The installed base of fleet management systems will reach 8.7 million units in the Americas by 2016

According to a new research report from the analyst firm Berg Insight, the number of fleet management systems deployed in commercial vehicle fleets in North America was 2.8 million in Q4-2011. Growing at a compound annual growth rate (CAGR) of 15.9 percent, this number is expected to reach 5.9 million by 2016.

In Latin America, the number of installed fleet management systems is expected to increase from 1.3 million in Q4-2011, growing at a CAGR of 16.6 percent to reach 2.8 million in 2016. Fleet management vendors such as Qualcomm, XATA and Trimble’s PeopleNet remain largely focused on the high-end trucking segment.

Non-trucking segments such as delivery, utility and service are addressed by another group of vendors including FleetMatics, Networkfleet and Wireless Matrix. The high-end vendors most commonly offer customised solutions via a consultative sales process, whereas others adopt indirect sales models based on distributors and resellers offering more standardised solutions.

Increasingly advanced fleet management functionality is offered by the manufacturers of commercial vehicles active in the region.

“Aftermarket fleet management providers still largely dominate the marketplace, but the truck manufacturers are well-positioned to reap market shares either independently or by partnering with telematics providers”, said Rickard Andersson, Telecom analyst, Berg Insight. A change in the market dynamics can be the result of this development, which potentially could shrink the addressable market for aftermarket solution providers in the longer term.

“We are likely to see standard line-fitment of fleet management systems on all new heavy commercial vehicle models within five to ten years”, concluded Mr. Andersson.

New regulations related to road transport activities also have a major impact on the market environment. High-risk motor carriers are identified by the CSA safety scoring system and fleet owners can use FM applications to ensure proper behaviour. Distracted driving regulations banning cell phone use are further fostering increased adoption of alternative communication and job dispatching solutions. The much-debated mandate to use electronic on-board recorders for hours-of-service logging has not yet been enforced, but Berg Insight anticipates that it is likely to come in place starting in 2013. In Brazil, the pending mandate to install tracking units in all new vehicles is also an important influencer of the development in this region

Recent Articles

Digital Insurance: 5 digital trends shaping the insurance industry

Posted on: July 6, 2020

At this point in history, the digital revolution has turned nearly every industry upside-down in one way or another. The disruptions are clearly visible in industries like retail, where the rise of eCommerce has changed everything, and in media, where nearly every outlet has been challenged and disrupted by digitisation, says Mark Broadly, a Journalism

Read more

NB-IoT vs LTE-M: Which is the best choice for your IoT application?

Posted on: July 6, 2020

Time is running out as 2G and 3G networks gradually sunset across the world, forcing many legacy use cases to be transferred to new connectivity technology. NB-IoT and LTE-M have entered the market as two new network technologies created for enabling global IoT connectivity and capable of supporting LPWAN (Low Power Wide Area Networks) technology.

Read more