Management in the Americas is the eighthconsecutive report from Berg Insight analysing the latestdevelopments on the commercial vehicle telematics marketin the Americas.
This strategic research report from Berg Insight provides youwith 300 pages of unique business intelligence, including5-year industry forecasts, expert commentary and real-lifecase studies on which to base your business decisions.
Highlights from this report:
Insights from 30 new executive interviews with market leadingcompanies.
New data on vehicle populations and commercial fleets inAmericas.
Comprehensive overview of the fleet management value chainand key applications.
In-depth analysis of market trends and key developments.Updated profiles of 75 aftermarket fleet management solutionproviders.
Summary of OEM propositions from commercial vehicle brands.
Revised market forecasts lasting until 2022.
This report answers the following questions:
Will the FM industry consolidate further in 2018 and beyond?
What is the geographical structure of commercial vehicle fleetsin the Americas?
Which are the leading international and regional providers ofaftermarket fleet management solutions in the Americas?
What offerings are available from commercial vehicle OEMs?
How is the shift towards standard hardware affecting the marketfor fleet management solutions?
How are the regulatory developments in the Americas affectingthe fleet management industry?
What differences are there between the North and LatinAmerican markets?
How will the commercial vehicle telematics industry evolve inthe future?
Fleet management (FM) is an ambiguous term used in reference to a wide range of solutionsfor different vehicle-related applications. Berg Insight’s definition of a fleet managementsolution is a vehicle-based system that incorporates data logging, satellite positioning anddata communications to a backoffice application. The history of fleet management solutionsgoes back several decades. On-board vehicle computers first emerged in the 1980s and weresoon connected to various satellite and terrestrial wireless networks. Today, mobile networkscan provide ubiquitous online connectivity in many regions at a reasonable cost and mobilecomputing technology delivers very high performance, as well as excellent usability. All ofthese components combined enable the delivery of vehicle management, transportmanagement, driver management and mobile workforce management applications linkingvehicles and enterprise IT systems.
Commercial vehicle fleets play an essential role in the economy in both North and LatinAmerica. In North America, there are approximately 14.4 million GVW 3–8 commercialvehicles in use. Around 18 million lighter vehicles including GVW 1–2 vehicles and cars withno GVW are also used by enterprises or public entities. In Latin America, the number ofcommercial vehicles in operation is estimated to 26.7 million, out of which 5.9 million areheavy trucks and 20.8 million are light commercial vehicles. Berg Insight is of the opinion thatthe market for fleet management in the Americas is in a growth period which will continue inthe years to come. The advanced North American market will remain on a growth track, notthe least driven by regulatory developments such as the ELD mandate which is now in force.
Latin America has traditionally presented a very different scenario, often requiring aneducational process in order to extend the perception of fleet management beyond securityrelatedaspects. The Latin American fleet owners have however also started to embracefunctionality for optimisation of fleet operations to an increasing extent.
Berg Insight expects the FM market to continue to show healthy growth in 2018–2022. InNorth America, the number of systems in active use is forecasted to grow at a compoundannual growth rate (CAGR) of 15.6 percent from 8.0 million units in 2017 to 16.4 million unitsby 2022. The penetration rate in the total population of non-privately owned commercialvehicles is estimated to increase from 26.6 percent in 2017 to 49.7 percent in 2022. In LatinAmerica, the number of systems in use is projected to increase from 3.0 million units in 2017,growing at a CAGR of 13.1 percent to reach 5.5 million units in 2022. The penetration rate inthe region is estimated to increase from 11.2 percent in 2017 to 19.7 percent in 2022.Verizon Connect is the clear leader in the fleet telematics space both from a globalperspective and in the Americas specifically. The closest competitor in the Americas isGeotab which has grown considerably in the past year, followed by Omnitracs and Trimblewhich have both surpassed 0.5 million active fleet management subscribers in the region.
Zonar Systems rounds off the top-5, just ahead of Michelin which has established a strongposition in the Americas through multiple acquisitions. Additional top players with installedbases in the range of 0.2–0.3 million active units in the Americas include Teletrac Navman,KORE Position Logic and Fleet Complete. A total of 15 players had installed bases exceeding0.1 million active units in the Americas at the end of 2017, including also Gurtam, SynoviaSolutions, BSM Technologies, GPS Insight, WideTech and Pósitron. The remaining top-25vendors are J.J. Keller, Spireon, Autotrac, Azuga, ORBCOMM, Pointer Telocation, AgilisSystems, OnixSat, CalAmp and Encontrack. Fleet management solution providers withinstalled bases just outside of the top list moreover include MiX Telematics, TomTomTelematics, OMNILINK, Ituran, Centro de Soluciones Inalámbricas (CSI) and Satrack.
Most vehicle manufacturers now offer factory-installed fleet telematics solutions eitherindependently or through partnerships. Examples of OEMs which have introduced systems inthe Americas include Daimler, Volvo, Scania, MAN, Iveco, PACCAR, Navistar, Ford, GM, Hino,Isuzu, FUSO and Ram. The OEM telematics initiatives in the Americas have intensified inrecent years. Large installed bases of OEM telematics systems are now found on the NorthAmerican market, in many cases powered by established aftermarket fleet managementsolution providers. Notable telematics players actively supporting OEMs include VerizonConnect, Zonar Systems and PeopleNet. The volumes of OEM telematics systems are so farsubstantially smaller in Latin America. The adoption is however expected to take off also inthis region. Solutions supplied by the OEMs are anticipated to increase in importance acrossboth continents in the Americas in the coming years.
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