Good morning, everyone. Thanks for coming. Welcome, both everyone here in the room, we got a full house, obviously, and everyone on the webcast as well. We're excited to be here for our first Investor Day post-spin. We look forward to educating you a bit on the portfolio. We're gonna update you on the strategic vision, share a little bit about what we're doing, where we're at, and where we plan to go. Before I continue, just a couple of housekeeping items. Of course, first of all, our presentation is now available for download on the website. You can go grab that if you haven't already. We will also be making some forward-looking statements today.
These statements are made based on our best view of the world as we know it today and are subject to risks and uncertainties as defined in our SEC filings. We'll also be referring to non-GAAP financial measures. Information on those are available on the investor relations section of our website. As I mentioned, pretty full agenda this morning. We're gonna give you some clarity by segment, the new segments, which hopefully you saw on Monday. You're gonna hear from the leaders of some of those businesses as well as some of our other leadership team. We're gonna have two separate Q&A sessions, you'll see. Kindly ask that when we get to those, you keep your questions to the segments that we've just presented.
Then for those of you that are here in the room, we're gonna stay for lunch if you've chosen to stay, and that will be down on the 12th floor. With that, I'm gonna kick things off. We're gonna start with a short video, then I'm gonna bring up Mark. Thank you again. Vontier's purpose, mobilizing the future to create a better world, unites and inspires us. It keeps us focused on the opportunities ahead as global decarbonization, new technologies and regulatory requirements, socioeconomic change, and consumer and labor trends transform mobility faster than ever before. There are more than 1 billion vehicles on the road today, all part of a connected, growing, and rapidly evolving mobility ecosystem that keeps people, goods, data, and energy moving. We are right at the center of it all.
We have unparalleled portfolio breadth across the mobility ecosystem with deep industry knowledge and the long-standing partnerships needed to drive the mobility revolution forward. We're already doing just that. We have what it takes to make this work across everything from alternative fueling to on-the-go services. Our technology touches hundreds of thousands of fuel sites, convenience stores, car washes, EV charging plugs, and fleet vehicles. These critical touchpoints give us unique access to more than 100 million transactions each month, and the opportunity for integration and intelligence is limitless. We're building on our strong footprint with data and analytics to anticipate trends, transform workflows, and solve high-value problems through new innovations. We're investing in our team and realigning the way we operate to bring cutting-edge solutions to market and expand our global presence with increased speed and agility.
Along with our customers, we're building on our legacy of success to bring efficiency, connectivity, sustainability, and convenience to a fractured market. No other company is better positioned to connect, manage, and scale this mobility ecosystem, and this is only the beginning. Join us as we enable the way the world moves.
Well, good morning, folks. Thank you for being here today. We're really happy to tell our story. It's a great time for us to be able to illuminate for you where we're going. We're very proud of the accomplishments we've made, and hopefully, you'll be able to see that today, the progress we've made over the last couple years since spin, as well as we're gonna talk about our strategy going forward. I think you're gonna see a growthy story that is underpinned by strong secular drivers and the opportunity for us to take advantage of a great set of regulation that's out there that drives all of our business segments. For those of you that don't know me, my background comes starting my career at United Technologies at more than 15 years, where I was a student of Lean.
I managed global businesses for them and really focused on operational excellence. Then I wanted to learn more about growth, so I went and became a CEO of a clean tech company. I went to growth on the technology side and portfolio transformation as president of Brooks Automation. I got to put in place operating systems and learn and work on portfolio transformations and growth. More recently, I was at Columbus McKinnon, which is an industrial company where we had a great success in a very few number of years on doubling EBITDA and ROIC. What brought me here is Vontier is a premier industrial technology company. Lot of runway for operational excellence, for accelerating growth, and a portfolio transformation. Couldn't be more happy to be here with all of you today. Let's start with some key messages.
First of all, I think if you look at the video, it really captures our vision for a smart, sustainable solutions and our unique ability to be able to position and lead in what we call the mobility ecosystem. We're providing a new segmentation you're gonna see in Q1. We announced it earlier this week, and this segmentation illuminates our strategy and gives transparency to investors so they can follow us along this story. I'm incredibly proud of the progress we've made and the transformation. When you take a look at the market that we serve, it's about a $30 billion growthy market, and it is that mobility ecosystem. We have not only a right to play, we have a right to win.
We call our strategy for untapping this growth Connected Mobility Strategy. This is our third chapter, we're very excited about walking you through that today and how we are gonna untap value. I will tell you, this team is a proven team. It is the right team right now to be able to do this. We're very excited to be here. You're gonna get to meet them today. If you go roll this back a little bit from our days at Spin in October of 2020, you know, we had this opportunity to launch a premier industrial technology company. We knew that we had a strong portfolio of brands and capabilities. We also recognized we had a lot of work to do.
Having a resilient portfolio is not enough because we're facing one of the largest secular drivers, the U.S. EMV secular driver, that this industry has probably ever faced. We had the benefit of many years of a tailwind that was turning into a headwind. When we took a look at the opportunity in front of us, we knew that we had to generate more growth because in the prior couple of years to spinning, we recognized that we were getting our growth from that U.S. EMV cycle. In other words, the non-EMV portion of our business was actually declining, and so we knew that we had work to do. We put in place a set of profitable growth initiatives. We redeployed the Vontier Business System or VBS, and we focused it on how do we start driving non-EMV growth.
We started with a bunch of platform strategies. In chapter 2, this was what we called unleashing our potential. We knew we had to drive for better. I think if you followed our story, you recognize the evidence is there. It started to work. One of the key aspects of this is we deployed around the critical few priorities. We recognized that we couldn't do everything. We had to do these things above and beyond everything else, and we deployed that with VBS. We called this our profitable growth initiatives and platform strategies. We executed around it, we did some acquisitions that, as you can see, was a strong deployment of capital. Overall, let's take a look at the scorecard. How do we do in our early years, you know, through 2022 and even today?
We turned that, I would say, steady low single digit decline for non-EMV revenue into a strong mid-single digit growth. If you followed us, it was actually higher than that, but we're saying over this period of the last couple of years, it's normalized to a mid-single digit growth. At the same time, in spite of $500 million of revenue, $250 million of operating profit rolling off, that's the roll-off or the sunset of EMV, we expanded margins more than 100 basis points, which means that there was a lot of work that had to be done to make that happen. The portfolio has also began to transform.
I would say when you take a look at just the composition fact here, having more than 500 software engineers is great, but we put about a third more on top of that, our recurring revenue is improved. When you look at sort of this body of work the first couple of years, no question evidence of progress, but we still have a lot to untap here. We deployed about $1.7 billion of capital, we did this in a way that was very disciplined. In fact, we're promising double-digit returns on that. We pivoted to stock buybacks, we did a couple of very meaningful acquisitions that you'll hear about here today. Before I go on, let me give you that snapshot of what we look at.
Roughly, when you look at Vontier today, roughly $3.2 billion business. Last year, about 7% ex EMV, what we call baseline core growth that is sort of underlying our performance here. Good operating profits, good margins, decent recurring revenue, but very impressive cash flow. About $1.4 billion of cash we generated over this 2020-2022 period. I think that's a hallmark of our business. Very strong free cash flows with a disciplined capital allocation. About half of our business is in the North American market. excuse me, 75% of our business, North American market, and about half of our business is Environmental and Fueling Solutions. You see diversification around that.
Importantly, high-growth markets are important for us to untap, as well as you're seeing this segmentation of the new mobility technologies and repair solutions, and they're outgrowing our Environmental and Fueling Solutions business. Let's take a look at the segmentation that we've announced and we're gonna walk you through today. We've had one reporting segment, and what we're moving to in Q1 is this distinct three reporting segments to give you clarity on our strategy. The new mobility technologies, these businesses have commonality, and the commonality is integrated point-of-sale systems and payment. They are IoT-based automation for the mobility ecosystem. They share that common theme, very much moved up the technology stack. Tech-connected hardware, a lot of application software. We're gonna talk about that.
You're gonna see that today in our presentation, that there's a lot of commonality with untapping opportunities for customer high-value problems for mobility technologies, and alternative energy is a great theme there. Repair solutions. This is premier equipment sold to service technicians in repair shops. I think most of you all know Gilbarco Veeder-Root, we call GVR, is our environmental fueling, which is above ground and below ground retail fueling, where we're a market leader, and I would say, best in class worldwide. When we launched our company, we said, "We wanna be a premier industrial technology company with operational excellence, accelerating growth, but we wanna do it based on core values.
We wanna be core value-led. From day one, we launched our core values, which we, you know, I personally deeply believe in, and many of my colleagues around the world were very passionate about these. Let me walk you through it. One, you know, aside from teamwork, which we know is the basis of everything, we have a passion to win. We're not here to play, we are here to win in our marketplace, and each of us, I think, are driven with that passion. We talk about continuous improvement and lean. Our way of articulating this is reimagine better. Good is never good enough. It's about continuous improvement. Creating what's next is about innovation, it's about pioneering, it's about agility. We all believe in these core values, and what makes it unique is the Vontier Business System or VBS.
It underpins everything we do, and it underpins our core value. We're happy to walk you through that. We're happy to talk more about this, but it powers everything we do, and this is truly, I think, a very unique equation on top value. Let me walk you through a customer journey in the mobility ecosystem. The age of mobility is gonna change more in the next 10 years than all our lifetime. Energy transition is here, folks. The energy transition is about better sustainability, it's about affordability, and it's about energy security and balancing all three of those. The mobility ecosystem is the convergence of all of that. It's the conflux of those two mega drivers. We're not gonna be in the automotive supply chain. We're not gonna build electric vehicles. We're not gonna go and build out the electric grid.
Look where all this ends up. Look at the mobility ecosystem. How much change does that have to go through? How much investment is gonna go here? Look at our customers and look at the journey they're on. 50 years ago, this is a retail fueling site, gas station, if you will. Look how that is evolving today. We're gonna talk about that evolution today because our customers in the mobility ecosystem have a lot of challenges they face. First and foremost, consumers. They expect a contactless, seamless, easy experience, which is safe and secure in terms of payment too. Look at the productivity challenges. This is a huge amount of disparate assets that are spread out geographically, and folks are rolling up their assets. This is huge capital outlays operating at relatively low margins. Think of the opportunities they have to enhance their productivity.
Imagine the labor challenges and skills challenges they have to operate more efficiently. As investment is going into this, they need more tools and capabilities, and we have an excellent ability to be able to provide that for them. When you imagine what does this $30 billion market look like, let's just take a look at it. The mobility ecosystem is the set of products and services that keeps the world in motion, connected by the roadway. It enables the movement of peoples, goods, and services. Just from this simple snapshot, you can see all of the touch points that Vontier has. We have more than 50,000 C-store or convenience store point of sale sites. We're in more than 260,000 fueling sites worldwide, 17,000 car washes just in the United States, the world leader.
We visit 150,000 repair shops every week. You think about the depth and breadth we have. We're building out electric charging stations when we have 35,000+ under our management today and 500,000 fleet vehicles. The number's actually more than that. There's no other company with the depth and breadth in the mobility ecosystem than us. We have a tremendous opportunity here to untap value. Let's imagine how this evolves. This is one of my favorite photographs. Last summer, I went with Ganesh, our Chief Strategy Officer, to Norway, visited this site, had to get a photograph of this afterwards. This is a photograph of this site in Norway. Why is Norway so interesting? More than 80% of vehicles that are sold today are electric vehicles in Norway, with almost a quarter of the installed car park electrified today.
You know what? Go to the convenience store. Let's understand what's happening there with this massive energy transformation. Surprisingly, to many, many of you, is that the number of dispensers over the last couple of years have actually gone up. Fueling dispensers, not electric charging. Look at this site. Electric charging, on-site energy management, 'cause it's now a microgrid, a very attractive, inviting retail experience that has fresh food, beverages, a place to be able to wait and enjoy your time. Of course, clean bathrooms, safe environment. Services like car washes are almost on every one of these locations. These are turning into mobility hubs, and there are significant investment that are going into them. I think it was really educational for us to be able to see this and understand this, because when you look around the world, you see investment that is going into this infrastructure.
It makes sense when we touch every one of those from a content perspective, we move up the technology stack. This is a convenience retail example. Let me give you one on fleets. Very similar, what is happening with fleets and mixed fleet management. You know, traditional needs around fleets is, of course, how do you do operational efficiency, safety, and compliance? At the same time, they are trying to think about how do you become net zero? How do you understand the dramatic changes that are occurring, and you rely on digital technology because of alternative energies that are also coming out? How do you make sense of this, and how do you run your fleets more efficiently? We're very much invested in fleets, and you're gonna hear more about that today, and how do you drive a more sustainable operation?
The third vignette to show you is on repair solutions. The repair shop is changing significantly over a longer period of time. I think when you think of the challenges here, that it's kind of staggering to see what repair shops are up against. Because of the labor and skills challenges, service technicians have the highest wages that they've ever had. The car park is aging. It's now 12.2 years. That's the longest that folks have ever held onto vehicles, and it's only gonna age more, and there's gonna be a mixed fleet on the road. How does all of that get repaired in the complexity?
One of the things that I think a lot of folks miss on the repair shop and the secular driver here is related to that aging car park is getting, which requires a lot of service, that population of aged vehicles is actually growing, which means that our market for service is actually growing and the complexity of repair. There's a lot going on here, and that means there's a lot of opportunity for us to solve high-value customer needs. Let's take a look at our roughly $3.2 billion revenue shown here on the left, and it's segmented by what we're calling our platforms that we'd like you to follow us by. In the middle is the market growth rates. Excuse me, the market size, and then on the right is the market growth rates.
What you can see here is environmental and fueling is a roughly $3 billion market. Pretty disciplined competition in this marketplace, where we have a leading best-in-class solution growing at low single digits. Repair solutions is about twice the market size, growing at mid-single digits and growing with new categories that are coming to market in there to meet the changing needs of the car park. The largest market is mobility technologies. Folks, we already have a $900 million business in mobility technologies today and a very growthy $21 billion market opportunity. We're very well positioned for growth. Let's talk about what's driving that growth and why do I believe that these market segments have growth within them. Mobility technologies are underpinned by secular drivers on the multi-energy future. At the same time, folks in that industry are doing industry consolidation.
