Académique Documents
Professionnel Documents
Culture Documents
WWW.IBISWORLD.COM
Maksim Soshkin
17 International Trade
Industry Definition
19 Business Locations
31 Industry Assistance
Main Activities
Similar Industries
21 Competitive Landscape
32 Key Statistics
Additional Resources
32 Industry Data
32 Annual Change
32 Key Ratios
3 Industry at a Glance
23 Basis of Competition
4 Industry Performance
23 Barriers to Entry
Executive Summary
24 Industry Globalization
Current Performance
25 Major Companies
Industry Outlook
26 Omnitracs LLC
27 Fleetmatics IRL Ltd.
29 Operating Conditions
29 Capital Intensity
15 Demand Determinants
15 Major Markets
30 Revenue Volatility
WWW.IBISWORLD.COM
Main Activities
Similar Industries
Additional Resources
WWW.IBISWORLD.COM
Industry at a Glance
Fleet Telematics Systems in 2014
Key Statistics
Snapshot
Revenue
Profit
Exports
Businesses
$2.0bn
8.6%
7.0%
$219.1m $220.0m 126
% change
Trimble
Navigation
Limited
16.7%
Omnitracs LLC
12.8%
16
10
12
% change
Market Share
4
0
4
Fleetmatics IRL
Ltd.
8.6%
5
10
15
Year 06
08
10
Revenue
12
14
16
18
20
Year
20
08
10
12
14
16
18
20
Employment
SOURCE: WWW.IBISWORLD.COM
p. 25
11.4%
3.0%
Other devices
Number of mobile
internet connections
38.1%
19.0%
Trade-weighted index
28.5%
p. 4
Mobile devices
Industry Structure
SOURCE:
WWW.IBISWORLD.COM
SOURCE:
WWW.IBISWORLD.COM
Growth
Medium
Low
Industry Assistance
None
Concentration Level
Medium
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 32
Regulation Level
Light
Technology Change
High
Barriers to Entry
Medium
Industry Globalization
Medium
Competition Level
High
WWW.IBISWORLD.COM
Industry Performance
Increasing
WWW.IBISWORLD.COM
Industry Performance
Trade-weighted index
The trade-weighted index compares the
value of the US dollar to the currencies of
the countrys trading partners. When the
value of the dollar increases it makes
industry exports more expensive for
foreign consumers and imports less
expensive, thereby reducing exports while
increasing competition from imports. In
addition, a stronger dollar makes
offshoring hardware manufacturing more
practical, further reducing industry
revenue. The trade-weighted index is
expected to increase in 2014.
Number of mobile internet connections
400
300
Millions
% change
5
10
100
15
20
Year
200
08
10
12
14
16
18
20
Year 05
07
09
11
13
15
17
19
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Current
Performance
The recession
Changing products
and markets
WWW.IBISWORLD.COM
Industry Performance
International trade
% change
Changing products
and markets
continued
8
0
8
Year 06
Revenue
08
10
12
14
16
18
20
Exports
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Profitability,
consolidation and
other trends
Industry
Outlook
Increased
environmental
regulation will lead to
greater use of industry
products
WWW.IBISWORLD.COM
Industry Performance
Regulations drive
demand
Continued market
and product change
International trade
Use
of telematics systems
abroad will increase,
resulting in export growth
domestic customers. Simultaneously, a
stronger dollar will make industry
exports more expensive for foreign
buyers, thereby tapering export
growth. Nonetheless, increased use of
telematics abroad is expected to help
exports increase at an annualized 7.4%
to about $315.0 million in the five
years to 2019.
WWW.IBISWORLD.COM
Industry Performance
A
combination of
increasing merger activity
and more new entrants will
lead to profit growth
number of industry enterprises is
forecast to increase at an annualized
0.6% to 130 companies in the five
years to 2019. In addition, a rise in
demand will lead to the hiring of more
workers to offset continued losses of
manufacturing jobs to outsourcing,
causing industry employment to climb
at an annualized 0.9% to 6,998 people
over the five-year period.
