Shaky State Of Personal Telematics Will Prompt Many Players To Turn Towards Commercial Market, According To ABI

    OYSTER BAY, New York--July 9, 2002--Uncertainty over the U.S. personal telematics industry was only compounded when Ford Motor Company recently closed down its telematics venture, Wingcast. Wingcast's sudden withdrawal from the market has left many doubting the viability of the overall personal telematics industry. This is further reinforced by the fact that many automakers are still without a telematics strategy.
    As a result of the confusion over personal telematics, Allied Business Intelligence Inc (ABI) predicts several players will look to enter the commercial telematics market. Also known as Fleet Management Systems (FMS), the commercial telematics market is the focus of a new report from ABI.
    "Although the FMS market is going through a period of restructuring and consolidation, there will be a ready-made market available for personal telematics players with proven distribution channels, and market specialization," claims Frank Viquez, senior analyst and report author.
    There are over 200 FMS vendors in the US alone and a total addressable market of 20 million vehicles, including taxi fleets, leased fleets, heavy trucks and equipment, transit fleets, corporate fleets, and emergency vehicles. However, new players entering the FMS market will face considerable challenges, including competing with well-established players, and providing a value-added product that will significantly stand apart from other offerings.
    While ultimately not as copious as the personal telematics market, the FMS market promises to be bountiful. According to the report's findings, the global market for FMS will grow from under $2 billion in 2001 to nearly $6 billion in 2007.
    The new report, "Fleet Management Systems: A Global Analysis of Telematics Opportunities, Technologies, and Trends In Commercial Vehicle Operations" explores the status and potential for commercial telematics. It details the associated vertical markets, and examines emerging, market-driving applications and technologies. The report also provides projections for FMS equipment segmented on a geographic basis, and an analysis of key market participants.
    Allied Business Intelligence Inc. is an Oyster Bay-based technology research think tank and consultancy, offering expert advice and research on wireless, broadband, and emerging technologies. Details can be found at www.alliedworld.com or by calling 516/624-3113.