Trailer Telematics Perceived As A Catalyst For Fleet Optimization


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This presentation offers information on trailer telematics, including evolution of trailer telematics, product life cycle, key market trends, product and service package, technology road maps, and benefits.

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Trailer Telematics Perceived As A Catalyst For Fleet Optimization

  1. 1. Trailer Telematics: Perceived as a Catalyst for Fleet Optimization Niranjan Manohar, Senior Research Analyst Automotive & Transportation August 2011
  2. 2. Today’s Presenter: Niranjan Manohar Functional Expertise More than 4 years of work expertise, which includes 2+ years of market research and consulting experience. Particular expertise in: - Time to market planning and growth strategy formulation – Strategic recommendations in advanced automotive technologies market - Market analysis and business opportunity assessment; benchmarking - Product portfolio review, Due diligence - Analyzing best practices executed by different companies in terms of product differentiation, business development, market leadership, customer service and green initiatives Industry Expertise Experience in strong negotiations and leveraging long-standing working relationships with senior executives in the - Automotive Advanced Driver Assistance Systems - Electric Vehicles - Automotive Insurance (Usage Based) Research Analyst What I bring to the Team Advanced Automotive Market research and consulting for the automotive market Technologies Self-motivated to achieve peak performance, maintain top quality standards and meet aggressive research objectives Frost & Sullivan Multi-tasking talents in team supervision, scientific collaboration, large-scale presentations, need analysis, organization and attention to detail in time-sensitive situations. North America Experience in system architectures pertaining to software and communication systems Chennai, India Career Highlights Before Frost & Sullivan, experience in Design, Development & Testing of web based application using Java framework technologies. Defining process for software configuration management (SCM) & Quality Testing functionalities at POLARIS Software Labs Ltd: Education MSc Computer Control Automation, Nanyang Technological University , Singapore B.E (Electronics & Communication Engineering) University of Madras, Chennai, India 2
  3. 3. AgendaSection Evolution of Trailer Telematics Product Life Cycle Analysis Market Snapshot Key Market Trends Trailer Telematics Product and Service Package Trailer Telematics Technology Roadmap Market Participants and Packages Offered Trailer Telematics Benefits Profile Snapshot Key Conclusions Appendix 3
  4. 4. Evolution of Trailer Telematics Back office automation for data analytics Controlling trailer operating and downtime cost Untethered trailer tracking Enhanced visibility for trailer and cargo Future Of Trailer Seamless data transmission Current cellular and satellite technology Telematics Optimized trailer inventory pools and reduced yard checks Advanced power management capability for tracking devices Excessive data, too little information Manual data transfer and updates Trailer Telematics Operational Difficulty in monitoring trailer idle time Past Efficiencies Route Trailer Lack of visibility on assets Efficiency Optimization Asset Tracking Poor trip scheduling and Management High cost of devices 4
  5. 5. Product Life Cycle Analysis of Key Trailer Telematics Services Trailer Telematics Market: Product Life Cycle Analysis, 2010-2017 Introduction Growth Maturity Trailer Tracking RFID Tagging Time Critical Information Management Security Services Integrated Tractor-Trailer Telematics Cargo/ Temperature Sensing Source: Frost & Sullivan 5
  6. 6. Market Snapshot of European and North AmericanTrailer Telematics MarketClear signs of development, as vast majority of trailer population is not penetrated Trailer Telematics Market : Trailer Telematics Subscriber Penetration (Europe), 2010 & 2017 3.5 European Trailer VIO (Millions) 3.0 European Trailer 2.5 Addressable Market 2.0 1.5 Implications 1.0 0.5 CAGR ~ 27.6% 0.0 2010 2017 Note: All figures are rounded; the base year is 2010. Source: Frost & Sullivan Trailer Telematics Market : Trailer Telematics Subscriber Penetration (North America ), 2010 & 2017 7.5 7.0 6.5 North American Trailer North American Trailer 6.0 Population (Millions) 5.5 Population 5.0 4.5 Implications 4.0 3.5 3.0 2.5 2.0 1.5 1.0 CAGR ~ 8.8% 0.5 0.0 Note: All figures are rounded; the base year is 2010 2017 2010. Source: Frost & Sullivan 6
  7. 7. Key Market Trends Customer satisfaction levels have improved with current trailer telematics solutions ensuring repeat business Trailer Telematics Market: Market Trends (North America and Europe), 2010 Market Trends – North America Market Trends – EuropePrice-sensitiveness of the market is ensuring a Need for effective mobile asset monitoring andfuture where price declines in both hardware and associated tangible benefits help increaseservices market. Analysis adoption of trailer security applicationsFood Modernization Act and the indirect influence Driven by the need to enhance supply chain andof CSA 2010 are expected to help accelerate logistics efficiencies, telematics vendorstelematics adoption in trailers. conditions are facilitating the adoptionSystem-level integration of disparate security and Efficient battery management technologies willdiagnostics functions are enabling hardware help mitigate power generation issues to offer ansynergies and facilitating prognostics through uninterrupted flow of critical datatelematics.Improving sensor technologies lead to sensorfusion, improvement, and expansion in data Trailer telematics needs to be bundled as broadercollection methods, enriching telematics content service offering.and applications. Trailer Telematics Source: Frost & Sullivan Low High 7