WWW.IBISWORLD.COM
Industry Performance
The industry is growing faster
than the overall economy
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
15
10
Quantity Growth
5
-5
Decline
Shrinking economic
importance
-10
-10
-5
10
15
20
WWW.IBISWORLD.COM
Industry Performance
industry
is G
rowing
WWW.IBISWORLD.COM
Supply Chain
48412
48422
48423
33421
33451a
WWW.IBISWORLD.COM
11.4%
3.0%
Other devices
38.1%
19.0%
Total $2.0bn
28.5%
Mobile devices
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Demand
Determinants
Major Markets
Trucking
Trucking dominates the market for
telematics systems, accounting for an
estimated 63.0% of industry revenue. Most
customers in this market are for-hire
carriers, but private fleets have become a
major users over the past five years.
Long-distance freight trucking companies
were the first to invest in fleet telematics
systems and remain a large market for the
WWW.IBISWORLD.COM
Major Markets
continued
12%
25%
Other
63%
Trucking
Total $2.0bn
set to increase as regulations concerning
hours of service (the amount of time
truckers are allowed to work within a
certain time frame) intensify.
As the price of telematics systems has
steadily decreased over the past five years,
local freight trucking companies have
increased their investment in them. These
companies have smaller fleets than their
long-distance counterparts and, as a result,
cut fewer costs through investing in a
telematics system. However, these
companies are more likely to invest in a
mobile-phone-based telematics system due
to its lower cost. As a result, local freight
truckings share of industry revenue has
increased over the past five years and is
expected to continue growing.
Express and logistics services
Companies such as express carriers and
third-party logistics providers account
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
industry are
Mediumand
Increasing
Imports
in the
industry are
Mediumand
Increasing
$ million
Imports
In 2014, IBISWorld estimates that
imports will account for 34.1% of
domestic demand, which is down from
36.7% in 2009. However, while imports
share of domestic demand has declined
in the five years to 2014, their value is
actually expected to increase at an
annualized 8.0% to $898.0 million. The
primary reason for this disparity is that
industry revenue growth (a lot of which is
driven by non-traded software
development and service) has outpaced
imports of hardware. Nonetheless, the
industry imports more than it exports
because most industry hardware is
relatively easy to produce, with many
companies moving manufacturing to
countries with low labor costs in order to
reduce prices. That is one of the reasons
Mexico accounts for an estimated 20.8%
of imports. Its relatively low labor costs,
proximity to the United States and
membership to the North American Free
Trade Agreement (NAFTA) makes it an
International Trade
400
800
1200
1600
Year 06
Exports
08
10
12
Imports
14
16
18
20
Balance
SOURCE: WWW.IBISWORLD.COM
Imports From...
Exports To...
