Oyster Bay, New York - 26 Sep 2012
The Chinese commercial telematics market is set to prosper in coming years thanks to an anticipated wave of new regulations mandating the use of tracking systems on certain vehicles. However, licensing requirements that require multinational telematics service providers (TSPs) to partner with local players continue to restrict the involvement of Western players.
Despite the recent slowdown, the Chinese economy continues to grow and fleet operators struggle to add a sufficient number of vehicles to keep up with the surging demand for goods. As such, telematics becomes an important tool to optimize the use of the limited available vehicle resources. With sales of commercial vehicles in China estimated at close to 4 million units in 2011, and around half of global heavy truck sales in the country, it’s clear that the opportunity for fleet management services is massive.
“Safety of vehicle and their cargo is of paramount importance as many commercial vehicles in China are leased,” says report author, Craig Foster. “As a result, there is strong interest in being able to locate vehicles in the event that lease payments are missed. Because of this, TSPs are able to sell based on the security aspect, but also have upgrades to more sophisticated services ready and available,” continued Foster.
However, selling advanced solutions can be challenging as it’s common for fleet managers to choose the lowest priced solution and this favors domestic firms offering basic, but aggressively-priced solutions. More expensive Western brands can struggle to gain traction and this is compounded by restrictive licensing regulations. That said, it is expected that as familiarity with applying data analytics to improve efficiency grows, we will soon see a shift from basic to more advanced solutions. Furthermore, regulations currently mandate that public city buses and taxis be fitted with tracking devices, as well as vehicles carrying hazardous goods in some regions. Further mandates are likely to be announced in the next 1-2 years and thus boost the overall market for commercial telematics solutions in China, which is good news for current incumbents such as Trimble and Navman Wireless.
This report looks at the drivers and inhibitors of growth in the emerging Chinese market for commercial telematics. Mandates, licenses, and road infrastructure constraints are reviewed, alongside a discussion of those players poised to tap into this market’s huge potential. It is part of ABI Research’s Commercial Vehicle Telematics Research Service.
ABI Research provides in-depth analysis and quantitative forecasting of trends in global connectivity and other emerging technologies. From offices in North America, Europe and Asia, ABI Research’s worldwide team of experts advises thousands of decision makers through 70+ research and advisory services. Est. 1990. For more information visit www.abiresearch.com, or call +1.516.624.2500.
About ABI Research
ABI Research provides strategic guidance to visionaries, delivering actionable intelligence on the transformative technologies that are dramatically reshaping industries, economies, and workforces across the world. ABI Research's global team of analysts publish groundbreaking studies often years ahead of other technology advisory firms, empowering our clients to stay ahead of their markets and their competitors.
ABI Research提供开创性的研究和战略指导，帮助客户了解日新月异的技术。 自1990年以来，我们已与全球数百个领先的技术品牌，尖端公司，具有远见的政府机构以及创新的贸易团体建立了合作关系。 我们帮助客户创造真实的业务成果。
For more information about ABI Research's services, contact us at +1.516.624.2500 in the Americas, +44.203.326.0140 in Europe, +65.6592.0290 in Asia-Pacific or visit www.abiresearch.com.
Asia: +65 6950.5670