Fleet Management Growth in Europe
Being able to maintain complete visibility of fleet vehicles is extremely critical for companies in the transportation industry. Despite the current state of the economy, research shows the number of European companies investing in fleet management solutions is increasing and is believed to continue to grow moving forward.
According to a new research report from Berg Insight, www.berginsight.com, Gothenburg, Sweden, the number of fleet management systems deployed in commercial fleets in Europe was 1.5 million in Q4-2009, an increase of 15.4% year-over-year. Growth is expected to continue in 2010 at a growth rate of 16.7%.
Despite the economic downturn and sluggish sales, players such as TomTom WORK, www.tomtomwork.com, Amsterdam, Holland, and Digicore, www.digicore.com, Centurion, South Africa, have managed to achieve strong growth. Together with Masternaut, www.masternaut.co.uk, Leeds, UK, these comapnies have joined the group of fleet management providers that have deployed more than 100,000 devices in Europe.
Johan Fagerberg, senior analyst, Berg Insight, says “Businesses cannot afford to be inefficient, but in difficult times some cannot afford to make the initial investments that would reduce costs in the longer term. We anticipate the market slowdown will accelerate consolidation of the still overcrowded industry and believe in a scenario where a group of financially strong international players will gradually squeeze out their local smaller competitors. Some will be acquired, but many more will simply be forced out of business.”