Telematics to drive growth

SINGAPORE: Specific advantages of CV Telematics as compared to fleet management services (FMS) is likely to drive growth for telematics in the Japanese Commercial Vehicle (CV) market in the long term.

CV Telematics faced considerable initial competition from FMS, which was popular among trucking companies. However, CV Telematics has certain distinct advantages as compared to FMS.

FMS entails a considerable investment in hardware, software and know-how on IT applications. CV Telematics on the other hand can be fitted into any vehicle with a system compatible computer and an Internet connection and thus has a distinct cost advantage over FMS.

New analysis from Frost & Sullivan Japanese Commercial Vehicle Telematics Market reveals that the market earned revenues of $286.4 million in 2005 and estimates to reach $478.8 million in 2012.

"The specific advantages of CV Telematics over FMS, is likely to trigger a considerable shift towards CV Telematics in Japan for the next couple of years," says Frost & Sullivan Industry Manager V. Bhanu Prakash. "The CV systems are likely to find acceptance among the medium-scale fleet operators and transportation companies, which may find the highly-priced FMS uneconomical."

Prakash says that CV Telematics' role in enhancing trucking efficiency will also drive growth in the market. The vehicle diagnostic reports generated by CV Telematics Service Provider (TSP) imparts several specific benefits such as increased vehicle security, lower vehicle maintenance cost, increased fuel efficiency, increased driving safety and improved vehicle productivity.

"These benefits enhance the efficiency of trucking operations by minimizing breakdowns and delays and maximizing fuel efficiency," Prakash adds.

The TSP also provides the trucking companies with detailed vehicle diagnostics on the vehicle mileage fuel consumption and level of gaseous emissions such as carbon dioxide, nitrogen oxide and particulate matter during CV operation.

This information can be used by trucking companies to advise the CV drivers to change driving methods to minimize carbon dioxide emissions, which cause global warming.

"Minimizing environmental impact of CV operations has assumed increased importance with the Japanese government's green environment policy," says Prakash.