Fleet Management

Verizon-Fleetmatics Deal Makes Telematics Giant

August 02, 2016, by Paul Clinton

Logos via Verizon and Fleetmatics.
Logos via Verizon and Fleetmatics.

Verizon will control about 25% of the telematics market following its planned acquisitions of Fleetmatics and Telogis in moves that indicate steady growth ahead for fleet telematics use, a market expert said.

The deals will bring about 1.4 million units in service under Verizon's telematics unit and create a telematics provider with the potential to dominate the market, said Clem Driscoll, who produces an annual market study. The units would be shifted to operate on Verizon's cellular network.

"Fleetmatics is the largest fleet tracking company in the world, and this is the largest acquisition in the history of this industry," said Driscoll, who's been watching the industry for two decades. "It's the largest in terms of money and subscribers."

The combined companies operating under Verizon Telematics would control telematics units in a quarter of U.S. fleet vehicles with telematics.

Verizon should be able to complete its acquisitions, even in a challenging regulatory environment. Anti-trust concerns should be allayed because there are still a large number of telematics vendors in the U.S., Driscoll said.

After the dust settles, Geotab, GPS Insight, and NexTraq will be Verizon's largest competitors. In addition to software, Geotab offers its GO7 OBDII dongle. Omnitracs and PeopleNet would continue to be the primary telematics providers to over-the-road trucking fleets.

If Verizon successfully closes the acquisitions of Telogis and Fleetmatics, it will need to decide whether to consolidate the software-as-a-service platforms of these two companies with its Verizon Networkfleet. All three companies provide hardware from third-party vendors and would likely continue to do so, Driscoll said.

Driscoll produces an annual telematics market report. For more information about the 2016-2017 U.S. Mobile Resource Management Systems Market Study, click here.

Comment On This Story

Name:  
Email:  
Comment: (Maximum 10000 characters)  
Leave this field empty:
* Please note that every comment is moderated.

FleetFAQ

Public Fleet Tracking And Telematics

Amin Amini from Verizon will answer your questions and challenges

View All

Recent Topics

I am in the early stages of creating a central fleet maintenance department. Would anyone be willing to share an org chart for their...

View Topic

We are planning on installing CO sensors in our FORD SUV Interceptor. Looking for choices as to what seem to work best.

View Topic

Fleet Documents

974 Fleet Documents (and counting) to Download!

Sponsored by

RFID stands for Radio Frequency Identification.

Read more