Stadium Group has been awarded a substantial new supply contract by Trak Global. This contract, worth £5 million, builds on the existing partnership between the two companies and will see Stadium continue to produce Trak Global's Usage-Based Insurance (UBI) units, which are fitted to vehicles to monitor individual driving styles.
The vehicle tracking software captures data such as mileage, speed, acceleration and braking behaviour for use by insurance companies to manage risk and reward safer driving practices.
Insurance telematics, which underpins UBI, is one of the fastest growing M2M vertical markets with Berg Insight projecting CAGR of 42.4% between 2015 and 2019. Stadium has a proven track record of providing high quality, cost effective electronic solutions for the automotive market, designed and manufactured to the TS16949 quality management standard.
The extended contract with Trak Global reinforces Stadium's forecasted growth for wireless M2M solutions. Stadium's strength as an enabling partner means that the company is well positioned to add value to and support high volume deals in the high growth automotive sector.
Tony McFadden, Chief Commercial Officer, Stadium Group, commented: "Aftermarket automotive telematics is an exciting growth area for M2M wireless communication and we're delighted to announce this deal with Trak Global. The size and scale of this engagement further underpins the strength of our wireless proposition, in the midst of a growing trend towards insurance telematics."
Nick Corrie, Managing Director of Trak Global, commented: "We're very pleased to work with Stadium as our wireless hardware manufacturing partner as we continue to build on our position as a leading European telematics solutions provider. Stadium's ability to optimise a global supply chain, as well as having the capacity to support high volume roll-out of products for this high growth sector, made them the suitable partner for us."
Charlie Peppiatt, Chief Executive Officer, Stadium Group, added: "Our dedicated Wireless Regional Design Centres and manufacturing centres of excellence provide mass volume scale and local agility for Trak Global as they expand their offering to the UK car insurance market."