| Overview
C.J. Driscoll & Associates has released
a comprehensive new study on the U.S. market for automatic
vehicle location (AVL) systems for fleet vehicles. This
study assesses the size of the fleet market, current
AVL penetration levels and prospects for growth. The
report analyzes the potential impact of broadband wireless
data networks, GPS-equipped phones and Homeland Security
initiatives on the U.S. fleet AVL market. Prospects
for emerging markets, such as trailer monitoring and
asset tracking, are closely examined. Detailed
information is provided on over 80 U.S. and Canadian
suppliers of fleet vehicle location systems and services,
including current installed base and system pricing.
The study was directed by Clement J.
Driscoll, a noted industry analyst and partner in Driscoll-Wolfe
Marketing & Research Consulting. The research is
based on both primary and secondary methodologies, including
over 70 interviews of executives of leading AVL suppliers
and wireless network operators servicing the AVL industry.
The 179-page report provides current
statistical data on the overall size of the U.S. fleet
market and major fleet categories, obtained from a wide
range of government and industry sources. Use of vehicle
location in individual fleet segments is assessed. Current
and projected market trends are analyzed, including
factors that will impact market growth in the future.
The study examines AVL market growth
over the past several years and projects growth through
2006. It also assesses new wireless networks used for
AVL and the impact of carrier plans to phase out service
on other networks. In addition, the study reports the
specific fleet segments targeted by major AVL suppliers,
as well as their current installed base and pricing.
Study Provides Answers to Key
Questions
The following are among the questions
answered by this study:
- How
large is the potential fleet AVL market and
each of the major fleet categories?
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- Who
are the largest government and commercial fleet
operators? How large are their fleets?
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- Which
fleet market segments are using AVL extensively?
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- At
what rate has the U.S. AVL market grown in the
last several years? At what rate will the market
grow in the future?
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- What
are the principal factors impacting AVL market
growth?
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- What
Homeland Security initiatives have government
agencies and commercial organizations undertaken
that may impact demand for vehicle location
systems?
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- What
are the emerging AVL-related applications?
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- Which
are the principal wireless communication networks
used for AVL? Which new wireless networks are
emerging and which are being phased out?
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- What
is each wireless network’s estimated share
of the AVL market?
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- Who
are the principal suppliers of AVL equipment
and service for each major market segment?
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What
fleet categories and applications do they target? |
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Which
suppliers provide both AVL systems and services?
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Which
suppliers provide web-based tracking? |
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What
wireless communication networks do they support? |
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Approximately
how many units has each supplier installed? |
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What
is the approximate price of their system and services? |
The report includes numerous charts
and summary tables to facilitate review.
Study Highlights
The following are among the key findings
of the study:
- Over
one million U.S. fleet vehicles are currently
equipped with GPS-based vehicle location systems.
These systems are most extensively used in the
long haul trucking and public transit segments,
in which 30% - 50% of fleet vehicles are equipped
with AVL systems.
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- The
number of local commercial fleet vehicles equipped
with AVL has more than doubled over the past
three years due to the decline in AVL equipment
prices, increased availability of reliable wireless
communication networks with broad coverage,
new entrants into the AVL market with strong
products and distribution and other factors.
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- With
an estimated 150 - 200 suppliers of AVL systems,
hardware components and software in the U.S.
and Canada, the AVL industry is highly fragmented.
It is likely that industry consolidation will
occur among companies with complementary products
and capabilities.
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- The
range of available AVL system configurations
has grown from basic, low cost tracking systems
to integrated fleet management systems, in which
AVL is simply a component. In the future, the
increased use of GPS-equipped cellular phones
will reduce opportunities for AVL equipment
sales, while increasing the need for fleet monitoring
and reporting services.
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- Distribution
is a key to success in the AVL market, but is
a problem area for many suppliers. Most AVL
companies selling to the fleet market are faced
with the trade-off of hiring a large sales force
or depending on distributors and resellers,
which have often proven ineffective. Establishing
effective nationwide distribution, while keeping
distribution costs in line, is the greatest
challenge facing many AVL companies.
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Detailed Report
The 179-page report of the research
findings includes the following:
- Overview
of the study, including objectives and methodology
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- Market
status, trends and issues
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- Homeland
Security initiatives
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- Projected
AVL market growth through 2006
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- Description
of terrestrial and satellite networks used for
AVL, along with the estimated AVL subscriber
base for each wireless network
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- Market
size statistics for approximately 25 fleet categories
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- Principal
trade associations and publications for each
major fleet segment
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- Fleet
AVL suppliers section (over 100 pages)
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- Fleet
AVL suppliers to the Truckload and Private Fleet
Markets
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- Trailer
Monitoring System Suppliers
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- AVL
Suppliers to Public Transit Fleets
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- AVL
Suppliers to Public Safety Fleets
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- Suppliers
of AVL Equipment and Service for Local Fleets
(more than 10,000 units in service)
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- Suppliers
of AVL Equipment and Service for Local Fleets
(fewer than 10,000 units in service)
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- Suppliers
of AVL Systems for Local Fleets (not service
providers)
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- AVL
Suppliers for Government or Military Applications
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- Asset
Tracking System/Service Providers
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- AVL
In-Vehicle Equipment Suppliers
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Subscribers receive a paper (bound)
copy of the report as well as an electronic copy of
the report on CD.
C.J. Driscoll & Associates
and Driscoll-Wolfe
C.J. Driscoll & Associates, founded
in 1993, provides marketing consulting services in fleet
vehicle location, navigation systems, consumer telematics
and other location-based applications. Consulting services
include business plan and strategic development, due
diligence assessments, market studies, public relations
support and competitive assessments. Clients include
wireless carriers, automotive companies, electronics
manufacturers, software companies and other technology
providers.
C.J. Driscoll & Associates affiliate,
Driscoll-Wolfe Marketing & Research Consulting,
conducts custom and multi-client marketing research
studies in fleet vehicle location, consumer telematics
and related fields. Driscoll-Wolfe has conducted five
multi-client studies on U.S. consumer interest in location-based
services, which have been sponsored by companies such
as AT&T Wireless, ATX Technologies, BMW, General
Motors OnStar, LoJack, Microsoft, Motorola, QUALCOMM,
Sprint PCS, Toyota and others. Recent Driscoll-Wolfe
studies include the Survey of Telematics System Owners
and Users, which provides projectable data on interest
of GM OnStar and Mercedes TeleAid system owners in telematic
services, and the 2002 Wireless Location-Based Services
Study, which provides in-depth data on U.S. consumer
interest on telematics and other location-based services.
Author of the Study
Clement Driscoll is a principal in C.J.
Driscoll & Associates and a senior partner in Driscoll-Wolfe
Marketing & Research Consulting. He has over twenty
years of experience in the fields of wireless location,
navigation, and telematics. Mr. Driscoll directed the
marketing of Teletrac’s fleet vehicle location
service and Magnavox’s line of GPS navigation
and satellite communication products. In 1994, as an
industry consultant, he authored the Survey of Location
Systems to Support Mobile 911, which was sponsored by
the State of California and APCO and used by the FCC
as a basis for the wireless E911 rulemaking (Docket
94-102). He also served as industry consultant on telematics
to the Automobile Association of America.
Clem Driscoll is a graduate of the University
of Notre Dame and has a Masters Degree in Business Administration
from St. John’s University. He is a member of
the Editorial Advisory Board of GPS World magazine and
serves on Advisory Boards of leading industry suppliers.
He has written numerous articles on location-based technologies
and applications for leading industry publications including
GPS World, RCR, Automotive Fleet, Auto Rental News and
9-1-1 Magazine.
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