Fleet Management in China

Fleet management (FM) is an ambiguous term used in reference to
a wide range of solutions for different vehicle-related applications.
Berg Insight’s definition of a fleet management solution is a vehiclebased
system that incorporates data logging, satellite positioning and
data communication to a backoffice application. The history of fleet
management solutions goes back several decades. On-board vehicle
computers first emerged in the 1980s and were soon connected
to various satellite and terrestrial wireless networks. Today, mobile
networks can provide ubiquitous online connectivity in many regions
at a reasonable cost and mobile computing technology delivers
very high performance, as well as excellent usability. All of these
components combined enable the delivery of vehicle management,
transport management, driver management and mobile workforce
management applications linking vehicles and enterprise IT systems.
Commercial vehicle fleets play an essential role in the Chinese
economy and are crucial for the development of the country. Road
transport represents around 75 percent of the total goods transports
on the Chinese market measured by weight, corresponding to almost
31 billion tonnes in 2013. The total ownership of trucks in China
reached almost 17.9 million vehicles in 2011 according to official
statistics. Around 2.5 million buses are moreover estimated to be in
operation in the country.
Berg Insight is of the opinion that the Chinese fleet management
market will experience steep growth in the next coming years. The
development is boosted by a combination of political decisions to
track selected trucks and buses and the explosion of e-commerce
which forces logistics companies to improve the fleet management
efficiency and customer service by enabling tracking of goods status
information. National, provincial and regional initiatives to reduce
pollution in the transport sector are moreover expected to speed up the
renewal of the operating fleet of trucks and buses. This development
along with increasing factory-fitting of telematics platforms together
foster increased FM adoption on the Chinese market. The number of
fleet management systems in active use is forecasted to grow at a
compound annual growth rate of 22.9 percent from 2.1 million units at
the end of 2014 to 5.9 million by 2019. The penetration rate in the total
population of registered commercial vehicles including trucks and
buses is estimated to increase from 9.0 percent in 2014 to reach 19.8
percent in 2019. Track & trace systems dominate the market and the
installed base so far includes a notable share of low-end systems
with comparatively limited functionality.
The Chinese fleet management market includes numerous players
that have installed tens of thousands of telematics systems for fleet
clients. Top providers with installed bases of more than 100,000 units
include E6GPS and Etrans. There are furthermore a number of players
with installed bases in the range of around 50,000–100,000 units,
including Beijing Zhongdou Technology (Ccompass), Shenzhen
Huabao Electronics Technology, Shenzhen Weitongda Electronics
and 666GPS. Other players with installed bases of approximately
50,000 units include Zhengzhou Shenyang Science & Technology,
Shenzhen SOFAR Communication, Shanghai Transun Telematics
Technology, Sinocastel, Baoding Beier Electronics and Aerospace
Intelligent. Also a small number of international aftermarket solution
providers have entered the Chinese fleet management market but the
installed bases of the foreign providers remain limited. Among the few
international providers that have entered this market and achieved
installed bases of at least 1,000 units are Trimble, MiX Telematics,
Microlise and Navman Wireless.
Some Chinese commercial vehicle OEMs have introduced telematics
systems. In the truck segment, a small number of OEMs stand out as
more prominent in terms of fleet telematics activities – most notably
Foton and Shaanxi Automobile Group. There are further a number
of telematics initiatives among the bus manufacturers from players
such as Yutong and King Long Group. The latter is also known as the
Three Dragons and includes the brands King Long, Golden Dragon
and Higer. Multiple telematics offerings have been launched within
the group. Also a number of other truck and bus manufacturers are
exploring opportunities related to fleet telematics, but many OEMs still
have little or no activity in this space. The automotive industry players
on the Chinese market are in the future expected to increasingly
equip new commercial vehicles with telematics systems in line with
government initiatives.

