Govt-sector fleet telematics to generate sales of $1.26 billion in 2018: ABI Research

Commercial fleet telematics in the government sector is set to generate $1.26 billion in 2018, up from just $618 million last year, according to a new study from ABI Research.

The market-research company says growth will be driven by pressure on government and public sector agencies to reduce costs but maintain service levels.

As a result, organizations are exploring ways of improving utilization of vehicle fleets and ensuring they comply with new regulation and environmental legislation.

Commercial fleet telematics in the government sector is set to generate $1.26 billion in 2018, up from just $618 million last year, according to a new study from ABI Research.

The market-research company says growth will be driven by pressure on government and public sector agencies to reduce costs but maintain service levels.

As a result, organizations are exploring ways of improving utilization of vehicle fleets and ensuring they comply with new regulation and environmental legislation.

“The main market drivers behind the adoption of telematics in government fleets are government mandates designed, for example, to lower fuel consumption and gas emissions or to promote the use of alternative fuel vehicles,” said Gareth Owen, a principal analyst at ABI Research.

According to ABI Research, US authorities are promoting usage of telematics in federal vehicles by simplifying the purchasing process – federal agencies can ‘add’ appropriate telematics solutions to vehicles leased from GSA Fleet (the vehicle leasing arm of the federal government) and add the cost of the telematics to their monthly leasing plan.

Providers that have qualified to offer services in this way include NetworkFleet (San Diego, CA, USA), Trimble (Sunnyvale, CA, USA) and Drivecam (San Diego, CA, USA).

There are similar purchasing initiatives at state and local levels, notes ABI Research.

“Although there are no plans to mandate telematics adoption at the federal level yet, there are a number of initiatives underway to mandate the use of telematics at state government levels,” said Owen.

State departments, however, usually have more sophisticated requirements because they operate specialized vehicles like snow ploughs and refuse trucks, where there is a need to demonstrate that certain operations were carried out satisfactorily.

Consequently, telematics is becoming increasingly effective at improving service levels and productivity.

Providers that have developed specialized applications to meet such requirements include Teletrac (Garden Grove, CA, USA) and Sprint (Overland Park, KS, USA) (with partner Geotab (Oakville, Canada)) in the United States, and Masternaut (Aberford, UK) and Digicore (Centurion, South Africa) (via its Ctrack brand) in Europe, says ABI Research.