The Car and Truck Fleet and Leasing Management Magazine

Verizon-Fleetmatics Deal Makes Telematics Giant

August 02, 2016, by Paul Clinton - Also by this author

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.

Twitter Facebook Google+


Please note that comments may be moderated. 
Leave this field empty:

Fleet Incentives

Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model.

Sponsored by

A vehicle that emits no pollutants, through a tailpipe, from an onboard source of power.

Read more

Up Next

More From The World's Largest Fleet Publisher