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The number of active fleet management systems deployed in commercial vehicle fleets in Europe was 9.1 million in Q4-2018, according to a new research report from the IoT analyst firm Berg Insight. Growing at a compound annual growth rate (CAGR) of 14.1 percent, this number is expected to reach 17.6 million by 2023.
The top 22 vendors have today more than 100,000 active units in Europe. Webfleet Solutions’ subscriber base has grown both organically and by acquisitions during the past years and the company is the clear market leader on the European market and reached an installed base of about 770,000 units at year-end 2018. Verizon Connect is in second place and had achieved an installed base of 300,000 units. ABAX and Masternaut follow and have reached more than 220,000 units each. Targa Telematics, Microlise, Gurtam, Viasat and Bornemann are also ranked among the ten largest providers with 174,000–192,000 units each.
Some notable players just outside of the top ten list are Teletrac Navman, Fleet Complete, Transics, Trimble, OCEAN (Orange), Macnil, GSGroup, Quartix, Eurowag Telematics, Ctrack (Inseego), Optimum Automotive, Ram Tracking, Cartrack, Radius Payment Solutions and Connexas Group. The HCV manufacturers are now growing their subscriber bases considerably in Europe thanks to standard line fitment of fleet management solutions. FleetBoard by Daimler, Dynafleet by Volvo and Scania Fleet Management are the most successful with active subscriber bases of 117,000 units, 128,000 units and 255,000 units respectively as of Q4-2018.
The consolidation trend on this market continued in 2019. “Twelve major mergers and acquisitions have taken place in the past twelve months among the vendors of fleet management systems in Europe,” said Johan Fagerberg, Principal Analyst, Berg Insight.
Project44 picked-up GateHouse Logistics and Microlise acquired a 20 percent stake in Trakm8 in December 2018. Year 2019 started off with a new FMS mega deal when TomTom Telematics was divested to Bridgestone Europe for a purchase price of € 910 million. BigChange in the UK acquired Labyrinth Logistics and Trace Systems also in January 2019. Vehco bought Paetronics in Finland adding 350 clients in the same month. In April 2019, Radius Payment Solutions announced the acquisition of Plant-i, a provider of tracking and telemetry solutions to the plant and construction sectors that tracks 25,000 vehicles. Radius Payment solutions also picked up Sure-Track later in November.
The IT company Triona acquired Fleetech in April. Masternaut once again changed owner in May when Michelin announced the addition of the company to its commercial vehicle telematics investment. Masternaut is Michelin’s third major acquisition in the fleet telematics industry, with previous investments in Nextraq in North America and Sascar in South America. Connexas Group (previously Isotrak) acquired the cold-chain specialist Seven Telematics in May before rebranding the company group as Connexas. The latest transaction was done in September when Vehco acquired Framlogic in Poland adding 650 clients and 25,000 equipped vehicles. Fagerberg anticipates that the market consolidation of the still overcrowded industry will continue in 2019–2020.
About Berg Insight
Berg Insight is a dedicated M2M/IoT market research firm based in Sweden. We have been specialising in all major M2M/IoT verticals such as fleet management, car telematics, smart metering, smart homes, mHealth and industrial M2M since 2004. Our vision is to be the most valuable source of intelligence for our customers. Berg Insight offers numerous market reports, detailed market forecast databases and advisory services. We provide custom research tailored to your requirements including focussed research papers, business case analysis, go-to-market strategies and bespoke market forecasting. We have provided analytical services to 1000 clients in 72 countries on six continents to date. Our customers range from many of the world’s largest mobile operators, IT companies and telecom vendors, to venture capitalists, technology start-ups and specialist consultants.