Berg Insight – a global market research firm specialising in M2M and IoT technology – recently published the tenth edition of their study “Fleet Management in Europe”. The report looks at how the market for commercial fleet management systems is expected to evolve over the next four years.
Commercial vehicle fleets play an essential role in the European economy, with Statistica reporting there were 40.8 million commercial vehicles in use throughout Europe in 2013, forming an industry worth in excess of €250 billion.
“Fleet management” refers to a wide range of solutions for different vehicle-related applications. As a result, Berg Insight has defined a fleet management solution in their research as “A vehicle-based system that incorporates data logging, satellite positioning and data communication to a back-office application”.
The key findings from the research include the following:
- In 2014, the number of fleet management systems in active use was 4.4 million units
- Fleet management systems in active use are forecasted to grow at a CAGR of 15.1%, reaching 8.9 million units in 2019
- The penetration rate in the total population of non-privately owned commercial vehicles is estimated to increase from 14.8% in 2014 to 28.4% in 2019.
Berg predicts that the European fleet management market has entered a growth period that will last for several years to come. Driving this uptake are enterprises who are turning to fleet management systems in order to improve customer service delivery, streamline work processes, enhance fleet efficiency and effectiveness, and increase driver and cargo security. Essential to enabling these systems, and providing real-time feedback to central teams on the performance of the fleet, is a superfast connectivity solution that is flexible, scalable and can be deployed cost effectively. Berg believes cellular networking is the answer.
According to Berg, cellular networks can provide ubiquitous online connectivity at a reasonable cost, whilst delivering high performance and excellent usability – perfect for connecting fleet management systems. The wide-spread availability of 4G LTE also means that even the most advanced systems can be easily connected.
Taking in-vehicle applications further than just fleet management as well, the high speeds and bandwidth capabilities of 4G LTE networking means that it can unify all in-vehicle communication requirements. For instance, due to the high bandwidth, low latency characteristics of LTE, a connectivity solution used to connect a fleet management system can additionally be used to connect CCTV equipment and digital signage. Similarly the same 4G LTE solution can be used to create a WiFi hotspot in and around the vehicle, enabling teams deployed in the field to easily connect to centralised systems while on the road.
By using 4G LTE enterprise-grade networking to unify in-vehicle communications in this way, organisations are able to not only take advantage of the benefits of fleet management but also these wider applications – all in one simple to manage solution which can be grown on a modular basis to suit company ambitions and budgets. The growth of fleet management systems shows a greater attention to maximising the performance and capabilities of fleets and field teams, and with this attention these wider applications have also come into demand.
To find out more about how 4G LTE cellular connectivity solutions can enable key applications in fleet management, please take a look at our industry solutions page for fleet transport.