Fleet operations have become more challenging. Costs are rising, shippers are under increasing pressure to deliver goods faster, and there is a shortage of qualified truck drivers in the U.S. As a result, interest in fleet management solutions is growing rapidly as firms look for ways to reduce costs and provide higher levels of service with fewer resources.
According to Berg Insight’s “Fleet Management in the Americas 2017” report, the number of active fleet management systems deployed in commercial fleets in North America reached 6.7 million in the fourth quarter of 2016. The market is expanding with a compound annual growth rate of 15 percent, and the total number of deployed systems will reach 13.5 million by 2021.
In Latin America, the number of active fleet management systems will increase from 2.5 million in 2016 to 4.7 million in 2021, a compound annual growth rate of 12.9 percent.
“There are several key growth drivers for fleet management telematics, including new dongle technologies that have reduced the initial cost and eliminated installation charges; government regulations in the form of requirements for [electronic logging device] ELD systems to be implemented by December 2017; and enhanced OBD communications that offer faster diagnosis and repair, significantly reducing down time,” says Mike Fitzgerald, executive vice president and general manager of Innova Telematics Solutions.
Rickard Andersson, senior analyst at Berg Insight, agrees that regulatory compliance is an important driver in North America, along with advanced technology.
“The traditional market drivers such as increased efficiency, security, environmental performance and control of fleets are still very much relevant, especially for companies which have not yet adopted fleet management solutions or fleets which have previously opted for basic systems with limited functionality in terms of performance enhancements,” Andersson says.
The leading fleet management vendor in the region is wireless carrier Verizon, which acquired Telogis and Fleetmatics, adding their capabilities to its own Networkfleet offering. The company’s installed base outnumbers its closest competitor by a factor of three, according to the Berg report.
Trimble, Geotab and Omnitracs have all surpassed 500,000 active fleet subscribers in the Americas.