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Berg Insight says penetration for fleet management technology in road transportation industry will exceed 70 percent by 2010

Gothenburg, Sweden 13 November 2006: Penetration for fleet management technology in the EU road transportation industry will exceed 70 percent by 2010, according to a new report from the research firm Berg Insight. “Already in 2007 will the penetration rate reach 20 percent and from there the development will be very fast”, said Tobias Ryberg, senior analyst at Berg Insight. He however urges the industry to look beyond transportation for additional growth opportunities. “Until very recently most vendors have focused exclusively on road transport enterprises, even though these only represent 11 percent of the total potential market”, he pointed out. “There are twice as many commercial vehicles in the construction industry, but no one seems yet to have figured out how to reach that segment.” Because most other segments will remain relatively undeveloped the total market penetration for fleet management technology in Western Europe will be significantly lower at about 15 percent in 2010.

Berg Insight also forecasts that the major truck manufacturers – starting with Volvo and Mercedes-Benz – will make satellite tracking and mobile data communication standard issue on high-end models from as early as 2008. “When successfully implemented, telematics will greatly improve the aftersales service offerings for these companies”, Tobias explained. “Their customers are buying a sophisticated machine for several hundred thousand euros and expect that it will keep rolling all the time. With remote diagnostics and vehicle management, the manufacturer will be able to guarantee this.” Tobias pointed out that remote monitoring is already a standard feature for a certain Volvo truck engine model in the US and said he believes this is the start of a very significant development in the commercial vehicle industry.

About Berg Insight
Berg Insight offers premier business intelligence to the telecom industry. We produce concise reports providing key facts and strategic insights about pivotal developments in our focus areas. Our vision is to be the most valuable source of intelligence for our customers.