Commercial telematics, in particular mobile research management, is driving location-based services today, according to ABI Research. But the next big battleground will be to add Web portals to vehicle navigation devices. Following is a roundup of trends to watch in location-based services.
- The technology used in fleet management systems varies widely: from a few cell phones to large, sophisticated, integrated commercial telematics systems. They may employ GPS, cellular or satellite-based technologies, said ABI.
“Telematics vendors examining prospective markets must understand the particular user requirements and market barriers for these segments,” says ABI analyst Steven Bae. “The applications may vary greatly among these markets and solutions providers must understand their own core competencies in order to realize where synergies with specific market segments may be realized. In a complicated operational environment, these choices can be difficult, and guidance can be hard to find.”
ABI said its studies indicate systems employing cellular services are best suited for domestic fleets, or those that need frequent communications, such as short-haul trucking, for-hire, taxi, rental and emergency service fleets.
In contrast, satellite communications systems can provide global coverage and no roaming charges, meeting the needs of long-haul and international fleets, but at a greater cost. Yet, satellite communications falls short in the bandwidth needed for firmware upgrades.
GPS handsets
- One of the faster-growing areas in the commercial telematics market is the use of GPS-enabled mobile handsets for mobile resource management, said ABI. The firm said GPS handsets are playing a larger role in commercial telematics, as basic driver and load status information is actively sent via mobile phone to a centralized server, so fleet managers may better organize their field workers and make their operations more efficient.
“Just a couple of years ago, handset-based commercial telematics services were a niche application offered in North America by only one major carrier, but they are now becoming an increasingly popular and lucrative business for wireless carriers and ASPs alike,” stated Frank Viquez, ABI’s director of transportation research. “Many of these services are offered as an add-on component to an existing voice and data plan through such carriers as Rogers Wireless [Inc.], Sprint Nextel [Corp.], T-Mobile [USA Inc.] and Verizon Wireless.”
ABI explained that GPS-enabled handsets are ideal for small to mid-sized fleets looking for a simple and lower-cost means of communicating with drivers, and to determine their status for dispatching, time sheet reporting, navigation and exceptions-based alerts. However, Viquez cautions, “fleet management services delivered by way of the handset are by no means a comprehensive solution, and can never replace embedded hardware.” Integrated in-cab hardware offers a deeper level of functionality for fleets, including remote diagnostics, driver hours-of-service reporting, cargo monitoring, and additional choices in wireless communications links.
Furthermore, ABI found that the handset-based market for commercial telematics is not as well-established in Europe as it is in North America, as only a handful of GPS-enabled GSM phones are available across the pond. Instead, many commercial fleet services in the region from vendors such as TomTom, GPS-Buddy (Garmin) and Navman Wireless, focus on a dashtop navigation device as the main user interface, with an integrated wireless modem and black box for wireless connectivity and some sensor integration. For local fleets centered around a major geographic center and offering local delivery, utilities, and field services, this is an optimum solution and capitalizes on the popularity of portable navigation devices in the region.
Car Web portals
- Cars are expected to be the next battleground for Web portals, suggests ABI, as navigation vendors and automakers alike have been engaged in a continual struggle to differentiate their navigation offerings. This year has finally brought such features as traffic information and text-to-speech to navigation. ABI said its analysts believe the next steps are 3D renderings, images of buildings and location-aware search, all of which play right into the strengths of Web portals.
“Google [Inc.], and Microsoft [Corp.]’s Live.com are portals that provide visual display and location-aware search very similar in functionality and appearance to some of the hybrid connected navigation and telematics systems in Japan, such as Honda’s Internavi and Toyota’s G-Book,” says ABI’s principal transportation analyst Dan Benjamin. “This type of integration really makes a lot of sense. Google has been making a big push into location-aware advertising, and the portals have already made arrangements to get satellite and/or photographic imagery that are not necessarily offered by the map providers in the navigation space. Why not get search hits and push location-aware relevant advertising on top of points of interest?”
ABI’s Viquez, agrees, saying, “It’s understandable why Honda and Volkswagen are working with Google to get this into vehicles, but it also highlights the inherent difficulties and demands of the automotive environment. In order to utilize such applications, vehicles will need increased processing power, graphics acceleration and a high-speed data connection.”
Viquez notes that smaller portable navigation devices that have proven popular would be at a disadvantage in all of these categories. “As PNAV devices take on a greater infotainment role through the support of video and MP3 playback, real-time traffic data and soon satellite radio, it becomes increasingly difficult to add new functions while maintaining a pocketable form factor. It may make more sense for this type of content to be delivered to integrated automotive hardware, or perhaps a smart phone, rather than to the typical portable device.”