Industry consolidation favors us because we do business with the largest players in the mobility technology market. As it consolidates and as they try to wrestle regulation, operational efficiency, all those things, we provide solutions to them, and those are excellent secular drivers for us. The secular driver and repair solution, I already tipped into it. It's about the complexity of the car park. It's about labor shortage. It's about the aging vehicle fleet, but the changeover of that fleet over a longer period of time. In fact, what we're gonna show you today is that a vehicle between 7-12 years is in its sweet spot for us for repair. That population of vehicles over the next 15 years is going up.
As that goes up, we have more opportunity to serve that repair. It'll be 90% internal combustion engines by 2035, it's still a mixed fleet opportunity, complexity to repair is in our favor. We're really happy to show you that. Environmental and Fueling is about regulation. That regulatory environment is only improving. You know, there's underpinning regulatory drivers for environmental fueling for above ground and below ground. That has constantly driven our industry. Aside from this super cycle, I think what a lot of folks miss is that they think that that's over. There's no more regulatory driver. In fact, we are probably seeing more regulatory drivers on the horizon than we've ever seen before. We're gonna show you that because that drives our business going forward. We're excited to talk about that.
One of the things that we're gonna leverage here is our position to win. I showed you, and we talked a little bit about that. We are positioned here with depth and breadth with winning positions already. Look in all three of these segments, number one or number two in important parts of this mobility ecosystem. This gives us incredible leverage to be able to solve the next set of high-value problems. Now let's discuss connected mobility. We're now in our third chapter as Vontier, and our third chapter is underpinned by smart, sustainable solutions that we're providing to the mobility ecosystem. The way we'd like to describe this to you is our opportunity for all of our businesses to connect smart hardware, provide application software, and scale across the mobility ecosystem.
We think this provides a tremendous amount of opportunities for us because we are solving our customers' high-value problems. There are three pillars that help bring to light what we work on, and each of our businesses think about this in terms of three pillars: optimizing the core, expanding from the core, and then driving into near-in adjacent markets. Let's take a look at that. Our depiction of our Connected Mobility Strategy, this third chapter, is with these three pillars. The first one, optimizing the core, is continued operational excellence. Folks, we're early innings. There's a lot of opportunity for us to continue to drive margin improvement, and we're going to walk you through that so you're able to understand that.
We, no question, have made progress there, but we have not untapped all the value opportunity, and we're going to give you some really concrete examples so you can understand we're still in early innings. VBS underpins all three of these pillars. You can imagine the VBS tools and capabilities that we have here to continue to drive operational excellence. The second two pillars are about accelerating growth. How do we expand already our strong presence in this mobility ecosystem and create from those leverage points, diversify our portfolio, and continue to grow? Adjacent markets. Adjacent markets play an important role here because of the energy transition, because of the changes in technology that are occurring, and these are near-in adjacencies. We're going to talk about these near-in adjacencies so you can see that and you can understand it.
The first one is on optimizing our core business. Let me give you one example. We started very early innings with a simplification program launched through V-VBS, where we could understand our segmentation by business and where do we have an opportunity to focus and raise price. We started prosecuting that before inflation hit. In fact, we have always been price-cost positive because of that initiative across the business. Clearly, there's a hallmark of an embedded process and capability there. By the way, I will tell you, we are about third or fourth innings in on a set of priorities of operational excellences across our business. We've got a lot more opportunity to pick that up in terms of platform simplification, product line simplification, and footprint reduction. We're very happy to continue that underpinned by VBS. Accelerating growth.
This fares prominently in our expanding from our footprint already. Integrated POS and payments, the IoT automation. We have key strategic initiatives here to leverage our. I'm going to give you an example. Let me give you one right now. When we started looking at our opportunity to accelerate growth, we started off by saying, "How do we spend money on R&D?" Look in 2020, about $126 million of R&D. The majority of that spend was on sustaining. Sustaining activities don't necessarily drive growth. Almost 40% was on new product development. New product development drives growth. That was less than a $50 million spend. In 2023, folks, we are going to double our new product development spend to more than $100 million. Not doubling total R&D because we're taking the majority of that out of sustaining.
How do you do that? The underpinning process is there of VBS at work. We've lopped off this long de minimis tail on sustaining efforts, we've refocused that through product line simplification into a more concentrated spend. This will help us enable growth. Look already at some of these examples. DRB has a Patheon-based, Patheon is the name of the product, cloud-based point-of-sale system. That's an excellent example. Veeder-Root out of Gilbarco has launched a new tank gauge that is definitely getting traction in the market due to EPA regulation of the California Air Resources Board. Excellent examples here, what this means is those investments are going to pay off more in growth in the future. Let's take a look at DRB as an expand the core example.
One of the stories about DRB I think folks miss is that DRB is a deeply embedded point-of-sale system with connected hardware and software, and those workflow solutions and data analytics are applied to the car wash industry. This is an industry where this IoT and automation didn't exist. Folks, DRB doesn't make rollers. They don't make brushes. They don't build car wash hardware. They don't do that. They are a deeply embedded point-of-sale workflow software company. When they brought that to this industry, look at the growth. More than 30% growth last year, expanded margins 400 basis points, well outgrew the market because of what it solved in terms of productivity problems with the car wash operators as that industry is consolidating. That's what car wash operators need.
They need to enhance the end user experience, and we do that with pricing models and also how they attract them, through applications, and they improve their operating efficiency. This is an example of how a mobility technology business operates, and that same theme is there in the other businesses. Let me give you another example of expanding the core. This is the aftermarket business or parts business out of GVR. This depiction of some of these photographs or some of the things you can imagine what those products would entail. A couple years ago, when we started our profitable growth initiatives, we said, "Gee, you know what? U.S. EMV represents a great opportunity for us to gain share in the marketplace, but what underpins a large installed base is a thriving aftermarkets business." We recognize we were under-penetrated in aftermarket. We recognize this as a long-term trend.
Folks, we've grown this at a 20% CAGR, well above fleet margins, and we have a long runway of opportunity in front of us because we're still under-penetrated from where we should be in that market. Folks, this infrastructure is gonna be in the ground for a long period of time, and we're gonna generate a lot of business in the aftermarkets parts. When you think about connected markets, excuse me, Connected Mobility Strategy and adjacent markets, there are lots of things that are being driven by alternative energy, data analytics, and AI come to mind, no question, but also EV charging software. ANGI is a great example of how we're taking advantage of alternative energy. What's shown here on the left is compression technology that we engineer and provide for CNG, and we're getting into hydrogen.
Hydrogen is a natural stepping stone for us because it operates at higher pressure. We've also have a business that's now combined for ANGI is about $75 million that is growing at 30%, this business gives us that opportunity also to start selling into hydrogen dispensing as well. So this is a natural right to play and win in alternative energy. Let me give you a snapshot, too, on an adjacent market. We studied the electric charging infrastructure market, the DCFC, the fast-charging, publicly available market, and we said, "What is a legitimate place for us to play and win?" We initially thought of, well, should we be in the manufacturing of chargers? We quickly came through our analysis that probably the most growthy and margin-accretive space is on the operating system software.
We acquired Driivz, a leader in the space, that is growing exponentially with the number of plugs under management. This example here shows, and comes out of Europe, in front of a convenience store. When you think about one of the largest markets in the world for this, once again, the Nordics, we have 75% of the publicly available, excuse me, charging stations in the market in Nordics. 75% under management with Driivz today. This is a growthy opportunity with the right for us to play and a right for us to win. When you look going forward, we talked in our press release, we're at 4%-6% organic growth driven by mobility technologies, repair solutions, and environmental solutions.
One of the things that I like the most is when you look at the snapshot of our portfolio in 2020 to 2023, look at the portfolio transformation already. We've increased the number of percentage of recurring revenue, we were about 30% non-ICE in 2020. We're now about 40%, excuse me, 45% non-ICE, almost 50% in 2023 non-ICE already. Portfolio transformation at work. When you think about this through 2028, in the long run, think of our value creation framework. Mid-single-digit growth, adjusted operating margin expansion with strong incrementals, as well as strong free cash flow that underpins this business. One of the hallmarks that we hope that folks will ascribe to Vontier over time is that we do disciplined capital allocation. We have generated a lot of cash flow.
We're gonna generate more cash flow and know us for being disciplined capital allocator with strong returns. Already we have a, I would say, an early but important track record for you to be able to key off on that. Internally, we think about our purpose and our vision, and this is very important to me, and I think all our employees. We view our North Star as accelerating smart, sustainable solutions for the road ahead. Our purpose is that we can mobilize the future to create a better world. Folks, sustainability is in every one of our business segments. If you're in mobility technologies, you think about car wash with water conservation and chemical conservation, as well as building out alternative energies.
In the environmental fueling business, we own the world's largest retail fueling network. That means we can make it more sustainable with vapor recovery, leak detection. Folks, we are incredibly proud of our ability to have a major imprint on sustainability in this world based on what we do. My last chart here is a snapshot takeaway on the road ahead. We are a leading provider of this critical mobility for a multi-energy future. We serve a rapidly evolving $30 billion market, which is the mobility ecosystem. We're poised to take advantage of these strong secular drivers that underpin that. Our framework delivers strong shareholder value because of disciplined capital allocation. We have the right management team. What particularly excites me about this, folks, is that EMV is now sunset.
We are at a trough, 2023, which is a springboard opportunity that's driven by these secular drivers and our positions to win. With that, let's take a look at our mobility technology platform, the new one.
At Vontier, we connect customers and communities with the technology and services they need to thrive in a world of rapid change. Vontier's mobility technology segment optimizes the movement of people, goods, data, and energy throughout the mobility ecosystem with next-generation retail solutions and integrated technology. With a growing global presence, we're uniquely positioned to help our customers adapt to new trends, modernize their operations, and delight their customers. We're helping convenience retailers deliver a better consumer experience with new services and frictionless payments. Our telematics solutions connect more than 500,000 fleet vehicles worldwide to ensure safety, optimize fuel consumption, supercharge efficiency, and keep local economies moving. We're building on our expertise in hydrogen and compressed and renewable natural gas to lead the way to a multi-alternative fuel future. Intelligent EV charging software helps network operators optimize tens of thousands of plugs across the globe.
Our smart energy storage solutions will help support the increasing demand for ultra-fast charging. Across the mobility ecosystem, we're helping facilitate an energy transition that is safe, secure, affordable, and sustainable, leading the way to a more connected, efficient, and energy-conscious future. As companies set ambitious new targets for sustainability, performance, and customer loyalty, we're delivering the intelligent technology and digital workflows they need to meet them. Together, we are shaping the future of mobility.
Our new mobility technology platform brings together a set of capabilities that untap opportunities within the verticals which they serve, whether it be in the car wash segment, whether it be in telematics, whether it be in serving convenience retail, point of sale and automation, but it also gives us the opportunity to leverage these capabilities across this segment because they're the same technology stack capabilities that are also being required. We have the opportunity to serve customers today and in the future, serving their high-value problems or their high-value needs. We believe that this gives us a sustainable competitive advantage, and we're providing unique solutions to market to be able to untap this value. When you take a look at it today, it's $900 million in revenue. It's already at decent margins.
It's a business at scale today with 40% recurring revenues, and the software service sales or software sales is about a third of that business. Already we have a lot to leverage in terms of capabilities and moving up the technology stack. We're very excited to walk you through that, and we're gonna give you some presentations from our business leaders in this segment. With that, let's turn it over to Ian.
Good morning. My name is Ian Williams. I'm excited to walk you through DRB Systems today. We've got a lot to teach you about the car wash industry and why you should care, and how it fits into the mobile connected ecosystem Mark just talked about. A little bit about me. My name, again, is Ian. I've come from a deep, career in data storage, data technology, building out the cloud ecosystem early days, and then helping small businesses take advantage of the cloud ecosystem over time. I'm really excited to apply that background, that learning into this market space. Let's jump into it and give you a quick overview about DRB, who we are, what we do, and why us.
As Mark talked about, we're a leading POS provider for the car wash industry, but we really care about bigger things in terms of sustainability and providing that data backbone for our customers. We're gonna walk you through some examples of our customers and how they think about car wash, the car wash industry, and how the mobility ecosystem is gonna continue to grow and their part in that ecosystem, because it's really data-driven. One of the data points I wanna start off the presentation with is how many gallons of water it takes to wash your car in the driveway. I'm not sure if anybody knows, but it's about 100 gallons to simply turn that hose on and start washing your car. Simple data point.
A car wash operator that's really focused on operational efficiency using data, managing the devices inside that ecosystem, can get it down to 30, and they're pushing to go lower all the time. There's an automatic sustainability advantage for our customers, and they're looking to DRB to look at that information, liberate that information, and allow them to make good decisions. We're a core part of their infrastructure. Some of the highlights of our business, we're about $1.8 billion in terms of total available market. For DRB, we're primarily U.S. and a little bit of Canada. Canada is an emerging market for us. We're mid-single digits in terms of growth opportunity. Some of the other key data points we're really excited about is 38 million subscriptions have been sold on DRB solutions by our customers.
Our customers are core parts of the fabric of their community, whether they're thinking about fleets, whether they're thinking about community operations and customers, but they're really embedded in their communities itself. We have 17,000 systems deployed. You can see the recurring revenue number being 40% of our business. We believe that will continue to expand over time. We're really happy to announce we've got 600 key employees that have been on this mission for years. My vice president of sales, for example, has been in the business for 25 years and has seen tremendous change. We continue to grow that part of our business. Two other elements of our business, the revenue business model. We look at software, hardware, both are core components. When you drive into a car wash, we're the first device you actually integrate with, you actually interact with.
We're capturing your payment. We're allowing you to choose the wash that's proper for you based on a journey that car wash operator wants to make sure you experience consistently. Software is the heartbeat of that business. We have an other area that's really defined by payments, payment simplification, payment enablement, and really thinking about some of the overall services we can provide at that market as well. Service, software, hardware, make up the core componentry of our business. Some other terms you may not recognize, tunnel and in-bay. If you recognize them, fantastic. We're always looking to hire a DRB in terms of market experts in the space. In-bay automatic, also known in Europe as a rollover, is where you actually drive into the solution. The technology goes around your car quickly, and you exit.
I'll show you an example of that in the following slide. That's about 12% of our business today. The tunnel market is the core of the growth, we'll talk about how the tunnel continues to expand. We're always looking for other growth areas as well. I'll walk you through that in a few slides here. A quick primer for you. I just wanna make sure you all understand the customer types we're talking about. On the top left, you'll see Tidal Wave. Tidal Wave is a great customer of ours that has really been the epitome of the growth story for the industry over the last 5-plus years.
