Market growth in fleet management systems will remain flat in the short term in the wake of the global economic recession, but will stage a return to healthy growth starting about 2012 as the market dynamics and trends shift to scalable end-to-end solutions, driver management applications, and regional strategic ecosystems.
FMS revenues are expected to reach $9.5 billion in 2015, according to forecasts just released by ABI Research.
From cost-reduction to workforce productivity
Telematics practice director Dominique Bonte says, "As a recession begins, costs (in this case particularly fuel costs) become increasingly important, and failure to reduce them can be fatal for some smaller businesses. Survivors squeeze every penny out of a fleet management service, focusing on small things such as driver behavior, route navigation efficiency, routing, vehicle diagnostics, and preventive maintenance. Most of these are machine-to-machine applications that have very little to do with human beings.
"As recovery kicks in, emphasis will shift from cost-reduction to workforce productivity. Now, the industry is moving towards empowering humans to drive profits rather than machines to reduce costs."
This effort is supported by increased awareness and adoption of technological solutions, and falling hardware component and wireless connectivity costs.
Ripe for consolidation
Among the barriers to FMS market growth are the absence of standardization, market fragmentation, and the lack of differentiation between operators. "Most fleet management operations are doing pretty much the same thing," notes Bonte. "Given that, the industry is ripe for consolidation. What the market needs in the long term is a standard platform portfolio of features from which firms can pick and choose those that best suit their size and operations."
ABI Research's "Fleet Management Systems" study provides a definition of target vertical markets, and considers end-user applications, enabling wireless technologies, and market dynamics. It includes profiles of selected ecosystem participants. Market forecasts are also given for regional subscription penetration, system subscriptions, system hardware shipments, and total system revenues by regional segments.
This report is included in two ABI Research Services: Telematics and M2M, which also provide other Research Reports, Research Briefs, Market Data, ABI Insights, ABI Vendor Matrices, and analyst inquiry support.