9%
Canada
6%
10%
Mexico
4%
France
14%
Taiwan
Canada
42%
Other
12%
Japan
69%
Other
15%
China
21%
Mexico
Year: 2014
Total $220.0m
Total $898.0m
SOURCE: USITC
WWW.IBISWORLD.COM
International Trade
continued
WWW.IBISWORLD.COM
West
New
England
AK
0.0
Great
Lakes
WA
ND
MT
4.6
Rocky
Mountains
ID
OR
2.1
West NV
0.5
1.9
SD
0.2
WY
0.6
MN
0.0
0.3
Plains
CO
1.6
KY
1.6
OK
0.8
NC
1.1
TN
AZ
NM
3.7
1.1
Southwest
TX
8.3
HI
0.3
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.3
2.1
1.1
4.0
5.3
0.3
SC
Southeast
0.5
MS
AL
1.0
0.0
GA
0.8
0.3
LA
1.0
FL
8.3
Establishments (%)
0.3
1.9
AR
0.2
0.5
19.7
WV VA
2.4
0.3
0.6
CA
West
3.2
MO
KS
1.0
OH
1.3
3.0
3.8
IN
IL
0.0
UT
PA
1.4
1.0
0.0
1 2
3
NY
5.0
5 4
MI
0.6
IA
NE
0.0
WI
ME
MidAtlantic
9 DC
0.0
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Other regions
About 13.9% of industry establishments
are located in the Southwest, with Texas
alone accounting for 8.3% of them. The
30
20
10
Southwest
Southeast
Rocky Mountains
Plains
New England
Mid-Atlantic
0
Great Lakes
West
Business Locations
Establishments
Population
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
21
Competitive Landscape
industry is M
edium
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks
Profit
Profit, defined as earnings before interest
and tax expenses, is estimated to
comprise 11.2% of industry revenue in
2014. Profit margins have slightly
increased over the past five years as the
trucking sector began to recover and
increasing fuel costs incentivized more
transportation companies to use
telematics. However, increasing internal
Level of competition
existing in the market
The fleet telematics system software
industry has a low level of
concentration, with most players
operating in a small geographic region.
Therefore, a firms revenue is heavily
dependent on how many other firms
are operating in that region.
WWW.IBISWORLD.COM
22
Competitive Landscape
Industry Costs
(2014)
14.7
11.2
100
80
Percentage of revenue
Cost Structure
Benchmarks
continued
18.6
21.9
60
32.6
24.6
40
20
7.6
7.2
4.8
19.2
Profit
Wages
Purchases
Depreciation
Marketing
Rent & Utilities
Other
1.6
3.0
2.0
31.0
0
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
23
Competitive Landscape
Basis of Competition
Level & Trend
ompetition
C
in
this industry is
Highand the trend
is I ncreasing
Barriers to Entry
Level & Trend
arriers to Entry
B
in this industry
are M
ediumand
Decreasing
Level
High
Medium
Growth
Low
High
Light
None
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
24
Competitive Landscape
in
this industry is
Mediumand the
trend is I ncreasing
International trade is a
major determinant of
an industrys level of
globalization.
Exports offer growth
opportunities for firms.
However there are legal,
economic and political risks
associated with dealing in
foreign countries.
Import competition can
bring a greater risk for
companies as foreign
producers satisfy domestic
demand that local firms
would otherwise supply.
Trade Globalization
200
Export
150
100
50
0 Local
0
Fleet Telematics
Systems
Import
40
80
120
Imports/Domestic Demand
200 Export
Exports/Revenue
Exports/Revenue
Industry
Globalization
160
Global
150
100
50
0 Local
0
2004
2014
40
Import
80
120
160
Imports/Domestic Demand
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Major Companies
Trimble Navigation Limited | Omnitracs LLC
Fleetmatics IRL Ltd. | Other Companies
Major players
(Market share)
61.9%
Other
Player Performance
Trimble Navigation
Limited
Market share: 16.7%
SOURCE: WWW.IBISWORLD.COM
Revenue
($ million)
(% change)
Operating Income
($ million)
2008
2009
103.6
NC
7.0
-8.6
96.0
-7.3
8.9
27.1
(% change)
2010
95.7
-0.3
1.2
-86.5
2011
135.5
41.6
2.8
133.3
2012
215.8
59.3
20.2
621.4
2013
300.5
39.2
40.2
99
*Estimates
SOURCE: ANNUAL REPORT AND IBISWORLD
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Financial Performance
Trimbles industry-specific revenue is
expected to increase at an average annual
rate of 23.7% to $300.5 million in the five
years to 2013. Similar to many other
industry players, the company lost
revenue and operating income during the
recession, with revenue declines
continuing through 2010. However, the
Player Performance
Omnitracs LLC
Market share: 12.8%
Financial performance
In the five years to 2013, Omnitracs US
industry-specific revenue is expected to
decline at an annualized 2.5% to $230.6
million. At the height of the recession,
the companys revenue plummeted by
18.7% and has since struggled to recover.
