The fleet management market in Australia and New Zealand (ANZ) has experienced significant growth over the years, driven by increasing demand for enhanced vehicle tracking, safety measures, and operational efficiency across various industries. However, the COVID-19 pandemic and the ensuing global recession slowed the market’s momentum during 2020-2021. Despite these challenges, the outlook for the fleet management sector in the ANZ region remains positive. A report by ResearchAndMarkets.com, titled “Fleet Management in Australia and New Zealand – 9th Edition,” highlights key trends, forecasts, and developments that shape the market’s future.
Market Growth and Forecasts
The fleet management market in ANZ is poised for substantial growth. The total number of fleet management systems currently in use is expected to increase from 1.6 million units in 2023 to 2.7 million units by 2028, at a compound annual growth rate (CAGR) of 11.5%. Alongside this, the penetration rate of fleet management solutions in the total population of fleet vehicles used by businesses is forecast to rise from 26.6% in 2023 to 39.5% by 2028. This growth is largely attributed to the increasing adoption of fleet telematics and regulatory developments such as health and safety regulations, chain of responsibility legislation, electronic work diaries, and road user charges.
Role of Regulatory Developments
The fleet telematics market in Australia and New Zealand is significantly influenced by regulatory frameworks that promote safety and compliance. Regulations such as the Australian National Telematics Framework, fatigue management, chain of responsibility laws, and the mandatory use of electronic work diaries (EWDs) for certain types of commercial fleets are major driving forces behind the adoption of fleet management systems. Additionally, the imposition of road user charges (RUC) and health and safety regulations are encouraging fleet owners to implement telematics solutions that facilitate regulatory compliance and help avoid fines.
Key Fleet Management Solution Providers
The market for fleet management solutions in ANZ is highly competitive, with a diverse range of vendors offering both local and international solutions. Key players in the region include US-based Teletrac Navman (part of Vontier), New Zealand-based EROAD, and Australia-based MTData (owned by Telstra). These companies are some of the largest providers of fleet management systems in the region, with Teletrac Navman being the first to reach 100,000 units in the ANZ market. Both EROAD and MTData have also achieved this milestone, with EROAD expanding its market reach further by acquiring Coretex in 2021.
Other prominent vendors in the region include Verizon Connect, Netstar Australia, and Geotab. Geotab, a Canadian-based company, has made significant strides in the ANZ region, particularly in Australia. Other noteworthy companies with at least 40,000 active units installed in the region include Linxio and IntelliTrac (both based in Australia), as well as Smartrak, a New Zealand-based company owned by Constellation Software. South African company MiX by Powerfleet (formerly MiX Telematics), which was acquired by Powerfleet in 2024, has also established a strong presence in the ANZ market.
Australia & New Zealand Fleet Management Market 2.7 Million Units of Fleet Systems Projected by 2028
In addition to these players, a number of other vendors are playing key roles in the region’s fleet management landscape. Rand McNally, which acquired Australian company Fleetsu in 2022, is one such player. Digital Matter, Procon Telematics, Fleetcare’s Fleetdynamics, and Directed Technologies (Directed Electronics Australia) are also notable providers. Directed Technologies, in particular, is recognized for its work with numerous commercial vehicle OEMs in the local market.
OEMs and Fleet Telematics
Original equipment manufacturers (OEMs) are also active in the ANZ fleet management space. Companies like UD Trucks/Isuzu Group, Toyota, Hino, Mitsubishi, PACCAR, Volvo Group, Daimler Truck, Fuso, Scania, MAN, and Iveco have launched their own fleet telematics solutions or entered the market through strategic partnerships. These OEMs recognize the importance of integrating fleet management systems into their commercial vehicle offerings to provide enhanced fleet efficiency, safety, and compliance with local regulations.
Fleet Management Solutions and Their Applications
Fleet management solutions in ANZ are diverse, addressing a wide range of needs, from vehicle diagnostics and maintenance planning to driver management and operational efficiencies. Some of the key features and applications of fleet management systems include:
- Vehicle Management: This includes vehicle diagnostics, maintenance planning, security tracking, and tire pressure monitoring systems. These solutions help reduce downtime and ensure vehicles are operating at peak performance.
- Driver Management: Fleet management solutions also provide tools for analyzing driving behavior, tracking eco-driving patterns, implementing insurance risk management strategies, and monitoring driver fatigue through video-based driver monitoring systems.
- Operations Management: Solutions that streamline routing, navigation, transport management, and mobile workforce management are becoming increasingly important as businesses seek ways to optimize operations and reduce costs.
- Regulatory Compliance and Reporting: Compliance with fatigue management laws, chain of responsibility regulations, and electronic work diary (EWD) requirements is a critical aspect of fleet management in ANZ. The introduction of the Australian National Telematics Framework and road user charges further increases the need for these solutions.
Market Trends and Key Developments
The fleet management sector in ANZ has witnessed several significant trends in recent years. As businesses seek greater control over operational costs, the demand for advanced fleet management solutions continues to rise. One of the most prominent trends is the growing adoption of telematics and connected vehicle technologies, enabling real-time tracking of vehicles, driver behavior, and vehicle diagnostics.
Another important trend is the shift towards data-driven decision-making. Fleet owners are increasingly leveraging data analytics to improve operational efficiency, reduce costs, and enhance safety. Additionally, the development of advanced technologies such as artificial intelligence (AI) and machine learning (ML) is transforming the fleet management landscape, providing new opportunities for predictive maintenance and optimization.
The consolidation of market players is another trend expected to continue in the coming years. As the fleet management market matures, smaller vendors may face increasing competition from larger, more established companies with a broader range of solutions and global reach.