1 Commercial vehicle fleets
in China
1.1 Light trucks
1.2 Medium trucks
1.3 Heavy trucks
1.4 Buses and coaches
1.5 Trailers
1.6 Ownership structure
2 Fleet management
solutions
2.1 Fleet management
infrastructure
2.1.1 Vehicle segment
2.1.2 GNSS segment
2.1.3 Network segment
2.1.4 Backoffice segment
2.2 Vehicle management
2.2.1 Vehicle diagnostics and
maintenance planning
2.2.2 Security tracking
2.3 Driver management
2.3.1 Driving data registration and
analysis
2.3.2 Eco-driving schemes
2.3.3 Insurance risk management
2.4 Operations management
2.4.1 Routing and navigation
2.4.2 Transport management
2.4.3 Mobile workforce management
2.5 Regulatory compliance and
reporting
2.5.1 Digital tachographs and similar
regulations and standards
2.5.2 Road tolls and other fees
2.5.3 IoT platform
2.6 Business models
3 Market forecasts and
trends
3.1 Market analysis
3.1.1 Fleet management installed base
and unit shipments
3.1.2 Local market characteristics in
China
3.1.3 Fleet management vendor
market shares
3.2 Market drivers and barriers
3.2.1 Macroeconomic environment
3.2.2 Regulatory environment
3.2.3 Competitive environment
3.2.4 Technology environment
3.3 Value chain analysis
3.3.1 Telematics industry players
3.3.2 Automotive industry players
3.3.3 Telecom industry players
3.3.4 IT industry players
3.4 Future industry trends
4 OEM products and
strategies
4.1 Chinese truck manufacturers
4.1.1 Foton
4.1.2 Shaanxi Automobile Group
4.1.3 Dongfeng
4.1.4 FAW
4.1.5 CNHTC (Sinotruk)
4.1.6 JAC
4.2 Chinese bus manufacturers
4.2.1 King Long Group
4.2.2 Yutong
4.2.3 Ankai
4.2.4 Zhongtong
4.2.5 Youngman
4.2.6 Huanghai
4.2.7 Sunwin
5 International aftermarket
solution providers
5.1 Introduction
5.1.1 China is a challenging but
promising growth market for
international players
5.1.2 A small number of Western
FMS providers are active on the
Chinese market
5.1.3 Future China plans among
international FMS vendors vary
considerably
5.2 Astrata Group
5.3 DigiCore
5.4 Microlise
5.5 MiX Telematics
5.6 Navman Wireless
5.7 Trimble
6 Chinese aftermarket
solution providers
6.1 Track & trace solutions
6.1.1 3 Union Star
6.1.2 666GPS
6.1.3 E6GPS
6.1.4 Eagle Patrol FMS
6.1.5 Etrans
6.1.6 Exsun
6.1.7 Hangzhou Hopechart Digital
6.1.8 Hon Wai Tat (Macau) Network
Technologies
6.1.9 Huoyunren
6.1.10 Lingtu
6.1.11 Meitrack
6.1.12 Mingzhou Technology
6.1.13 Shandong Jiacheng Software &
Technology
6.1.14 Shanghai Sizeng Information
Technology
6.1.15 Shenzhen Car Steward
Technology
6.1.16 Shenzhen Fangyuan Info-Tech
6.1.17 Shenzhen Huabao Electronics
Technology
6.1.18 Shenzhen SOFAR
Communication
6.1.19 Shenzhen Weitongda Electronics
6.1.20 Star Open Electronics
6.1.21 TIZA
6.1.22 YHT
6.1.23 Zhengzhou Shenyang Science &
Technology
6.2 OBD/CAN-based solutions
6.2.1 Aerospace Intelligent
6.2.2 Aore Technology
6.2.3 Beijing UniStrong Science &
Technology
6.2.4 Chainway ITS
6.2.5 DNA
6.2.6 Guangzhou Record Win
Intelligent Technology
6.2.7 Shanghai Transun Telematics
Technology
6.2.8 Sinocastel
6.3 Mobile device-based solutions
6.3.1 Log 56
6.4 Hardware and VAS
6.4.1 Baoding Beier Electronics
6.4.2 Beijing Zhongdou Technology
(Ccompass)
6.4.3 Heacent
6.4.4 Shandong Chean Electronics
Technology
6.4.5 Shenzhen Flycosmos New
Technology
6.4.6 Shenzhen Legevo Technology
6.4.7 Shenzhen Liyuan
Communication Technology
Glossary