Continued introduction of new products and features helped the industry maintain to profitability
Melbourne, Australia (PRWEB) November 01, 2012
The Fleet Telematics Systems industry in Australia experienced a vibrant past five years. Industry revenue is estimated to grow at an annualised 5.7% over the five years through 2012-13 to reach $66.4 million. According to IBISWorld industry analyst Aries Nuguid, “Regulatory requirements spurred the need for fleet operators to invest in new or upgraded fleet telematics systems.” As fuel prices rose, fleet operators also invested in new hardware to increase the efficiency of supply chains. Higher road freight volume also provided some impetus with more hardware needed to monitor the traffic. Revenue is expected to grow 5.7% in 2012-13 as freight volumes grow and as fleet operators invest in systems to reduce the effects of higher fuel prices.
Despite the revenue growth, profitability in the Fleet Telematics Systems industry in Australia fell. Tapering off demand for system upgrades and installations in reaction to regulatory changes was a factor behind the reduced profitability. However, continued introduction of new products and features helped the industry maintain profitability. “The higher value of the Australian dollar over the past five years also helped the industry lower the cost to purchase imported hardware,” added Nuguid. At the device installation level of industry services, operators tend to serve small markets, based on geography or the niche services they provide. Installation is the most labour intensive of industry activities and economies of scale are limited as a result. The high value work required to establish fleet communication centres or customise software to meet client needs is more scalable, however companies that install hardware in vehicles tend to be involved in making associated systems and software work. Larger players tend to rely on subcontractors for installation of industry devices in vehicles.
Revenue in the industry is expected to accelerate over the next five years. New road safety regulations are expected to boost demand for fleet telematics systems as Australian road safety catches up to international standards. Fleet operators will also invest in new equipment to increase the efficiency of supply chains to minimise the effect of higher fuel prices. However, margins are forecast to narrow as markets mature and competition increases. Furthermore, the depreciation of Australian dollar is expected to heighten purchase costs. For more information, visit IBISWorld’s Fleet Telematics Systems report in Australia industry page.
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IBISWorld industry Report Key Topics
Companies in this industry manufacture and install the hardware and software used for fleet telematics systems. Fleet telematics systems use electronics and GPSs to track the location and other characteristics (e.g. mileage or speed) of vehicles in a fleet. The industry includes fleet telematics systems for mobile devices.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Market Share Concentration
Key Success Factors
Cost Structure Benchmarks
Basis of Competition
Barriers to Entry
Technology & Systems
Regulation & Policy
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