Tidal Wave is standardized in a format to have a consistent operational experience. They are absolutely laser-focused on building members and having you come into their car wash with that happy, smiling employee, easy technology to interact with and get through that as an express tunnel. We wanna get you in and out quickly. That's about a 5%-6% CAGR. Historically, a fragmented market. A lot of small businesses that have actually been aggregated with institutional capital moving in to consolidate and provide a much broader footprint. On the other side of the chart, you see in-bay, or as I said earlier, a rollover technology, much larger in terms of the actual number, but much shorter in terms of the tunnel experience.
They're about 30 feet long, whereas a tunnel express can be 120, 150, 200 feet long. Very different experiences. On the tunnel, you get pulled in through a conveyor, you stay in your car, you enter, it pulls you through, you're gone. In an in-bay automatic, you pull in, you stop, again, that technology goes around. Just to level set you in terms of the different types of solutions out there and the different customer types we serve. The in-bay is much more of a C-store, convenience store or a legacy gas station customer. On the left, that Tidal Wave experience is much more a pure tunnel operator that wants you to come in for a purpose-built mission and exit their site.
I've been told I'm not allowed to spend more than five minutes on this slide, and it's gonna be tough. This is an area I can talk all day about. This is where we provide the digital heartbeat for the car wash tunnel operator. This is the schematic of what a typical car wash experience would look like in that express lane. We are already helping our customers capture information about you as you come into that site. We use license plate recognition technology, we use RFID technology, and we're starting to gather information about who you are, time of day, and think about the data of the data we're starting to build that customer profile with. You're interacting with a point of sale. We're capturing payment. We're making it easy for our operator. We do not want our operators to be technologists and technology integrators.
That's our job. Our job is to demystify and simplify the technology for them, aggregate the data, and allow them to make data-driven decisions. We want them to focus on the operational part, all the parts that Mark highlighted that are not part of our business. We don't do rollers, we don't do construction. We are strictly the technology heartbeat of that business for them. Once you enter the tunnel, if Mark is paying for the expensive wash and I'm the guy looking for the lower cost wash, I wanna sneak in faster than Mark. I wanna take his product. The operator needs to stop that from happening. We actually have queuing technology to make sure Mark's experience is gonna be the experience he paid for, Ian is gonna get the experience that he's paid for.
That queuing technology is critical on workflow management for the car wash. I'm gonna jump down to the AI collision piece. These are operational efficient devices. Our operators wanna get cars through as quickly as possible. You, as a customer, wanna get through as quickly as possible. AI is critical because as you're loading that tunnel, you're loading that conveyor, the last thing you want is to get cars too close together, and someone like me touches the brake when I shouldn't, we skip a roller and cars get closer and closer and closer. We don't have the opportunity to have an operator at every single part of that car wash. Technology has to help us.
It has to make sure that our journey is safe, simple, and consistent, and we have a product called NoPileups, which literally paints a box around your vehicle and watches space compress and flow through that car wash. Again, I could talk about this all day, I promise I won't. We jump into our customer examples. This gives you a flavor for the customers and the different types of information they're expecting us to provide as that digital backbone for their business. Driven Brands, a publicly traded company, has 350 car washes under management. They are an enterprise. They are looking for enterprise expertise, enterprise data reporting, and information across all their sites. They will continue to aggregate individual washes and pull them into their universe and are looking for us to help them do that seamlessly. That's a large enterprise customer example.
Crew Carwash here, if you're in the Midwest, Indiana-based, the Dahm family started this business in 1948. Family-run operation, still third-generation owners, and probably known in the industry as one of the best operators in the business. They are committed to a fast, friendly, experience. They have a very different use of technology in their lanes. They're looking for us to provide mobility solutions so that you can be greeted by their customer agent to make sure you have the best experience possible. Mint is an operation out of Calgary, Alberta, and they're actually spanning both Canada and the U.S. They've got 8 car washes that are under operation. They did an amazing job doing homework in the space to understand how they could be the best player in their space.
We're really excited to partner with Mint and see where their business is gonna grow over the future. Finally, 7-Eleven and Circle K. You're gonna hear some of these logos and some of these customers consistently throughout the day through the different presentations, and this is the heart of the mobility ecosystem that Mark talked about. These folks are making car wash decisions in an isolated event today. We can really provide data across a much broader footprint to help them think about retail customer experience, car wash experience, as well as some of the fueling choices they're gonna look at. That is a unique position for Vontier to be able to play. We're really excited to talk about that in more detail. I only spent seven minutes on that slide, so I promise I'll keep moving. How do we bookend either side of our offering?
We talked about the tunnel, and now we think about the customer experience before and after. Before you actually invest in a car wash, we have data models that will help to make sure you put the site at the right spot. The worst thing in this environment for a car wash operator is to guess wrong on the location. We have data models that consider traffic patterns, where you work, where you're coming from in terms of home, how to put those models together to make sure you're putting the shovel in the ground at the right space. We're also helping our customers build up membership connections. As they think about their role in the community and they think about driving that recurring revenue for more predictability in their business, we're excited to provide mobile tools, e-commerce tools, and workflow solutions to help them with that.
We have an automatic benefit to helping our customers grow their business. Mark explained a little bit about the connect, manage, and scale solution. I think this is a great graphic in terms of thinking about how we do that for our customers. We don't want islands of technology out there, and as I said earlier, I don't want the customers to be the digital integrator. That's our job. How do we think about taking these different connected devices, providing a backbone and a single pane of glass to view their solution? Where we're having opportunities to provide more density, how to use pricing in certain models and certain sites quickly and scale their business to grow wash count, to reduce labor costs, and to maximize that subscription. We're poised with great tailwinds.
We continue to see the demand for recurring revenue and us as users having that better connection with the provider in my area. I wanna make sure that I'm not bound just to a strict geography. I wanna have an opportunity here to go to a solution that's consistent and a user experience that's consistent for me. There's no doubt digitalization's gonna continue to drive those workflows and those high demands for enterprise technology. Then we think about the do it for me model. Car wash operators, again, are valuing your time, wanna make you sure you can get on site, get through that car wash quickly, and have an experience that you're very happy with so you keep coming back. That desire for convenience will really be at the back and the tailwind for us going forward. Finally, environmental restrictions.
I talked about earlier, it takes about 100 gallons of water to wash your car in the driveway, 30 gallons or better inside a car wash. By the way, in terms of point of reference, when you shower, the average is about 30 gallons of water as well. You are using literally at a car wash as much water inside that tunnel as you are inside the shower, unless you've got kids like mine that spend a little more time in there. Bottom line is we're really excited by the tailwinds at our back. Mark explained the optimized core and some of our opportunity to expand and drive into adjacencies. Optimizing the core is very simple. DRB did not have the tools that Vontier brings to the table.
When Mark talked to the management team about DRB coming into the fabric of Vontier, there's an immediate upside with things like Vontier Business System. There is training and technology and culture inside VBS that we can apply to DRB quickly and see upside. It's really gonna allow us to drive better product management solutions, better roadmap decisions, but there's a discipline inside of Vontier that we're benefiting from. I'm gonna jump into expand the core and adjacent markets really quickly here, but before I do that, this is a key slide for you to understand. Our customers have changed over the last 5 years. This shows you single set operators and how they made up the complexity of the composition of the market in 2018. Single set operators were 55% of the overall deployment of tunnel car washes in 2018.
That has reduced significantly as institutional capital has moved in. Customer experiences have been more consistent and broader across a membership base, and we've seen regional and national grow dramatically. As I talked about Driven Brands earlier, there's an enterprise-level expectation of reporting, management tools, and robust POS systems, which we are positioned to win. DRB started out in 1984 servicing single set operators. Today, DRB services 17 of the top 20 enterprise customers in the business. Our business is scale, and as single set operators think about their business as a life cycle, and they look to exit and possibly sell to a larger national that's consolidating, on a DRB platform, it's much easier to migrate that information, right? We provide a value base inside that life cycle for our customer. We're really in a position of wealth to win moving forward.
I'm gonna skip data platform. I probably talked enough about data. Data again has to be consistently laid out, whether you're a single set operator or an enterprise customer. There's also capability expansion. There's more opportunity for machine learning and artificial intelligence inside that tunnel, especially around safety and conservation. Payments enablement. Our customers are looking for choice. Our customers are looking for simplicity and making sure that payments are easy to interact with our customers. We see that market changing on a daily basis. Finally, geographic expansion. As I said at the start of the presentation, we are primarily U.S.-based. We're building up our opportunities in Canada. We're excited about that. There's an opportunity outside of the U.S. that really could grow our business strongly. We're really starting to evaluate some geographic expansion by taking our capabilities. This is a capabilities chart.
This is our value chain to our customer base. All the things in black on the left-hand side, the upstream value chain, are all the solutions we provide today. I've touched on some of those. On the right, this is exciting growth area for DRB. As Mark's thinking about the connected opportunity for us across Vontier, we really believe there's a $300 million TAM that we can access quickly with some of our solutions, and it provides both an expansion opportunity, and then we can lift and shift this model into some adjacencies. As I get ready to close up here, we're well-positioned in the market regardless of how we go from single site to nationals across the food chain in the, in the car wash industry.
We're also at the forefront of how mobility technology is gonna enable and continue to grow the space, and we think about some of the opportunities across Vontier. We're not even at the stepping stone of where cars are gonna go in terms of accessing that information, sharing it broadly, and pulling into this universe where we think car wash plays a critical part. In summary, we believe we're a high-growth engine inside of Vontier. We believe we're a critical part of the mobility-connected ecosystem. We really continue to provide a wider array of services and solutions for our customers, and we believe we can continue to scale successfully. There's a lot to unpack there in terms of the car wash industry. I'm looking forward to continuing our conversation earlier. Thank you for your time.
I head the Retail Solutions business. I'm excited to be here. I'm gonna talk to you on how we are creating a technology powerhouse in convenience retail. I joined five months back to head the Retail Solutions business. I'm ex-Honeywell. I was from the Honeywell Connected Enterprise, the IoT software business of Honeywell. My background has been in technology, software, services, business transformation. Mark talked about the Mobility Technologies segment and the Mobility Hub. We are core to the Mobility Technologies segment. What does Retail Solutions do? Our core offer set is serving our convenience retail, the C stores, with leading payment, point of sale, automation, and IoT services. If we draw your attention to the chart on the on my left.
Payments is approximately 40% of the business, which is payments hardware, payments terminal, payment software. The point of sale loyalty piece is around 30%. I'm rounding it up so that it's easy to remember. We have the automation, which has multiple pieces in it. It's connecting the sites, so that it functions efficiently, and also upgrading the sites, so both greenfield as well as brownfield. That's the automation piece. There is the remote management, the connected assets that Mark talked about in terms of creating a network, using our philosophy of connect, manage, scale. We compete in a large market. It's $4.4 billion TAM. It's mid-single visit market growth. I said our business is at scale. We are $435 million.
Retail Solutions was set up by pulling different portfolio elements that serve the retail space within Vontier. We layered the acquisition we did recently of Invenco to create this portfolio. The business is two-thirds U.S., one-third international. We are already in 40 different countries. What's really proud for us is we are number two in point of sale in North America. We are already executing the connected asset strategy. We have more than 165,000 devices under management. We have more than 3 million loyalty subscribers in our high-growth markets. All of this is contributing almost 29% of our recurring revenue in our portfolio. Our reason for existence is to really solve customer problems along, I would say, two dimensions.
One is the consumer engagement, and other is on improving productivity, and I'll talk about that in more detail. By consumers, I'm talking us, basically. It's all of us who go to convenience stores and shop, we are the consumers. The challenges that the convenience store is solving is how do we engage, how do we drive more foot traffic, et cetera, into the store? If I talk about our customers, which is the convenience retail customers. This segment has been growing over the years. It's grown at a very decent clip, 5% CAGR. Especially in the last 3 years, it has grown almost 23%. The reason for this is the store is integral to the community. Let's say almost 93, pretty much the entire U.S. population stays within 10 minutes of a convenience store.
That's very important. That's critical on how we are executing our strategy, as well as why this format will stay relevant for days to come, for years to come. The in-store contributes a significant part of the convenience store and the mobility hub that Mark talked about. It's two-thirds of the transactions happen in-store, and the store contributes to a significant piece of the margin, almost 60%. The reason these stores, they are integral to the community, it's almost you can call them a community store, and they are continuing to evolve. I'll take you through over the years. It started in the early part of the last century in terms of dispensing fuel and gas.
From there, it has evolved into many of you probably have visited stores, which was an array of basically refrigerators with refrigerated goods and that was in the 80s, 90s. It has started changing into becoming much more service-oriented. You see more things in the store now, more services, car washes. You see a quick service restaurant. You see fresh food. And then from how I interact or how we interact with the store, there is mobile, there is frictionless, there are different formats. Then the energy part of it, Mark showed a very, very clear picture of how it's a multi-fuel setup, and that's where it's evolving. The fore court is changing. The store is changing. The services around the store is changing.
We are seeing this from the types of investments that some of the large chains are doing. The size of the store itself is almost 50% bigger. It's 46% larger. They are investing heavily in technology. We'll talk about the drivers in a minute on why that is so critical. In a nutshell, the store is transformed to become from plus gas to plus services. From the investments that the customers are making, the convenience stores are making, a large driver of that is labor. The site is fairly complex. There are significant number of different assets on the site. We talked about the different services. There are things between the pumps and the point of sale to the services around car wash, the restaurants, the fresh food management.
You also have any store you have walked into, there are not many people there. There are a handful of people managing the store, and that's very common across any format. These two really are driving a big investment from how the store operates. Layer that against how we interact with the store, how we typically interact with how our day-to-day shopping. Many of us on the buying behaviors are different. Our orientation towards better, different, better for me type products, so it's changing the mix. It's always mobile first. You want to have multi formats of transacting a payment. The energy infrastructure, as we talked about, is changing, so the technology trends are impacting. If I'm a store operator, the big challenges are for me is, how do I drive foot traffic?
How do I drive revenue and growth in the store? I've already made significant investments in my assets. How do I actually sweat the assets? How do I make sure it's yielding what I wanted it to yield? With that lens, as we think about on why we are relevant to them, we are the specialists in convenience retail. We know our space. We know our customers. We work with more than 350 different customers, big and small, and we know their needs. Our product offerings, the breadth and depth really enable us to provide that end-to-end service. The design, how we deliver the service, how we help our customers scale, really enables them to be successful and drive profitability. Then there's another big piece.
