Market For GPS Fleet Management Systems Still Strong

According to an in-depth study by C.J. Driscoll and Associates, the market for GPS fleet management systems is still full of opportunity.

The research firm C.J. Driscoll and Associates released its 2013-14 Survey of Fleet Operator Interest in MRM Systems and Services, what is being called the largest study of the U.S. commercial telematics market to be conducted in recent years. Of the 508 fleet operators who participated in the study, 42 percent operate Class 6-8 trucks, and over one-third of the total participants considered themselves truckload carriers, private trucking fleets or local common carriers.

The study found that 17 percent of the overall sample said they expect to acquire some type of GPS-based fleet management solution in next 12-18 months. The study also showed that current customers have a strong level of satisfaction with their current systems — a 4.1 on a scale of 5. A total of 36 percent of fleets said they are using a GPS fleet management system today, but that percentage changes significantly by fleet size (25 percent of fleets with less than 50 vehicles; 50 percent of fleets with 100 or more vehicles).

“That is a very good sign for industry growth,” said Clem Driscoll, president of C.J. Driscoll and Associates.

Companies that supply GPS fleet management systems were expecting to see an increase in demand for their products when the Federal Motor Carrier Safety Administration announced in the fall of 2010 that it would mandate the use of electronic logging devices (formerly known as electronic onboard recorders), but the move was challenged in the courts causing FMCSA to withdraw their initial rule. The agency is expected to propose a new rule any day to mandate e-logs, which would likely go into effect sometime in 2015 at the earliest.

The study found that a majority of fleets, and smaller fleets in particular, were not planning to acquire an ELD solution before they become mandatory.

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