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New Automotive Research: The Use of Telematics in Road Freight Transport Companies

Last month we published the results of our research which showed that take up to date of these systems has been slow, but is likely to grow rapidly especially among the larger fleets.

We have just completed similar research speaking to 205 road freight transport companies and here are the headline results.

Freight Transport Companies More Likely To Use Telematics Systems

Not surprisingly, road freight transport companies are far more likely to use telematics systems. 35% of these companies say they are currently using telematics (compared with 15% for passenger vehicle fleets) and a further 6% plan to introduce telematics in the next year.  Usage is widespread among larger fleets – 85% of those with more than 25 trucks are using a telematics system.

Usage of Fleet Telematics 

62% of the trucks covered by our research are in organisations that use a fleet telematics system.

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Majority Who Have Telematics Systems Use Vehicle Tracking

The vast majority (92%) of companies who have telematics installed in their fleet are using vehicle tracking features. Features associated with compliance, such as monitoring fatigue, are less commonly used. It would seem the potential benefits of telematics systems are not fully realised by road freight transport companies.

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Fleet Size Major Factor For Not Using Telematics Systems

The most commonly cited reason for not using a telematics system is fleet size, with many smaller operators also saying the cost of the equipment outweighs the benefits relative to their fleet size.

Screen Shot 2014 01 22 at 10.08.37 AMTelematics Systems Landscape is Highly Fragmented 

The telematics provider landscape is also fragmented. While MTData and Navman are the two market leaders, a further 19 brands were mentioned in our study.

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There are undoubted growth opportunities for telematics providers in the Australian road freight transport industry. Growth drivers will include further innovations by telematics providers, OEM developed systems, and policy initiatives such as The National Transport Commission’s Compliance Framework for Heavy Vehicle Telematics.

ACA Research is planning a more detailed study into the use of telematics systems across vehicle fleets. We would like to know what you would like to get out of this study, so please click here to have your say.

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