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Mapon Blog

Here we write about our latest updates and share our knowledge by publishing insightful articles on how to use fleet management telematics solutions to take your business to a new level!

How will the telematics market in Latin America change in 2021?

How will the telematics market in Latin America change in 2021?

The Latin American market is fast-moving and has very short decision cycles. It’s pretty far away from our home market in Northern Europe but got closer to us once we started off our branch in Barcelona, Spain. It got even closer once we shifted our strategy from working mainly with end customers to partners in Spain and started approaching potential partners in other Spanish-speaking countries as well. Being in the telematics business for a while now, we see that it’s worth compiling some trends that we expect to be most important during 2021. Oversaturation in the market Globally the consolidation of the telematics market is happening for quite some time, however, there haven’t been that many large acquisitions in the Latin American market so far due to the fact that the markets are fragmented and there are a lot of small players operating on either simple custom-built platforms or some well-known global player platforms. The oversaturation, in this case, comes from the fact that there are lots of players using either identical or very similar product portfolios and can only differ in terms of price. As soon as the competition is based only on price, no one in the market has any advantages and are basically just eating each other up. We see that this is not something that could be changed in a year or two and it provides decent opportunities for the advanced telematics platforms and players that are not yet present in this market. At times approaching the potential partners in Latin America, we’ve seen a decent interest in the Mapon platform as the partners see an opportunity to have an advanced telematics platform that is not already in the portfolio of lots of other players in the market. Alliances Despite the market being fragmented and oversaturated, the players still manage to form alliances and join forces in specific sectors when looking to combine buying power. We see that as a very smart move and this trend is more important than ever with hardware manufacturers trying to raise prices due to component shortages and Covid-19 related logistics issues. Fuel control We see decent momentum for fuel tracking solutions in Latin American markets. There are several factors involved, the most important being the security situation. There’s lots of fuel theft happening as the rewards for the thieves are rather high. Given the low median income levels compared with Northern Europe, fuel theft is an attractive potential additional income stream either for drivers or thieves. Apart from that, we also see a decent interest from fuel sensor manufacturers to move into Latin American markets, so we take for granted that quality hardware solutions will be available. Mapon has extensive experience in fuel control solutions in Northern and Eastern Europe and we’re ready to bring this knowledge across the ocean. Our experience shows that installing fuel sensors can easily reduce the amount of fuel consumption by 15-20% due to eliminating fuel theft. In extreme cases, the savings can go up to even 50%. One of the main issues we see in Latin American markets is the lack of knowledge and equipment for proper fuel sensor calibration after the installation in order to guarantee a high quality of data. Hopefully, in 2021 we can introduce our best practices for sensor installation and calibration. Connectivity – 2G / 4G / Sigfox Depending on the use case, potential installation region and the duration of the expected unit lifetime, 2021 could be the year when telematics providers should start thinking about migrating to 4G units.  If we look at specific countries, Mexico has already switched off the 2G network, while other countries are holding back their plans on suspending the 2G network due to the large number of subscribers on it. Keeping in mind the fact that telematics devices are installed for several years of operation, the next potential migrations to more advanced networks in 2025 doesn’t seem to be that far away. Returning to the security topic, it’s no secret that 2G / 3G networks can be rather easily jammed, while radio networks like Sigfox are nearly impossible to jam. Looking at the Sigfox coverage map of Mexico and other Latin American countries, we also see momentum for using Sigfox as the connectivity of choice for specific use cases. 2020 sure was a turbulent year for the whole global economy and uncertain times may still lay ahead in 2021. Of course, it makes predicting the future even more difficult. However, we’ve seen that the telematics sector has stayed rather stable. That’s why we’re sure that the new year will bring us new opportunities, partnerships and technology. It’ll be interesting to look back and see whether our predictions became true and how 2021 will have changed the telematics market in Latin America.
How will the European telematics market change in 2021?

How will the European telematics market change in 2021?

