Automatic Vehicle Location Revenues to Double by 2004, Says The Strategis Group
23 August 2000
Automatic Vehicle Location Revenues to Double by 2004, Says The Strategis Group
Private Fleets to Drive Emerging Wireless Data Industry Segment;
Annual Revenues Expected to Climb to $1 Billion
WASHINGTON, Aug. 23 Annual Automatic Vehicle Location
(AVL) revenues for commercial vehicle fleets are projected to grow from $500
million in 1999 to $1 billion by year-end 2004, according to a recent study
from The Strategis Group. Growing adoption rates among private fleets will
allow the Automatic Vehicle Location (AVL) industry to continue its steady
growth. In past years, it has been the for-hire trucking industry that has
pushed the commercial AVL market through its infant stages.
Total Annual Commercial AVL Revenues, 1999-2004
Commercial Fleets Equipment
and Service Revenue (millions)
1999 $484
2000 $631
2001 $684
2002 $733
2003 $835
2004 $999
Source: The Strategis Group, Inc.
AVL services generally entail an in-vehicle terminal equipped with a GPS
receiver that can determine the position of the vehicle, and a wireless
transceiver that can transmit the vehicle's location and other status updates
to the dispatcher. The dispatcher uses a computer to monitor the vehicle's
position, and to transmit assignments to the driver. Drivers receive the
messages on a terminal in the vehicle that allows them to respond to the
dispatcher. AVL service providers include Qualcomm, Motient, @Track, Trimble,
Teletrac and @Road.
"While we have seen significant penetration rates in the long haul
for-hire trucking industry, AVL penetration among private fleets operating on
a more localized range is almost non-existent," said Elliott Hamilton, Senior
Vice President with The Strategis Group. Private fleets include vehicles in
industries such as construction, manufacturing, wholesale/retail and
service/utilities.
"The potential AVL market for private fleets is huge, and the demand is
out there," said Jeffrey Chang, an analyst with The Strategis Group. "It's
now a matter of AVL providers bringing price points down to optimal levels,
and getting private fleet managers to believe in the product."
A conference call discussing the findings of the report will be held on
Wednesday, September 6, 2000 at 2:00 p.m. (EDT). To participate in the
conference call, please contact Tara Gatling at 202-530-7556 or
tgatling@StrategisGroup.com.
The Strategis Group -- with offices in Washington, D.C., London and
Singapore -- publishes in-depth industry research reports, provides customized
consulting services and supplies continuous information solutions to the cable
TV, satellite, Internet, competitive telephony, broadband and wireless
communications industries. AVL and Fleet Communications Marketplace is
available in electronic and print formats. Please contact an account
executive at 202-530-7500 (voice), 202-293-7933 (fax) or
sales@StrategisGroup.com (email) for more sales information.