GartnerG2 Survey Shows Motor Carrier Fleets Have Strong Interest in Telematics-Based Solutions; Analysts Say Telematics Vendors Have Opportunities in Commercial Segment.

Business Editors/High-Tech Writers

STAMFORD, Conn.--(BUSINESS WIRE)--May 6, 2003

Consumer demand for telematics has been slow to develop, so telematics vendors have shifted their focus to the commercial market for in-vehicle information and communication technologies, according to GartnerG2, a research service of Gartner, Inc. (NYSE: IT and ITB).

"Commercial telematics will show the fastest market growth among all telematics segments and reach substantial penetration in six years," said Thilo Koslowski, vice president and director of automotive research for GartnerG2. "Successful market adoption will depend on the availability of low-cost telematics solutions and providers' effective positioning strategies."

To understand the penetration of telematics products and services by U.S. commercial fleet operators, GartnerG2 and the American Transportation Research Institute surveyed 150 motor carriers via a Web-based survey during the last quarter of 2002. Respondents represent a broad range of fleet sizes, haul lengths and commodities hauled.

According the survey, the most common technology used by fleet operators today are embedded communication applications such as fixed cellular telephones and satellite-based systems that connect drivers with operators' terminals. Half of existing fleets have deployed such applications. However, only 15 percent of fleets have the ability to integrate mobile cellular phones in a hands-free, voice-activated method via a cradle or wireless solution.

Fleet operators said that vehicle-positioning applications are the second-most common technology deployed as nearly half of large fleets use real-time position tracking. Stolen-vehicle tracking is less common with only one-in-five fleets deploying this technology.

The survey showed that more than one-third of operators indicated strong interest in upgrading their existing vehicles with a variety of telematics applications in the next two years. "Particularly, medium-and-smaller-sized fleets plan to retrofit their vehicles to take advantage of such technologies that previously were only available to large fleet organizations with significant resources," said Koslowski.

Fleet companies' strong interest in retrofitting existing vehicles with telematics and buying embedded technologies in new vehicles will provide an essential market opportunity for telematics providers.

"Vehicle manufacturers should partner with technology providers to offer current customers reliable aftermarket solutions they can use to retrofit existing vehicles," said Koslowski. "Offering telematics solutions now will help them grow market share in the long-term as these technologies become a key decision factor in fleet operators' buying processes."

Additional information is available in the GartnerG2 report, "Commercial Telematics: Get the Value Proposition Right." This report examines in-vehicle technologies for motor carrier fleets of all sizes and provides recommendations for fleet operators, vehicle manufacturers and technology providers on how to use telematics to improve business results. This report can be found on the GartnerG2 Web site at www.gartnerg2.com/rpt/rpt-0403-0032.asp.

Additional information on commercial telematics will be presented during a GartnerG2 teleconference on May 13, 2003 at 11a.m. EDT. GartnerG2 analyst Thilo Koslowski will discuss opportunities for in-vehicle technologies in the commercial segment, applications that fleet operators use today and will want tomorrow, and positioning commercial in-vehicle technologies to potential customers. No advance reservation is necessary.

To participate in this teleconference, please call 1-800-497-0259 in the United States and Canada. International callers can participate by dialing 1-703-871-3863. More information about this teleconference can be found on the GartnerG2 Web site at www.gartnerg2.com/site/G2Tuesday.asp?G2Tuesday=g2t-automotive20030513. asp. (Due to the length of this URL, it may be necessary to copy and paste this hyperlink into your Internet browser's URL address field.)

GartnerG2 is a research service from Gartner that helps business leaders guide and grow their businesses. For more information on the report and about GartnerG2 services, please visit www.gartnerG2.com.

About Gartner

Gartner, Inc. is a research and advisory firm that helps more than 10,500 clients leverage technology to achieve business success. Gartner's businesses consist of Research, Consulting, Measurement, Events and Executive Programs. Founded in 1979, Gartner is headquartered in Stamford, Connecticut, and has 4,000 associates, including more than 1,000 research analysts and consultants, in more than 75 locations worldwide. Fiscal 2002 revenue totaled $907 million. For more information, visit www.gartner.com.