Fleet management in Europe – 6th Edition

Executive summary

Fleet management is an ambiguous term used in reference to a wide range of solutions for different vehicle-related applications. Berg Insight’s definition of a fleet management solution is a vehicle-based system that incorporates data logging, satellite positioning and data communication to a backoffice application. The history of fleet management solutions goes back several decades. On-board vehicle computers first emerged in the 1980s and were soon connected to various satellite and terrestrial wireless networks. Today mobile networks can provide ubiquitous online connectivity at a reasonable cost and mobile computing technology delivers very high performance, as well as excellent usability. All of these components combined enable the delivery of vehicle management, transport management, driver management and mobile workforce management applications linking vehicles and enterprise IT systems. Commercial vehicle fleets play an essential role in the European economy. According to official statistics there were 35.5 million commercial vehicles in use in EU23+2 in 2008. The 6.2 million medium and heavy trucks accounted for more than 75 percent of all inland transports, forming a € 250 billion industry. Approximately 0.7 million buses and coaches stood for 9.3 percent of all passenger kilometres. Last but not least, the greater part of the 28.6 million light commercial vehicles (LCV) in Europe was used by mobile workers and for activities such as distribution of goods and parcels.

Berg Insight is of the opinion that the European fleet management market has entered a growth period that will last for several years to come. Individual markets may however suffer temporary setbacks, depending on the local economic developments. The number of fleet management systems in active use is forecasted to grow at a compound annual growth rate of 20.7 percent from 2.0 million units at the end of 2010 to 5.0 million by 2015. The penetration rate in the total population of non-privately owned commercial vehicles is estimated to increase from 6.9 percent in 2010 to 17.6 percent in 2015.

A group of international aftermarket solution providers have emerged as the leaders on the European fleet management market. Masternaut is ranked as the largest player overall in terms of installed base with close to 200,000 units deployed, mainly in France and the UK. TomTom Business Solutions was the fastest growing vendor also in 2010 and has now surpassed 143,000 subscribers. Transics is number one in the heavy trucks segment with an estimated 65,000 active units installed. Other significant players include European companies such as Vehco, Navman Wireless and Trafficmaster and international players like Trimble and Qualcomm from the US and the South African telematics providers Digicore and MiX Telematics. All major truck manufacturers on the European market offer OEM telematics solutions as a part of their product portfolio. Mercedes-Benz, Volvo and Scania launched their first products in the 1990s and followed by MAN in 2000, Renault Trucks in 2004, DAF Trucks in 2006 and IVECO in 2008. The products are all supporting the FMS standard and can generally be deployed in mixed fleets even if some functionality can be brand-specific. A major trend in the past three years has been the announcement of solutions for remote downloading of digital tachograph data and more advanced functionalities for eco-driving.

The consolidation trend in Europe has been accelerating in the past 18 months with a total of nine major M&A activities. Francisco Partners, a global technology-focused private equity firm, acquired Cybit in January 2010 in a deal worth about € 28 million. This deal was later followed by the acquisition of Masternaut in April 2011 forming the leading player in Europe from the Masternaut and Cybit operations while keeping the Masternaut brand. Trafficmaster was acquired by Vector Capital in June 2010 and subsequently delisted from the London Stock Exchange. In July 2010, Trimble acquired Punch Telematix focusing on the heavy trucks segment in a transaction worth € 13.5 million strengthening Trimble’s position in mainland Europe considerable. Digicore acquired in the same month Minorplanet in the UK along with the associated businesses in the Netherlands, Belgium and Germany. A part of Datatronics in Spain – Datatronics Mobility – was acquired by French Sedimap Group in October 2010. Another recent acquisition was done by Vehco in Sweden that acquired Elomobile in France in March 2011. Vehco is the market leader in the Nordics with new ambitions to be a major European player expanding into new countries. The latest transaction was done in June 2011 when Transics acquired the European activities of CarrierWeb.

