A recent report by IoT analyst firm Berg Insight reveals a significant surge in the deployment of active fleet management systems across commercial vehicle fleets in Europe.
The study, which assessed data up to the end of 2022, highlighted a notable count of 14.8 million active fleet management systems. Anticipating a robust growth trajectory, Berg Insight projects this figure to escalate to a staggering 26.5 million units by 2027, representing a compound annual growth rate (CAGR) of 12.4 percent.
Key Players and Market Dynamics
The top-tier of this burgeoning industry showcases the dominance of key players, with Targa Telematics leading the pack boasting an installed base of approximately 710,000 units at the close of 2022. Following closely behind, Weebfleet secures its position as the second-largest provider, having reached an installed base of about 680,000 units, showcasing substantial growth through organic means and strategic acquisitions.
Verizon Connect stands as the third-largest player, achieving an estimated installed base of 490,000 units by year-end. Other notable contenders like Calamp, Radius Telematics, Scania, ABAX, Gurtam, Bornemann, and AddSecure Smart Transport occupy significant positions in the top ten, each contributing with installed bases ranging from 250,000 to 380,000 units.
Market Expansion and Industry Shifts
The landscape of the fleet management industry has witnessed substantial consolidations, with seven mergers and acquisitions occurring in 2023 alone. Johan Fagerberg, Principal Analyst at Berg Insight, highlighted this trend, emphasizing the market’s evolution and strategic business maneuvers.
Among the notable acquisitions, Targa Telematics acquired Viasat Group, significantly expanding its operational reach across eight key European countries. Similarly, Mapon’s acquisition of CarCops in Estonia and Addsecure Smart Transport’s acquisition of Clifford Group, including Traxgo, signify strategic moves to broaden their regional presence and service portfolios.
Future Projections and Market Trends
Looking ahead, Fagerberg anticipates the ongoing trend of consolidation to persist in 2024, noting the market’s overcrowded nature and the need for alignment and strategic partnerships to maintain a competitive edge.
Furthermore, the growing subscriber bases among heavy commercial vehicle manufacturers such as Volvo, Daimler Truck, and Scania, attributed to standard line fitment of fleet management solutions, signify a paradigm shift in the industry dynamics and underline the pivotal role of integrated solutions provided by manufacturers.
The industry is witnessing an exciting phase of transformation, characterized by strategic alliances, acquisitions, and technological advancements, all poised to reshape the European fleet management landscape in the coming years.
