Orange teams with Openmatics on telematics services in Europe

Companies tap into market expected to grow 18 percent per year

Paris-based Orange Business Services is teaming with Openmatics, the telematics unit of Germany's ZF Friedrichshafen, to offer wireless telematics services for truck and bus fleets in the European market using Orange's machine-to-machine communication network based in Brussels.

Orange Business Services, the business services unit of France Telecom-Orange, will implement a telematics service enabling ordering, activation and tracking for embedded SIMs through a dynamic portal.

The Openmatics on-board unit embedded with Orange M2M connectivity services will act as a vehicle gateway, the companies explained in a release. Data recorded and received by the on-board unit is transmitted over the Orange network to and from a web-supported portal.

Using this service, enterprises can track the location and status of trucks and buses; apps, configurations and media files can be sent to the vehicles. In addition, vehicle manufacturers and third parties can develop their own apps, and offer them for download through the Openmatics web shop.

Swedish research firm Berg Insights predicts that the European fleet management telematics market will grow at a compound annual growth rate of 17.9 percent, reaching 5.7 million systems by 2016.

Despite the turmoil in the European economy, Berg expects the fleet management market will grow 10 percent to 20 percent this year.

Berg analyst Johan Fagerberg expects the overcrowded industry to go through a consolidation next year, with an increase in merger and acquisition activity. He expects the activity level to be similar to what took place in 2010 and the first half of 2011, when nine major mergers and acquisitions took place among fleet management vendors.

It would appear that the European telematics market is a lot healthier than the European economy as a whole. Market opportunities abound for North American telematics vendors and mobile operators willing to cross the pond.

For more:
- see Orange release
- check out Berg Insights data

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