The fleet management (FM) solutions industry in Australia and New Zealand has grown steadily throughout the years, but the global recession and COVID-19 pandemic have reduced some activities. Considering economic uncertainty, the outlook is still promising after a minor dip in 2020 – 2021.
Berg Insight predicts that the number of FM systems in operation would expand at a compound annual growth rate (CAGR) of 11.5%, reaching over 2.4 million units by 2027 from 1.4 million in 2022. Additionally, the penetration rate of fleet vehicles utilized by businesses is expected to increase from 24.7% in 2022 to 36.7% in 2027. Multiple factors contribute to this positive outlook, but regulatory developments have been identified as a key factor. Electronic work journals, chain of responsibility legislation, health and safety regulations, and road user charges are among the factors that have a positive impact on the fleet telematics market in the region.
Primary Providers of Fleet Management Solutions
A large number of vendors are actively participating in the FM market in Australia and New Zealand, amidst this thriving market. The primary providers of fleet management solutions in the region, as determined by Berg Insight's rankings, are Teletrac Navman, EROAD, and MTData. Teletrac Navman (a subsidiary of Vontier, headquartered in the United States), surpassed the initial milestone of selling 100,000 units in the region. This achievement has also been matched by MTData in Australia (owned by Telstra) and EROAD (including Coretex, which was acquired in 2021).
Furthermore, Verizon Connect, based in the United States, and Netstar Australia are among the top five solution providers in the region, which play a significant role in driving the industry forward. Rand McNally, a corporation located in the United States that purchased Fleetsu in Australia in the year 2022, is also establishing itself as a prominent player in the market.
Several other notable vendors with substantial installed bases contribute to the diversity of the market. These include local players such as IntelliTrac and Linxio in Australia and Smartrak (Constellation Software) in New Zealand. Additionally, international players such as Geotab from Canada and MiX Telematics from South Africa are also a part of the market.
The top-15 list, compiled by Berg Insight, also featured Digital Matter, Procon Telematics, Webfleet by Bridgestone Mobility Solutions, and Fleetdynamics by Fleetcare. Additional noteworthy players that are not included in the top list include Directed Technologies (Directed Electronics Australia), Sensium, Inseego, TrackIt, and Microlise.
The report also emphasized the participation of original equipment manufacturers (OEMs) in the region. Companies like UD Trucks/Isuzu Group, Toyota, Hino, Mitsubishi, PACCAR, Volvo Group, Daimler Truck, Fuso, Scania, MAN, and Iveco have either independently introduced fleet telematics solutions or formed partnerships. The collaborative approach highlighted the ongoing expansion and development of the fleet management solutions market in Australia and New Zealand.
