The market for fleet management (FM) solutions in Southeast Asia (SEA) has been in a growth period for several years.
The market experienced quite significant setbacks during the pandemic, but the current outlook is positive due to several factors such as general economic growth, increasing competition in the transportation and logistics sector as well as a growing awareness of fleet telematics.
The total number of FM systems in active use is forecasted to grow at a compound annual growth rate (CAGR) of 13.7 percent from about 2.8 million units in 2023 to almost 5.4 million units by 2028. The penetration rate in the total population of fleet vehicles used by businesses is at the same time estimated to increase from 15.7 percent in 2023 to 25.7 percent in 2028.
The report covers the following key markets in Southeast Asia: Indonesia, Malaysia, Singapore Thailand and the Philippines as well as an overview of the Rest of SEA. The fleet management markets in Southeast Asia to a large extent resemble each other but are also affected by different regulations and general economic growth levels in the respective countries. Common characteristics between the markets include being less developed than other regions of the world and having comparably low penetration rates from an international perspective.
Far from all deployments are full-scale advanced fleet management solutions and a notable share of the installed base is represented by relatively basic tracking systems with fairly limited FM functionality. The adoption of more feature-rich fleet management systems is however increasing across the entire region. One country that stands out from the crowd is Singapore, where more advanced fleet management solutions with a higher price point have had a higher adoption also historically.
William Ankréus, IoT Analyst, Berg Insight, said:
“The fleet telematics industry in Southeast Asia is in many respects still nascent, with major parts of the addressable market remaining largely untapped. The region could gain considerably from an increasing focus on supply chain optimisation through the use of technology to improve visibility and sustainability.”
Berg Insight ranks Jimi IoT, Cartrack (Karooooo) and TransTRACK as the largest providers of fleet management solutions in Southeast Asia.
“These three companies all have total installed bases of over 100,000 fleet management units in SEA on their respective platforms. The fleet management market in Southeast Asia is served by a wide range of vendors of varying size and origin”, continued Mr. Ankréus.
Part of the top-5 are also DTC and Onelink from Thailand. Other top-15 vendors with estimated installed bases of more than 30,000 active units in the region include local and regional solution providers such as Katsana headquartered in Malaysia, GPSiam from Thailand, Indonesian EasyGo, Astrata Group and V3 Smart Technologies based in Singapore, as well as international players including Gurtam (Wialon) from Lithuania, WanWayTech from China, Canada-based Geotab, SquareGPS (Navixy) headquartered in the US and Sweden-based GpsGate.
“Notably, international providers of white-label solutions have done particularly well in Southeast Asia as telematics service providers in the region have opted for faster time to market and the flexibility of readymade solutions”, concluded Mr. Ankréus.
Additional notable vendors moreover include Radius Telematics headquartered in the UK, Thailand-based Nostra Logistics and Forth Tracking System, Gussmann Technologies and SafeTruck from Malaysia, Indonesian McEasy, Overdrive IoT and TNT Surveillance from Singapore, Tramigo headquartered in Finland, FleetHunt based in the Philippines as well as EUPFin from Taiwan.
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