In general, the company has had
difficulty moving away from the saturated
long-haul trucking market toward the
local trucking market. As a result,
Revenue
(% change)
Operating Income
(% change)
2008
262.3
N/C
-0.3
N/C
2009
213.3
-18.7
6.7
N/C
2010
233.1
9.3
4.5
-32.8
2011
244.9
5.1
-56.7
N/C
2012
230.0
-6.1
-5.5
-90.3
2013
230.6
0.3
-3.0
-45.5
*Estimates
WWW.IBISWORLD.COM
Major Companies
Player Performance
continued
Player Performance
Revenue
(% change)
Operating Income
(% change)
2008
25.2
N/C
-4.1
N/C
2009
36.3
44.0
3.2
N/C
2010
50.9
40.2
2.0
-37.5
2011
78.8
54.8
5.1
155.0
2012
111.4
41.4
10.8
111.8
2013
155.1
39.2
25.8
138.9
*Estimates
Other Companies
Danaher Corporation
WWW.IBISWORLD.COM
Major Companies
Other Companies
continued
Verizon Telematics
WWW.IBISWORLD.COM
Operating Conditions
of capital
intensity is L ow
Capital intensity
Economy
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Communication
Equipment
Manufacturing
Capital Intensive
Labor Intensive
Old Economy
Agriculture and Manufacturing.
Traded goods can be produced
using cheap labor abroad.
To expand firms must merge
or acquire others to exploit
economies of scale, or specialize
in niche, high-value products.
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity
continued
Technology
& Systems
of
Technology
Change is H
igh
Revenue Volatility
Level
The level
of
Volatility is M
edium
Volatility vs Growth
1000
Level
The level
Hazardous
Rollercoaster
100
10
Fleet Telematics
Systems
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
WWW.IBISWORLD.COM
Operating Conditions
Revenue Volatility
continued
Regulation is
Lightand the
trend is S
teady
Industry Assistance
Level & Trend
he level of
T
Industry Assistance
is N
oneand the
trend is S
teady
WWW.IBISWORLD.COM
Key Statistics
Industry Data
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Sector Rank
Economy Rank
Industry
Revenue Value Added
($m)
($m)
984.6
439.3
1,041.5
437.7
1,147.1
450.1
1,221.6
478.7
1,293.6
445.9
1,373.1
471.5
1,548.4
513.1
1,613.2
544.7
1,849.0
573.2
1,956.1
614.1
2,249.5
682.8
2,384.5
720.0
2,514.5
757.6
2,652.8
797.7
2,737.9
827.7
62/94
68/94
1014/1313 1017/1313
Annual Change
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Sector Rank
Economy Rank
Revenue
(%)
5.8
10.1
6.5
5.9
6.1
12.8
4.2
14.6
5.8
15.0
6.0
5.5
5.5
3.2
28/94
237/1313
Key Ratios
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Sector Rank
Economy Rank
IVA/Revenue
(%)
44.62
42.03
39.24
39.19
34.47
34.34
33.14
33.77
31.00
31.39
30.35
30.20
30.13
30.07
30.23
70/94
672/1313
Establishments
131
132
136
139
144
141
144
148
152
153
156
158
158
159
160
