New York, NY (PRWEB) March 19, 2014 -- The Fleet Telematics Systems industry proved virtually impervious to the recession, outpacing most other industries over the past five years. Operators in this industry manufacture devices, and develop and service software used to track the location and other characteristics (e.g. mileage or speed) of vehicles in a fleet. According to IBISWorld Industry Analyst Maksim Soshkin, “Industry growth slowed during the recession, in line with the decline of trucking sector, the industry's main downstream market.” However, increasing fuel costs, in addition to new markets and products have begun to drive industry growth. As a result, industry revenue is expected to climb an annualized 8.6% in the five years to 2014 to $2.0 billion, with a 5.8% jump in 2014.
Industry operators have expanded their emphasis on software development and servicing during the past five years, while increasingly outsourcing hardware manufacturing to low-wage economies. Models such as software-as-a-service (SaaS), which are constantly updated and expanded upon, enable consumers to access fleet data and analysis for a subscription fee. Success of this software has been further buoyed by a boom in mobile-device use. Because smartphones and tablets already feature necessary hardware such as global positioning systems (GPSs), they can easily be turned into telematics devices through appropriate application downloads. Consequently, demand for industry software has increased in line with the growing use of mobile devices. Additionally, as the prices of industry products have declined (due to cheaper hardware, subscription models and mobile device platforms) the number of markets using telematics has expanded. These include small, local-trucking companies, commercial vehicle fleet owners and heavy equipment owners. Most importantly, oil prices are expected to increase at an annualized 10.1% to $100.2 per barrel in the five years to 2014. Consequently, vehicle fleet owners have tried to cut back on fuel costs by purchasing fleet telematics systems and software to analyze fuel usage.
Industry revenue is forecast to grow in the five years to 2019. “Demand will be driven by an expanding trucking sector, higher fuel prices and increased use of mobile devices,” says Soshkin. Furthermore, emissions and worker safety regulations, and new products and markets will provide an additional boost in demand for fleet telematics systems.
For more information, visit IBISWorld’s Fleet Telematics Systems in the US industry report page.
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IBISWorld industry Report Key Topics
The Fleet Telematics Systems industry manufactures hardware and software 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. This industry includes fleet telematics systems for mobile devices.
Key External Drivers
Industry Life Cycle
Products & Markets
Products & Services
Globalization & Trade
Market Share Concentration
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Barriers to Entry
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Gavin Smith, IBISWorld 2, +1 (310) 866-5042, [email protected]