The M1-GPS vehicle tracking device from Helioversal supports realtime tracking, geofencing and on-the-air (OTA) update program. It has 2MB flash memory for storing information and events.

Newcomers expand Taiwan AVL supplier base. Units support GPS, GSM and GPRS technologies.

The automatic vehicle location (AVL) device is an emerging line in Taiwan’s GPS applications market. With more than 60 percent of Taiwan’s GPS output applied to AVLs since 2006, however, more makers are joining the AVL market. Even small and medium-sized manufacturers are moving toward the product line, a trend that is boosted by GPS technology becoming more affordable.

There are 20 to 30 suppliers of AVL products in Taiwan. Some suppliers who initially focused solely on GPS now also develop and produce AVLs, AVL systems, data loggers, personal trackers and photo locators.

Taiwan’s strong GPS market was valued at $4.36 billion in 2007, according to the Industrial Economic & Knowledge Center (IEK). The GPS industry covers a wide range of devices, including AVLs, portable navigation devices (PNDs) and telematics. These three segments have independent markets, but may be combined as a total solution package when requested by high-end clients, such as for high-end cars or industrial fleets.

AVLs support GPS data logging and is used in police services, vehicle tracking and fleet management. It is also used to manage public transport, railway industry, logistics and dispatch, safety, security and surveillance, and remote control and diagnostics.

AVLs adopt GPS, GSM and GPRS technologies and are priced about $100 to $300 each depending on value-added functions such as assisted-GPS (A-GPS) technology.

Makers in Taiwan can easily expand into the AVL market via the island’s comprehensive supply chain for GPS chipsets, modules, receivers, LCD panels, human-machine interface (HMI), on-board navigation devices, PNDs and geographic information systems (GIS). Despite this advantage, however, makers must battle the increase in the prices of raw materials and thus, rising production costs. Makers are also faced with a labor shortage problem, as well as the need to comply with new standards and policies. Taiwan makers indicated that the labor costs in their mainland China factories rose by 10 to 20 percent in 2007. Many companies said they absorbed the additional cost to keep their prices stable.

Most Taiwan suppliers design their own software for their AVLs. Companies typically have five to 20 R&D engineers handling this aspect of production.

Cheng Holin Technology Corp.’s R&D engineers have been concentrating on firmware designs. By integrating software, its iTrac Gold models can be monitored by a control center equipped with a Web server and digital maps.

Helioversal Technology Co. Ltd’s R&D team is developing products that support Java. The products are user-programmable and have expandable external designs. Helioversal spends about $3 million on R&D.

The company releases about four new products yearly. Its products support realtime tracking, remote control with SMS or via GPRS, emergency notifications, car security and immobilization function. Some models also support USB connection to the PC for setting parameters and downloading log data. These can connect to a bar-code scanner through the PS/2 socket. The bar code is immediately sent to a server via GPRS. Other models can connect to printers, RFID readers and LED or LCD panels through an RS-232 socket.

Orion Technology’s Easytrac basic AVL, priced at less than $250, combines GPS and wireless communication technologies. It has surge protection and is designed for vehicle tracking, teenage driver tracking and fleet management system. The model adopts SiRFstarIII technology and two types of Siemens triband GSM/GPRS modules—850/1800/1900MHz and 900/1800/1900MHz—to provide GSM/GPRS network connectivity.

The company’s Easytrac pro, a midrange AVL, is priced at less than $300 each. It supports stolen vehicle recovery (SVR), truck or trailer tracking and advanced vehicle tracking application.

The model features an optional RFID reader for driver identification and car alarm system.

Orion Technology’s high-end products, which feature IP67 water-resistance, are quoted at about $300 each. The company plans to release power-saving and solar-powered models in Q1 2008.

Most AVLs are encased in aluminum. The models operate within -30 degrees to 65 degrees Celsius and can be stored within -30 degrees to 110 degrees Celsius in general. The parameters of most AVLs can be updated through SMS or by connecting with a USB data cable.

The major suppliers of GPS products in Taiwan are classified according to their products’ applications: tracking on-board units and AVLs. Tracking-on-board devices are used for security and car tracking. Makers of such products include Argus Security Corp., Taiwan Calsonic Co. Ltd, Gopass Technology Corp., Tesor Plus Corp., Systems & Technology Corp., Long In Tech Co. Ltd, Professor Technology Co. Ltd, Hamg Shing Technology Corp., Globalsat Technology Corp., and Supa Technology Co. Ltd. AVLs, which are used in business fleet management, are produced by Taiwan Calsonic, Gopass Technology, Systems & Technology, Wiphone Communication Corp., Sheng Jay Automation Technologies Co. Ltd, Portman Security System International Co. Ltd and E-Lead Electronic Co. Ltd.

Makers of AVLs in Taiwan are mostly small and medium-sized companies with the capability to conduct R&D, including firmware and electronic designs, final assembly and QC in-house. They outsource mold making, PCB assembly and SMT from other subcontracting companies. Some suppliers focus on R&D and outsource all other production processes to EMS suppliers in Taiwan.

Cheng Holin started producing AVLs in 1996. It has a factory in Taipei. Its product lines include GPS/GSM handheld trackers, GPS/GSM AVL systems, GPS receivers and GPS modules. The company forecasts that GPS/GSM AVL systems will account for 50 to 60 percent of its annual sales in 2008.

Helioversal’s factory has one production line for AVLs that produces 2,000 units per month. It started offering vehicle tracking systems in 2003, including automotive GPS trackers with user-programmable models and turnkey solutions.

Orion Technology has one outsourcing factory in Miaoli, Taiwan. The factory has four production lines that can churn out 10,000 units of AVLs monthly. All of the company’s sales revenue comes from AVL and GPS trackers, making up 70 percent and 30 percent of sales, respectively in 2007.

Suppliers generally source GPS ICs from SiRF, but more makers are now shifting to using u-blox ICs. According to these makers, ICs from u-blox support GPS and Galileo, which can in turn deliver higher performance.

Taiwan AVL suppliers use lithium batteries in their products. Only a few suppliers use NiMH battery cells.

AVL and GPS makers from Taiwan offer OEM and ODM services. These companies ship their products mainly to North America and Europe. Combined, the two regions account for about 90 percent of Taiwan makers’ total GPS/AVL output. Interviewed makers are planning to explore emerging markets.

Orion Technology’s exports account for 95 percent of the company’s sales revenue. All of its products are shipped under its brand, Orion. The company’s main export markets are North America, Europe and the Middle East. Orion Technology predicts about 30 to 50 percent growth in export sales in the next 12 months. Its products are mostly sold in the aftersales market.

Exports account for 85 percent of Helioversal’s total sales revenue. The company ships its products to Australia and Europe, with Germany as a major export market. The company projects that its export business will grow as it explores Central and South America. All of its products are sold to ODM clients.

Cheng Holin exports 95 percent of its products to Europe, the US, Asia and Oceania. The company offers OEM and ODM services. It also undertakes own-brand manufacturing (OBM).