Fleet management and trailer tracking system shipments to reach 6.4 million by 2016, but consolidation urgently needed

LONDON, UK: At a CAGR of 27 percent, commercial telematics systems shipments are set for solid growth. However, the fleet management industry continues to be haunted by structural problems: extreme levels of fragmentation with too many “me too” and “dots-on-a-map” providers and proprietary solutions littering the landscape.

ABI Research telematics and navigation group director Dominique Bonte comments: “The commercial telematics industry faces aggressive consolidation which should ultimately result in the reduction of the hundreds of vendors into at most ten major global players. This process is already well underway with recent mergers and acquisitions including Masternaut and Cybit, Trimble and Punch Telematics, and – most recently - Trimble and PeopleNet.”

The following vendors are emerging as true global players:

- Qualcomm
- TomTom Business Solutions
- Mix Telematics
- Daimler Trucks
- Volvo Trucks
- Digicore/Ctrack
- Trimble

However, consolidation is only effective when tight technical and commercial integration is achieved, a process which can take years. Also required are the adoption of open software approaches, scalable Software as a Service (SaaS)-based platforms, telematics standards, and new business models, as well as the embrace of convergence and a far-reaching willingness to cooperate across the whole value chain in the form of partnerships.