A new report from Pyramid Research has found new regulations in Brazil have resulted in a surge for the telematics and fleet management sector in the Brazilian machine-to-machine (M2M) market, according to a new report by Pyramid Research, reported m2mworldnews.com.

Telematics and fleet management will be the most dynamic sector in the M2M market in Brazil, rising in value from $934 million in 2014 to $1.8 billion in 2019, at a 14.5 percent CAGR. Regulations are the key growth trigger for the telematics and fleet managements sector in Brazil, which will account for 49 percent of total M2M revenue five years from now. This is largely due to a new legislation which was introduced by the Brazilian government in mid-2013. The law requires that, by the end of 2014, 100 pecent of new vehicles be equipped with M2M devices, according to the m2mworldnews report.

The reported noted that, according to the Sao Paulo Transport Union, 1,256 vehicles are stolen every day in Brazil, translating into over 450,000 stolen cars per year. The majority of stolen vehicles are likely to be taken to neighbouring markets such as Paraguay and Bolivia, a huge cost to insurance companies and consumers, according to the report.