Mark referred to this in this presentation as well, which is around the changing requirements around regulations, around compliance. That's a continuous feature in how the stores are operating and how we need to help our customers really make sure they're ahead of the curve there. All of these really drive how we are executing our portfolio and helping our customers drive productivity and engagement. I'll take you through in the next slide in what actually is happening in the site. We call it's a factory without a lot of people. There are a lot of different things going on in that convenience store site and part of the mobility hub. As a simple example, if I'm initiating a fueling transaction, the fuel needs to be
The fuel needs to be authorized. The payment needs to be authorized. It needs to interact with the point-of-sale. I may have a loyalty program. It needs to interact with the loyalty program. There is a tank underneath in the ground. The dispensing of the fuel needs to be measured, and it has to be accurate. The transaction has to be closed. Likewise, same thing happens in the store, inside the store when I initiate a transaction. Between payment approvals, in between inventory management and closing the sale. That's just the two normal typical transactions we have been used to. There are other things that are there on the site. There's car wash. Again, the point-of-sale needs to be integrated with the car wash. There's different formats of energy dispensing. There's restaurants. You have new services.
You have last mile delivery. You have e-commerce solutions. A whole set of things are happening, and our products are touching every part of it. That's one side of the consumer engagement side. Now, on the other side, I talked about improving productivity and making sure the assets are working. This is where our IoT asset management, the different types of service delivery of EV, hydrogen, gasoline dispensing, and then the site needs to be integrated, everything needs to function. At the end of the day, I need to make sure everything is reconciling. I need to have proper reporting by store, by fleet of stores, so that I understand what happened that particular day. That flow of data, flow of information needs to be seamless.
Of course, on top of all of that, we need to make sure we are driving the objectives of compliance, ESG, et cetera. Pretty much our solutions run the 7-Eleven store. Other than supplying the labor, we can pretty much touch every part of what happens inside the store and the mobility hub site in totality. We run these mission-critical operations. Now I'm going to shift gears. We talked about our customers, we talked about our market, now I'll share a little bit more details around how we are driving our strategy forward. Our key part is to grow our core business. From there, we want to extend our solutions to solve the problems I just mentioned around increasing productivity and enhancing consumer engagement, which will drive more recurring revenue.
From there, we want to make sure we are expanding margins. Executing our Connected Mobility Strategy between optimizing the core, expanding the core, and pursuing adjacent markets. I talked about Invenco acquisition a little bit earlier. Quick note on Invenco. We acquired Invenco in September 2022. It's been a win-win acquisition. It helped us augment our offers in the payment space. Invenco brought us good capabilities in product development, design, and technology. We are also able to take this portfolio to our customers in a total end-to-end solution set. If I go into what we are doing from driving our optimizing core and growing the core business, a big part of it is we pulled in different parts of the portfolio to create retail solutions. It came with its own systems, its own processes.
One of the pieces we are really driving is to shift our product portfolio from a regional execution to a global execution. To shift our engineering execution from regional to global, and creating architecture, a design which really helps us become more and more flexible. In the same way, moving our legacy methodologies into what we call the scaled agile execution. We are not doing this in isolation. This is all with the lens of really delivering customer value. Our customers repeatedly. Again, I mentioned, keep in mind we do have low labor, high turn around in the sites. We need to make sure products are easy to build, easy to deploy, and stress-free to maintain, and manage the complexity. That's what this is helping deliver.
What we are seeing already is there's more than almost 30% increase in time to market, and we are planning almost 40 different releases in the next 6 months. Here's an example of that. This was Maplefields, which is a 50-store chain. Their big challenges were around wait times, system support maintenance, and managing their software portfolio. What we did was we helped really deliver a solution through our flagship Passport point of sale, self-checkout, which standardized the offer across the stores and ensured there is remote support and ensured ultimately the lower total cost of ownership for our customers and driving more value. Let me talk more on the connect, manage, scale, on how we are extending growth, expanding the core to really drive recurring revenue.
It's building on the same themes of products are being easy to build, easy to deploy, easy to manage. What connect, manage, scale really does is it helps us to connect to this complex array of devices locally, but manage them on a global scale using the technology infrastructure, using the processes that I outlined. We believe in the next three years, we will be able to get to more than 3x in connected devices. That's a very good metric to see how we are deploying the outcomes for our customers in terms of uptime, in terms of productivity, in terms of incorporating new features into the product. It'll also lead to margin expansion and a very good recurring revenue base. Remember I had mentioned 29% of recurring revenue today. We should get to 50%.
There's a piece here which is iNFX in that managed line there, and I would like to dive a little bit deeper into iNFX because it's so critical for us to execute our portfolio and this strategy. iNFX is a technology that came with the Invenco acquisition. We'd like to call iNFX as the operating system that runs the mobility hub. It's a unique plug-and-play approach, which has not been done in the industry before to manage the entire convenience site and the hub. What we have seen and heard from our customers in the past, is any technology change, any compliance change, any software feature upgrade takes months for the customer to deploy because of the monolith nature and the point solutions that have been deployed on the sites.
What NFX is doing is it's decoupling that and creating a more modular hardware-agnostic scalable solution. From days... From months, it becomes days now. If I have built the connectors, I build once and then I deploy. I deploy in minutes, basically. It's as easy as changing a light bulb. This is really powerful. What it really does for the industry, it's game-changing. Executing this will really give us the right scale and the right capabilities to deliver the connect, manage, scale philosophy to our customers. As the site changes, we are going to see more and more need for this because the complexity keeps increasing. The number of devices, number of systems that run the site keep increasing.
Having a common operating system that actually helps scale rapidly and manage change rapidly becomes extremely critical. Ultimately, the site operators can focus on running the business, which is mainly make sure I get the foot traffic, make sure I'm driving growth, I'm driving profitability, and we take care of the infrastructure. We take care of all the headaches that go with the infrastructure and make sure it's successful for our customers. Bringing it back together, it's we are executing an integrated connected offer with connected POS, connected payments, including frictionless. We want to scale our assets with our connected asset management, connect, manage, scale using iNFX. We want to drive operational insights because we want to close loop transactions and make sure that the customers benefit from the productivity of switching the asset.
From there, we want to also make sure we have a good partnership ecosystem that helps us deliver this to our customers. In sum, we want to drive growth. We compete in a large market. We have very good customer access. We know our customers. We know the industry. We want to extend the solutions to solve critical problems around engagement and around productivity, and in the process, expand margins through innovation and software execution, which creates sustainable value to our investors, to our customers, and to our people. That's how we are creating the technology powerhouse of convenience retail. With that, I'll introduce Alain, and thank you very much.
Sustainable fleets group of businesses. Alternative energy and sustainable fleets is driving the future of sustainability. It's a group of business focused on that. Before I begin, a bit of background on myself. I've been in tech industry for more than 2 decades. I spent the first part of my career focused on leading R&D and product development, building hardware, software, and SaaS solutions. For the second part of my career, I've led businesses, both very high growth businesses, as well as turnaround businesses in multiple industries with multiple go-to-market models. I've been with Vontier for almost 2 years. I've been leading the Teletrac Navman business. Recently I've taken on the leadership of a group of businesses, again, focused on net zero transition, alternative fueling capabilities. Let me start by describing those businesses to you.
Teletrac Navman, we are a global provider of telematics and fleet solutions targeting the fleet operators and fleet owners. At ANGI, we are the leader in CNG, compressed natural gas, and renewable natural gas, as well as a growing provider of hydrogen solutions in the fast-growing alternative energy space. We provide full end-to-end systems in those markets. At Driivz, we are the operating system provider for EV charging infrastructure. We provide smart software solutions enabling the hardware, as well as the operators to run the hardware effectively. These group of businesses did not come together just because of that. They came together because really customers are asking us, fleet customers are asking us, how do they go through this net zero transition? They're not just asking about how does the fleet change from ICE to EV.
They're saying, "Okay, if I do that, how do I manage the infrastructure?" Complexity is growing for our customers, and we're bringing these capabilities together that create a unique set of capabilities to help our customers on that journey effectively. This creates a unique, uniquely capable set of programs for our customers. For the rest of the presentation, I'd like to do a deeper dive on Teletrac Navman, then I'll circle around to talk more about ANGI and Driivz, who are in their own rights, leaders in their markets, in the very exciting markets that they operate in. Let me start with Teletrac Navman. We are a global telematics provider for fleet owners and operators. We provide solutions that connect the vehicles, the drivers, to the back-office operation.
We play in a $6.5 billion market, size of market, growing double digits. Very exciting market that's growing. We are a top five international provider. We have about 18,000 customers and track more than half a million vehicles and assets globally. We are operating at scale. This business is a recurring business revenue. Most of the revenue is SaaS recurring, 97% of that is SaaS. We have a global geographic footprint, so we are diversified when it comes to from a geography perspective. You can see the chart on the right-hand side there. While we are diversified, we're also a leader in some of the geographies that we operate in. For example, Australia, we are the number one leader there, where you have a proven playbook that we're leveraging to take internationally into other regions that we operate in.
I talked about geographical diversification. We are also diversified in the industries that we serve. We serve attractive, diverse, and large end markets that help build and mobilize the world. They're significant. They are growing double-digit. They're asking for more digitization. At the end of it, this allows us to be also diversified and resilient in the face of macroeconomic headwinds. The bottom line is we provide our solutions to help our customers improve their profitability, improve their efficiency, improve their sustainability, and improve their productivity. What are the key drivers driving this double-digit growth in this market? We talked about labor shortage. There's increasing fuel prices. Everybody sees that. Safety and compliance is getting more and more complex. The price of insurance is growing. A lot of the fleet operators are seeing increased price of insurance. We address where...
We address those needs with our one-stop shop end-to-end solutions, with our workflow software solutions to address labor shortages, fuel optimization tools for fuel price increases. We all have capabilities around safety, video telematics, safety compliance solutions, as well as driver scorecarding to assess the risk of the drivers and help with insurance costs for our customers. The most exciting trend that is driving a massive transformation in the fleets market is the energy transition, as Mark mentioned earlier. With the energy transition, there's an increased set of complexity that the fleet operators have to deal with. They have different types of vehicle. They're trying to figure out which energy, which type of fuel do they use for their vehicles, long-haul trucking versus short haul, et cetera. There's a significant amount of complexity.
Bringing these businesses together within the Vontier ecosystem, we have a true end-to-end capability to address those needs and help our customers on their net zero journey. I'm very excited about that. From offering and a portfolio perspective, we've got an extensive hardware portfolio to address multiple customer use cases for tracking different type of assets. We also have a significant number of applications to address different pain points for our customers. We bring those applications together in one AI platform, our TNT sixty microservices architecture platform. It's a modern platform that we recently launched globally, we're very excited about that. We provide the end-to-end solution sold as a recurring revenue model. We sell an integrated system, single pane of glass, hardware, software for our customer, and make that available for our customer in easy fashion.
We step back and we think about our connect, manage, scale capability, it's really about what we focus on is customer impact. Our solutions are all about providing operational insights for the customers, allowing them to run their operation more effectively with emission reduction information, asset tracking, reporting, safety capabilities, fuel optimization, as well as optimizing uptime of their assets. That creates significant customer impact. When they leverage our solutions, they see significant fuel saving of 20%, improved uptimes of 15%, accident reduction of 12%, and improved productivity of 20%. That in itself translate immediately to their bottom line, allowing them to scale and grow their business. The ROI on our solution is very obvious for our customers, and that's what's driving significant adoption in this space and growth in this space.
We are connecting, managing, and scaling our customers' operations with our solution. Let me step back and talk about our Vontier Connected Mobility Strategy. As Mark mentioned, we have two main pillars. First, around operational excellence and optimizing our core. Second, about accelerating our growth, expanding our core and our adjacent markets. From optimizing the core for Teletrac Navman, it's really about accelerating the turnaround for this business, and I'll describe that in more detail. For expanding the core, there's multiple elements. There's elements of scaling the people and growing the team, elements of geographically scaling our go-to-market, expanding our solutions and providing more and more solution for the customers, and I'll describe those as well. When it comes to the adjacent markets, I talked about the net zero fleet transition that the customers are going through.
That's very exciting, and it's exciting across the three businesses that I mentioned, because bringing those capabilities together creates an end-to-end set of solutions for the customers. Also in adjacent markets, ANGI evolving into providing more hydrogen fueling system. ANGI, the leader in compressed natural gas and renewable natural gas, is now expanding into new markets, and it's gonna enable accelerated growth. Driivz. Driivz is a provider not just for fleets, a provider for charging point operators, whether you're on-the-go charging or destination charging. It's a key provider of operating system in those markets as well. They have significant growth potential there. I'll describe that in more detail. Stepping back on the turnaround. If you've been following Teletrac Navman for some time now, it's been challenged when it comes to revenue growth, as well as profitability.
We spent the last 2 years since the spin, and the business has been going through a massive transformation. Let me talk to you about what are the different elements. First and foremost, we've taken the business from a regionally structured business and globalized functions and create a global scalable kind of structure in the organization. That allowed us to leverage the talent globally, scale the business while improving profitability on the business. Second, we've moved upstream to larger customers. We refocused on larger customers. What that's allowed us to translate to is increasing the customer deal size. In the last 2 years, the customer deal size has tripled. That is significant. That reduces our cost of acquisition down in the business as well. We've also launched our new modern platform.
That allowed us to close the product gaps and increase our competitive advantage. That's translating today to our ARR growth, our bookings growth, and double-digit bookings growth in the different regions. ARR growth, a significant reduction in churn on this business. We're excited about where this business is today from a trajectory perspective. There is a lot more work to do. There's a lot more value to untap as we continue to leverage the VBS toolset and capabilities, like focus and prioritization process that helps us significantly on moving upstream and continue to grow this business moving forward. We're excited and very proud of what the team has achieved over the last couple of years. Shifting to our growth initiatives. From a growth perspective, I would say from a new capabilities, it's about expanding the team.
We recently continued to grow the team, hired a new experienced R&D leader to accelerate and scale our capabilities when it comes to execution on the product and product roadmap. We've also hired a global leader for our commercial organization to grow and accelerate our go-to-market initiatives. We are leveraging from a geographic scaling perspective, we're leveraging the Australia playbook, the capabilities of the multichannel that we have in Australia. We're taking that internationally with our new global leader. That's gonna allow us to expand our footprint in the marketplace, and grow the market and the business effectively. From a solutions perspective, we continue to focus on providing more and more operational insights for our customers. We're moving upstream to more analytics capabilities for the customers.
