NORTH AMERICAN SCHOOL BUS TELEMATICS MARKET APPEARS SET FOR RAPID GROWTH
Increasing concerns over the safety and security of students, rising fuel prices, increasing overhead expenditures, and other operational issues have made the incorporation of school bus telematics systems indispensable. In fact, the telematics market is primed for growth between 2008 and 2014, says a new analysis from Frost & Sullivan.
It states in it’s report “North American School Bus Telematics Market” that the market earned revenues of over $25.9 million in 2007 and estimates this to reach $109.8 million in 2014. Currently, telematics technologies under development aim to facilitate student/driver monitoring and tracking, vehicle inspections, guideline compliance, geofencing, back-office automation, vehicle performance monitoring, maintenance scheduling, remote diagnostics, prognostics, communications, mobile resource management, and integration through web- and telecommunication-based applications.
“The North American school bus telematics market aims to increase market penetration by developing innovative and cost-effective telematics solutions that meet the unique safety, security and mobile resource management needs of the school districts and fleets,” notes Frost & Sullivan Research Analyst Neelu Singh. “Increasing awareness and better understanding of the productivity and security benefits offered by school bus telematics are expected to stimulate the market's growth.”
Furthermore, several technologies built upon biometrics, RFID, video surveillance, and other enabling technologies, such as wireless LAN, that support real-time high-bandwidth data transfer mechanisms necessary for student and driver monitoring/tracking are being developed. The commercialization of these technologies and services will enhance the applicability of school bus telematics as well as bring in the next wave of adoption.
“Market participants are focusing on offering cost-effective knowledge management solutions that are scalable and designed for the unique operating conditions of the pupil transportation industry,” notes Singh. “These trends indicate that the North American market for school bus telematics systems is now on the verge of rapid growth.”
Developing partnerships between hardware developers, service providers, and school bus manufacturers will help create economies of scale and lower R&D expenses. Pricing strategies, such as having parents share service fees with school districts in exchange for real-time child safety information, may also reduce the lifecycle cost for potential adopters.