WebEye Telematics_compressed

Competition heats up on Europe’s roads

WebEye remains on track for dynamic growth

It was 10 years ago that WebEye International opened its first office outside Hungary, in Romania, and today its network boasts the widest coverage in the continent’s telematics market. The group’s 2016 sales revenue is expected to top HUF 8.2 billion, while in Hungary it has secured contract for the largest ever private-sector telematics investment as part of a HUF 400 million giga-project. The company develops customised IT solutions for the transport industry, and sells its commercial vehicle tracking devices in 14 European countries. This year it expects to achieve substantial growth in the Central and Eastern European markets. On the technology side they are focusing on mobile developments, among others, while in terms of the market they see value-added services as a potential source of additional growth.

The logistics market is hungry for data, IT is now indispensable

The telematics market is growing the most dynamically within the logistics sector. Haulage firms and logistics service providers, besides developing their vehicle fleets, would be unable to stay afloat in the extremely fierce market competition without IT solutions such as tracking and analytical systems. One of the most important indicators of the scale of the opportunities, needs and challenges currently presented by telematic devices is the doubling in demand for fleet-related data management over the past three years. The changes are due to the more deliberate decision-making mechanisms in play and the increasingly complex demands, such as the need to precisely meet delivery deadlines, and the necessity of solutions that assure security, as well as the desire to boost profit margins. And the market is massive: almost 39 million commercial vehicles were registered in the European Union in 2015, of which 5.3 million were fitted with fleet management systems. Experts are predicting runaway growth, with the result that the number of telematic endpoints is expected to increase by 15% a year.

The unbroken growth shown by WebEye to date is largely due to the steady expansion of the market, which is unlikely to ease off in 2017 either. Our main business objective is to expand the group’s international presence, and a part of this is the opening of a new office in Poland. In order to further strengthen our existing network, we are laying the foundations for continued geographical expansion in both South-Eastern and Western Europe. The international expertise accumulated over 10 years is concentrated in the company’s head office in Hungary, from where we are able to provide increasingly effective support for our subsidiaries abroad. It’s thanks to this support that, since 2014, numerous major haulage companies and logistics firms have joined the ranks of our customers, pushing up the contribution of exports sales to the group’s overall revenue by more than 14%”, said Pál Németh, CEO of WebEye International. “On the technology side, we’re placing more emphasis on mobile solutions and integration projects this year, in response to demand from our customers”, he continued.

The 2016 growth trends in figures

WebEye International achieved substantial growth last year at virtually all of its subsidiaries, with the result that the group’s sales revenue, coming after the 2015 figure of HUF 7.4 billion, is expected to exceed HUF 8.2 billion in 2016. The most dynamically growing subsidiaries produced exceptionally high, double-digit growth last year, with turnover up by 52% in Bulgaria and 45% in Portugal, while the sales revenue of the Polish subsidiary exceeded last year’s figure by 24%.

The company, which is market leader in Hungary, naturally also achieved major successes at home, due in no small part to the contract announced at the end of the year, among others. This project, to be jointly implemented by Waberer’s-Szemerey Logistics Kft. and WebEye, exceeds HUF 400 million in value, making it Hungary’s largest private-sector telematics development relating to road freight transportation. After the launch around 70% of domestic road freight transport in the FMCG sector will be performed using vehicles fitted with WebEye transport management solutions.