Innovations, Social and Economic Megatrends to understand the World of Tomorrow.
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European Fleet Management Market to Reach 11 Million Units in 2020.

Reportlinker Review is a series of posts featuring Innovations, Social and Economic Megatrends to understand the World of Tomorrow. Each post is illustrated with statistics for one industry.

Reportlinker’s European Fleet Management Industry Review in a nutshell

  • Medium and heavy trucks are 75% of inland transports
  • Continental AG purchased Zonar for undisclosed amount
  • BlackBerry moves into fleet management

How is the European Fleet Management Market?

The European fleet management market is forecasted to reach 10.6 million active units by 2020, growing at a compound annual growth rate (CAGR) of 14.9%. The number of non-privately owned commercial vehicles is estimated to increase to 34.4%.

Fleet management comprises on-board vehicle computers which log data, and communicate it back to a main office via satellite.

In 2014, there were 36.2 million commercial vehicles in Europe.

Of all inland transports, 75%, 5.8 million, are medium and heavy trucks.  This industry is worth $275.9 billion.  Nearly 30 million light commercial vehicles are used for deliveries.

The largest fleet management companies in Europe are TomTom Telematics, Masternaut and Transics.

In August, Verizon purchased Fleetmatics for $2.4 billion and became the world’s largest fleet management vendor.

German transportation technology company Continental AG has agreed to acquire American fleet management company Zonar for an undisclosed amount.

The purchase will expand the company’s portfolio and broaden its customer base.

Continental will own a 81% stake.  The remaining 19% stake is owned by Daimler Trucks North America.

Zonar manufactures telematics systems that perform functions like remote vehicle diagnostics.

The system also supports Daimler’s Virtual Technician, which is now installed on more than 200,000 trucks.

Zonar also offers an automatic on-board recording device tablet and holds a patent for an electronic vehicle inspection reporting system.

The deal is pending approval from the U.S. Department of Justice and the U.S. Federal Trade Commission.

According to Boston Consulting Group, 66% of German and 44% of U.S. manufacturers plan to install assistance systems and autonomous robots by 2021.

Blackberry Radar

Meanwhile, Blackberry has moved into the crowded North American fleet management market with its Blackberry Radar device. The device sends fleet owners information on the position of cargo, temperature and whether trailer doors are open or closed, among other data.

All data is encrypted.  Blackberry will charge a monthly fee to use the system.

The move is part of CEO John Chen’s plan to move Blackberry into new industries using the company’s existing patents.  The company’s plan and Blackberry Radar were introduced in July at its Security Summit.

Canada’s Caravan Group will install Blackberry Radar in 500 trailers, a third of its fleet.

ReportLinker Review – European Fleet Management Market

  • Over the period 2015-2019, the fleet management market in Europe is forecasted grow at a CAGR of 27.9%. (source: TechNavio)
  • At the end of 2014, there were 440 million fleet management systems in use. By 2019, the number is forecasted to reach 890 million.  This represents a CAGR of 151%. (source: Berg Insight)
  • In 2015, the European roadways and railways intelligent transport systems market was worth $6.3 billion. It is forecasted to reach $6.5 billion this year.  From 2016 to 2022, the market is anticipated to grow at a CAGR of 5.3%. (source: KBV Research)