M2M Fleet Management Solutions Enter Period of Growth
Computers were first brought into commercial vehicle fleets in the 1980s and soon after, they started to connect them via satellite and terrestrial wireless networks. So, it was natural progression for the industry to adopt machine-to-machine connectivity to advance M2M fleet management solutions.
With them, fleet companies are gaining significant business advantages. Namely, data related to fleets, drivers and the assets they are shipping. The data will then help them make effective business decisions to curb the effects of rising fuel costs, increased regulation and more demanding customers who want their good delivered faster than ever before.
With the fleet industry turning to connected solutions, the global fleet management market will experience a 24% compound annual growth rate over the next five years. By 2019, it will have a value estimate of $35.35 billion. During this timeframe growth will shift to emerging markets. These markets will continue to experience significant growth across a number of industries, which will increase the need for transporting assets.
For example, China is expected to exhibit sales of more than 17 million commercial vehicles per year in the near future. Many of which will have pre-installed telematics technologies and devices that will provide the infrastructure for other fleet management services.
Today, however, a lot of this growth is happening in Europe. A continent where commercial vehicle fleets are an essential part of the economy, the European fleet management market has seen significant growth in recent years and will continue to do so in years to come. At the end of last year, the number of fleet management systems in active use numbered at 3.65 million. By 2018, this will rise to 7.10 million.
As a result of this growth, the number of fleet management connections will grow significantly, creating tremendous opportunity for operators and solution providers. As they take advantage of this growth, they will need to leverage a scalable device management platform that can efficiently manage a growing number of devices, reach endpoints in remote or restricted locations and support a variety of networks.