Transport solutions: proven efficiency in cost cutting and driver safety

Published by Francisco José Jiménez Bonilla Transport

Machine-to-machine transport solutions are on the rise. Companies that rely on transportation or whose entire business activity implies a fleet of vehicles (such as leasing companies)  are realizing that flexible, easy to implement solutions are key to streamline their value chain, and are looking forward to apply them to their business models.

M2M transport solutions rely on telematics and cover different areas, from connected car safety solutions that automatically signal the position via GPS in case of accident or other critical event to asset tracking and monitoring aimed at reducing fuel costs.

SMART MANAGEMENT AND DRIVER’S SAFETY

Last March, business intelligence firm Frost & Sullivan published their latest Voice of the Fleet Manager survey, which collects the impressions of 100 fleet managers from private and for-hire sectors.

The survey, which was conducted from December 2011 to February 2012 sheds some light into which are the benefits that fleet managers are looking to obtain when they apply technological solutions to their fleets.

When asked what they see as the key benefits of telematics, 55% of the managers answer that it was cutting operating costs, followed by improving safety at 29%. This shows that fleet managers are ready and eager to invest in the technology that not only helps reduce downtime and streamline the supply chain, but also protects their human assets.

As for what the fleet managers were looking for when it comes to implement fleet telematics, geofencing (real-time asset tracking and positioning) was seen as "very likely" the most important feature by 30% of the managers.

Safety and critical event alert systems were also revealed to be very popular, coming with a 77% managers saying that driver’s safety is “very likely” OR “somewhat likely” to be a reason  for to implementing this technology.

The effectiveness of these systems has already been tested successfully, being the responsible of a 20% reduction in the number of accidents among young drivers in the UK. Other studies assure that other type of telematics systems, like vehicle-to-vehicle communications systems would be able to cut collisions by 80%.

For this reason safety systems are not only wanted in businesses: they are also one of the most desired solutions for private car owners. A report by ABI Research assures that connected car solutions are essential for today’s consumers. In fact, after infotainment, safety solutions are the second must-have preference.

GROWTH OF TRANSPORT SOLUTIONS MARKET

Transport solutions, whether they are fleet management solutions, asset tracking systems or safety-oriented telematics are set to be one of the fastest growing markets in the M2M Industry.

This forecasts are supported by many researches elaborated by important business intelligence and consultant companies: according to ABI Research, fleet management and trailer tracking system subscriptions are expected to grow from 13.3 million in 2012 to 30.4 million by 2016.

Berg Insight’s “Fleet management in Europe” study forecasts that there will be 5 million units of fleet management systems active in Europe in 2015.

In the environment created by the recession, efficiency and cost cutting are one of the main drivers of the M2M market, that is why solutions with proven efficiency and cost saving, which is where transport solutions emphasizes the most, are the ones that are expected to grow the most in the near term

Francisco José Jiménez Bonilla
Head of Global M2M Automotive - Transport • Telefónica Digital

Give us your opinion