Passenger Transportation Industry in Europe

Table of Contents

Table of Contents i
List of Figures.... vi
Executive summary...1
1 Commercial vehicle fleets in Europe .....3
1.1 Light commercial vehicles .7
1.2 Medium and heavy trucks .8
1.3 Busses and coaches .10
1.4 Trailers and semi-trailers .11
1.5 Off-road construction and agriculture equipment .....12
1.6 Ownership structure ..13
1.6.1 Statistical estimates by industry and company size .14
1.6.2 Light commercial vehicle fleets ...16
1.6.3 Medium and heavy commercial vehicle fleets ....17
2 Fleet management solutions ...19
2.1 Fleet management infrastructure 19
2.1.1 Vehicle segment..20
2.1.2 GNSS segment ...23
2.1.3 Network segment 24
2.1.4 Backoffice segment...27
2.2 Vehicle management.28
2.2.1 Vehicle diagnostics and maintenance planning .28
2.2.2 Security tracking..29
2.3 Driver management ...29
2.3.1 Driving data registration and analysis .....29
2.3.2 Eco-driving schemes.30
2.3.3 Insurance risk management..30
2.4 Operations management.30
2.4.1 Routing and navigation ...31
2.4.2 Transport management...31
2.4.3 Mobile workforce management ..32
2.5 Regulatory compliance and reporting.....32
2.5.1 Digital tachograph data download....33
2.5.2 Electronic toll collection ..35
2.5.3 Other applications .....37
2.6 Business models .38
3 Market forecasts and trends ....39
3.1 Market analysis ....39
3.1.1 Installed base and unit shipments ....39
3.1.2 Regional markets 40
3.1.3 Vendor market shares .....41
3.2 Market drivers and barriers....42
3.2.1 Macroeconomic factors...43
3.2.2 Regulatory environment ..44
3.2.3 Competitive environment 45
3.2.4 Technology environment 45
3.3 Value chain analysis ..46
3.3.1 Telematics industry players...46
3.3.2 Automotive industry players..50
3.3.3 Telecom industry players 50
3.3.4 IT industry players .....53
3.4 Future industry trends .....54
4 OEM products and strategies..57
4.1 Truck manufacturers..57
4.1.1 Daimler Group.....57
4.1.2 Volvo Group ..60
4.1.3 Scania62
4.1.4 MAN Truck & Bus63
4.1.5 DAF Trucks....64
4.1.6 Iveco ..65
4.2 Construction equipment manufacturers..66
4.2.1 Bobcat and JCB ..66
4.2.2 Caterpillar 67
4.2.3 Hyundai Construction Equipment.....67
4.2.4 John Deere....68
4.2.5 Komatsu ..69
4.2.6 Volvo CE..69
4.3 Trailer manufacturers.70
4.3.1 Schmitz Cargobull.....70
4.3.2 Krone.71
4.4 OE suppliers ..72
4.4.1 Actia...72
4.4.2 Continental ....72
4.4.3 Haldex .....73
4.4.4 Lysanda...73
4.4.5 Squarell ...74
4.4.6 Stoneridge Electronics ....74
4.4.7 WABCO ...75
5 International aftermarket solution providers ....77
5.1 Digicore ...77
5.2 Garmin and partners..79
5.3 ID Systems – Asset Intelligence ..81
5.4 Masternaut.....83
5.5 MiX Telematics.....86
5.6 Navman Wireless.89
5.7 Qualcomm Enterprise Services...90
5.8 TomTom Business Solutions.92
5.9 Trafficmaster ..94
5.10 Transics ...95
5.11 Trimble.....98
5.12 Vehco.....100
6 Regional aftermarket solution providers..103
6.1 Benelux and France.103
6.1.1 CarrierWeb ..103
6.1.2 Eliot..104
6.1.3 Fleetlogic.....104
6.1.4 Geodynamics ....105
6.1.5 GreenCat .....105
6.1.6 IT Mobile106
6.1.7 Micpoint.107
6.1.8 Mobile Devices ..107
6.1.9 OCEAN..108
6.1.10 Orange Business Services ..109
6.1.11 RAM Mobile Data.....109
6.1.12 Traqueur 110
6.2 Germany and Central Europe ...111
6.2.1 Autoguard....111
6.2.2 CVS Mobile..112
6.2.3 ETA Automatizari Industriale .....112
6.2.4 Euro Telematik ..113
6.2.5 Falcom...113
6.2.6 Finder ....114
6.2.7 IAV Products114
6.2.8 Idem.114
6.2.9 Mobile Objects ..115
6.2.10 SECAR...116
6.2.11 Telargo ..116
6.2.12 Yellowfox .....117
6.3 The Mediterranean...117
6.3.1 Cefin Systems ...118
6.3.2 Cobra Automotive Technologies.....118
6.3.3 Datatronics Mobility.118
6.3.4 Detector.119
6.3.5 Ecutronic .....120
6.3.6 G4S Telematix ...120
6.3.7 Loqus.....121
6.3.8 MobiVision...121
6.3.9 Pointer Telocation ...122
6.3.10 Tecmic...122
6.4 Nordic countries 123
6.4.1 Aplicom .123
6.4.2 Consafe Logistics....124
6.4.3 Fleet 101125
6.4.4 GateHouse ..125
6.4.5 Locus.....125
6.4.6 PocketMobile.....126
6.5 UK and Ireland...127
6.5.1 Aeromark.....127
6.5.2 APD Communications ...127
6.5.3 Blue Tree Systems ..128
6.5.4 Celtrak ...129
6.5.5 FleetMatics ..129
6.5.6 GreenRoad..130
6.5.7 Isotrak....131
6.5.8 Matrix Telematics ....132
6.5.9 Microlise 133
6.5.10 Quartix ...133
6.5.11 TRACKER Network..134
6.5.12 Trakm8 ..134
6.5.13 Transpoco ...135
Glossary ...137

