European Fleet Market expected to double by 2020

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A new research report from Berg Insight shows that the number of vehicle subscriptions in the European fleet management market will double from todays 5.3 million(Q4, 2015) to 10.6 million subscribers by 2020.

European companies operating commercial vehicles and heavy machinery fleets are embracing the digital age like never before. The trend is clear; they are moving away from manual, time consuming solutions and towards digital, paperless solutions.   A new report from Berg & Insight now shows that the European market for fleet managements systems is expected to double by 2020*

There are several reasons for this substantial growth. The total number of commercial vehicles in Europe is increasing at the same time as the market penetration for each country continues to grow. This is largely supported by an increasing level of IT-maturity in the various national markets,  as well as an increased overall  focus on compliance to the EU-rules and regulations that comes with owning commercial and company vehicles.

The aftermath of the late 2000s financial crisis also brought upon an increased focus on cost efficiency and how fleet management systems could best solve the problems company owners are facing,  e.g. increasing fuel costs, logistical efficiency and driver and road safety (Read more here)

The Berg Insight report underlines the fact that the European market has entered a period of strong growth in nearly all markets and predictions suggest that this only will increase in the near future. Especially central and eastern Europe markets which are now experiencing growth rates above 25-30 percent; heavily supported by  a low market penetration.

New international players, such as the Norwegian telematics company ABAX, have emerged as the fastest growing company and now challenges the market positions to companies such as Masternaut Microlise and TomTom. At the same time the larger vendors increase their piece of the pie - although not as rapid as fast growing industry players like ABAX . The race towards the number one spot as the biggest vendor of Aftermarket systems tightens and may as well be a match between the fast vs slow as it will be about big vs small.

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About Fleet management Systems

With fleet management systems we define it as telematics solutions ranging from everything between GPS tracking solutions to advanced vehicle management systems that incorporates data logging, satellite positioning and data from the vehicles. This is then send to an backoffice application

Sources

*Berg & insight - Fleet Management in Europe M2M Research Series 2016 - www.berginsight.com