Although emissions from new vehicles have decreased by 13 percent in the last decade, old cars continue to be heavy polluters.
Now, according to analyst firm Frost & Sullivan, green telematics is an effective and efficient strategy that not only focuses on new cars and vehicle technology, but also encompasses the overall reduction of CO2 emission from all vehicles.
Fleet companies and consumers alike are increasingly warming to the service since a fuel cost reduction of 10 per cent and an equal measure of CO2 reduction are possible through green telematics services offered as a dedicated product or an add-on service.
New analysis from Frost & Sullivan, Strategic Analysis of European and North American Green Telematics Market for Passenger and Commercial Vehicles, finds that the European and North American fleet green telematics market will likely increase from $80 million in 2008 to $700 million by 2015. The market is growing at a compound annual growth rate (CAGR) of 36 percent from 2008 to 2015, primarily thanks to growing pressure on fleet companies to reduce their carbon footprint and develop a greener image.
"The desire for greater return-on-investments (ROI) benefits given fluctuating oil prices is a critical driving factor for green telematics in the commercial fleet sector," says Frost & Sullivan Research Analyst Karthik Elamvaluthi. "Additionally, the high cost of implementing alternative means of emissions reduction and garnering a greener image also boost this market."
Green telematics packages, such as vehicle and driver management services, provide complete data for driving behaviour and fuel consumption analysis for commercial vehicles. Optimising these parameters ensures green fleet operation. Real-time navigation alerts also help reduce unwanted mileage. As commercial fleets grow increasingly concerned about the impact of ROI while striving to improve their green image, both these elements are critical drivers.
However, the economic slowdown is forcing fleet companies and individuals to rethink their priorities and investments. Moreover, public awareness on the availability of green telematics systems and services remains limited. "Although a few fleet companies and private car buyers are aware of the benefits of green telematics services, the majority are affected by the economic crisis and are still weighing their priorities, further constraining the growth of this market," explains Elamvaluthi.
While awareness among consumers and fleet operators of the benefits of green telematics has increased, it has yet to reach levels necessary to facilitate wider adoption. The business community should proactively work to enhance interest in this market. "Navigation manufacturers, insurance companies, telematics vendors and fleet companies should strive to raise awareness about green telematics systems," concludes Elamvaluthi. "They should focus on it being a cost effective and fuel-efficient method to decrease emissions."
Sierra, http://www.etclab.com around 2 years ago