Fleet Telematics

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Fleet Telematics

FLEET TELEMATICS TECHNOLOGY: UNITED STATES

In the United States, about 52%, 67%, and 58% of fleet sizes 26-100, 101-350, and 350+ were using telematics technology in 2016, respectively.

Adoption Rates

  • According to data from a 2017 GSI Insights survey (the latest available), fleet with 1-25 vehicles had the lowest adoption rates in 2016 at 23%. About 52%, 67%, and 58% of fleet sizes 26-100, 101-350, and 350+ were using telematics technology, respectively, as per the study.
  • The GSI Insights survey reported that 44% of fleets in the United States were using telematics, which was slightly higher than other industry reports that set the adoption rate in the 30-40% range.
  • By industry, the GSI Insights survey found that Utilities, Delivery, Service, Construction, and Industrial sectors led the telematics adoption trend at 78%, 55%, 49%, 41%, and 27%, respectively.

Cost

  • Costs of telematics systems vary by supplier and there is no publicly available information on the average pricing in the United States. This could be because pricing in the sector is an intricate issue driven by several factors.
  • The price of a telematics hardware depends on the capabilities of the device of choice. Devices with smarter features such as real-time data transmission would cost more than those transmitting at predetermined intervals.
  • The complexity of installation can also raise the cost of the system, especially if the device requires professional installation.
  • Lastly, the monthly subscription fee will have a long-term effect on the cost of the telematics system. Higher prices are inextricably linked to better features. For example, GPS Insights offers its base tracking solution for "$19.95 — $29.95 per month, per vehicle" and notes that update interval is the biggest catalyst for increasing the costs as the more data used the higher the monthly price.
  • While it is logical that prices would increase with the size of the fleet, many companies provide quantity discounts depending on fleet sizes. Therefore, larger fleets would enjoy larger discounts than smaller fleets.

Research Strategy

Our search for the adoption rate in the United States entailed searching through the public domain for any available data. We also searched for data from industry-specific publications and for any statistics from industry experts and statistics sites. We managed to find information on the adoption of fleet telematics in the United States by fleet size, but the latest available data was from a 2016 study. Similar studies were older.

As highlighted above, it was not possible to find or triangulate the average cost for this technology, per month and per unit, with a breakdown by fleet size. We searched through media and industry report but we could only find high-level overviews of the cost telematics systems in the United States, which explained that pricing in the sector is an intricate issue driven by several factors including device cost, fleet size, company service rates, and features.

FLEET TELEMATICS TECHNOLOGY: GLOBAL

About 20 million fleet will have telematics systems in two years time globally, from the 13 million in 2019.
  • According to a Deloitte report, the "North American fleet market is dominated by functional vehicles." Therefore, trucks account for over 66% of the fleet sector with cars accounting for a mere 14%.
  • The study conducted by Deloitte in the same period found that in-house fleet management solutions were mostly used in smaller fleet of less that 500 vehicles in the United States. Use of outsourced fleet management solutions was directly proportional to the fleet size with roughly two-thirds of fleet of over 1,000 vehicles outsourcing.
  • Over 1,500 telematics solutions providers operate in the North American market, most of which are small. However, there has been significant consolidation in the past decade.
  • In Europe, the penetration of fleet telematics is 33.7%, 26.9%, 16.2%, and 15.5%, in U.K. and Ireland, Benelux, Nordic countries, and France, respectively. Overall, the penetration rate in non-privately-owned commercial vehicles is about 28.4%.

Research Strategy

The research team tried to find or triangulate a breakdown of the fleet telematics adoption globally by fleet size. Our search involved searching for any global survey on the subject from research reports, industry-focused resources, and media resources. While we managed to find reports on the overall global telematics industry, there was nothing specific to the adoption rates. We also tried to find data from different regions in order to compile global data. We searched for data for the Americas, Europe, APAC, Europe, Africa, and the Middle East. We could only find reports for North America and Europe but none provided any data on the adoption rates in those regions. The research team noted that the North American report majorly relied on the 2016 U.S. data, which would indicate that data for other countries is likely to be unavailable. While there was information on the market size of the telematics sector, there was little on the adoption, especially by fleet size.

It was also not possible to provide any data on the average cost for the technology because there was no compile data on the same. Our search through top companies in the global and regional spaces did not provide any straightforward information as some companies required visitors to log in or request the information first. Those that did not charged according to packaged/bundled options and it was not possible to calculate an average. Simply put, there was no one-size-fits-all pricing that we could use in our calculations. The research team has provided insights based on the available information.
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