Growth in construction sector and cold chain driving telematics take-up, finds European report

By / 8 years ago / News / No Comments

That’s the finding of a new study carried out by Mix Telematics within the commercial vehicle industry across four key European markets; UK, France, Germany and Spain.

The study highlighted a number of areas of interest:

Temperature management (cold chain)

According to Global Cold Chain Market Forecasts and Opportunities 20201, the global cold chain market is expected to grow at a compound annual growth rate of 11% between 2015 and 2020. In France, there are currently 65,000 heavy trucks and 45,000 light commercial vehicles operating within the cold chain sector, representing 10% of the nation's transportation market. The proportion is even larger in Spain where an estimated 82% of operators are engaged in cold chain transportation and distribution.

With telematics solutions including emote onboard temperature sensing and monitoring, and the frequency and duration of door-opening events, an increasing number of cold chain operators are today looking at telematics solutions to help improve their efficiency and ensure they are compliant with regulations.

 

Stolen vehicle recovery – consumer and commercial

In France, the level of reported freight theft increased from 1,673 incidents in 2013 to 2,500 in 2014, 75% of which were directly from the vehicle. TAPA, the Transported Asset Protection Association, regards Germany as Europe's prime victim in terms of trailer and freight theft. According to Europol, 8.2b Euros of goods are stolen every year in Europe, with the average cost in France, for example, amounting to 22,000 Euros per theft. A similar picture is reported in Spain, where the effect of theft from commercial vehicles is estimated to amount to eight million Euros per annum.

With freight theft reportedly doubling in a single quarter in the UK alone, it follows that transport operators are looking to protect their vehicles and goods in transit by the most effective way possible, which in today's environment means fully utilising telematics' extensive track and trace capabilities.

 

Construction

With its economies emerging from recession, the European construction industry has enjoyed something of a resurgence in recent times. While growth in France peaked last year, with a slight decline anticipated in 2016, both Spain and the UK continue to do well. The Spanish construction sector grew by 2.4% in 2015 and is expected to increase by 10% this year.

The application of telematics solutions within the sector is growing. MiX added that it is important to note that telematics can be applied to good effect not only to vehicles but also to construction industry plant and materials handling equipment.

 

Fuel theft

Despite falling prices at the pumps, fuel theft continues to be a major problem throughout Europe. In France, for example, it is estimated that virtually every transport company has been a victim of fuel theft at some time or another. Spain reports that most crimes occur in the vicinity of major cities, with Barcelona, Seville and Valencia singled out as particular blackspots. While accurate figures are hard to establish due to many crimes going unreported, anecdotal evidence suggests that many diesel thefts are carried out by simply cutting or boring into fuel tanks, which are often easily accessible on commercial vehicles.

While telematics alone cannot solve the problem, it can certainly help through the installation of fuel level monitors linked to telematics reporting systems which provide alerts should a fuel tank begin to drain suddenly. As operators move more towards pro-actively protecting their investments, it is expected that the proportion of operators cooperating with local law enforcement agencies to facilitate rapid and effective responses to incidents of fuel theft will increase.

 

Waste management and recycling

With 177 million tonnes of waste generated annually in the UK alone, waste management and recycling is big business. However, with an industry facing significant economic pressures – France, for example, reports a fourfold increase in the cost of waste collection since 1990 – the focus for transport companies in this sector today is firmly fixed upon efficiency in operation.

While driving down costs through improved transport efficiency is a core benefit to the waste management and recycling industries, telematics is able to go much further in terms of the gains it can help make. It is expected, therefore, to see the application of telematics within the sector continuing to increase throughout 2016 and beyond, Mix Telematics concludes.

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Natalie Middleton

Natalie has worked as a fleet journalist for nearly 20 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. Natalie edits all the Fleet World websites and newsletters, and loves to hear about any latest industry news - or gossip.

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