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Trends in telematics adoption and compliance management in road freight transport industry

Eager to improve their operational productivity and safety, Australia’s truck fleets are turning to telematics in growing numbers and their adoption of the technology is only set to rise further still as the technology matures, according to our latest vehicle telematics research.

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As we predicted, the percentage of truck fleets adopting telematics (wireless “black box” technologies that transmit and collect data about how a vehicle is operating) grew by 5% in 2014 compared to 2013.

Adoption of the technology is expected to rise by 6% in the next 12 months, as fleet truck operators increasingly rely on it to collect data to help optimise routes, monitor fuel use, log driver hours and track cargoes. 

Big fleet adoption

The report also reveals the stark difference in adoption rates depending on the size and operational footprint of truck fleets with the largest fleets in the country most likely to use the technology. 

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More than three quarters (76%) of companies with fleets of more than 25 trucks use telematics compared to half (49%) of those with between six and 25 trucks, while the rate of adoption among the smallest fleets is even lower.

The most intensively used fleets are also more likely to deploy the technology. The adoption rate is highest (65%) among fleets travelling more than a million kilometres a year and is also more common among fleets travelling interstate rather than those operating on a more local basis.

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ACA’s report offers insights into the telematics equipment supplier market. It shows that the top seven suppliers, Navman, MTData, TomTom, IVMS, Volvo, Ctrack and MiX Telematics, command 65% of the market and suggests that although truck manufacturers (OEMs) do not currently feature as significant market players (with the exception of Volvo), this is expected to change as manufacturers increasingly supply the technology in new trucks. The challenge for mixed fleets that own trucks across several brands is how to integrate the data at the back end across multiple telematics providers.

Significant opportunities

There is significant scope for wider adoption of telematics in Australia, where use of the technology is still growing from a low base compared to other countries and where the potential uses of the technology will only grow.

As more OEMs build the technology as standard into new vehicles and the number of technology players create new and more useful software applications, the value of the data the technology can collect will in turn become more valuable. This value will come from the more sophisticated way data can be mined and analysed enabling operators to optimise their use of vehicles and other assets and so improve productivity and safety.

Comparatively little is known about how telematics users evaluate the different products on offer, how and why they decide to buy or their experiences of using the systems. To study these questions and other drivers of future growth, ACA Research plans to conduct further research to benchmark the productivity gains achieved by organisations that have implemented telematics systems in their vehicle fleets.

Tracking productivity improvements

This future research will encompass both passenger and commercial vehicles across a range of industries and will address topics including:

  • Key productivity gains achieved
  • ROI
  • Choice drivers for telematics adoption (Compliance, Safety, e-logbooks, productivity
  • Features used (GPS, Asset Tracking, Infotainment, Driver Safety)
  • Performance of telematics supplier against key choice drivers
  • The experience of implementing a telematics system and integration with back office fleet systems
  • Pain points experienced
  • Appeal of enhanced features (e.g. fuel card integration) 

The results of this syndicated research study will be available to multiple client companies who subscribe. For further details about scope, pricing and timing please call 02 9927 3333 and speak to Steve Nuttall and James Organ.

To order a copy of the full report Telematics Adoption And Compliance Management in the Road Freight Transport Industry with all its findings, priced $495 click the button below to register your details.

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Topics: Automotive Research