New analysis from Frost & Sullivan (automotive.frost.com), Strategic Analysis of North American Medium and Heavy-duty Commercial Vehicle Telematics Market (Class 4 to 8 Vehicles), finds that the market earned revenues of $713 million in 2010 and estimates this to reach $1.4 billion in 2017.
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"The intertwining of safety and telematics can only increase regulations and mandates such as Comprehensive Safety Analysis (CSA 2010) and EOBR, " notes Frost & Sullivan industry analyst Sathyanarayana K. "Implementing CSA 2010 could prove to be a significant factor driving interest in voluntary adoption of EOBR."
This demand anticipates the adoption of FMS in the future. A shift toward mid- and high-end FMS, with navigation, prognostics and EOBR, expects to see higher penetration of telematics subscribers. The growth of EOBR is inevitable and over time, it is likely to be offered on all trucks, phased-in naturally; thus, increasing telematics' penetration.
The Federal Motor Carrier Safety Administration (FMCSA) intents on implementing EOBR and CSA 2010 as it focuses on reducing the number of accidents. Under CSA 2010, a standalone scorecard for every truck driver and fleets operating in the U.S., measures how safely they operate the vehicle or fleet. EOBR records the driving time and other duty statutes to the nearest minute.
It estimates that the move to implement EOBR and CSA 2010 will leave 150,000-200,000 drivers without their commercial driver's license, or cause them to be fined or retire early, leading to a labor shortage. In some markets today, the U.S. trucking industries experience a driver shortage.
The challenge of driver retention due to the electronic driver logs and driver scoring system is likely to lead to drivers taking new routes quite often. This will indirectly increase the demand of FMS offering truck-approved navigation routes.
"This trend might indirectly provide demand for navigation, enabling new drivers to easily and frequently adapt to new routes, " says Sathyanarayana. "Navigation will also help drivers to keep their trucks on the truck-approved routes, thereby avoiding costly out-of-route miles."
Strategic Analysis of North American Medium and Heavy-duty Commercial Vehicle Telematics Market (Class 4 to 8 Vehicles) is part of the Automotive & Transportation Growth Partnership Services program, which also includes research in the following markets: Strategic Outlook of the Western European and North American Medium and Heavy Duty Commercial Vehicles Transmissions Original Equipment Market, Analysis of Diesel Powertrain Outlook and Technology Roadmap in North America, Strategic Analysis of the North American Light Vehicle Ride Control Aftermarket, 360 Degree Perspective of the North American Automotive Aftermarket, Strategic Analysis of the United States Cabin Air Filter Aftermarket and Electric Vehicles: The Voice of the U.S. Fleet Customers, among others. All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
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Strategic Analysis of North American Medium and Heavy-duty Commercial Vehicle Telematics Market (Class 4 to 8 Vehicles) / N838