The number of fleet management systems deployed in commercial vehicle fleets in the Americas is set to grow from 4.9 million at the end of 2012 to 10.1 million by 2017, according to new research from Berg Insight.
The market-research company predicts that North American deployments will grow from 3.3 million at the end of 2012 to 6.8 million by 2017, with installations in Latin America rising from 1.6 million to 3.3 million over the same period.
The market still appears relatively fragmented, with some ten providers accounting for two million of the active units across the region.
Leading players include Omnitracs (San Diego, CA, USA), Trimble (Sunnyvale, CA, USA), Fleetmatics (Boston, MA, USA), Zonar Systems (Seattle, WA, USA) and Teologis (Aliso Viejo, CA, USA), with more than 200,000 active units each.
According to Berg, regulations in the road transport area are having a significant impact on the market environment.
“The US hours-of-service rules have recently been updated and a mandate to use electronic logging devices has now been passed,” said Rickard Andersson, a senior analyst with Berg.
Moreover, while postponed several times, the implementation of mandatory tracking systems in Brazil is expected to occur in 2014, leading to more factory installation of telematics devices in vehicles.
“While these regulatory initiatives are limited to specific markets, vehicles, companies and functionalities, there is no question about the positive effect on the awareness of vehicle telematics in the Americas,” said Andersson.
Berg also expects further consolidation between market players in the coming years, and says the industry will be dominated by a handful of companies in future.
Trimble has already acquired several providers of complementary solutions, widening its scope in the transportation and logistics sector, while private equity firm Vista Equity Partners (San Francisco, CA, USA) recently acquired Omnitracs’ Americas business from Qualcomm (San Diego, CA, USA).