As we shift to larger customers, we see more and more interest in that aspect of our solution. We're also focused on safety and risk management. Video telematics safety is a big thing for fleet operators today. We're launching a number of new solutions in that space that's gonna allow us to capitalize on that trend effectively. Let me tell you how that works. If you think about the traditional solutions in the telematics space, and Mark mentioned that earlier in his presentation. Historically, customers have been focused on tracking the vehicles, kind of understanding basic performance of the vehicles themselves. As we add more and more capabilities, we're seeing a multiplier effect on the average revenue per vehicle, average revenue per unit per month, right? And that can go up to 5x from where we are today.
Why is that exciting for us? That's exciting for us because the big chunk of our customers is still on that traditional solutions bucket, on the left-hand side. As we add more and more of this capability around safety and analytics, we can move them up the value chains, solve more of their pain points, drive increased average revenue per vehicle, as well as more return on investment for our customers. Very excited about how we're gonna grow and scale this business. Let me give you an example. This is a food and beverage transportation company. They were using multiple providers for telematics, for video telematics, for video safety.
We came in, we provided them an end-to-end single pane of glass, holistic solution for that customers, and we were able to kind of provide them with all the capability, all the pain points being addressed in one solution integrated with their back-office ERP to be able to provide true operational insight. This is the customer that I described in the 5x kind of bucket when it comes to average revenue. That's exciting. As we shift upstream, we go to larger customers, we provide more capabilities. This is how we're gonna grow and scale this business effectively. I went backwards. This is the most exciting chart here. Let me tell you why it's exciting. If you think about, if you're a corporate entity or you're government. Everybody has net zero goals by a certain date. The market is shifting. Everybody needs...
If you're operating any certain fleet, you're trying to figure out how do I get from where I am today with a significant ICE base of vehicles into my net zero future? The questions we're getting from those customers is, it's not just about managing my fleet, because yes, I can manage my fleet, but how do I manage the infrastructure? If I pick electric vehicles, how many chargers do I need? How do I keep my operations running? Because the fleet is really the operation for them. Do I go hydrogen? Do I go CNG? What type of vehicles, what's the right mix? They need help in their planning. They need the help to figure out which vehicles are the right ones for their routes, et cetera.
We provide within the Teletrac Navman platform, we provide planning tools, allowing them to decide on which vehicles to transition to what by when. We also help them manage. They need to manage a mixed fleet. Historically, it was one set of vehicles. Now it's a mixed fleet with multi-energy future. They need to manage that. We also provide that capability in the platform. They need to manage the infrastructure. This is where Driivz comes in. EV charging uptime is key. You need to make sure that the electric vehicle chargers are up and running, so your vehicles are charged the next day for your operation. They also need alternative fueling, so they need to manage the infrastructure when it comes to hydrogen, et cetera. This is where ANGI as a leader in that space comes in as well.
With these capabilities, we can be a trusted advisor for those fleet customers. We can help them on that journey. We can help them in the complexity. We can simplify the complex here. We're very excited about the combination. Now, let me jump into ANGI and describe to you why ANGI is exciting. ANGI plays in the compressed natural gas. It is the number one solution provider in North America for CNG and renewable natural gas. The reason for that is provide a scalable system, and we work with our customers to make sure that as our customers grow, we can add more and more capabilities with reducing their lifecycle costs. We work with them from an engineering, from a kind of development perspective as well. We leverage the worldwide distribution of GVR and have a strong worldwide service capability.
ANGI provides an end-to-end solution. This is not just the fueling dispenser. This is everything from compression, storage, service, automation, remote monitoring. Significant capabilities, and this is why ANGI is the leader in that space. That leadership position obviously translates to strong global customers. We're talking about major fleet customers. We're talking about major providers as well. That's driving double-digit growth in this market, in this business. We're excited about the growth that this business is gonna bring in and continue to bring in for years to come, both from a bookings and revenue growth perspective. ANGI is the leader in this space. Shifting over to Driivz. At Driivz, we are the leading operating system provider for global EV charging. We are the markets we serve, I talked about on-the-go destination.
Massive growth in the number of infrastructure growing there. What's exciting about this business, this business grows when our customers grow. As more and more chargers come online, our platform, our kind of return is growing because we the revenue models are based on number of chargers as well as utilization of these chargers. We're very excited about the upswing of that market and what that means for Driivz. Driivz has an extensive offering. This is a 100% recurring revenue, by the way. Has an extensive offering from charging network management, billing payments, smart charging, strong customer engagement, remote management. What we're seeing is we can remotely reset some of these EV charging infrastructure to make sure they're up and running.
We about 80% success rate of remotely fixing some of the challenges with chargers. Very exciting. Energy management capabilities as well. What are the key differentiators here? This is about being an open system. This is about being really the operating system where customers can actually go build their own applications on top while we abstract the hardware layer. We have more than 500 chargers and 700 hardware chargers that this platform can operate. We are hardware agnostic. We allow the customers to pick the hardware while we abstract that layer for them and provide them the 2 operating system for it. It's high scalability, we scale effectively with the customers. We see hundreds of millions transactions on the platform is set up for scalability as well as high availability.
Remember, you wanna go to a charger to charge your vehicle, you want it to be up and running. Availability is key in this market. What that's translating to, again, breadth of the solution, strong capability, strong set of customers with... Did I go back? No, this is actually... It's a very good comment. Very similar customer base, which is exciting. So we've got very large customers in this space. What's exciting about this business, last year, ARR doubled in one year. We expect that trajectory to continue with very, very strong growth in this business because the chargers under management are gonna continue to grow exponentially as the market grows. Okay. In closing, let me just talk through our alternative energy and sustainable fleets.
We bringing together a group of businesses that have differentiated capabilities in their own rights, but together they help on this transition, this net zero transition for the fleet operators. Teletrac Navman is on an accelerated turnaround. We've done the initial turnaround. It's in core growth. Q4 was a core growth quarter for us. We're excited about the future and how do we accelerate our growth in this business. Driivz is a leading software provider in the massively growing electric vehicle infrastructure charging space, targeting all segments of the market that are on the go, destination charging, as well as fleet. We have a piece of the pie in all the growing pies there. That's exciting. It's a leader. It's got massive capabilities. ANGI, a leader in CNG, RNG, and growing in hydrogen.
These businesses together bring together capabilities in hardware, software, services. More than 65% of these business revenue is recurring. Excited about the opportunity of creating a more sustainable future here, leveraging the capability of these businesses. With that, thank you. I'm gonna pass it on to Ryan for our Q&A session.
Just a few minutes. We're gonna set up some chairs here on stage and bring back everyone who has presented so far this morning. If you guys wanna come up, grab a chair. Also for those of you on the webcast, you do have the opportunity to enter your questions via the portal. I have a little iPad here. I can see them coming in. We'll take some questions here in the room and on the webcast. For those in the room, we do have two mics, I believe, running around. If you could just wait for those before asking your question, I'd appreciate it. I saw Cliff's hand first. Well. Go ahead.
Thank you. Cliff Ransom Research. Two quick questions. How did you instill lean thinking in them?
I think it's a very good question. Lean is a very important cultural mindset. As many of us may know, a lot of our concepts were born on the factory floor, but quickly moved in the business process. The lean element is, I think, hard at work when you see, particularly when they apply it to agile product development for software, and the sprints that they do, the process they do, they all follow policy deployment, if you're familiar with that tool and capability. They all follow the same process of spelling down our critical fuel initiatives and drive the same level of accountability across the organization. The engagement that's pushed down into the companies through continuous improvement, employee engagement around Kaizens are also at work in all these businesses.
Those same lean daily management principles in a more technology-enabled setting are clearly at work. For the innovation side, too, a lot of what we're talking about here, and we showed in terms of how we have called the de minimis projects and focus on the more important ones. A lot of our tools and capability are at work. Some of these companies are new, like Invenco is new, DRB is new. Obviously in early innings there. You heard from Ian that clearly they're embracing our opportunities here. We also have a focus on prioritization process. It's part of lean to call out which is the most important opportunities to work on. I think there's a lot of initiatives there.
We share a common language, a common set of engagement with employees around that, and we're seeing that it's working. You see the growth that we're getting, you see the margin improvement that we're getting in these businesses. We've got folks' attention within the company, and they're all on the same music spreadsheet, if you would say.
Could I perhaps. I'm sorry, I didn't introduce myself. I'm Cliff Ransom from Ransom Research. Alain, how did you use these kinds of techniques and practices and mindsets as you went about your Teletrac Navman, reconstitution, if you will?
Yeah, that's a great question. You know, as we were thinking about how to focus our go-to-market and on what type of customer, we leverage things like the focus and prioritization process that highlighted where we're really kind of getting value, how can we go target the right segments of the markets. When we run the, obviously, kind of the SaaS operations, SaaS kind of business, we're looking at kind of policy deployment or what are some of our key initiatives to drive across the company, as well as leveraging the different tool sets from KPI measuring around our customer success organization, our customer support organization. It's leveraging these lean tools in different aspects where they actually apply to the benefit of the business and the customers effectively.
We were able to kinda find the best of both worlds there effectively.
Yeah. One of the fact sets that they did where they applied lean is when we took the business on, the business was experiencing 25% churn. Here's where, you know, application of lean toolkits on churn reduction has reduced that. It's now more, more than half, like a 60% reduction in churn, as he showed in his chart. Clearly, the team engaged a lot of lean tools there.
We'll go Joe, and then we'll come back to Julian.
Yeah. Thanks, Ryan. Mark, maybe my first question is on the realignment. You talked about how you're doing the realignment to create you know, to basically enhance your value creation. Maybe just expand on that a little bit more. Also just along those lines, the company's been undergoing a transformation. Is there any signaling that is going on here as well, associated with the realignment?
I think the realignment is, each of these segments, as you'll see also in the afternoon when you see other segments, they all share the same selling to the mobility ecosystem in some form or fashion. They all have a connect, manage, scale theme. However, the realignment, we think, provides our strategy and our deployment capability and some of these tools and capabilities, we're managing the businesses this way because we think there's more tighter set of applications of what we're bringing to market with what the customers want. It's, like, as an example, the retail solutions, we studied this for about 18 months, and we started with engaging with our customers. We actually did a study out of our strategy group, and we did a lot of VOC from customers.
We think this brings together the right kind of capabilities that we can really deploy around our customers to execute what we believe is a better growth path. I don't think you should. I think it's around strategy execution. I think it's transparency on how we're gonna manage businesses and investors can follow us. I think it fits well. We thought a lot about this segmentation before pulling the trigger on it. I think it's the right thing for us on tap value. I don't think you should read into it anything about, you know, further divestitures. As you know, we look at our portfolio all the time. We've announced, you know, 2 divestitures. We're providing a small segment. You can see those separately.
I think it sets it up to be very clean for investors to follow our strategy going forward. I don't think you should read into anything further beyond that we're trying to untap value here, and this is our best way to untap value and show transparency to shareholders.
That's helpful. Then I guess maybe my follow on the convenience retail opportunity is pretty clear on the schematic, how well positioned you are to take hold of that trend. Maybe provide a little bit more color on what the opportunity is, how far along we are, and how do you expect the investment to change over the next three to five years?
It's an exciting trend. I mean, if you think about the depth and breadth that Karthik has already in his business, it's, you know, it's a sizable business with a lot of software engineers and a lot of capability. I think job number one that he's tackling is the integration of Invenco. That sets us up as a technology leader in the space, and they're getting a lot of attention from very large customers based on what he described to you, which is very compelling to solve their problems. I think predominantly, there's a very fragmented and siloed, you know, business today. I mean, we just organize it under leadership with a chief product officer or chief innovation officer.
I think some of the same things we ran into with Teletrac Navman in terms of fragmentation and siloed approach fundamentally are at work inside that retail solution business. Now that we're gonna run it with an ability to scale it and eliminate some of those silos and create some of that leverage, which is so important when you run a software-enabled company like Retail Solutions. I think that we're gonna pick up a lot of efficiency benefits, just like we did in Teletrac Navman, we're gonna pick up those efficiency benefits in Retail Solutions. I don't think we need a huge boost in spending. We have a lot of that first pillar on optimizing the core, where we're gonna wring a lot of benefits out just by managing that business differently and better.
We're very excited about that. With the iNFX capabilities we have there, we've got a great runway.
Let's go to Julian right here in the front.
Thanks a lot. Julian Mitchell at Barclays. Maybe, a first question just to Ian and Karthik. You talked about the mid-single digit dollar sort of market growth rate. I just wanted to understand sort of within that, what's the assumption around the kind of hardware installed base growth? You know, just to try and understand, like how much is market growth from pricing or higher dollar content per site? Any help around those kind of things? Then for Alain, just, you know, Teletrac, the market growth rate is low double digit. Your own business, you know, for various reasons, has obviously undergrown that. Just want to understand, like how quickly do you get back to low double-digit growth or even higher there?
You know, is the expectation that you grow with the market, or do we get above average growth for you because of you've had undergrowth kind of for some time? What's the timing around that?
Perfect. Thank you. You wanna start?
I can start. Thanks for the question. From the car wash side of things, obviously, hardware is just integral to what we do today, will continue to be for the near future. Software really unlocks the value, especially as we connect these solutions for our customers. We are certainly looking at high single digits for DRB in terms of growth opportunity in a mid-single digit market. Going forward, I think we're well-poised again with that balance between hardware and software. Karthik?
Yeah, it's likewise, it's for us, the way we think about it is we are building products, and then we have to put the products together and deploy solutions and then market. That's what the customers want. That's always a combination of hardware, software services, cloud, and more and more iNFX is becoming an interesting, important component of that piece. That's how we are executing, and we diligently look at lead time scale. We always look at what actually is getting deployed from a pricing standpoint and what actually is the volume that's coming. Then we think through the opportunities and in conversations with our existing install base as well as the new install base.
Maybe I'll just add, Julian, I think your question also was how much of the market growth is price or inflation. We've assumed, 2% low single digit inflation environment when you start thinking from the 2024-2026 kind of range that we're talking about out here.
On the Teletrac side, obviously we've discussed this year mid-single digits for this year, but we are on accelerating our turnaround activity, expect a double digit and at some point higher than market rates in the next kind of couple of years as well as we accelerate our turnaround as well.
