Wireless Management

Analyst firm Berg Insight has predicted that the number of fleet management systems in commercial vehicles in North America would reach 5.9 million by 2016.

That number was 2.8 million at the end of Q4 2011.

In Latin America, Berg Insight says, the number of installed fleet management systems may grow at a CAGR of 6.6 percent, increasing from 1.3 million in Q4-2011 to 2.8 million in 2016.

In contrast, the growth rate in North America is likely to exceed 15.8 percent.

While vendors like Qualcomm, XATA and Trimble’s (News - Alert) PeopleNet are likely to focus on the high-end trucking segment; other segments may be addressed by another group of vendors including FleetMatics, Networkfleet and Wireless Matrix.

As demand rises, commercial vehicle manufacturers may start offering increasingly advanced fleet management functionality.

“Aftermarket fleet management providers still largely dominate the marketplace, but the truck manufacturers are well positioned to reap market shares either independently or by partnering with telematics providers,” said Rickard Andersson, Telecom Analyst at Berg Insight.

These developments, according to the firm’s analysts, may slowly change the market dynamics, decreasing the demand for ‘aftermarket solution providers’.

“We are likely to see standard line-fitment of fleet management systems on all new heavy commercial vehicle models within five to 10 years,” Andersson added.

The research firm says new transport regulations may also have an impact on the market environment. For an instance, research firm says, a ban on the use of cell phones while driving may fuel the adoption of alternative communication and job dispatching solutions.

High-risk motor carriers are identified by the CSA safety scoring system and fleet owners can use FM applications to ensure proper behavior.

Berg Insight says using electronic on-board recorders may become compulsory in 2013.

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