Fleet management in Europe is the fourteenth consecutivereport from Berg Insight analysing the latest developments on thefleet management market in this region.
This strategic research report from Berg Insight provides youwith 265 pages of unique business intelligence, including 5-yearindustry forecasts, expert commentary and real-life case studieson which to base your business decisions.
Highlights from the fourteenth edition of this report:
Insights from 50 new executive interviews with market leadingcompanies.
New data on vehicle populations and commercial fleets in Europe.
Comprehensive overview of the fleet management value chainand key applications.
In-depth analysis of market trends and key developments.
Updated and new profiles of 105 aftermarket fleet managementsolution providers.
Summary of OEM propositions from truck, trailer and constructionequipment brands.
Revised market forecasts lasting until 2023.
This report answers the following questions:
What are the key drivers behind the adoption of FMS in Europe?
What is the geographical and ownership structure of commercialvehicle fleets in Europe?
Who are the leading international and regional providers ofaftermarket fleet management solutions in Europe?
What offerings are available from truck, trailer and constructionequipment OEMs?
What impact will the launch of standard factory installed FMsystems from the OEMs have on the market?
What are the FMS vendors’ hardware strategies and thoughtson BYOD?
Will the FM industry consolidate further during 2020?
How will the commercial vehicle telematics industry evolve in thefuture?
Fleet management is an ambiguous term used in reference to a wide range of solutions fordifferent vehicle-related applications. Berg Insight’s definition of a fleet management solutionis a vehicle-based system that incorporates data logging, satellite positioning and datacommunications to a backoffice application. The history of fleet management solutions goesback several decades. On-board vehicle computers first emerged in the 1980s and were soonconnected to various networks. Today mobile networks can provide ubiquitous onlineconnectivity at a reasonable cost and mobile computing technology delivers very highperformance, as well as excellent usability. All of these components combined enable thedelivery of vehicle management, transport management, driver management and mobileworkforce management applications linking vehicles and enterprise IT systems.
Commercial vehicle fleets play an essential role in the European economy. According toofficial statistics there were 38.6 million commercial vehicles in use in EU23+2 in 2016. The6.2 million medium and heavy trucks accounted for more than 75 percent of all inlandtransports, forming a € 250 billion industry. Approximately 0.8 million buses and coachesstood for 9.3 percent of all passenger kilometres. The greater part of the 31.6 million lightcommercial vehicles (LCV) in Europe was used by mobile workers and for activities such asdistribution of goods and parcels. Last but not least, there are an estimated 21.0 millionpassenger cars owned by companies and governments.
Berg Insight is of the opinion that the European fleet management market has entered agrowth period that will last for several years to come. Individual markets may however suffertemporary setbacks, depending on the local economic developments. The number of fleetmanagement systems in active use is forecasted to grow at a compound annual growth rateof 14.1 percent from 9.1 million units at the end of 2018 to 17.6 million by 2023. Thepenetration rate in the total population of non-privately owned commercial vehicles and carsis estimated to increase from 17.4 percent in 2018 to 32.0 percent in 2023.
A group of international aftermarket solution providers have emerged as the leaders on theEuropean fleet management market. Berg Insight ranks Webfleet Solutions (formerlyTomTom Telematics) as the largest vendor in Europe at the end of 2018 with 770,000subscribers in the region, followed by Verizon Connect in second place with 300,000subscribers. Transics is ranked as the largest player in the aftermarket heavy trucks segmentwith an estimated 136,000 active units installed. Other significant players include Europeancompanies such as ABAX, Masternaut, Targa Telematics, Microlise, Viasat, Bornemann,OCEAN (Orange), Macnil, GSGroup, Quartix, Eurowag Telematics, Trakm8, OptimumAutomotive, Connexas Group and Vehco and international players like Trimble and TeletracNavman from the US, Fleet Complete from Canada, Astrata Europe from Singapore and theSouth African telematics providers Ctrack (Inseego), Cartrack and MiX Telematics.
All major truck manufacturers on the European market offer OEM telematics solutions as apart of their product portfolio. A major trend in the past years has been the announcements ofstandard line fitment of fleet management solutions. Since the end of 2011, Scania is rollingout the Scania Communicator as standard on all European markets and includes a ten-yearbasic service subscription. All medium and heavy duty trucks and buses from Daimlercontains the Fleetboard vehicle computer as standard. Volvo offers Dynafleet as standard inEurope. New MAN trucks are now equipped with RIO as standard replacing MAN TeleMatics.DAF launched its new optional DAF Connect that has been developed in-house in September2016. The leading OEMs in Europe are Scania, Volvo and Daimler with 255,000, 128,000 and117,000 active FM subscribers respectively at the end of 2018.
The consolidation trend continues and 12 M&A activities have taken place in the past year.Year 2019 started off with a new FMS mega deal when TomTom Telematics was divested toBridgestone Europe for a purchase price of € 910 million. BigChange in the UK acquiredLabyrinth Logistics and Trace Systems and Vehco bought Paetronics in Finland adding 350clients. In April, Radius Payment Solutions acquired Plant-I and later in November also Sure-Track. The IT-company Triona acquired Fleetech in April. Masternaut once again changedowner in May when Michelin announced the addition of the company to its commercialvehicle telematics investment. Connexas Group acquired the cold-chain specialist SevenTelematics in May. The latest transaction was done in September when Vehco acquiredFramlogic in Poland, adding 650 clients and 25,000 equipped vehicles.
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