Compared to other regions, telematics in Latin America has historically been more focused on risk management. However, some markets, such as Brazil, are beginning to mature while other new markets, such Chile, Colombia, Peru, and others, are not as focused on security, proving that fleet management in Latin America is finally moving to other applications, according to new research released by ABI Research. In addition, several organizations, including MiX Telematics, OneTierra, and others have even gone as far as purposefully not targeting security applications in a bid to drive demand for other telematics applications.
ABI Research estimates there are 27 million commercial vehicles in operation in Latin America, highlighting the huge market potential in this region. However, unlike other regions many of the key markets throughout all of Latin America, such Brazil and Mexico, have been focused on security applications, e.g., stolen vehicle recovery and staying in contact with the police.
ABI Research noted that the telematics market can be challenging in Latin America. For example, Webtech Wireless exited the Brazilian and Mexican theft vertical recovery markets in 2012. Companies hope that by offering value-added services, such as driver performance, route optimization, and vehicle maintenance they will stand a better chance in this region.
“ABI Research forecasts that opportunities lie with a mixture of security and other value-added services. For a long time fleet managers in Latin America have been more consumed by security rather than looking at ways to make their fleet operations more efficient; however, with increasing fuel prices and other pressures to be efficient finally they are beginning to realize the ROI of telematics beyond security,” commented Filomena Berardi, senior analyst for ABI Research.