Projections support fleet management as key IoT use case
According to Berg Insight, the number of active fleet management systems in the region had reached 6.7 million at end-2016
The number of active fleet management systems deployed in commercial vehicle fleets in North America was 6.7 million at the end of the 2016, according to a new report from Swedish M2M/IoT market research provider Berg Insight.
Growing at a compound annual growth rate (CAGR) of 15%, this number is expected to reach 13.5 million by 2021.
In Latin America, the number of active fleet management systems is expected to increase from 2.5 million at the end of last year to 4.7 million in 2020, growing at a CAGR of 12.9%
According to Berg Insight’s report, the top-25 providers of fleet management systems in the Americas together currently have a combined installed base of more than 6 million active units in the region. All of the top-15 players each had more than 100,000 active units in the Americas at the end of 2016, while more than 40% of the total number of units deployed in the region is represented by the five largest fleet management vendors alone.
The report highlighted that U.S carrier Verizon has a strong position in the fleet telematics space in terms of size. “The combination of Verizon’s Networkfleet, Telogis and Fleetmatics operations under the same ownership has clearly cemented the US-based carrier as the overall leader from a global perspective”, said Rickard Andersson, senior analyst, at Berg Insight.
In the Americas, Verizon is estimated to outnumber the closest competitors by a factor of three. The runners-up include Trimble, Geotab and Omnitracs which have all surpassed 500,000 active fleet management subscribers in the Americas as of the end of 2016, according to the study.
“The OEM telematics initiatives in the Americas have intensified in recent years and most vehicle manufacturers now offer factory-installed fleet telematics solutions either independently or through partnerships with established aftermarket fleet management solution providers”, Andersson said. He adds that large installed bases of OEM telematics systems are now found especially on the North American market where partner-powered systems are particularly commonplace.
“Berg Insight anticipates that the partner strategy will continue to grow in popularity among the commercial vehicle manufacturers at the expense of in-house telematics development efforts”, the analyst added.