List of Figures

Figure 1.1: Commercial vehicles in use (EU23+2 2008) .....4
Figure 1.2: New registrations of commercial vehicles (EU23+2 2010)..5
Figure 1.3: Commercial vehicle market trends by country (EU23+2 2010) 6
Figure 1.4: LCV manufacturer market shares (EU27+2 2010)...7
Figure 1.5: Trucks (>3.5t) market shares, by group and brand (EU27+2 2010) ....8
Figure 1.6: Trucks (3.5–16t) market shares, by group and brand (EU27+2 2010) .9
Figure 1.7: Trucks (>16t) market shares, by group and brand (EU27+2 2010) .....9
Figure 1.8: Bus and coach market shares, by group and brand (EU27+2 2010) .10
Figure 1.9: Trailer manufacturer production volumes and market share (EU23+2 2010).11
Figure 1.10: Off-road equipment shipments by category (EU15+2 2010) 12
Figure 1.11: CVs and average fleet size by industry and company size (EU27 2006).15
Figure 1.12: Examples of typical organisations for different LCV fleet sizes....16
Figure 1.13: Examples of typical organisations for different HCV fleet sizes ...17
Figure 2.1: Fleet management infrastructure overview 20
Figure 2.2: Examples of FM unit form factors...21
Figure 2.3: Data interfaces used by FM units ...22
Figure 2.4: Examples of devices connected to FM-units....23
Figure 2.5: Mobile network operators (EU23+2 2010).25
Figure 2.6: Example of FM backoffice segment .....27
Figure 2.7: Digital tachograph smart cards issued (EU23+2 Q2-2008).....34
Figure 2.8: Nationwide Toll systems for trucks in Europe (2010)...35
Figure 3.1: Fleet management shipments and penetration rate (EU27+2 2009–2015) ....40
Figure 3.2: Fleet management installed base and penetration rate by region (Q4-2010) .41
Figure 3.3: Top ten fleet management providers, by installed base (EU27+2 Q4-2010) ..42
Figure 3.4: Financial data for leading telematics industry players (2010)..48
Figure 3.5: FM mergers and acquisitions in Europe (2010–2011) .49
Figure 3.6: Top five M2M communication providers in Europe (Q3-2010) 51
Figure 3.7: Examples of fleet management offerings by mobile operators (2010) 52
Figure 5.1: Transics Quattro and TX-MAX ..97

Passenger Transportation in Europe

Middle East Out-bound, Departures By Region, Europe, `000

• $ 250
• Industry data
• February 2013

Yearly, From 2001 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Passenger Transportation
• Countries : Europe

Europe In-bound, Arrivals By Region, Africa, % Chg Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1991 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Passenger Transportation
• Countries : Europe, Africa, World

Europe In-bound, Arrivals By Region, Europe, % Chg Y-o-y

• $ 250
• Industry data
• February 2013

Yearly, From 1991 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Passenger Transportation
• Countries : Europe

Europe Out-bound, Departures By Region, North America, `000

• $ 250
• Industry data
• February 2013

Yearly, From 1990 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Passenger Transportation
• Countries : Europe, North America, World

Europe Out-bound, Departures By Region, Middle East, `000

• $ 250
• Industry data
• February 2013

Yearly, From 1995 To 2017
By Business Monitor International
Source: National Sources/BMI Calculation/BMI Forecast

• Industries : Passenger Transportation
• Countries : Europe