing demand for driver safety should also spur the take-up of technology in this particular market, added Rao.
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