Latin American Fleet Managers’ Desirability and Willingness to Pay for Fleet Management Solutions, Brazil and Mexico, 2020

Latin American Fleet Managers’ Desirability and Willingness to Pay for Fleet Management Solutions, Brazil and Mexico, 2020

A Summary of Customers’ Willingness to Pay, Switching Behaviour, and Perceptions

RELEASE DATE
03-Jul-2020
REGION
North America
Deliverable Type
Market Research
Research Code: K47F-01-00-00-00
SKU: AU01997-GL-MT_24381
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Description

Brazil and Mexico, key developing nations in the Americas, have tremendous potential in terms of tapping the growth opportunities in the intelligent transport and mobility space. Both the countries have extensive networks of roads and highways, with people relying primarily on road transport as the railway networks are neither wide nor sophisticated. Governments are making substantial investments into the transport and mobility sectors to modernize solutions for improving overall road/public safety and promoting sustainability by reducing vehicle emissions.

Fleets view telematics as key a technology advancement that helps in increasing fleet efficiency and improving overall road safety. However, fleets in Brazil and Mexico face certain challenges that make them question the potential benefits of the technology. Fleet choices for telematics solutions are largely based on their ability to reduce operating costs and improve fleet safety. Fleets in Brazil and Mexico are looking to invest in fleet management systems that can take preventive measures for promoting vehicle and public safety and generate a high return on investment (ROI) within a short payback period through efficient operations. More than half of the fleets in these countries demonstrate a strong preference for vehicle safety and driver and driver behaviour management, underlining the rising importance of accident reduction and fleet efficiency enhancement. Fleet operators widely perceive safety, security, and fleet maintenance as posing the biggest challenge for fleet operators. Therefore, future telematics solutions will need to offer more video-based services with fatigue monitoring to combat these issues.

Although telematics solutions offer a host of benefits and an attractive ROI that fleet managers are aware of, they are still perceived as expensive and coming with a complex purchasing procedure. Thus, flexible, attractive business models should be offered to offset the cost concerns associated with fleet telematics. Fleet operators are willing to invest in fleet management solutions based on a wide range of criteria, with cost-effectiveness and reliability (24/7 support) being reported to be the dominant influencers while choosing telematics vendors. According to the customer survey, aftermarket vendors are expected to be the most preferred providers for fleet telematics solutions in future, particularly amongst non-telematics users; with telematics users being more open to trying both aftermarket and OEM solutions. Small fleets prefer plug and play devices, whereas larger companies tend to prefer more comprehensive CAN-based services. Ease of use, reliability, and cost will be the key parameters for choosing telematics vendors. The report further provides several interesting perceptions and viewpoints that fleets in both the Latin American countries have. It also explores the differences and commonalities between the two nations in terms of their preferences, desirability, and acceptance of telematics solutions.

Author: Mugundhan Deenadayalan

RESEARCH: INFOGRAPHIC

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Table of Contents

Research Objectives—Fleet Management Survey

Research Methodology

Definitions

Research Methodology—Questions on Fleet Telematics Services

CV Telematics Services—An Overview

Select LATAM Fleet Telematics Market Snapshot—Brazil

Select LATAM Fleet Telematics Market Snapshot—Mexico

CV Telematics Market Overview—Brazil

CV Telematics Market Overview—Mexico

Market Size and Forecast—Brazil

Sample Structure—Fleet Characteristics

Sample Structure—Customer Type

Respondent Position and Industry

Area of Operation by Country and Region

Commercial Vehicle Purchase—Key Parameters

Key Sections

Challenges and Available Solutions

Awareness and Attitude with Regard to Telematics

Usage of Telematics and Benefits Realised

Preferred Telematics Vendors and Satisfaction Index

Preferred Telematics Hardware and Future Expectations

Preferred Telematics Services and Future Expectations

Preferred Pricing and Business Model

Preferred Criteria for Telematics Vendor Selection

Familiarity with Fleet Telematics

Satisfaction Score

Preferences of Telematics Users and Non-users

Preferences of Fleet Companies

Preference of Fleet Companies (continued)

Preference of Fleet Companies (continued)

Brazilian Fleets—Executive Findings

Mexican Fleets—Executive Findings

Existing Challenges and Available Solutions

Key Challenges in Fleet Operations

Key Challenges in Fleet Operations (continued)

