3.8 M. Fleet Management Systems to be Deployed in Commercial Vehicles by 2015: Berg Insight

Taipei, May 23, 2011 (CENS)--The number of fleet management systems deployed in commercial vehicle fleets in North America was 2.1 million in the fourth quarter of 2010, and the figure is expected to reach 3.8 million by 2015, growing at a compound annual growth rate (CAGR) of 12.6%, according to Berg Insight.

The major analyst firm said that in Latin America, the number of installed fleet management systems is expected to increase from 0.9 million in the fourth quarter of 2010 to 2.3 million in 2015, growing at a CAGR of 20.6%.

The market for fleet management systems in the Americas is highly fragmented with hundreds of companies competing on the market. There are still different market segments to address and some vendors such as Qualcomm, XATA and PeopleNet offer solutions aimed for the high-end transportation segment, whereas others including FleetMatics, Networkfleet and Wireless Matrix focus on service fleets.

Berg Insight's recent report cited customer awareness of the benefits of telematics as the main driver behind growth. "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, the research firm said. The recently implemented car-driver-safety (CSA) safety scoring system in the United States to identify high-risk motor carriers requiring interventions is one example. 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 this region, Berg Insight said.