News | August 21, 2008

Business Benefits Drive Fleet Management Systems Growth, According To ABI Research

NEW YORK --(Business Wire)-- The first GPS-based fleet management systems focused primarily on asset location and tracking. The basic application was adopted initially by large companies hauling high-value cargo in industrialized countries. Recently, similar companies in emerging markets in Africa, Eastern Europe, and Latin America have begun to see the importance of such capabilities. But newer, more capable systems can provide information of much wider utility to the enterprise.

"As new features have been developed for fleet management systems, the focus has moved from simply providing data for fleet managers to the addition of summary reports for senior management," says ABI Research principal analyst David Alexander. "For example driver performance monitoring, electronic documentation, and engine monitoring all add value to the basic systems. As new features such as these have been added, the benefits support more aspects of running a business."

The availability of concise business information is likely to interest C-level executives, and over time it will begin to reverse the buying process from bottom-up to top-down. The new capabilities allow, for instance, a large company to compare the performance of its local fleets, identify and spread "best practices," and reallocate resources.

Already, companies that have implemented fleet management systems are reducing fuel consumption via optimized routing and monitoring of both vehicles and drivers. Better feedback for drivers can also help reduce accidents, reducing repair costs, lowering insurance premiums, and even leading to new or improved business relationships.

"New fleet management systems now coming onto the market are linking into CRM (customer relationship management) and supply chain management software solutions," adds Alexander. "This integration will help improve efficiency right across the corporation, not just in the operation of the fleet vehicles."

ABI Research's "Fleet Management Systems" (http://www.abiresearch.com/products/market_research /Fleet_Management_Systems) report examines the main applications and how they are relevant to the commercial fleet market. The latest business and market drivers and barriers are discussed, and forecasts of subscriber volume, market value, and market penetration provided for North America, Latin America, Asia-Pacific, Western Europe, Eastern Europe, and Africa/Middle East. This report is part of two ABI Research Services, Commercial Telematics (http://www.abiresearch.com/products/service/ Commercial_Telematics_Research_Service) and M2M (http://www.abiresearch.com/products/service/M2M_Research_Service).

ABI Research is a leading market research firm focused on the impact of emerging technologies on global consumer and business markets. Utilizing a unique blend of market intelligence, primary research, and expert assessment from its worldwide team of industry analysts, ABI Research assists hundreds of clients each year with their strategic growth initiatives. For information, visit http://www.abiresearch.com, or call +1.516.624.2500.