AVL Market Keeps Growing

According to Frost & Sullivan's North American Automatic Vehicle Location Hardware and Service Markets report, the automatic vehicle location (AVL) industry had revenues of nearly $500 million in 1999. Frost & Sullivan projects revenues to surpass $3 billion by 2007.

Economic growth and reliance on just-in-time delivery are largely responsible for the increasing number of delivery vehicles in use, which in turn expands the potential market for AVL systems.

However, though a growing market results in high demand for products, as demand is met, the need for new products will become less important. Therefore, toward the end of the forecast period, as demand for new products slows, the replacement segment should experience a significant upturn in demand and sales, the form said.

While the AVL market in the long-haul trucking industry is already well-established, there are several other segments where these solutions have just begun to penetrate. Manufacturers and providers that target these emerging segments can position themselves to take advantage of the replacement market in the future.