A projection from Berg Insight
Fleet management systems to reach 7.1m in Europe by 2018
According to a new research report from Berg Insight, the number of active fleet management systems used in commercial vehicle fleets in Europe was 3.65 million in Q4-2013. Growing at a compound annual growth rate (CAGR) of 14.2 percent, this number is expected to reach 7.10 million by 2018.
A group of international aftermarket solution providers have emerged as the leaders on the European fleet management market, with Masternaut reporting an active installed base of nearly 350,000 units in July 2014, mainly in France and the UK. TomTom Telematics was the fastest growing vendor also in 2014 and has now surpassed 400,000 subscribers as of August 2014. The two companies today share the number one spot in terms of active installed base in Europe, with Digicore also joining the exclusive group of fleet management providers in Europe having more than 100,000 active devices in the field. Transics is number one in the heavy trucks segment with an estimated 85,000 active units installed.
A major trend in the past three years has been the announcements of standard line fitment of fleet management solutions among the HCV manufacturers. Scania, Daimler, Volvo and MAN now experience fast growth of telematics subscribers thanks to these initiatives.
FleetBoard by Daimler, Dynafleet by Volvo and Scania Fleet Management are the most sold systems with cumulative shipments of 150,000 units, 135,000 units and 100,000 units respectively as of Q4-2013. A recent trend is that LCV manufacturers increasingly work together with aftermarket players to offer fleet management solutions – PSA Peugeot Citroën has for instance launched a new fleet management service on the French market in partnership with Orange Business Services and Ford and Telogis recently partnered to deliver fleet management solutions to Ford customers in Europe.
The fleet management industry is one of the most over crowded, and Merger and Aquistion activities on this market continued with full force in 2014, with seven major mergers and acquisitions having taken place this year among the vendors of fleet management systems in Europe. Some of these have included Qualcomm divested the majority of the European arm of its fleet business to Astrata Group, a fleet management company headquartered in Singapore. In April, TomTom also acquired the French FM provider DAMS Tracking, adding another 27,000 subscriptions to the installed base. Francisco Partners moreover divested Masternaut to Summit Partners and FleetCor in the same month.
It is expected that the market consolidation will continue in kind in 2015.