Sensys Gatso continues to build upon a long history of strength, leadership, and innovation in the traffic enforcement industry with a sustained commitment to Traffic Enforcement as a Service (TRaaS). In America, we have led a conscious shift in the structure of our sales portfolio, which was accented well by record-high order intake globally. The TRaaS solution establishes a direct and daily line of communication between our team and our clients. We fully deliver and manage all aspects of the automated traffic enforcement verticals that we serve. This includes everything from asset procurement and installation, to the issuance and collection of citations through their respective, client-specific, citation lifecycles. At the heart of TRaaS, lies our clients’ ability to customize the scope of their enforcement needs without ever sacrificing transparency.
The TRaaS Model
TRaaS is a highly scalable hybrid of Sensys Gatso’s system sales and managed services segments. Traditionally, with the exception of the American market, Sensys Gatso has followed a system sales model, or one-off sales model. In system sales, TRaaS takes the form of recurring revenue streams through critically important maintenance and upkeep activities. But with so much more to offer from a managed services perspective, our strategic transition toward the TRaaS model has become exceedingly necessary. This transition will ensure that the tangible value of traffic safety, which we proudly and consistently deliver to our clients, is optimally manifested from a profitability standpoint. A staple of TRaaS is its recurring revenue structure. With such a model in place, at any scale, long term margins are rewarded for the continuance of high-quality, reliable service.
A Scalable Software Suite
The inherent benefits of TRaaS’ flexible deployment-scope are further enhanced by Sensys Gatso’s dynamic software solution suite. It all begins with FLUX, our sensor-agnostic, data generation platform; which is a cross-compatible, data input consolidator, capable of streamlining various inputs while maintaining the highest level of data integrity. Along with optimizing the performance of our proven and powerful T and S series hardware solutions, FLUX is futureproof. It is compatible with various cameras and sensor inputs; including future sensor technology and cameras not yet available in the marketplace. FLUX’s compatibility offers us high levels of flexibility with respect to hardware deployment. This provides us with an advantage when dealing with suppliers. All this, while maintaining the highest level of data integrity. In constant communication with FLUX is PULS, Sensys Gatso’s sensor maintenance and data analytics software. PULS works efficiently to maximize the uptime for all active units and scales easily to meet our clients’ needs. PULS receives, compiles, and delivers data from all of our flexible input configurations to Xilium, our comprehensive workflow management software and user interface. Xilium automatically handles violations, generates a multitude of highly-customizable reports, sends out notices of violations, and even manages the fine collection process. Xilium is an intuitive, dynamic, and user friendly interface which serves as the end point for all traffic enforcement verticals. Throughout all phases of these interwoven processes, the end client maintains complete and exclusive visibility and control, all without having to lift a finger. Whether our clients need a little or a lot of software functionality, Sensys Gatso has it covered. This is the real benefit of TRaaS.
Traffic enforcement as a solution, begins with high quality equipment, installed right. Sensys Gatso’s experienced procurement professionals handle procurement, permitting, and installation for all US traffic enforcement programs.
TRaaS in the USA - 34 Contracts in 11 States
TRaaS may be an ideal that we aspire to in many regions, but in the US we went to the market with this service model from day one. From the time we opened our doors in 2007, our team has been steadily building loyal partnerships with clients through the important day-to-day communications involved with a successful traffic enforcement program. This directly speaks to the viability and strength of TRaaS. With full-scale TRaaS deployments at the municipal and state-wide levels, we are able to respond in real time to a dynamic market by quickly adapting to changes in state and local laws. The US market has served both as an incubator, and the ultimate stress test for TRaaS’ adaptability. Sensys Gatso USA is the single point of contact for its end clients’ traffic safety initiatives. All facets necessary for a successful traffic enforcement program are encapsulated by TRaaS, from infrastructure permitting, procurement and installation, to citation issuance, collection, and revenue allocation.
Quality in, quality out. Our industry leading photo enforcement technology continues to be the cornerstone of our solutions worldwide, as well as the first step of the citation life cycle for American clients.
