Proving the Business Case for the Internet of Things

Non-trucking to dominate fleet telematics by end 2019: ABI Research

Iain Morris
March 26, 2014

Nearly 50 million “non-trucking” commercial fleet vehicles will be equipped with telematics technology by the end of 2019, according to the latest study from ABI Research.

The market-research company says that telematics services were first adopted by the long-haul trucking industry in the US more than 20 years ago, but that adoption of these services in the non-trucking sector will equal that in the trucking industry in terms of numbers of connected vehicles by the end of this year – and dominate the commercial fleet telematics industry by the end of 2019.

As noted by ABI Research, the non-trucking sector includes a number of verticals, such as services and utilities, private transportation (taxis), construction and mining, government and public sectors, emergency services, public transportation and local-delivery markets.

“Many of these verticals are facing similar challenges such as the need to improve the utilization of their vehicle fleets, combat rising fuel prices, trim payroll costs and comply with ‘duty of care’ obligations towards their employees,” said Gareth Owen, principal analyst at ABI Research.

Several sectors have their own specific challenges and requirements, said ABI Research.

“For example, in the cutthroat services sector customer service is paramount with the failure of service personnel to arrive on time as the biggest complaint,” said Owen. “Nowadays, customers expect improved levels of service at little or no additional cost.”

As a result of that, service companies are looking to deploy mobile workforce management services to gain a competitive advantage.

In the construction and mining sector, meanwhile, safety and security remain the overriding concerns, with companies looking to use fleet-management technology to monitor driver behavior.

For government-sector organizations, the main benefit is in being able to demonstrate that certain tasks, such as garbage collection or road gritting, have been completed satisfactorily.
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