Thank you.
I think we have time for maybe one more. I don't see any online. Steve? Right here in the front.
Good morning. Question for Mark and then also one for Ian. For Mark, I, you know, one of your pillars you talked about in terms of optimizing the core, the pricing, perhaps you can grade yourself on how your ability to price historically and then what your view is going forward, and maybe you can just kinda quantify that a little bit. Then for Ian, you know, you guys have owned DRB for two years. It'd be great to hear what the run rate of the business is today. I think when you bought it, you talked about $170 million of sales and 25% margins. Just be great to hear kind of what those numbers look like today.
Then also, you talked about 17 of 20 customers that you service, but I noticed the biggest one wasn't on there, which is Mister Car Wash. Perhaps you can discuss your relationship with Mister Car Wash, if you have one, if you don't, and you know, how you're helping enable their growth.
Okay. Good.
Let me talk about pricing. I think, we started strategic pricing before there was a very low inflationary environment when we originally rolled out what we are calling our focus and prioritization process, which essentially was segmenting the market of customers and products and determining where were we sort of underpricing, where can we raise price. We started that rolling out across our operating company, started in GVR, with a very low inflationary environment where people were not even talking about inflation at that time. I rate us really high in terms of being ahead of the curve. Of course, when inflation started going up, then we already had the mechanisms in place to add to that and start adding in inflationary pricing.
I think, we still run those analytics. We still are pushing on strategic pricing. I anticipate. You know, we were definitely mid-single digit pricing opportunities. I think when you heard from Anshuman, you know, we intend to stay price cost positive. We've always been price cost positive, you know, since running the company. This is a very disciplined market. It's industrial tech. We don't think that, you know, the market will give up pricing easily. Historically, it has not. I think there's real merit for us to raise some of the prices that we have clearly in the marketplace. I think we feel really good about, you know, our ability to hang on price and stay price cost positive going forward. I'll turn it over to Ian if I answered your question.
Yeah. From... I'll actually ask you, Anshuman, to talk a little bit about the multi-year growth, especially as we report into a platform here. Overall, a very strong year last year for DRB across those large customers, specifically as we talked about the nationals and regional growing tremendously. The specific question about Mister is interesting. I appreciate that you know the industry obviously well and understand who's in the in the opportunity box for us. You know, customers like that kind of scale, we certainly talk to constantly. We're always watching the industry players and where they go. They have obviously chosen a different path in terms of some unique software capability they want integrated their solution. They've chosen to be that integrator of choice.
For us, we're always looking for other opportunities to add value in terms of different parts of that workflow. We'll continue to track down all the top 20 in the space and really wanna be legitimate and complete with their solution offering. Anshuman, you wanna? Yeah, just from a DRB standpoint, roughly a $250 million business is what we've said in the past, and I'll leave it at that. The business is growing strong. We expect double-digit growth in this business to continue into this year.
Margins?
above fleet average.
Have they expanded since-
Yes. 400 basis points.
400 basis points, yeah.
Since you bought it.
Yes.
Yes.
Thank you.
All right, that concludes the first Q&A. We're going to take a short break, around 10 minutes or so. Try to make up a little bit of time. Let's say back in here, please, by 10:35 A.M. All right, everyone, we're going to get started again here and start the second half of the session. If everyone could kindly take their seats, I know we'll have some people coming in. We're going to kick things off with another quick video, and then we're going to start a discussion on environmental and fueling solutions with Dave Coombe. Thank you.
At Vontier, we're paving the way to a safer, cleaner planet. While EV adoption is on the rise, combustion engines will continue to play a critical role for decades to come. It supports developing economies, ties communities together, and gives rural populations access to essential resources. At the same time, sustainability is increasingly important to a wide range of stakeholders, and the fueling industry is ripe for change. Our Environmental and Fueling Solutions segment helps our customers prepare for the future with cleaner fuel choices, secure payment solutions, and safer, more reliable equipment. We've helped our customers adapt to new regulatory requirements, evolving trends, and economic change for more than 150 years. As the number one global supplier of hardware and software solutions for fueling infrastructure, we serve more than a quarter million sites worldwide.
Our strong position in traditional fueling means that we, more than any other player, can continue to help the fueling industry become more sustainable. Emissions limiting dispensers keep the air we breathe cleaner. Specialized systems recover hazardous fumes, automate beneficial fuel additives, and streamline workflows. High-tech sensors prevent leaks, reduce corrosion, and secure fuel supplies. Around the world, we're partnering with our customers to help them achieve their sustainability goals and move the industry forward.
Hey, good morning, everybody. I'm Dave Coombe. I'm delighted to present the Environmental and Fueling Solutions business, which I've got the pleasure of leading here at Vontier. I've been with the business and the industry for 19 years. I'm incredibly passionate about the business, and I'm incredibly passionate about our customers that we serve around the world. Retail fueling is expected to grow for the next decade at low single digits or more, and I'm excited about the industry prospects and Vontier's position within that. Today I'm gonna provide an overview of the industry, discuss some of the secular trends, explain how the company's connected mobility strategy is poised to capitalize on the growth drivers within the industry here. The fuel retail market is highly regulated. It's safety and compliance-driven, and because of this, it's got an attractive market structure.
Vontier's Environmental and Fueling Solutions platform has market-leading products, solutions, global reach, and incredibly deep customer relationships. We're well-positioned to capitalize on the customer landscape that's consolidating and that's driving new site rebuilds, it's driving upgrades in North America and mature markets. We have an incredibly large install base of over 1 million fueling devices installed out of the field, in the field today, and that really provides high single-digit growth for our aftermarket spare business with proprietary parts and regulatory frameworks that are really protecting the long-term supply of those parts here as well for the long term. We're really competitively advantaged to capitalize on the multiple regulatory mandates in environmental safety, fiscal and payment security, and new infrastructure build-outs that are taking place in emerging economies here as well. With that, it's an attractive market structure coupled with, you know, strong growth drivers here.
Our leading share position and our scale is really gonna lead to sustainable growth, margin expansion, and cash generation for the long term here, regardless of the pace of the energy transition. Let me just double-click a little bit more onto our business. Like I say, it's a niche market. It's highly regulated. It's a $3 billion market. It's growing at low single digits, and that's supported by several secular tailwinds that we see here, and I'm gonna talk to those as we run through here today. We are the leading provider of hardware and software solutions for below-ground and above-ground fueling infrastructure. Our longevity in this space, our experience, and our deep customer relationships allow for the delivery in best-in-class solutions meeting regulatory and environmental standards so that our customers can concentrate on running their business. What...
How we do it is hard to replicate. We've got a highly integrated comprehensive portfolio, digitally enabled with strong direct sales, distribution partners, and an aftermarket support infrastructure that really takes care of our customers. With that incredibly strong install base and presence on over 260,000 retail fuel sites around the globe, we've got incredibly strong share positions in a lot of those large customers around the world. We've got this proven model, a history of delivering strong cash flow, and that's gonna fuel high growth opportunities across Vontier. Let me just drill down a little bit further on that comprehensive portfolio here for our fueling business. Our environmental platform encompasses the majority of our underground products. That really helps our customers, giving them environmental protection that they need to operate their fuel stations safely and compliantly.
Our fuel dispenser solutions really encompass our above ground product set, and those dispenser units out in the field continue to play an increasingly important role in marketing and sales conversions for our customers there as well. All of that is underpinned by a very strong aftermarket parts business, and services that have strong IP, which protects that long-term supply. I've talked a little bit about the market and the industry and a little bit about us, but let me talk to you about why we're so positioned well to win here. You know, our position in the fuel retail space is really driven by four areas. We've got best-in-class solutions for complex environmental compliance needs.
We've got a large install base around the globe, leveraging those solutions, that broad commercial coverage and those deep customer relationships, which is a real competitive advantage. We focus on innovations, and we have done for many years, on those evolving global regulatory requirements in there, and we've got incredibly deep roots in the Vontier Business System for more than three decades of driving lean, focused processes, driving productivity, and that's really helped us expand margins in the past, and it's gonna continue to help us expand margins here as we move forward over the planning horizon. Let me just give some more color on that continued focus on innovation and how we're leveraging that extensive install base globally here. We're delivering high impact, actionable insights, integrated workflows with customers in that connect, manage, scale framework that my colleagues talked about earlier here today.
Those solutions are really driving uptime for our customers. They're helping reduce their operating costs. They're preventing environmental leaks, they're reducing theft, and they're delivering high-quality fueling experiences for end customers. We really do provide, with the technology and install base that we got, a 360-degree view of that fueling environment, solving our customers' high-value problems. Let me come on to the secular tailwinds that we're seeing here, and I think Mark covered those early on here. We're seeing evolving regulations, and they're really driving demand for above and below ground equipment globally. This has been a staple history of our business, and I think we're only seeing those regulations grow in terms of the volume, but they're also increasing in complexity. We're seeing in-industry consolidation in mature markets, and that's driving demand for fueling products here as well.
Infrastructure build-outs and adopting and upgrading of regulatory and compliance standards in emerging markets is driving growth for above and below ground fueling products here. Finally, the data points to a slow and gradual transition of the car park towards EVs. For the next decade or more, we're gonna see that confluence, I think, as a number of the presenters talked about of multi-energy investments going into c-stores. That's gonna result in a long runway opportunity for the fueling solutions business with replacement cycles and refreshes. We're well-positioned to capitalize on these key trends, and we see resilient demand for fueling infrastructure, supported by continued business growth. Let me just double-click down a little bit more on the energy transition. This isn't the world according to Vontier.
There are multiple studies and reports out there on fuel equipment demand modeling done by various agencies and institutions. They all support longevity for the fueling infrastructure projects for more than 1 decade to come. What we're showing up here is an independent assessment by KPMG. This is a conservative base model that shows that low single-digit growth, you know, out until 2035 here as well. The market TAM remains stable over that 15-year period, with flat to declining demand in mature markets, and that's gonna be offset by emerging markets that are still heavily investing in building our ICE infrastructure. That provides significant growth runway as well for our aftermarket parts and service business here as well.
The key drivers that are gonna drive that low single-digit growth I've already talked about, but it's really the complexity of regulations across the markets. It's that customer site consolidation that's taking place in mature markets, a growing aftermarket parts business that's really built on the foundation of proprietary components required to drive the security standards that the markets are requiring today, and really those infrastructure build-outs in emerging economies. You know, the analysis that we've got here doesn't show any potential upside for some of those regulations as they play out over time here. Industry revenues will be durable over the long term, as will the strong cash flow generation for multiple years are gonna fuel high growth opportunities here for Vontier.
Let's just double-click down a little bit further into Norway, which is really the tip of the spear as a country that's really transitioning its fleet to electric. Multi-year investments have already taken place. I think Mark talked about 80% of new car sales already being EVs. The total car park today in Norway is about 22% of EVs today. Despite those heavy inroads into electrifying the fleet, the demand for fueling infrastructure has remained strong in Norway. Whilst the chart on the far left here shows that the number of fuel retail sites has remained pretty flat, what we are seeing is growth in the number of fueling dispensers, and that's really been driven by an increase, a shift away from urban stores to more suburban and highway stores, and locations.
That has a net impact on the business here. These are destination C-stores. They're like the one Mark showed earlier. These are places where people want to go and so forth, with mixed energy and, you know, that picture and the visual that Mark had up at the start of the day here really demonstrate that confluence of energy, that includes petrol and diesel infrastructure. We see this as a stable opportunity for Vontier in fuel systems and service and a growing opportunity for our software solutions businesses as well. Let me talk to our Connected Mobility Strategy. You know, the first pillar here that we talked about is optimizing the core of our business, really leveraging the Vontier Business System.
Like I said earlier, we got more than three decades of building lean foundations in our business to drive operational efficiency and excellence. As we look to expanding the core, we really wanna take advantage of those growth segments in here. We wanna capitalize on the industry consolidation that's taking place in developed markets with new build-outs and site expansions in North America and mature markets. We wanna capture the growth that's out there for environmental products through regulations and replacement cycles. I'll talk to that a little bit more, shortly here. We are digitally enabling our aftermarkets business to really capitalize on growth with the large install base that we got here in North America with those proprietary parts and really looking to expand the install base in emerging markets with fit-for-market products.
As we advance into pillar 3 here, we're certainly looking to extend Veeder-Root's technologies to other regulated liquid storage in here and looking at more AI and data analytics that are gonna drive the growth of this business further on. Let me talk to that optimizing the core, our 1st pillar here. We've already taken significant actions within our business to simplify the organization structure and really optimize our cost base in the platform whilst providing a clearer focus and accountability for our teams. We've been on this journey for a while, but as Mark said, there's a long runway to this, you know, the plans that we got here. As you kind of look at the far left, we've got multi-year projects that's looking to reduce the number of SKUs of our dispenser platforms. That's really looking to reduce that by 50%.
We made some great progress already, more to go. That's gonna reduce complexity whilst we, you know, driving our operational execution. We're standardizing globally here as well in the middle on high-valued, well-engineered internal components, that's leading to margin expansion and helping us strengthen our supply chains. Those two drivers are really helping us consolidate and localize our manufacturing footprint to deliver the best products at the best cost position. Optimizing the cost structure through these clear projects and initiatives and a long-term plan here is gonna deliver incremental operating profit for the business over the next three years. Let me talk about what's going on in North America. I'm not sure this is well understood. You know, we've come off the back of a massive EMV growth cycle here.
I think there's some interpretation or some view that the above-ground business was just gonna fall away. That's not the case. What we're seeing here is a lot of the larger chains, as you can see from the pie chart here, and the smaller regional retailers are actually investing and consolidating here in the market. Whilst the number of sites in North America remain relatively flat, what we are seeing, and again, you can see this in terms of the CAGR up here on the pie chart, is we're seeing those large segments, those large retailers investing heavily in new-to-industry sites, building out destination C-stores, and refreshing acquired sites, which is gonna drive investments in fueling equipment infrastructure. This isn't an assumption.
You know, the larger retailers that we show over here on the right are all investing heavily in new infrastructure build-outs in those C-store destinations, and that's a matter of public record. You can go into their annual reports, you'll see that in there. As we think about these larger players, let me tell you why I feel pretty good about why we're gonna win in this space, particularly here in North America. Like I say, these large players are investing in their networks. As a result, they're adding new sites. They're consolidating smaller operators. They're rebuilding and refreshing those existing sites.
