Frost & Sullivan, Growth Partnership Company partnering with Global 1000 companies, emerging businesses and the investment community from 40 offices on six continents predicted that the European and North American green GPS tracking systems market will likely increase to $700 million by 2015. The green fleet telematics market is growing at a compound annual growth rate of 36 percent, primarily thanks to growing pressure on fleet managers to reduce their carbon footprint and develop sustainability as part of its corporate 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,” said Karthik Elamvaluthi, a Frost & Sullivan Research Analyst. “Additionally, the high cost of implementing alternative means of emissions reduction and garnering a greener image also boost this market.”
Green telematics services, such as vehicle and driver behavior management services, provide data for driving behavior and fuel consumption analysis for commercial vehicles. Optimizing 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.
The report noted that fleet companies and consumers are both increasingly warming up to the service since “a fuel cost reduction of 10% and an equal measure of CO2 reduction are possible through green telematics services” offered. It continued by stating that companies should choose green GPS tracking systems because it is a “cost effective and fuel-efficient method to decrease emissions.”
Green GPS tracking systems help fleets identify and deliver environmentally sustainable benefits in a wide variety of areas:
- Driver behavior – Nearly every “green-related” driver action can be tracked, including fuel consumption, speed, “jackrabbit” stops and starts, mileage, excessive idling, etc.
- Vehicle/engine diagnostics – In-unit devices monitor vehicle performance and status, electronically alerting fleet managers of problems that can lead to reduced fuel efficiencies or greater emissions levels. Diagnostic codes can be analyzed to help identify greener-running vehicles in terms of actual mileage and maintenance issues to improve future vehicle selection.
- Vehicle maintenance – A properly maintained vehicle helps ensure fuel-efficient operation. Fleet manager alerts, based on vehicle engine and component status, monitor compliance with fleet preventive maintenance policies.
- Route optimization. Telematics mapping features plot the most efficient route from one stop to another, to reduce fuel-consuming mileage.
- Vehicle location – Real-time vehicle location mapping provides flexibility in efficiently dispatching vehicles.
- Reduce unauthorized use – Non-business-approved vehicle use contributes to unnecessary fuel-consuming and emissions-producing mileage to fleet operations.