Growing applications for Internet of Things (IoT) and Machine-to-Machine (M2M) technologies will transform commercial vehicle fleets. Moreover, the active fleet management systems already deployed in commercial vehicle fleets in North America was 5.8 million during the fourth quarter (Q4) of 2015, according to the latest market study by Berg Insight.
Increasing at a compound annual growth rate (CAGR) of 17 percent, the fleet management systems installed base in North America is expected to reach 12.7 million units by 2020.
In Latin America, the number of active fleet management systems is expected to increase from 2.3 million in Q4 2015, growing at a CAGR of 12.8 percent to reach 4.1 million in 2020.
Fleet Management Systems Market Development
The top fifteen providers of fleet management systems in the Americas now have a combined installed base of more than 4 million active units in the region, and the top five vendors account for 2.5 million units.
The leading solution providers now all have more than 400,000 active units on this market. The fast-growing fleet management industry has for several years been in a phase of strong consolidation, which shows no signs of slowing down in the near-term.
"Leading providers on a global basis have now surpassed half a million fleet management subscribers by far, and are continuing to grow at a high pace driven by organic growth in combination with selective M&A," said Rickard Andersson, senior analyst at Berg Insight.
Fleet Management Vendor Consolidation Trends
Notable transactions in 2015 include the merger of Teletrac and Navman Wireless to create a global telematics organization, as well as the combination of BSM Technologies and Webtech Wireless on the North American market.
Fleetmatics continued its international expansion, acquiring Ornicar in France and Visirun in Italy during the year. The first half of 2016 has also seen some high-profile vendor consolidation deals.
Most notably, Verizon Communications announced in June that it had signed an agreement to purchase Telogis, thereby extending its existing presence in the fleet management sector -- which also includes the Verizon Networkfleet business stemming from the acquisition of Hughes Telematics in 2012.
"The acquisition of Telogis propels Verizon to a leading position from a global perspective in terms of fleet management subscriber base," said Mr. Andersson. He adds that Berg Insight anticipates that at least one of the solution providers will have reached the milestone of 1 million fleet management units globally by 2018.