With these changes, we're not only seeing the investment in infrastructure, we're also seeing the number of average dispensers increase from 4 to about 6 as these site formats are becoming larger to be that mobility hub that Mark and the team talked about a little bit earlier here. We're also starting to see the start of the recycle replacement cycle start to pop. The early EMV adopters are now starting those replacement cycles here as well.
Our share positions, and this is why we feel good, our share positions with these growing segments of the market is incredibly strong, certainly market leading, and I think that provides us with great opportunity, strong visibility into the $250 million U.S. dispenser demand that we communicated before in 2023, and we can see that continue to scale over the coming years related to the drivers that we see up here on the right of the slide. Let's just step back and take a look at the overall Environmental and Fueling Solutions business and focus more on what's happening outside of U.S. dispensers. You know, in international fueling equipment, we see the continued infrastructure build-out in emerging markets with increasing focus on environmental, payment, and security regulations in here. Government incentives that are really driving, you know, focus on biofuels.
We're also seeing growth in that aftermarket business here, high single digits, and that's really being leveraged from the large install base and some of the share gains I think we've done over a number of years in here, and we're starting to offer innovative solutions and really getting that focus on the business here. Environmental solutions, we're gonna capitalize on the regulation enforcement, the underground tank replacement cycles that are taking place in many markets, but specifically here as well in the U.S. We feel good about that. Let me just drill down a little bit on that infrastructure build-out and give you an example of what's happening in some of those emerging economies. India is obviously an economy that's expanding.
With that, there's lots of investment going into building out their infrastructure, really increasing the number of sites here in the mid to long term. Not only are those, there's money going into building out that infrastructure, what we're also seeing is the sophistication of these sites is also increasing, expanding the value of requirements for fueling and automation infrastructures in here as well. There's a lot of investment going into technology to improve productivity, enhance security, and really comply with the evolving environmental regulations in here. That's driving the content and the value solutions that Gilbarco Veeder-Root and Vontier are able to provide as fueling stations develop and customer expectations here are continuing to evolve. Let me talk a little bit more about that after-market parts opportunity, and I think Mark hit it early on.
You know, we've seen a 20% CAGR in that business over the last couple of years. That's really driven by a number of factors. I talked about the large install base that's expanding, as those parts and so forth have been delivered through that EMV cycle, or those solutions have been delivered through the EMV cycle. That install base operates in a heavy IP and regulatory framework. We're also starting to see those dispensers now come out of warranty after that heavy period of investment. We've also, internally within the organization, really focused on setting up an organization that's really focused to capitalize on the growth of the after-market business. We've expanded the product offering to maximize customer benefit. We're leveraging innovative digital tools to help customers access parts and materials, so they can do that much faster and much easier.
We're also implementing strong e-commerce tools to support that high single-digit growth at high margins, above fleet margins for our business. This is probably my favorite slide in the deck here as well. You know, our business in terms of environmental and fuel retailing for many years has benefited from the number of regulatory drivers in this space. It's like I say, it's a heavily regulated, safety compliant market, and that makes it attractive. For us here. What we're seeing moving forward is that there's more regulatory drivers in terms of number. They're growing in complexity, as environmental, fiscal, and security regulations continues to drive growth and mature here as well.
Whether that's upgrades that are being dictated by payment devices with Payment Card Industry standards that are driving upgrades all around the world, or whether it's fiscal regulations that will leave behind a stronger aftermarket parts business with proprietary technology, or whether it's regulations for biofuels and vapor recovery solutions that's taking place in many markets is also driving demand. Let me just give a bit of a case study or an overview here, an example of our environmental business, which is around our underground products. This product set, this group here really drive above-fleet margins for us. Let me give you an insight as to how those products are creating a safer and sustainable world.
Our vapor recovery solutions that we've got within our Gilbarco Veeder-Root business really prevent VOCs from escaping to atmosphere or evaporating to atmosphere during the filling process. Governments worldwide are implementing those regulations to prevent these vapors from escaping, you know, particularly in many emerging markets. Mexico, India as great examples. More on the horizon here. Vontier's vapor recovery solutions really do provide that product to meet those environmental and safety and compliance needs, really recovering those vapors as they go to atmosphere. I know I couldn't be more proud of the teams of what all our teams do in that product delivery and building those solutions that actually keep creating a more sustainable planet here. Let me just wrap up here and recap. We like this space. The fuel retail market is highly regulated.
It's safety and compliance driven, and because of that, it's got an attractive market structure. Growth's gonna continue at low single digits for many years to come. Yeah, and I think the drivers for that are covered in the presentation, but I think they're relatively well understood. At Vontier, we believe we're well-positioned to take advantage of these secular tailwinds, continue to drive that growth, shareholder value, and that's gonna drive continued strong cash flow generation over many years that's gonna fuel high growth opportunities across this platform and Vontier. I appreciate everybody's time here today. Thanks for listening. With that, I'm gonna pass it over to Tim here, who's gonna talk about Matco.
At Vontier, we harness the power of connected digital workflows and analytics to solve high-value customer problems. As vehicles become increasingly complex and connected, repair services must evolve along with them. At the same time, there's a shortage of skilled labor for repair and maintenance, and labor and parts costs are rising. Vontier's repair solution segment specializes in repair tools and diagnostic solutions for the automotive aftermarket. A leading franchise for auto repair solutions, Matco Tools has proudly supported repair shops across North America for almost 70 years. Matco is known for its quality tools, industry-leading product vitality, and excellent customer service. From long-lasting tools to software solutions that streamline workflows and simplify diagnostics, we empower businesses to confidently service passenger vehicles of all types, from classic cars to connected electric vehicles.
We reach repair shops when and where they need us, helping technicians solve their toughest problems with remote diagnostics and expert support, our e-commerce platform or our network of more than 1,900 franchisees. We're also preparing our customers for the future, as repair shop workflows become increasingly connected and integrated. New digital solutions will help shops work more efficiently and offer consumers a faster, more seamless repair experience. We'll be right there with our customers, helping them keep any kind of vehicle operating at peak performance, no matter what the future holds.
Really excited to be here to talk to you about the repair solutions part of the Vontier business, specifically really focusing in obviously on Matco Tools. Just a little bit about myself. I actually started with, and have been with Matco, on and off, I should say, for 35 years, and this is my 12th year as the president of Matco. When I look at Matco, I'm really proud to be part of the journey that we've been driving in our business. It's a very durable business model, and it's really been known for its growth. We do so through innovation and leveraging our supply chain partners to drive our product vitality, and I'll touch on that in a little bit. We do that through our growing network of franchisees, and they...
We're also supporting them with a lot of digital initiatives as we go through the year. Who are we? We're a business that, a leading manufacturer in toolboxes, and we distribute automotive repair tools, diagnostics, hardware items and whatnot, and I'll get into our product lines a little bit. We service a $5.7 billion market. We do so through our 1,900 franchisees in both the U.S. and Canada. We do it by leveraging what we feel is the best franchise distribution system in the business. Now here are our product offerings. When you think about Matco, sometimes there's confusion over what we serve. We do service, as Mark alluded to, 150,000 different automotive repair shops. That includes OEM dealerships. We do call on GM, Ford, Chrysler.
We call on independent repair shops. We call on heavy duty repair shops. We call on motorcycle shops. We even call on marinas. We call on everything out there that we can service with our wide variety of tools. As you can see there, it starts with our tool storage, diagnostics, specialty tools, hard line, and power tools. If you look at the hard line area right there, we already have a wide array of tools to support EV repair in the marketplace. Now, this is my favorite slide, as Dave said before. One of the things, right, Matco Tools is a tool company, but we're also evolving and have been evolving into a lifestyle brand.
You can see here in the pictures that, you know, there's different things where our customers, that they really value and cherish the Matco brand. They happily buy our T-shirts, our beanies, our sweatshirts, and as you can see in the picture, even socks. You know, we've got sunglasses for your dog if you need them. I think one of the things with our model is we are one of the ones that walks the last mile into a repair shop, and that opens up opportunities for us. Most people might not know, but we've had a 20-year relationship with Oakley, and we are actually the number 2 reseller of Oakley sunglasses in the United States. It's another thing that in our arsenal to arm our franchisees.
My favorite is the people that value the product, they even go so far as put the Matco logo and tattoo it on their arm. When I look at the model itself, you know, we go, as I said, through our franchisee network, and it's really looked at by customers as like a white touch service, right? White glove service, I should say. When our franchisees walk into a store, their customers appreciate the value of their being able to jump on our store. I call them stores just to clarify there, because I know you're gonna look at them as trucks, but we look at them as stores. They'll jump on the store, they can actually touch and feel product. They love our payment terms and the warranty processes afterwards.
In addition, customers look at our franchisees as advisors to them, to help them understand, "Hey, I've got a job here. What tool would help me do it faster and quicker?" They really come to value that part of our business. The other question that franchisees get asked when you walk into a shop, "Hey, what do you got that's new that can help me get through my job faster?" That's why pro-product vitality is so important to us. As I said earlier, we leverage our supply chain and our partners to really drive our high vitality rate, which is at 30%, and we measure that on a yearly basis, not 3 years. The other piece of our business is what we provide in in-house financing.
There are gonna be big-ticket items, specifically toolboxes and diagnostic scan tools, that are a higher price point for a franchisee to actually lend to or borrow money to a customer. We have this program that's our portfolio is around $400 million. It enables them to buy those high-ticket items like toolboxes and diagnostics. We've been well-versed in VBS. Having been acquired by Danaher back in 1986, we've been with Danaher and VBS and really understand the playbook when it comes to driving VBS in our business.
One of the things when I look at this business, and I think sometimes there's confusion, and people see it one way, but when we look at the secular tailwinds of our business, we are going to be seeing an increasing vehicle miles traveled over this timeframe. We're gonna see the average age in the car park increase. We're seeing already and will continue to see the complexity of vehicles increase as well. One of the issues that faced the business before the pandemic was a technician shortage. It still continues, and that creates some knowledge gaps. In the next few slides, we're gonna go a little bit deeper on how we look at these tailwinds that we have.
On miles driven, you can see on the chart on the left, we've got the actual mileage over this timeframe going out to 2035 increasing. As Mark said before, we also see the vehicle age increasing in the car park. One of the keys that on the chart on the right is that the actual age of the car park and what we call the sweet spot of repair is between 7 to 12 years. Over that timeframe into 2035, that continues to grow, and that will fuel our business as we move forward into the future. Another piece when I talked about increase in complexity is ADAS, Advanced Driver Assistance Systems. Many of you today probably have a vehicle that has this system.
Many of you may or may not have to deal with the issues that comes with repairing those. As you can see on the chart here, you know, level 2 autonomy, when it starts to grow into level 3, it's going to increase the number of sensors. Today, what a body shop saw 10-15 years ago come into their shop on a collision side and what it took to repair that with a little Bondo and some sandpaper, today we've got sensors. It's completely changing the technology that body shops are having to deal with, and we think that's going to be a considerable driver.
You know, there's even a system out there, you might know, it's even on the lower-end vehicles, a very, lower form of ADAS called, automated front braking systems. That's now available in most vehicles in the U.S. and actually is being mandated to occur in all production, in 2025. The other thing that we look at is the car park. As Mark was alluding to before, with the car park, there's going to be ICE out in the car park. ICE repair is going to continue as we look at the vehicles from a complexity standpoint. There is gonna be some changes. When we look at electric vehicles, yes, there are fewer moving parts in an electric vehicle, and then probably the maintenance and repair might be, will decline slightly.
The other piece of the equation there is the components that you find in an electric vehicle are more expensive than you can find in an EV, I should say an ICE vehicle. Now, there was just some data released when they were going through, I think it was CCC, through some of the insurance claims that were published, and they actually went out and compared a front-end collision on an electric vehicle to a front-end collision on an ICE vehicle. On the lower end side of the chain there, actual cost of repairing on an EV was 20% more than on an ICE vehicle. When you go up the chain into more of the luxury and SUV, the actual cost was 50% more.
There's definitely gonna be an impact when it comes to the repair of EVs as we go forward with the cost to offset the frequency. When we look at the automotive aftermarket over time and the types of repairs we're going to see, as you see, it starts to grow, but on the chart here on the very end, we're gonna have ADAS adding complexity and the cost of repairs, electrification and electronics in addition. You know, it's going definitely one of the key things here is that what we're really gonna see is now we're gonna have shops dealing with a myriad of different types of vehicles.
We're gonna have EVs, we're gonna have ICE, we're also gonna have hybrids, and they're gonna have to be ready to be able to repair all three types of the vehicles. I think one of the things when you look at the cost of the overall, and it's in that little box, is just think about, you know, 15 years ago, if you got a crack in your windshield, and you call the windshield company, they'd send somebody out, they show up at your workplace, and they take it out and do it for about $400-$500. In today's new vehicles, that can't happen because once they replace the front, the windshield glass, they have to calibrate the cameras. They have to do that for safety, or it's gonna cause some other issues.
The cost is well over $1,000 to do that today on the newer vehicles. When we look at the portfolio itself, like what's the impact to our business over the long term from what's gonna be in a toolbox? We see, I'll start on the right here, the specialty. Yes, specialty to us is what you use specialty tools to repair under the hood, engine, transmission and whatnot, we'll see that decline over time. We have cordless and air pneumatic tools. We see that as flat. You're still gonna have to have a cordless tool or an air tool to repair an EV or hybrid car.
Tool storage, we see increasing because, as I just mentioned, they're gonna have to be dealing with these three different types of vehicles coming into their shop. They're gonna need more tools and thus more tool storage to handle that. With the complexity, we're gonna see a growth in diagnostics and calibration tools that'll be required. Shop equipment. You know, we talk about, you know, the ICE park, right? It'll still be out there. As Mark said, 90% of 2035 ICE vehicles in the car park, but now we're introducing EVs. You needed an engine crane in your shop from a shop equipment standpoint. Now you're gonna need a lift to be able to go in and take those battery cells out of a car.
There's gonna be a lot of different equipment that's gonna be required to service all three of these. We see hardline again. You're gonna need ratchets, sockets, you know, wrenches to fix all three types of vehicles, so we see that flat in this experience. One of the things is we have, when we talk about connection, with our diagnostic scan tools, you know, our customers are connected, and about 45% of all vehicles today require a diagnostic scan when they're going or getting repaired. What we have introduced in our system with our partner, Opus IVS, is what we're calling Technician as a Service.
