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Green Telematics Seen Lowering Emissions, Improving Fuel Efficiency in Europe and N. America
European and North American fleet green telematics market to increase to $700.0 million by 2015 as fleets seek lower carbon footprint, public pressure weights, according to Frost & Sullivan
Larry Lapide, MIT, research director, Demand Management Solutions Group, talks to Kirsten Watson of Kinaxis about Greening the Supply Chain in a video posted October 30, 2008.
London — January 11, 2010 — The European and North American fleet "green telematics" market will likely increase from $80.0 million in 2008 to $700.0 million by 2015, a compound annual growth rate (CAGR) of 36.0 percent, primarily thanks to growing pressure on fleet companies to reduce their carbon footprint and develop a greener image, according to new analysis from consultancy Frost & Sullivan.
Although emissions from new vehicles have decreased by 13 percent in the last decade, old vehicles continue to be heavy polluters, and the consultancy suggests that a strategy must therefore be framed that not only focuses on new cars and vehicle technology, but also encompasses the overall reduction of CO2 emission from all vehicles.
Green telematics effectively provides a cost-effective and simple solution to this challenge, Frost & Sullivan argues. Fleet companies and consumers alike are increasingly warming to the service since a fuel cost reduction of 10 percent and an equal measure of CO2 reduction are possible through green telematics services offered as a dedicated product or an add-on service, the consultancy said in its report, Strategic Analysis of European and North American Green Telematics Market for Passenger and Commercial Vehicles.
"The desire for greater return-on-investments (ROI) benefits given fluctuating oil prices is a critical driving factor for green telematics in the commercial fleet sector," says Frost & Sullivan Research Analyst Karthik Elamvaluthi. "Additionally, the high cost of implementing alternative means of emissions reduction and garnering a greener image also boost this market."
Green telematics packages, such as vehicle and driver management services, provide complete data for driving behavior and fuel consumption analysis for commercial vehicles. Optimizing these parameters helps ensure greener fleet operation. Real-time navigation alerts also help reduce unwanted mileage. As commercial fleets grow increasingly concerned about the impact of ROI while striving to improve their green image, both these elements are critical drivers, according to Frost & Sullivan.
However, the economic slowdown is forcing fleet companies and individuals to rethink their priorities and investments, the consultancy adds. Moreover, public awareness on the availability of green telematics systems and services remains limited. "Although a few fleet companies and private car buyers are aware of the benefits of green telematics services, the majority are affected by the economic crisis and are still weighing their priorities, further constraining the growth of this market," explains Elamvaluthi.
While awareness among consumers and fleet operators of the benefits of green telematics has increased, it has yet to reach levels necessary to facilitate wider adoption. The business community should proactively work to enhance interest in this market, Frost & Sullivan argues. "Navigation manufacturers, insurance companies, telematics vendors and fleet companies should strive to raise awareness about green telematics systems," concludes Elamvaluthi. "They should focus on it being a cost effective and fuel-efficient method to decrease emissions."
Although emissions from new vehicles have decreased by 13 percent in the last decade, old vehicles continue to be heavy polluters, and the consultancy suggests that a strategy must therefore be framed that not only focuses on new cars and vehicle technology, but also encompasses the overall reduction of CO2 emission from all vehicles.
Green telematics effectively provides a cost-effective and simple solution to this challenge, Frost & Sullivan argues. Fleet companies and consumers alike are increasingly warming to the service since a fuel cost reduction of 10 percent and an equal measure of CO2 reduction are possible through green telematics services offered as a dedicated product or an add-on service, the consultancy said in its report, Strategic Analysis of European and North American Green Telematics Market for Passenger and Commercial Vehicles.
"The desire for greater return-on-investments (ROI) benefits given fluctuating oil prices is a critical driving factor for green telematics in the commercial fleet sector," says Frost & Sullivan Research Analyst Karthik Elamvaluthi. "Additionally, the high cost of implementing alternative means of emissions reduction and garnering a greener image also boost this market."
Green telematics packages, such as vehicle and driver management services, provide complete data for driving behavior and fuel consumption analysis for commercial vehicles. Optimizing these parameters helps ensure greener fleet operation. Real-time navigation alerts also help reduce unwanted mileage. As commercial fleets grow increasingly concerned about the impact of ROI while striving to improve their green image, both these elements are critical drivers, according to Frost & Sullivan.
However, the economic slowdown is forcing fleet companies and individuals to rethink their priorities and investments, the consultancy adds. Moreover, public awareness on the availability of green telematics systems and services remains limited. "Although a few fleet companies and private car buyers are aware of the benefits of green telematics services, the majority are affected by the economic crisis and are still weighing their priorities, further constraining the growth of this market," explains Elamvaluthi.
While awareness among consumers and fleet operators of the benefits of green telematics has increased, it has yet to reach levels necessary to facilitate wider adoption. The business community should proactively work to enhance interest in this market, Frost & Sullivan argues. "Navigation manufacturers, insurance companies, telematics vendors and fleet companies should strive to raise awareness about green telematics systems," concludes Elamvaluthi. "They should focus on it being a cost effective and fuel-efficient method to decrease emissions."
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