  8. 8. Trailer Telematics Product and Service Package Extensive options for fleets and leasing channelsTrailer Telematics Market: Percent Split among Hardware, Servic Trailer Telematics Market: Product and Service Range e and Installation (North America and Europe ), 2010 (North America and Europe) 2010 100% Installation 80%Percentage Spilt 60% High End Service Trailer Telematics 40% Service cost Hardware Hardware cost 20% 0% Level Of Services Mid Level Trailer Hardware Service Installation Offered Telematics Service cost 100% Installation Hardware cost 80% Percentage Spilt Service 60% Entry Level Trailer 40% Telematics Hardware Service cost 20% Hardware cost 0% Hardware Service Installation Source: Frost & Sullivan. 8
  9. 9. Trailer Telematics Technology RoadmapNear and Long-term focus on asset optimization Trailer Telematics Market: Trailer Telematics Technology Roadmap (Europe), 2000-2017 2000 2010 2013 2015 2017 Network Dual Mode Multi Modal Multi Modal-intelligent to choose the Architecture Single Mode Network by Cost/Data Vertical Integration Virtual Integration with suppliersIndustry Trends Horizontal Integration among logistics partners Indirect TPMS Direct TPMS Direct TPMS with Continuous MonitoringADAS Telematics ABS, ESC, Roll Over Stability, BSD (top and side of trailer) Integrated Truck Trailer Data Analysis Data Channels In-trailer Data Analysis Manual Data Trailer-to-back-office (Real-Time) Transfer (USB) 2G 3G 4G – LTECommunication Satellite Technology Bluetooth, RFID, Wi Fi, DSRC, Wi Max Source: Frost & Sullivan 9
  10. 10. Market Participants and Packages Offered New feature evolutions make available opportunities for fleets to pick the right vendors with right services Trailer Telematics Market: Market Participants and Package Offered (North America and Europe), 2010Market Participants In Market Participants in Low End Mid End High End Low End Mid End High End North America Europe SkyBitz Novacom Europe ID Systems IDEM-Krone Qualcomm Schmitz Cargobull (Cargobull Telematics) Star Trak Cybit / Masternuat PAR LMS Transics TransCore Qualcomm Source: Frost & Sullivan 10
  11. 11. Trailer Telematics BenefitsTelematics is considered as an assurance tool for many fleets to remain profitable Trailer Telematics Market: Benefits (North America and Europe), 2010 Fleet operators enjoy direct benefits as Telematics Vendors telematics helps elevate their profile in a competitive Environment. Fleet Operators Primary Benefits Hardware Suppliers Trailer Telematics Benefits Data Analysis Associated Benefits Successful vendors and suppliers are the ones who mirror fleet operators’ purchasing decision. Source: Frost & Sullivan 11
  12. 12. Profile SnapshotSkyBitz solutions operate over a diversified communications network with 90% of itspackages providing dual mode coverage SKYBITZ GEMINI GLS 400 GEMINI GLS 410 Titan GXS1250 Falcon GXT1000Hardware - $ 420 - $ 440 Hardware - $ 585 - $ 600 Hardware - $ 215 - $ 230 Hardware - $ 420 - $440 Service - $ 10 - $ 12 Service- $ 10 - $ 12 Service- $ 8 - $ 10 Service- $ 12- $15 (2 reports per day) (2 reports per day) (2 reports per day) (2 reports per day) Company Snapshot What can be expected from a SkyBitz solution? Quality and Reliability C.R. England, Inc., Landstar System, 5 Experience Product Major Inc, J.B. Hunt Transport Services, In Market Functionality Customers Inc., Epes Transport System, Inc, Greif, Inc., USA Truck 2.5 Service Wireless Light Squared, Globalstar, Kore International 0 Features Coverage Provider Telematics Importance LevelsMap Provider Maptuit, Google Maps 5 High Customer Product Innovation 1 Low Support Price Competence 12
  13. 13. Key Conclusions Trailer telematics vendors need to focus on effective product/service packaging and pricing to effectively capture fleets. Trailer Telematics facilitates dynamic risk calculation which positively influence users driving behaviour. Key Opportunities for fragmented market participants and for newer Conclusions entrants Trailer Telematics Replacement demand is expected to steadily increase, original demand is set to have a greater raise. Convergence is helping reinvent the automobile by creating shared opportunities and risks across an expanding value chain. Source: Frost & Sullivan 13
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  17. 17. For Additional InformationKatja Feick Cyril CromierCorporate Communications Sales DirectorAutomotive & Transportation Automotive & Transportation Europe+49 (0) 69 7703343 +33 1 42 81 22 cyril.cromier@frost.comPraveen Chandrasekar Franck LevequeProgram Manager Vice President - Growth ConsultingAutomotive & Transpotation Automotive & Transportation Europe+91-44-66814129 +49 (0)69 770 33 21 Bb: +49 (0)151 27 67 08 17