Trimble’s acquisition of PeopleNet and Masternaut and
Cybit combining forces, the extremely fragmented commercial telematics
industry, which consists of hundreds of locally active players, is
consolidating to become more globally-minded, according to ABI Research.

These changes will allow the fleet management industry to
grow towards yearly global revenues of $6.43 billion by 2016.

In July 2011, GPS technology vendor Trimble announced its
decision to acquire fleet management vendor PeopleNet, with the close expected
in Q3 2011.

Cybit and Masternaut followed suit in April 2011 and
joined forces under the Masternaut name to form a single, pan-European
telematics company. These mergers give these companies the depth and breadth to
challenge powerhouses such as Qualcomm and Transics.

Fleet management vendors are looking at acquisitions and
mergers for a variety of reasons and objectives: increasing scale, customer
base, and market share; entering new vertical segments, expanding into new
regions, or acquiring vital complimentary assets, know-how, and skills to
address future challenges.

These are the clear signs of an industry reaching a
mature phase. However, while all recent acquisitions seem to be very
complementary, it will take time to integrate different solutions and disparate
technologies and achieve the full benefits of the consolidation,” said
Dominique Bonte, group director, Telematics and navigation, ABI Research.

By Telecomlead.com Team
[email protected]