Specific Benefits of Japanese Commercial Vehicle Telematics to Drive Growth in the Long Term

Specific advantages of CV Telematics as compared to fleet management services (FMS) is likely to drive growth for telematics in the Japanese Commercial Vehicle (CV) market in the long term.

CV Telematics faced considerable initial competition from FMS, which was popular among trucking companies. However, CV Telematics has certain distinct advantages as compared to FMS.

FMS entails a considerable investment in hardware, software and know-how on IT applications. CV Telematics on the other hand can be fitted into any vehicle with a system compatible computer and an Internet connection and thus has a distinct cost advantage over FMS.

New analysis from Frost & Sullivan Japan Commercial Vehicle Telematics Market, reveals that the market earned revenues of $286.4 million in 2005 and estimates to reach $478.8 million in 2012.

If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants with an overview of the Japan Commercial Vehicle Telematics Market, then send an e-mail to Alice Chia, Corporate Communications,with the following information: your full name, company name, title, telephone number, fax number, and e-mail address. Upon receipt of the above information, an overview will be sent to you by e-mail.

"The specific advantages of CV Telematics over FMS, is likely to trigger a considerable shift towards CV Telematics in Japan for the next couple of years," says Frost & Sullivan Industry Manager V. Bhanu Prakash. "The CV systems are likely to find acceptance among the medium-scale fleet operators and transportation companies, which may find the highly-priced FMS uneconomical."

Prakash says that CV Telematics' role in enhancing trucking efficiency will also drive growth in the market. The vehicle diagnostic reports generated by CV Telematics Service Provider (TSP) imparts several specific benefits such as increased vehicle security, lower vehicle maintenance cost, increased fuel efficiency, increased driving safety and improved vehicle productivity.

"These benefits enhance the efficiency of trucking operations by minimizing breakdowns and delays and maximizing fuel efficiency," Prakash adds.

The TSP also provides the trucking companies with detailed vehicle diagnostics on the vehicle mileage fuel consumption and level of gaseous emissions such as carbon dioxide, nitrogen oxide and particulate matter during CV operation.

This information can be used by trucking companies to advise the CV drivers to change driving methods to minimize carbon dioxide emissions, which cause global warming.

"Minimizing environmental impact of CV operations has assumed increased importance with the Japanese government's green environment policy," Prakash says.

Frost & Sullivan expects that the environmental benefits of using CV Telematics to be a high impact driver for CV Telematics growth in Japan in the next few years.

The Japan Commercial Vehicle Telematics Market is part of the Automotive & Transportation Growth Partnership Service, and it provides a detailed analysis of the CV Telematics market in Japan and the future trend and opportunities in the market during 2005 to 2012. It includes both CV Telematics systems and services. The research service discusses the current and future market situations, challenges facing the industry, the market drivers, restraints, key technology, market and legislative trends, revenue estimates and forecasts for CV Telematics systems and services from 2002 to 2012, strategic conclusions and recommendations, and profiles of key market participants. Interviews are available to the press.

Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics and demographics.