Strategic Analysis of Commercial Vehicle Telematics Market in China
Fleet Telematics Installed Base in China to Surpass 16 Million in 2021
NEW YORK, Sept. 30, 2014 /PRNewswire/ -- The aim of this research is to provide a strategic analysis of the commercial vehicle telematics market in China. The study provides a strategic review of the market dynamics and trends, which in turn determine the opportunities and challenges in the industry. The study determines the business models of the industry and their product and service roadmap; it also provides recommendations on which local firms are most suitable to form partnerships in the supply chain. The study also provides a detailed analysis of the market participants, and provides a picture of the industry's competitive intensity. The base year of the study is 2013 and the forecast period is 2014–2021.
Key Findings
1 China's commercial vehicle (CV) telematics market is at the introduction stage, with government initiatives boosting the market growth. Nevertheless, price of the product is the greatest restraint that deters the adoption of the telematics solution.
2 Tourist bus, coach, vehicles transporting dangerous goods, tractor unit and heavy duty truck (these vehicles are so-called focal vehicles) have the biggest opportunity as the government is primarily encouraging the use of telematics solutions on these vehicles.
3 The installed base is expected to grow % annually from 2013 to 2021 because of the government initiatives and operation needs.
4 The market is expected to be fast growing in future. Customized solutions and solutions addressing government mandates would open opportunity to penetrate different segments of the market.
5 The industry is fragmented where competition is low. There is plenty of room to grow as only % of the operating CVs have installed telematics system by 2013.
6 Embedded solutions have penetrated about % of the market, while portable solutions account for about %.
SWOT Analysis
Although there are many negative aspects, the market is full of opportunities. Huge value of CVs' aftermarket, government policy, and low fuel efficiency are boon to the market.
Strengths
-Competitive price offered by domestic vendors compared with foreign competitors.
Weaknesses
-Backwardness of automotive electronic and sensor technology.
-Lack of experts who are good at both automotive and IT areas.
-Lack of strategic cooperation between upstream and downstream which slows down the industry development.
-Low product awareness.
Opportunities
-Value of CVs' aftermarket is about to times of the CVs' prices.
-Government policy and legislation are encouraging the development.
-Increasing fuel price—Price of 90-octane gasoline has been raised to $ per ton in August 2013.
-The fuel efficiency of trucks is % lower than in OECD countries.
-Market is gradually shifting to high-end light trucks which represent % or units of the light truck market.
Threats
-Failure of economic reform and debt issues may negatively impact the market.
-IT and automotive may not fully integrate as the value of the system is not realized.
-Copycat companies could manufacture duplicate hardware at knock-down prices.
Implication from SWOT Analysis
Negative aspects—weaknesses and threats—are more than the strengths. Nevertheless, the market is full of opportunities. More strengths would be possessed while industry is developing.
Read the full report: http://www.reportlinker.com/p02348372-summary/view-report.html
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