Writing a blog post about the telematics industry trends for 2021, after experiencing the wild ride that 2020 was, seems like a mission impossible because we’ve already seen that the whole world can turn completely upside down within a few week’s time. Suddenly, you have to adapt to a new reality, thus making any guesses on what the next year will bring makes you very cautious. Nevertheless, we’ll try our best to predict some of the trends.
3 fleet challenges with tech solutions

3 fleet challenges with tech solutions

The fleet industry has always been privy to some unique and interesting challenges. It’s one of the aspects that makes it such a rewarding area of work and entrepreneurialism. In order to succeed, every member of the fleet — from drivers to management — has to be provided with the tools and knowledge to face those challenges on a daily basis. 

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What will 2020 bring to the telematics market? The 4 most important trends

What will 2020 bring to the telematics market? The 4 most important trends

The end of the year is a great time to look back at what we’ve achieved in the last 12 months and see what awaits us in the new year. 2019 has been very successful for Mapon team – we’ve participated in quite a few international industry trade fairs (Transport Logistic in Munich, Telematics Conference in Dubai and Prague, Expo Seguridad in Mexico City, GITEX Technology Week in Dubai, etc.), expanded our business to Middle East and Latin America and strengthened the company’s position in our home – the European market. Speaking about our future plans, we’re sure that they will be influenced by multiple important market development trends that we would like to point out in this article.
5 telematics market trends for 2019

5 telematics market trends for 2019

A new year always comes with fresh ideas and goals to achieve. Moreover, it’s the time when new market trends come across, changing how industries work. What would be those trends for 2019? Our Co-CEO Ingus Rūķis has compiled some of the things that are expected to affect how telematics businesses are run around the world. 
4 numbers that will change the way you think about the fleet management market

4 numbers that will change the way you think about the fleet management market

There is power in data, and data shows that the fleet management market is the right place to start, expand or develop your business. 12.6% – percentage of commercial vehicles equipped with telematics devices Only 12.6% of commercial vehicles in the USA and Canada are equipped with fleet management devices. This proportion is even smaller in less developed countries which reveals a huge potential for local businesses willing to supply telematics solutions to the companies in need. The following numbers will demonstrate why companies with car fleets would be interested in such services. $2.2 billion – total fuel cost savings attributed to usage of fleet management services Fuel prices have risen steeply during the last 15 years and it is expected that they will continue to grow, after all fuel is a non-renewable resource. Companies with car fleets are always searching for ways to cut their fuel costs and GPS fleet management is the most efficient way to do that. GPS tracking combined with fuel monitoring devices can help analyse driven routes and fuel consumption data in order to optimize transportation services. 5 million tons per year – decrease of CO2 emissions related to implementation of fleet management solutions Every successful entrepreneur knows how important it is to act in a socially conscious way. GPS tracking and other telematics solutions help companies with car fleets to decrease their negative impact on the planet via more efficient fuel consumption and route planning. “Think green” is the slogan of this century and with fleet management solutions – thoughts turn into actions. $34.9 billion – total savings due to decrease in payroll hours In scalable terms – annual payroll savings on average per vehicle accumulate $14 692. For a company operating 20 vehicles that means savings of more than $293 000 each year. Not bad if you ask me (or anyone, for that matter). Every car fleet operator should be interested in having a piece of these savings. Summing it all up – fleet management tools can have a huge effect on companies with car fleets. Not only can they save hundreds of thousands of dollars but also become more ecological and hence comply with the modern standards of green thinking. Demand for GPS tracking and fuel control services is on the rise, don’t miss out on this opportunity and visit our whitelabel page to find out more.
3 reasons to launch your business in the field of GPS tracking

3 reasons to launch your business in the field of GPS tracking

In previous blog posts we have talked about what white label business means and how to start your own GPS tracking business using a white label solution. In this post we’ll look at the 3 main reasons that could and should encourage you to be a part of the GPS tracking industry.