OYSTER BAY, N.Y.-Wingcast L.L.C.’s recent and sudden withdrawal from the telematics market has left many doubting the viability of the overall personal telematics industry, according to a new report from Allied Business Intelligence Inc.
As a result of the confusion over personal telematics, ABI predicts several players will look to enter the commercial telematics market, also known as fleet management systems.
“Although the FMS market is going through a period of restructuring and consolidation, there will be a ready-made market available for personal telematics players with proven distribution channels, and market specialization,” said Frank Viquez, senior analyst and report author.
The report, “Fleet Management Systems: A Global Analysis of Telematics Opportunities, Technologies, and Trends In Commercial Vehicle Operations,” states there are more than 200 FMS vendors in the United States alone, and a total addressable market of 20 million vehicles, including taxi fleets, leased fleets, heavy trucks and equipment, transit fleets, corporate fleets and emergency vehicles. However, new players entering the FMS market will face considerable challenges, including competing with well-established players, and providing a value-added product that will significantly stand apart from other offerings.
While ultimately not as copious as the personal telematics market, the FMS market promises to be bountiful, said ABI. According to the report’s findings, the global market for FMS will grow from under $2 billion in 2001 to nearly $6 billion in 2007.
