Strong consolidation in the market looks like continuing with the top five players accounting for 2.5 million installed units
The number of active fleet management (FM) systems deployed in commercial vehicle fleets in North America is expected to grow at a compound annual growth rate (CAGR) of 17 per cent to reach 12.7 million by 2020.
This, coupled with the market forecast to almost double from 2.3 million in Latin America to 4.1 million by 2020, would see the total installed base of FM systems in the Americas soar to 16.8 million units, a new study finds.
The latest research report from M2M/IoT analyst Berg Insight indicates the fast-growing fleet management industry has for several years been in a phase of strong consolidation which shows no signs of abating 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&As,” said Rickard Andersson, senior analyst at Berg Insight.
The top 15 providers of FM systems in the Americas have a combined installed base of more than 4 million active units in the region and the top five players alone account for 2.5 million installed units.
According to the report, notable transactions in 2015 include the merger of Teletrac and Navman Wireless to create a global telematics organisation as well as the combination of BSM Technologies and Webtech Wireless in the North American market. Fleetmatics also continued its international expansion, acquiring Ornicar in France and Visirun in Italy during the year.
High profile deals in the sector have continued to be struck in the first half of 2016. Last month, Verizon Communications signed an agreement to purchase Telogis. The deal, which also includes the Verizon Networkfleet business stemming from the acquisition of Hughes Telematics in 2012, considerably extends its existing presence in the fleet management sector.
“The acquisition of Telogis propels Verizon to a leading position from a global perspective in terms of fleet management subscriber base,” added Andersson.
Berg Insight’s report identifies Fleetmatics, Omnitracs, Telogis, Trimble and Geotab as leading solutions providers and anticipates that at least one of them will have reached the milestone of one million fleet management units globally by 2018.