Economy in Brazil: study shows market growth for vehicle tracking and fleet management
São Paulo, September 11, 2013: In 2012, the Brazilian market for vehicle tracking and fleet management handled R$ 1.5 billion (over 600 million US dollars) and peaked at 1.94 million devices operating in the national fleet. Data are from the most recent study by IDC, a leading market intelligence and advisory services for the Telecommunications and Information Technology industries.
Also according to the study, 39% of companies that already employ tracking solutions aim to increase their investment in 2014. “The main reasons for hiring are the increasing number of thefts of cargo and vehicles, control over hours worked by drivers, reducing costs and the search for more efficient control of routes,” says IDC analyst Samuel Carvalho. He explains that markets that invest in this type of technology are fleet management, retail, insurance and — finally, a relatively new market — electronic lures that handled R$ 64 million (nearly 40 million US dollars) in 2012 and should maintain a growth rate close to 30% in coming years.
Of the total 1.94 million installed devices, 65% are in light vehicles and 35% in heavy vehicle. “This is a very promising and demand for corporate consumer sector is more evident for both heavy fleet, a little more mature, and for the light that has low penetration rate,” says Samuel.
The study also identified the key selection criteria adopted by users to acquire a tracking solution. “It is important to be attentive to the quality of the tracker, efficiency in the search after a theft, the technical assistance network and for corporate fleets, the quality of the gateway of information is critical,” IDC analyst recommends.
Between 2013 and 2017, IDC projects a 14% growth in sales and an increase in revenues of 11.6% per year in vehicle tracking and fleet management market. It is worth noting that this projection does not consider the Brazilian National Traffic Council (CONTRAN)‘s Resolution 245 of 2007, which provides for the installation of antitheft equipment on new vehicles leave the factory, domestic or imported, and are not yet in effect. “The market is pessimistic about the entry into force of the law, but there is a growing demand for devices,” concludes Carvalho.
via IDC Releases