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hsmith@firstanalysis.com
dgearhart@firstanalysis.com
- We see a maturation at the high end of the North American fleet management solutions market, specifically heavy trucks and enterprises with 1,000+ vehicles, which we expect to spur increased vendor differentiation, continued consolidation, greater churn, and a move by some players to attack the less-penetrated SMB market.
- We also believe the proliferation of low-cost, high-quality in-vehicle devices is generating a telematics data stream that will be increasingly integrated with data from multiple parts of the enterprise for analysis as part of a larger set to produce additional actionable insights (an area we call FMS 2.0), creating both opportunities and threats for existing fleet management solutions vendors.
- We believe companies with scale combined with an appreciation for data analytics – either developing or planning to offer such capabilities – are in better position to take advantage of these changing dynamics and capture share than vendors lacking these attributes.
TABLE OF CONTENTS
Combining trade show thoughts with industry commentary
High-end/enterprise market maturing
Ramifications spur market change
High ROI of telematics creates additional data source
Blending telematics with other data creates opportunities and challenges
Private company profiles: FMS 2.0
FMS 2.0 impacts on public IoT companies
Appendix
Combining trade show thoughts with industry commentary
This report is an amalgamation of thoughts synthesized from our conversations at the spring NAFA Fleet Management Association conference and many follow-up interactions with public and private players competing in this market as well as industry observers.
High-end/enterprise market maturing
We believe the high end of the North America (U.S., Canada) fleet market, which includes large fleets operating 1,000+ vehicles as well as long-haul carriers (Class 8 trucks) and smaller heavy commercial fleets (Class 6-7), is maturing with an estimated connectivity/telematics penetration rate of around 65% (vs. our ~14% estimate for the total market; see Appendix 1 for our detailed estimates and discussion). This part of the market is typically considered high-end because the solutions catering to these customers offer the most features and users rely on more advanced functionality such as hierarchy capabilities (ability to segment by regions or groups of trucks, with user access and reporting made accordingly), benchmarking, third-party software integration, workflow, and analytics as part of day-to-day operations. Advanced features are often ignored by or simply not available on solutions targeting the less-penetrated small-and-medium-sized (SMB) accounts.