New vendors entering market as costs fall and solutions become more robust, ABI reports; GE scores big win with Wal-Mart
Oyster Bay, NY July 3, 2006 Markets for electronic trailer tracking hardware and services are booming as costs have fallen, solutions have become more robust and customer awareness has risen, according to a new study from ABI Research.
Worldwide subscriber numbers are set for strong, prolonged growth well through the end of the decade, and in North America, the percentage of trailers tracked will more than triple, ABI predicted. The research firm said that worldwide subscriber numbers have almost doubled since the previous year.
According to analyst Steve Bae, several factors have converged to produce this strong growth: "Trailer tracking hardware costs have fallen significantly, while products and services have become more sophisticated. Customers are more aware of the technologies, and many see electronic tracking as an efficient solution to maximize productivity of trailers and resources."
This rapid expansion is seeing many new vendors enter the market, and some players chalking up big wins. A good example is GE, which recently acquired Wal-Mart as a trailer tracking customer. The retailer placed an order for 46,000 units. When the fit-out is complete by the end of this year, GE will have more than doubled its market share, putting it on a nearly equal footing with other leading vendors such as Qualcomm, SkyBitz and Terion.
As in any fast-growing market with new vendors, consolidation can be expected, and not all will survive, according to ABI.
There are two parts to the trailer tracking equation: hardware and services. Most of the market value is in the ongoing provision of services, and these can range from basic tracking of a trailer's location and status, to multiple sensor connections, integration and monitoring of parameters such as the temperature of refrigerated trailers. "By the end of this decade," says Bae, "trailer tracking stands to be integrated with other commercial telematics solutions."
ABI Research's study, "Trailer Tracking Markets", examines how trailer tracking is being adopted by the telematics industry and how it will merge with other technologies.
Additional Articles of Interest
What are the skill sets that will catapult your supply management group to its peak performance? For a guide to help unlock their potential, read "Building a Better Supply Chain Professional" in the April/May 2006 issue of Supply & Demand Chain Executive.
What do CEOs want from their supply chains, and is Supply Chain delivering? Read more in "The Supply Chain Disconnect," the Executive Memo column in the April/May 2006 issue of Supply & Demand Chain Executive.
Oyster Bay, NY July 3, 2006 Markets for electronic trailer tracking hardware and services are booming as costs have fallen, solutions have become more robust and customer awareness has risen, according to a new study from ABI Research.
Worldwide subscriber numbers are set for strong, prolonged growth well through the end of the decade, and in North America, the percentage of trailers tracked will more than triple, ABI predicted. The research firm said that worldwide subscriber numbers have almost doubled since the previous year.
According to analyst Steve Bae, several factors have converged to produce this strong growth: "Trailer tracking hardware costs have fallen significantly, while products and services have become more sophisticated. Customers are more aware of the technologies, and many see electronic tracking as an efficient solution to maximize productivity of trailers and resources."
This rapid expansion is seeing many new vendors enter the market, and some players chalking up big wins. A good example is GE, which recently acquired Wal-Mart as a trailer tracking customer. The retailer placed an order for 46,000 units. When the fit-out is complete by the end of this year, GE will have more than doubled its market share, putting it on a nearly equal footing with other leading vendors such as Qualcomm, SkyBitz and Terion.
As in any fast-growing market with new vendors, consolidation can be expected, and not all will survive, according to ABI.
There are two parts to the trailer tracking equation: hardware and services. Most of the market value is in the ongoing provision of services, and these can range from basic tracking of a trailer's location and status, to multiple sensor connections, integration and monitoring of parameters such as the temperature of refrigerated trailers. "By the end of this decade," says Bae, "trailer tracking stands to be integrated with other commercial telematics solutions."
ABI Research's study, "Trailer Tracking Markets", examines how trailer tracking is being adopted by the telematics industry and how it will merge with other technologies.
Additional Articles of Interest
What are the skill sets that will catapult your supply management group to its peak performance? For a guide to help unlock their potential, read "Building a Better Supply Chain Professional" in the April/May 2006 issue of Supply & Demand Chain Executive.
What do CEOs want from their supply chains, and is Supply Chain delivering? Read more in "The Supply Chain Disconnect," the Executive Memo column in the April/May 2006 issue of Supply & Demand Chain Executive.
- More research from ABI Research.