71/94
1083/1312
Establishments
(%)
0.8
3.0
2.2
3.6
-2.1
2.1
2.8
2.7
0.7
2.0
1.3
0.0
0.6
0.6
54/94
780/1312
Industry
Value Added
(%)
-0.4
2.8
6.4
-6.9
5.7
8.8
6.2
5.2
7.1
11.2
5.4
5.2
5.3
3.8
22/94
172/1313
Imports/
Demand
(%)
36.31
39.68
39.27
38.27
36.69
36.70
34.70
34.40
33.56
34.09
31.66
31.71
31.81
31.73
32.16
1/9
139/420
Enterprises Employment
116
6,297
117
6,761
120
6,423
122
6,389
118
6,354
117
6,474
117
6,482
122
6,565
125
6,629
126
6,693
126
6,767
129
6,821
130
6,885
131
6,949
130
6,998
69/94
59/94
1064/1312 1020/1313
Exports
($m)
117.8
141.0
156.8
148.3
142.2
155.7
158.0
180.2
197.0
220.0
250.0
270.0
290.0
301.0
315.0
5/9
291/420
Imports
($m)
494.2
592.3
640.3
665.4
667.3
705.9
738.7
751.3
834.4
898.0
926.4
982.0
1,037.5
1,093.1
1,148.6
2/9
204/421
Wages
($m)
289.5
307.3
295.6
300.6
308.7
316.6
329.1
336.6
354.0
362.9
382.4
391.7
401.1
410.7
417.0
69/94
992/1313
Domestic
Demand
1,361.0
1,492.8
1,630.6
1,738.7
1,818.7
1,923.3
2,129.1
2,184.3
2,486.4
2,634.1
2,925.9
3,096.5
3,262.0
3,444.9
3,571.5
5/9
277/420
World price
of crude oil
($ per barrel)
53.4
64.3
71.1
97.0
61.8
79.6
104.0
105.0
104.1
100.2
101.0
105.0
110.5
114.9
119.5
N/A
N/A
Enterprises Employment
(%)
(%)
0.9
7.4
2.6
-5.0
1.7
-0.5
-3.3
-0.5
-0.8
1.9
0.0
0.1
4.3
1.3
2.5
1.0
0.8
1.0
0.0
1.1
2.4
0.8
0.8
0.9
0.8
0.9
-0.8
0.7
47/94
61/94
676/1312
784/1313
Exports
(%)
19.7
11.2
-5.4
-4.1
9.5
1.5
14.1
9.3
11.7
13.6
8.0
7.4
3.8
4.7
2/9
49/420
Imports
(%)
19.9
8.1
3.9
0.3
5.8
4.6
1.7
11.1
7.6
3.2
6.0
5.7
5.4
5.1
3/9
91/421
Wages
(%)
6.1
-3.8
1.7
2.7
2.6
3.9
2.3
5.2
2.5
5.4
2.4
2.4
2.4
1.5
50/94
611/1313
Domestic
Demand
(%)
9.7
9.2
6.6
4.6
5.8
10.7
2.6
13.8
5.9
11.1
5.8
5.3
5.6
3.7
2/9
76/420
World price
of crude oil
(%)
20.5
10.7
36.4
-36.3
28.9
30.6
1.0
-0.9
-3.8
0.9
3.9
5.2
4.0
4.0
N/A
N/A
Exports/
Revenue
(%)
11.96
13.54
13.67
12.14
10.99
11.34
10.20
11.17
10.65
11.25
11.11
11.32
11.53
11.35
11.51
4/9
257/420
Revenue per
Employee
($000)
156.36
154.05
178.59
191.20
203.59
212.09
238.88
245.73
278.93
292.26
332.42
349.58
365.21
381.75
391.24
56/94
601/1313
Wages/Revenue
(%)
29.40
29.51
25.77
24.61
23.86
23.06
21.25
20.87
19.15
18.55
17.00
16.43
15.95
15.48
15.23
56/94
627/1313
Employees
per Est.
48.07
51.22
47.23
45.96
44.13
45.91
45.01
44.36
43.61
43.75
43.38
43.17
43.58
43.70
43.74
19/94
286/1312
Average Wage
($)
45,974.27
45,451.86
46,022.11
47,049.62
48,583.57
48,903.31
50,771.37
51,271.90
53,401.72
54,220.83
56,509.53
57,425.60
58,257.08
59,102.03
59,588.45
74/94
510/1313
Share of the
Economy
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
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