The traffic citations required in our market offer interesting insights into the flexibility of TRaaS’ revenue structure. Generating and issuing traffic citations, whether for speeding, running a red light, or any other traffic violation, often results in a revenue sharing model where Sensys Gatso and the end client share the proceeds from the collected fines. This allows us to offer our traffic safety solutions at zero cost to our client cities. While such a model is ideal, legislative policies often dictate the specifics of enforcement programs and vary greatly across the US market. In states where revenue sharing is prohibited, TRaaS allows for compensation models to be tied to any number of program metrics. It can also be deployed using a simple, per camera, per month leasing model.
TRaaS in this market handles every segment of the traffic enforcement value chain. As a result of this, states and municipalities can enjoy a number of secondary administrative benefits in addition to safer driver behavior and reduced road fatality rates. One major benefit of the TRaaS model is that it allows fully-scaled traffic enforcement systems to be implemented with little to no burden placed on the end clients’ staff. All day-to-day maintenance and management of the systems and software is handled by our experienced staff members. Our clients can typically avoid the burdensome staffing investments often associated with large-scale traffic safety initiatives. In addition, our clients are not required to develop or outsource software solutions, back office, or even payment and fulfillment operations. Once deployed, our customers love it; we do the work, they keep control.
Sensys Gatso can also handle citation payments (card or check), for any program we implement. Paid citations frequently generate new revenue streams at no cost to the client. Our end clients have complete visibility of their citation collection process, with zero added burden on their end.
New business verticales in the American Market
Recent growth in the U.S. has taken the form of a number of different business verticals, all of which serve to strengthen our total TRaaS portfolio. Our success with traditional speed and red light enforcement has allowed our back office to develop into the TRaaS driver it is today. With such a strong downstream payment processing and management system in place, entry into a new business vertical becomes a matter of orientation and positioning upstream. With TRaaS, we are well-positioned for a number of fully integrated market entries.
Uninsured Vehicle Diversion Program
2019 marked our first full year in the uninsured vehicle diversion market. This market is unique to both America and Sensys Gatso and provides a long sought-after solution to the problem of uninsured vehicles on the road.
1 in 7 or 14% of vehicles driving on US roads are uninsured.
Source: Insurance Research Council
School bus stop arm enforcement
School bus stop arm violations have been on the rise in America in recent years, with the most recent of estimates suggesting as many as 17 million drivers pass school busses loading and unloading students annually. Sensys Gatso’s commitment to traffic safety compelled us to find a solution to address this pervasive issue, especially one which continues to put the lives of our children at serious risk. Our stop arm solution utilizes the highest-quality sensor inputs available to the industry. As violations are captured by our cameras, they are then sent through PULS and into Xilium, establishing a legally acceptable evidence package for law enforcement officers, and subsequently, the offenders themselves.
Sources: National Association of State Directors of Pupil Transportation Services 2019 Stop Arm Survey
Sensys Gatso’s entry into parking enforcement leverages the strength and flexibility of our back office platform to create additional revenue streams. These diversified income streams help to create a more well-rounded, robust portfolio. With a projected market size of USD 5.1 Billion by 2023 with an 8.7% compounded annual growth rate (CAGR), parking enforcement is a promising space Sensys Gatso will continue to explore in the coming fiscal year.
Modular Market Entry
While historically, the American market has had a high level of acceptance for fully integrated TRaaS solutions, full TRaaS integration will require some time for cultural acceptance to catch up in the European market. The market landscape across Europe has a large amount of variance to account for, from centralized to decentralized supplier structures, to greenfield or brownfield segments. Here, TRaaS’ modularity, as well as its flexible financial structure are of great benefit to us. In Europe, TRaaS will set its roots by streamlining, augmenting, and simplifying select, country-specific segments of the automated traffic enforcement value chain. Any segment of the TRaaS value chain can be a means of market entry. The deciding factor will be which segment a given country is most prepared to outsource.
Good things take time. For markets in many countries, the level of outsourcing a full scale TRaaS deployment carries with it is too great to be done in one go. Whichever segments show the most need, and are the most willing, will be the first to benefit. As European markets grow more and more accepting of traffic enforcement as a solution, TRaaS’ flexible scope will capitalize on unique market entry opportunities as they present themselves. Once anchored, Sensys Gatso and the client will grow together. An increase in our scope is an increase in client resources. While in some countries, total TRaaS may take some time to be fully realized, its end benefits will be well worth the wait.