Widely Used Non-telematics Fleet Management Solutions

Telematics Solutions—Criteria for Vehicle Selection

Awareness and Attitude towards Telematics

Familiarity with Fleet Telematics Solutions

Importance of Vehicle Engine Data

Attitude towards Fleet Telematics Solutions

Reasons for Not Investing in Fleet Telematics Solutions

Factors Driving Fleet Telematics Adoption

Likeliness to Consider Fleet Telematics during Next Vehicle Purchase

Attitude towards Usage of OEM Telematics

Usage of Telematics and Benefits Realised

Fleet Telematics Solutions—Penetration Level

Reasons for Investing in Telematics

Fleet Telematics Packages Widely Used by Telematics Users

Interest towards Fleet Telematics Packages amongst Non-telematics Users

Satisfaction with Telematics Solutions

Cost Reduction Enabled by Telematics and Non-telematics Solutions

Usage and Type of Fleet Telematics Suppliers

Preferred Telematics Vendor and Satisfaction Index

Satisfaction and Willingness to Change

Preferred Fleet Telematics Vendor

Integration of OEM Telematics in Other Vehicle Makes

Willingness to Retain Telematics Services after Free One-year Trial

Preferred Telematics Hardware and Future Expectations

Importance of Data from Engine Control Module

Preferred Type of Fleet Telematics Hardware

Key Selection Criteria—Telematics Hardware Device

Preferred Type of Fleet Telematics Hardware Display

Preferred Telematics Services and Future Expectations

Vehicle Management—Usage

Safety and Security—Usage

Driver and Driver Behaviour—Usage

Order Management—Usage

Trailer Management—Usage

Preference for Telematics Packages—Current Usage vs. Future Interest

Preference for Integrating Key Value-added Telematics Services (I)

Preference for Integrating Key Value-added Telematics Services (II)

Preferred Pricing and Business Model

Preferred Pricing for Fleet Telematics Hardware Device

Preferred Pricing for Fleet Telematics Hardware Device (continued)

Preferred Pricing for Individual Telematics Packages by Country

Ideal Custom Telematics Packages

Preferred Pricing for Integrating Individual Additional Services

Preferred Business Model—Upfront Investment vs. No Upfront Cost

Profit Sharing Business Model

Selection Criteria—Telematics Vendor

Selection Criteria—Fleet Telematics Vendor

Key After-sales Support Services

Information Sources

Legal Disclaimer

List of Exhibits

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

List of Exhibits (continued)

Brazil and Mexico, key developing nations in the Americas, have tremendous potential in terms of tapping the growth opportunities in the intelligent transport and mobility space. Both the countries have extensive networks of roads and highways, with people relying primarily on road transport as the railway networks are neither wide nor sophisticated. Governments are making substantial investments into the transport and mobility sectors to modernize solutions for improving overall road/public safety and promoting sustainability by reducing vehicle emissions. Fleets view telematics as key a technology advancement that helps in increasing fleet efficiency and improving overall road safety. However, fleets in Brazil and Mexico face certain challenges that make them question the potential benefits of the technology. Fleet choices for telematics solutions are largely based on their ability to reduce operating costs and improve fleet safety. Fleets in Brazil and Mexico are looking to invest in fleet management systems that can take preventive measures for promoting vehicle and public safety and generate a high return on investment (ROI) within a short payback period through efficient operations. More than half of the fleets in these countries demonstrate a strong preference for vehicle safety and driver and driver behaviour management, underlining the rising importance of accident reduction and fleet efficiency enhancement. Fleet operators widely perceive safety, security, and fleet maintenance as posing the biggest challenge for fleet operators. Therefore, future telematics solutions will need to offer more video-based services with fatigue monitoring to combat these issues. Although telematics solutions offer a host of benefits and an attractive ROI that fleet managers are aware of, they are still perceived as expensive and coming with a complex purchasing procedure. Thus, flexible, attractive business models should be offered to offset the cost concerns associated with fleet telematics. Fleet operators are willing to invest in fleet management solutions based on a wide range of criteria, with cost-effectiveness and reliability (24/7 support) being reported to be the dominant influencers while choosing telematics vendors. According to the customer survey, aftermarket vendors are expected to be the most preferred providers for fleet telematics solutions in future, particularly amongst non-telematics users; with telematics users being more open to trying both aftermarket and OEM solutions. Small fleets prefer plug and play devices, whereas larger companies tend to prefer more comprehensive CAN-based services. Ease of use, reliability, and cost will be the key parameters for choosing telematics vendors. The report further provides several interesting perceptions and viewpoints that fleets in both the Latin American countries have. It also explores the differences and commonalities between the two nations in terms of their preferences, desirability, and acceptance of telematics solutions. Author: Mugundhan Deenadayalan
More Information
Deliverable Type Market Research
No Index No
Podcast No
Author Mugundhan Deenadayalan
Industries Automotive
WIP Number K47F-01-00-00-00
Is Prebook No
GPS Codes 9800-A6,9813-A6,9B01-A6,9963-A6,9965-A6,9AF6-A6