A new forecast is good news for partners specializing in machine-to-machine sales.
Analyst firm Berg Insight says the number of fleet management systems deployed in commercial vehicle fleets in North America was 2.1 million in Q4 2010. Growing at a compound annual growth rate (CAGR) of nearly 13 percent, this number is expected to reach almost 4 million by 2015. The projected increase is even bigger In Latin America, where the number of installed systems is expected to increase from just shy of 1 million in Q4 2010, growing at a CAGR of almost 21 percent, to reach 2.3 million in 2015.
Fleet management vendors such as Qualcomm, XATA and PeopleNet remain largely focused on the high-end trucking segment. Non-trucking segments such as delivery, utility and service are addressed by another group of vendors including FleetMatics, Networkfleet and Wireless Matrix. The high-end vendors tend to offer customized solutions via a consultative sales process, whereas others adopt indirect sales models based on distributors, solution sellers and integrators, and offer more standardized solutions.
Today managers in North America generally know that fleet management technology can help their businesses reduce costs and improve efficiency. In Latin America, an educational process may however be needed in order to increase the awareness among prospective users about the benefits that fleet management solutions bring beyond mere security-related features,” said Rickard Andersson, telecom analyst, Berg Insight.
New regulations related to road transport activities also have a major impact on the market environment. One example is the recently implemented CSA safety scoring system in the U.S. to identify high-risk motor carriers requiring interventions. The hours-of-service regulations are further being revised and a mandate to use electronic on-board recorders to log working hours for truckers is likely to come in place starting in 2012 for new vehicles, to eventually include all commercial vehicles.
In Brazil, the mandated installation of tracking units in all new vehicles is also an important influencer of the development in that region.