Last updated: 1 July 2015
More than 1.5 million vehicles in Brazil use some sort of tracking device, with the freight sector representing a major share of this market
More than 1.5 million vehicles in Brazil use some sort of tracking device, with the freight sector representing a major share of this market. In this article we will explain how vehicle tracking technology is used in the country.
Tracking technology has become popular in Brazil over the years due to the reduction in costs and common instances of vehicle theft. There are more than 80 million vehicles on the roads in Brazil, of which 49 million are cars. The price of deployment for this technology for cars ranges from BRL 110 to BRL 250, with a monthly fee of BRL 40 to BRL 80. In all types of vehicles, the device is deployed inside the vehicle and is constantly connected to the provider or insurance system. In 2012, market revenue was around BRL 1.5 billion with more than 1.9 million operating devices.
The sectors that invest the most in this technology are retail, insurance companies and shipping management, which usually combine the tracking system with telemetry solutions in order to guarantee more control over the services and security on highways. It is estimated that more than 60% of the Brazilian GDP is carried on the country’s roads every year. Investments in tracking devices and services approximately add an extra 15 to 20% to the cost of shipment, due to nearly BRL 1 billion in expenditures.
Companies in Brazil commonly use technologies such as satellite, radio frequency, cellular/GPRS + GPS and cellular/GPRS + GPS + satellite in order to achieve precise and real time tracking of vehicles across the country’s roads. GLONASS, a Russian satellite navigation system, is also being used in the country. The tracking and telemetry devices must be approved by ANATEL and certificated by CESVI, the Experimental and Road Security Center, or GRISTEC, the National Association of Risk Management and Tracking and Management Technology Companies.
The Federal Government has been trying to create a tracking and management system for a few years, although privacy concerns have delayed the project. The SINIAV and SIMRAV systems consist of an electronic chip to monitor vehicles for several purposes and a GPS to track its position. SIMRAV was created to reduce the risk of vehicle theft, while SINIAV would help with traffic integration and control through the storage of the vehicles data. SINIAV chips are estimated to become obligatory by the end of June 2015, but the date has already been postponed a few times.
Tracking technology players in Brazil
In order to get a tracking system in a vehicle, the customer must contact a specialized company that will provide the right solution according to their needs. Some of them already provide insurance services for an additional fee, in order to complement the tracking system and guarantee less risks.
Omnilink has nationwide coverage and only offers equipment for monitoring and fleet management, guaranteeing more control and security over freight services. The company also works with telemetry and risk management. The combined systems allow more efficiency and savings on freight services.
Autotrac has over 20 years of experience in this market and develops equipment and services for tracking and managing vehicles and accessories including luggage, bikes and even people and pets. The vehicle systems use communication and tracking over GPRS and GPS helping control and manage the data collected from the car or motorcycle via web or mobile. The MINI services are focused on accessories and people, using the same technology and functionalities from the vehicle system.
Positron is among the leaders in vehicle security in Brazil, offering equipment and insurance services for clients. The company has solutions for businesses and private vehicles allowing to track and manage information about its usage, and even status of cargo. In case of private vehicles, clients can choose from plans that include insurance from BRL 75.90 per month depending on the area covered.
Carsystem is one of the pioneers in the vehicle monitoring and tracking sector in Brazil. The company offers plans for retail, corporate and freight providing specific technologies for each situation. Carsystem also provides insurance for private vehicles such as cars and motorcycles.