Telematics Fleet Management in Europe

Discover the Latest Trends on the Telematics Industry

The Telematics Fleet Management Market in Europe, despite its asymmetries across Europe, shows signs of recovery.

Fleet Management in Europe has been gaining momentum and is expected to have a consolidated growth in the next coming years. Berg Insight estimates compound annual growth rates of around 15% from the years 2014 up to 2019.

The region still faces asymmetries in terms of adoption, being the Benelux, UK & Ireland the most advanced markets, followed by Germany, France, Central Europe and Nordic countries. In the last end are the Mediterranean countries.

The Telematics Fleet Management Market in Europe, despite its asymmetries across Europe, shows signs of recovery.

33,7%
UK & Ireland

Penetration rate
26,9%
Benelux

Penetration rate
16,2%
Nordic Countries

Penetration rate
15,5%
France

Penetration rate
15,1%
Germany, Switzerland and Austria

Penetration rate
14,8%
Central Eastern Europe

Penetration rate
5,6%
The Mediterranean

Penetration rate

Font: Berg Insight, , M2M Research Series, Fleet Management in Europe.

Website: www.berginsight.com

The Telematics Fleet Management Market in Europe is recovering and is expected to have a compound annual growth of around 15% both in shipments and systems in active use.

2014

2019

Forecast
1,2 million

Fleet Management
Systems shipments

CAGR: 15,8%
2,5 million
4.4 million

Fleet Management Systems
in active use

CAGR: 15,1%

8.9 million
14,8%

Penetration Rate

Non-Privately Owned

Commercial vehicles

28,4%

Font: Berg Insight, , M2M Research Series, Fleet Management in Europe.

Website: www.berginsight.com

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The future of the Telematics Fleet Management Market

The telematics fleet management market shows signs of a positive recovery. The future of the market on the long term remains a question, during the last 2 years mergers and acquisitions have dominated the market, appointing to the creation of Pan-European players  pushing smaller competitors to form alliances in order to be able to benefit  from economies of scale and keep their competitiveness.

 

Players from different business sectors are starting to play a role in the Telematics Fleet Management Market, car manufacturers and telecom operators. The first started a few years back offering the solution in the HCV segment, this trend is now entering the LCV market and is expected that LCV manufacturers start to offer the service probably in a first stage through partnerships with traditional TFMS vendors. Telecom operators are being selected by a few vendors as an alternative distribution channel, but in some cases the Telecom operator is starting to integrate the product/company in its own structure/offer.

 

Insurance telematics is still waiting to gain its momentum, insurers know what they can gain, models have been created, what is missing is the full adoption of the solution.

Telematics Fleet Management Solutions Market Drivers

When making the decision of acquiring a GPS fleet management solution, the strongest driver remains the endless pressure to reduce costs whilst improving the service quality.

 

Nevertheless there are other drivers influencing the decision of adoption that derive from different environmental factors.

 

Some of them are:

  • Pressure to reduce costs and increase levels of competitiveness
  • European Union regulations regarding road transportation
  • Local policy regulations
  • Electronic toll collection
  • Implementation of SaaS (Software as a Service) business model