Commercial Telematics: A Ray of Sunshine in the Gloomy US Automotive Market

Author: David Alexander, Principal Analyst, Automotive Technology

Published: 27 Jun 2008

US manufacturers and dealers of both cars and trucks are facing a potentially difficult next few years with the recent hike in fuel prices. Consumers and fleet managers are looking closely at their budgets and are either cutting back on purchases or seeking smaller, more economical vehicles. Typically, profit margins on small vehicles are lower than for larger, more luxurious cars and trucks. However, the drive for a more efficient use of resources is a great opportunity for commercial TSPs (Telematics Service Providers). Fleet managers hold a different viewpoint than consumers. An individual can decide to drive, or walk, or take public transport, or car share; but a fleet manager has a parcel or load to deliver, or people to transport – so the choice is not whether to use a vehicle but rather how to most efficiently use the vehicles already in the fleet. This is why ABI Research believes commercial telematics is now poised for significant growth while linked to a market that many believe will be struggling for at least the next few years.

The full text of this Insight is available to subscribers of the Telematics Research Service and the Connected Car Research Service and the Commercial Telematics Research Service.

Contact a representative about service purchasing options.