GPS World, January 2011

Industry news and developments GPS Galileo GLONASS BUSINESS THE VEHICLE TRACKING Latin America Taking the Lead in Fleet Management A report from C J Driscoll Associates analyzes the CONTRAN 245 regulations in Brazil which will require every new vehicle sold in Brazil to be equipped with a GPS tracking system The report identifies the Brazilian and overseas suppliers that are in the best position to benefit from the law expected to make Brazil one of the worlds largest markets for GPS tracking solutions The report also analyzes the status of similar government initiatives in Mexico and profiles more than 50 Mexican suppliers of GPS fleet tracking and consumer telematics solutions The analysis forms part of a comprehensive study on the Latin American market for vehicle tracking solutions including GPS fleet tracking and consumer stolen vehicle recovery and telematics solutions The study based on interviews conducted over a 15 month period with executives of more than 100 Latin American suppliers of GPS tracking products and services provides in depth information on the vehicle tracking market in each Latin American country Latin America is a large market for fleet and consumer vehicle tracking solutions and the market is poised for continued expansion the report said The vehicle parc in Latin America totals more than 77 million including 22 million commercial vehicles By 2030 the vehicle parc is projected to grow to 120 million Driscoll notes that Many Latin American GPS vehicle tracking companies rely on overseas suppliers of hardware and software platforms including suppliers in North America Europe Israel South Africa and Asia These suppliers will continue to play an important role as the Latin American vehicle tracking market expands from an estimated 15 billion in 2010 to nearly 3 billion by 2014 The high growth rate of the Latin American economy fuels the need for greater efficiency in transporting goods and more effective monitoring of corporate and personal AMBULANCE in Brazils remote Amazon region struggles to get a patient to a hospital only one of many reasons for the new law vehicles and assets Latin American gross domestic product GDP is projected to grow 57 percent in 2010 versus 27 percent growth for the worlds advanced economies Brazil accounts for almost 50 percent of Latin Americas GDP and Brazil will soon require every new vehicle sold in the country to be equipped with a GPS tracking system and the Latin American economy as a whole has a high growth rate the countrys economy is on track to grow at a rate of 77 percent in 2010 While economies grow many countries are plagued by high rates of vehicle theft Brazils vehicle theft rate is four times the rate in the U S and the theft rate for cars and trucks in Mexico Argentina Venezuela and a number of other Latin American countries is comparable to Brazils This study concludes that in Latin America today one million fleet vehicles are equipped with GPS fleet management solutions with 60 percent of these operating in Brazil or Mexico In addition more than three million cars are equipped with stolen vehicle recovery SVR or telematics solutions that include security and convenience features Clem Driscoll has extensive experience in market research and consulting and is a member of GPS Worlds Editorial Advisory Board For more on the study see www cjdriscoll com GPS World January 2011 www gpsworld com 22