A new report suggests that the number of vehicles with subscription-based tracking solutions will more than double in the next four years in Latin America. Brazil, in particular, will see significant growth thanks to a new regulation, referred to as Contran 245, which will require GPS tracking devices in all vehicles sold there.
“This study concludes that in Latin America today, approximately one million fleet vehicles are equipped with GPS fleet management solutions, with 60% of these operating in Brazil or Mexico,” the authors of the report stated. “In addition, over three million cars are equipped with stolen vehicle recovery (SVR) or telematics solutions that include security and convenience features.”
The report, the 2010-11 Latin American Vehicle Tracking Systems Market Study, was prepared over the previous 15 months by C.J. Driscoll & Associates. The full report can be purchased at www.cjdriscoll.com.
Revenue from sales of vehicle location hardware and services is projected to grow to nearly $2.7 billion by 2014, the report noted.
Vehicle sales in Brazil, which makes up nearly 50% of Latin America’s GDP, are expected to top 3.4 million units this year. But, with a high theft rate, vehicle security remains a big issue in Brazil and Latin America as a whole.
“The high rate of growth of the Latin American economy is creating the need for greater efficiency in transporting goods and more effective monitoring of corporate and personal vehicles and assets,” the report said. “While the Latin American economy is growing, many countries are plagued by high rates of vehicle theft. Brazil’s vehicle theft rate is four times the rate in the U.S., and the theft rate for cars and trucks in Mexico, Argentina, Venezuela, and a number of other Latin American countries is comparable to Brazil.”
Clem Driscoll, president of C.J. Driscoll, told attendees at GPS Wireless 2010 that between 350,000 and 400,000 vehicles are stolen in Brazil annually.
There are 22-million commercial vehicles in Latin America currently and 77 million total. With three million consumer vehicles similarly equipped, the report calculated there are more than four million vehicles using some sort of GPS device.
That number should grow to more than nine million by 2014, the report concluded.
The report breaks down the data, including trends, for each country in South America, Central America, and Mexico, and identifies suppliers that are poised to take advantage of the boom.