A strategy must therefore be framed that not only focuses on new cars and vehicle technology, but also encompasses the overall reduction of CO2 emission from all vehicles. Green telematics effectively provides a cost-effective and simple solution to this challenge. Fleet companies and consumers alike are increasingly warming to the service since a fuel cost reduction of 10 per cent and an equal measure of CO2 reduction are possible through green telematics services offered as a dedicated product or an add-on service.
New analysis from Frost & Sullivan (automotive.frost.com), Strategic Analysis of European and North American Green Telematics Market for Passenger and Commercial Vehicles, finds that the European and North American fleet green telematics market will likely increase from $80.0 million in 2008 to $700.0 million by 2015. The market is growing at a compound annual growth rate (CAGR) of 36.0 per cent from 2008 to 2015, primarily thanks to growing pressure on fleet companies to reduce their carbon footprint and develop a greener image.
"The desire for greater return-on-investments (ROI) benefits given fluctuating oil prices is a critical driving factor for green telematics in the commercial fleet sector," says Frost & Sullivan Research Analyst Karthik Elamvaluthi. "Additionally, the high cost of implementing alternative means of emissions reduction and garnering a greener image also boost this market."
Green telematics packages, such as vehicle and driver management services, provide complete data for driving behaviour and fuel consumption analysis for commercial vehicles. Optimising these parameters ensures green fleet operation. Real-time navigation alerts also help reduce unwanted mileage. As commercial fleets grow increasingly concerned about the impact of ROI while striving to improve their green image, both these elements are critical drivers.
However, the economic slowdown is forcing fleet companies and individuals to rethink their priorities and investments. Moreover, public awareness on the availability of green telematics systems and services remains limited. "Although a few fleet companies and private car buyers are aware of the benefits of green telematics services, the majority are affected by the economic crisis and are still weighing their priorities, further constraining the growth of this market," explains Elamvaluthi.
While awareness among consumers and fleet operators of the benefits of green telematics has increased, it has yet to reach levels necessary to facilitate wider adoption. The business community should proactively work to enhance interest in this market. "Navigation manufacturers, insurance companies, telematics vendors and fleet companies should strive to raise awareness about green telematics systems," concludes Elamvaluthi. "They should focus on it being a cost effective and fuel-efficient method to decrease emissions."
If you are interested more information on this study, please email Monika Kwiecinska, Corporate Communications, at monika.kwiecinska[.]frost.com, with your full name, company name, title, telephone number, company email address, company website, city, state and country.
Strategic Analysis of European and North American Green Telematics Market for Passenger and Commercial Vehicles is part of the Automotive & Transportation Growth Partnership Services programme. which also includes research in the following markets: Global Trend Analysis of Passenger Vehicle Telematics and Infotainment Market - 2009 Edition, Strategic Analysis of The European Market for Low Cost OEM Navigation Systems, Comparative Analysis of the European, North American, Chinese, South Korean and Indian Telematics Markets, European Consumers" Desirability and Willingness to Pay for Connected Navigation, and Location-Based Services and Features. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best-in-class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best-practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents.
Strategic Analysis of European and North American Green Telematics Market for Passenger and Commercial Vehicles / M3FA.