A lot has happened in the fleet telematics market the past year that could impact utility fleet operations. Major telecom firms have expanded their footprint in the fleet sector with Verizon’s acquisitions of Telogis and Fleetmatics, while AT&T has established key partnerships to provide branded telematics services such as AT&T Fleet Complete and AT&T Fleet Manager. And more and more telematics providers have inked deals with automakers in recent months.
So, what’s driving these trends? And how might they shape the future of telematics and connected fleets?
UFP spoke with experts from C.J. Driscoll & Associates, GPS Insight, Telogis and Element Fleet Management to get their market outlook.
Why are major telecom firms expanding into the fleet telematics industry? Will this trend continue?
“With landline subscriber bases shrinking and the mobile phone market saturated with declining marginal value, the connected vehicle offers a new market opportunity that allows the telecom companies to capitalize on the need for the vehicle to communicate to the OEM, driver, surrounding infrastructure and other third-party services through cellular networks,” said Kimberly Clark, telematics product leader for Element Fleet Management (www.elementfleet.com). “It also allows them to expand and sell additional products, including in-car applications and infotainment solutions, as this technology becomes mainstream within new vehicles.”
Clark said that telecom expansion into the fleet market will continue for the foreseeable future and “benefit utility fleets through new innovation possibilities, increased pressure on direct OEM connectivity solutions and lower communication costs as part of their service offering over time.”