Annual Automatic Vehicle Location (AVL) revenues for commercial vehicle fleets are projected to grow from approximately $500 million in 1999 to $1 billion by year-end 2004, according to a recent study from The Strategis Group. Growing adoption rates among private fleets will allow the Automatic Vehicle Location (AVL) industry to continue its steady growth. In past years, it has been the for-hire trucking industry that has pushed the commercial AVL market through its infant stages.
AVL services generally entail an in-vehicle terminal equipped with a GPS receiver that can determine the position of the vehicle, and a wireless transceiver that can transmit the vehicle’s location and other status updates to the dispatcher. The dispatcher uses a computer to monitor the vehicle’s position, and to transmit assignments to the driver. Drivers receive the messages on a terminal in the vehicle that allows them to respond to the dispatcher. AVL service providers include Qualcomm, Motient, @Track, Trimble, Teletrac and @Road.
“While we have seen significant penetration rates in the long haul for-hire trucking industry, AVL penetration among private fleets operating on a more localized range is almost non-existent," said Elliott Hamilton, Senior Vice President with The Strategis Group. Private fleets include vehicles in industries such as construction, manufacturing, wholesale/retail and service/utilities.
“The potential AVL market for private fleets is huge, and the demand is out there,” said Jeffrey Chang, an analyst with The Strategis Group. “It's now a matter of AVL providers bringing price points down to optimal levels, and getting private fleet managers to believe in the product.”
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