What that is that in many cases, your shop can see a car come in, they might have had, you know, missing a number of master techs they need to do repair, shortage of technicians as well, knowledge gaps. When they get stuck on a vehicle, they can buy a product that they can go through subscription, and it enables them to actually reach out, contact a master tech in a remote location. They can see the sensor codes that they're working on. With viewfinders, they can see, actually see what's going on, and they can walk the technician through the repair, which really helps drive the overall shop's productivity. They'd rather do it themselves than send it out to a dealership to get it fixed.
When we look from the pillars, strategic pillars that Mark mentioned earlier on, for us, optimizing the core, as always, continuous improvement. How do we drive productivity through our toolbox plan? How do we continue to drive our industry-leading vitality? How do we always continue? You know, the one thing about this business, it's really about service at the end of the day. It's really about service. How do we continually drive our service metrics to our franchisees? When I look at expanding the core, it's gonna be focused really on storefront expansion. We have a lot of opportunity there. We wanna continue to gain share in tool storage and cordless.
In the adjacent markets, as we see the investment, we've always been focused on our franchisee as our sales model, and we're making the investments now to bridge out into driving our e-commerce capabilities to enhance that part of our business, and then, as I mentioned, the Technician as a Service. One of the examples with VBS is it's been interesting with the pandemic 'cause I think, right, three years ago, we were renting out offices. You know, as the smoke cleared, all of a sudden, my call center went from being everybody in one building to people distributed. You know, I've got people all around the country. It all brings a lot of issues. I was just reading an article in Wall Street Journal about it. It's how do you train? How do you do whatever?
We began to see our phone service metrics decline. What we did is we had a Kaizen event. Kaizen is basically means change, Kai and Zen, for the good. It's an organized activity where you go doing root cause problem-solving and try and identify what the issues are. We did do that, we elevated to what we call our policy deployment process, we deployed the VBS tools, and you can see on the results on the right here, how that improved for our business. It's just one example is that, you know, you talk about lean and the tools that we have across the business, you can deploy VBS anywhere in your business. For key growth initiatives, you know, again, I mentioned the storefront expansion.
We currently still have roughly about 30% open territories that we can fill in our market. For tools, tool storage, you know, we can drive our growth through product innovation, product throughput, also promotions to drive activity. That's the part of our business to gain share. In cordless tools, one of the things we realized over the course of the last couple of years is that we were not gaining the share we needed to do in cordless. We had a nice tool that was out there, very well accepted in the industry, but our overall breadth of the line was not where it should've been.
We partnered with another supplier, now we have two in our cordless space, and we really think we're gonna pick up share and recently did that at the end of last year, and the results are exceeding our expectations. Diagnostics is always gonna be an opportunity for us as we leverage our partners and the supply chain to drive different innovations to help support an overall shop's productivity. The one thing we did arm our franchisees with over the last year or so is our patented distributor app. What is that? What it enables a customer to do of a franchisee is to have access to them 24/7. You know, normally in this business, you'll call on Tom's Ford at 8:30 on a Tuesday, and then you'll be back the following week.
This enables them, the customer, to have contact with their distributor 24/7. They can make payments. They can actually buy tools. The franchisee can run promotions to them. They can actually handle a warranty, and by that, I mean, they can take a picture of a socket that, say, a 10-millimeter that broke, send it to the franchisee and let them know that, "Hey, next time you're here, make sure you get a 10-milliliter socket on the truck to replace mine," at the store. You know, one of the other things we're also doing through data analytics is a recommendation engine. As an example, one of the things we have seen is if somebody, a customer buys an inverted torque impact, they are 30 times more likely to buy a harmonic balancer installer.
Those kind of recommendations will help in both applications here drive sales off our store. When we look at the garage of the future, you know, I just again talk about the secular headwinds that we're seeing. The garages are gonna start. I mean, they're gonna be seeing a wide range of vehicles, and they really have their work cut out for as we go forward. I think the ability to continue to supply them smart diagnostics to help productivity drive through. I mentioned the virtual tech help, the Technician as a Service is another key driver. Then being prepared to help them as they start to transition when they begin to see EV vehicles come in with they're all gonna have to have separate bay set up from a safety standpoint to deal with these cars.
On all the equipment that's gonna be required to service these vehicles. As I walk away from here, I think we really, with those headwinds that I just explained and what we've got going on in the business, I think our company and this Matco Tools is really positioned to continue to drive our growth as we move forward. We're gonna be able to continue to innovate with our network of supply chain partners to drive our innovation and product vitality scores. Then we, as I just mentioned, have a nice opportunity to continue to grow our network of franchisees in both the U.S. and Canada, and then support them with digital applications with the app, and then enhancing our overall e-commerce capabilities. With that, I appreciate your attention, and I will turn it over to Katie.
Well, good morning. I'm Katie Rowan. delighted to be here. It's really hard to follow the photos of the Matco tattoos, but I'm gonna do my best. delighted to talk to you about ESG at Vontier. It's a topic I'm really passionate about as our chief sustainability officer. Our entire team is passionate about it. I've been in the space for a number of years, including leading sustainability on the Fortive side. Let me start with this. Let me start with what ESG is not at Vontier, okay? It's not an isolated program, it's not about optics, right? It's not about virtue signaling. It is about unlocking value across a number of really critical dimensions. You see some of those on the screen, right? Operations, talent, governance, and notably sustainability.
You've heard from my colleagues throughout the morning, our strategy is inextricably bound with sustainability, right? We're providing smart, sustainable solutions for our customers. We're helping our customers meet their own ESG goals, which is a big secular tailwind for us. Another secular tailwind that Mark and others talked about, of course, is the energy transition. Vontier is providing critical multi-energy technologies to really enable a balanced energy transition, one that's sustainable for sure, but also is safe, secure, affordable, and available. Optimism for the future really has to be grounded in reality, and the world will not hit its climate goals.
Without a multi-energy future, right? The U.S. National Blueprint for Transportation Decarbonization lays that out quite well. It's why so much investment is pouring into spaces like EVs, clean hydrogen, and the like, right? Different classes of vehicles, different modes of transportation are gonna need different technologies. Vontier is set up to compete, to win, and have impact across that very diverse multi-energy fueling landscape. I love this slide. It's simplistic, right? This is a photo of dispensers across the Vontier portfolio. You've got everything from traditional petrol dispensers, right, which are critical. We continue to innovate to make the petrol base more sustainable. Dave talked about vapor recovery. There are additives that make it more sustainable, ethanol fuel dispensers and the like. Alon talked about compressed natural gas and hydrogen. You see those in the center there.
Those are gonna be critical for medium-duty trucking and long-haul trucking. Of course, this is just the dispensers on the page, right? We play across the broad value chain. ANGI, for example, is providing storage, compression services and the like. Of course, you see the EV chargers there, right? Powered by Driivz. Our EV charging software that's really enabling the scalability and reliability of the EV charging network. Regardless of the pace of the transition, regardless of the eventual technological winners in each space, we're really set up and positioned to win. Beyond fueling technologies, as you heard from my colleagues and teammates throughout the morning, we're providing smart, sustainable, secure solutions across all of our segments. You see some of them listed.
I'm not gonna speak to all of them today, but let me just hit on a few by segment. Mobility Technologies, you heard from Alon. Teletrac Navman's fleet management software, right? It's enabling fuel optimization and reductions. His business and the software is enabling customers to transition from ICE to EV. I'm working with Teletrac right now to get a better handle on our very disparate global fleet as a part of Vontier's own greenhouse reduction goals. You heard from Ian relative to DRB, really compelling water conservation and chemical prevention story. You just heard from Tim relative to Matco and repair solutions. They're providing tools for ICE vehicles, for EV vehicles, for all the powertrains in between those. I think one of the undertold stories relative to Matco is just the importance of repair shops, again, relative to meeting our climate goals.
25% of passenger vehicles account for 90% of passenger vehicle air pollution, right? It's that aging ICE car park with old, outdated, emission systems, exhaust systems. The maintenance of that aging fleet is a really critical part of the story. Then you heard from Dave relative to environmental and fueling. There, I would touch on sort of payment security technology, anti-fraud technology, certainly the environmental compliance portion of that business, which is critical to detect and prevent underground leaks. The OpCo offerings are impressive in their own right, but the team is also really energized by our ability to collaborate and innovate across OpCo to really scale more sustainable solutions for our customers. You see a great example on the page here. This is in the commercial and industrial space involving an underserved vertical, in this instance, mining.
You've got Teletrac, Retail Solutions, and Fueling Solutions coming together, stacking technologies to help mining companies in places like South Africa optimize their assets and their energy usage. Certainly runway to grow here. You can imagine additional OpCo offerings being added in the future, ANGI, hydrogen fueling systems, for example. The takeaway bar really says it all, right? It's about the breadth and depth of our portfolio that allows us to connect, manage, and scale the mobility ecosystem for more sustainable outcomes. This is my last slide. I'm gonna spend a few minutes on it 'cause I think it's really important. Are we walking the walk as an organization, right? What are our goals and what have we achieved? We're all very collectively proud of this slide and the progress that we've made, right? Our goals speak for themselves.
We would put our goals up against just about anybody. These are not easy goals. These are rigorous goals. Let me just start with diversity. Last year, we increased our global female leaders from 22% to 26%. We also increased our U.S. Black and Latinx employees, again, just last year from 10 to 15%. On the operational excellence side, you know, we already have enviable safety statistics, but we continue to push really hard there in the spirit of continuous improvement. It's important from a business continuity, operational excellence standpoint, and even more importantly, critically important from an integrity standpoint in taking care of our people. That's something that all of us are incredibly passionate about. You see that last year, we reduced our total recordable injury rate by 30%. We also achieved nine more ISO certifications relative to safety and environmental management.
We're on track to have 100% of our manufacturing sites across the globe be ISO certified across those dimensions by 2026. You see the energy Kaizens at the bottom there. It's the best of who we are, right? Cross OpCo, cross-functional employees come together at a manufacturing site and find creative ways to reduce cost, reduce emissions, reduce electricity. All the while, they're learning and developing, and we're propagating the VBS culture. The energy Kaizens and the energy across the organization around them has really given us momentum relative to our rigorous greenhouse gas emissions targets. You see those on the screen there, 45% absolute reduction in Scope 1 and Scope 2 by 2030 and then net zero by 2050.
Our baseline year was 2020, and we've reduced our absolute Scope 1 and Scope 2 just in the last 2 years by 13%. That's despite the fact that our fleet grew, and we had acquisitions. When you just look at our Scope 2, which is our purchased energy across the globe, in the last 2 years, we've reduced that by roughly 27%. Huge cost savings, huge impact, reducing our environmental footprint. The team's excited about it and energized by it. We also submitted to CDP, formerly known as the Carbon Disclosure Project, last year for the first time, and we received a top 30% score with a B score. Top 30% of all reporting companies right out of the gate.
It's reflective of the rigor with which we're tackling sort of our own program internally, how we're tackling sort of climate risk and opportunity and environmental management. I'll just say this, we're focused on driving value across ESG. The team is really energized and galvanized by everything that you've heard today, right? By providing smart, sustainable solutions for the road ahead. I really look forward to updating you in the years to come about our progress, and the impacts that we're gonna have across the globe. With that, thanks, and I'm gonna pass the stage over to Tom Schumann.
Good morning, everyone. For those of you who I have not had the pleasure to meet with yet, I'd like to give a brief introduction about my background. I've been with Vontier 7 months. My previous public company CFO experience included a company that operated in the mobility ecosystem that went through a technology-led transformation and emerged a clear leader in this space with increased EBITDA margins. The opportunity at Vontier excites me because we're uniquely positioned to win and drive significant value. Before I get into the meat of the presentation, there's been significant ongoing discussion about the macroeconomic conditions, the state of the economy in the news. Our end markets are resilient, and I want to take a moment to reconfirm guidance for Q1 and the fiscal year. Just as a reminder, for the fiscal year, our baseline core revenue will grow mid-single digits.
Our baseline adjusted operating profit margins expand by 180-200 basis points, translates into EPS of $2.73-$2.83, and a cash conversion of 90%-100% for the year. As you heard today, we operate in attractive and resilient end markets supported by secular tailwinds. We're uniquely positioned to win with the breadth and depth of our portfolio centered around our Vontier Connected Mobility Strategy. The foundation of this Vontier Connected Mobility Strategy is based in a culture and track record of strong execution. It delivers on a value creation framework, attractive above-market growth, margin expansion powered by VBS, robust free cash flow, underlined by disciplined, return-driven capital allocation. Post-spin, we've shown strong financial performance as a result of operational excellence and execution. We have a top-tier financial profile. Revenues grew high single digits.
Adjusted operating profit and adjusted EPS grew double digits. These results were enabled by the strong execution of our profitable growth initiatives and platform strategies. One profitable growth initiative that I'm extremely proud of personally is our strategic pricing. We operated in a highly dynamic and high inflation environment, but we were cost price positive every quarter since spin. Perhaps most notably, we managed to increase our operating profit margins by 110 basis points despite significant EMV headwinds. The strong performance led to significant free cash flow generation. Over the 3 years, we generated approximately $1.4 billion in cash or an average free cash flow conversion of 100%. This enabled us to deploy capital effectively, including share buybacks and acquisitions like DRB, which I will expand on later.
As Mark and the business leaders explained, our Connected Mobility Strategy will drive above-market growth while expanding margins. The three pillars optimize the core, which drives operational excellence and expand core adjacent markets that accelerate our growth. VBS is the cornerstone of our culture and a source of competitive advantage. It's a philosophy. It's a set of values, a series of processes and tools that define who we are and how we do what we do. It's part of our culture, a culture of continuous improvement, a culture of problem-solving, a culture of breakthrough performance, and a culture of winning. The tools and processes driven by employee engagement support innovation, growth, and productivity across our business. Let's look at a couple of examples of VBS at work. One of the tools in VBS is our Focus and Prioritization Process or FPP.
Our environmental and fueling business is applying this FPP process to reduce the number of global dispenser platforms. In 2020, we started off with 32 global platforms, over 4,000 SKUs. By the end of 2022, we've reduced the number of platforms to 20. Over a 700 SKU reduction or 16% reduction. We still have a significant amount of runway as we plan to get to below 10 dispensers and a cumulative reduction of 35% of the SKUs. Besides the direct cost reduction from simplifying the process, it reduces our working capital by re-reducing our inventory. It also has incremental benefits. For example, Mark talked about reducing the sustaining part of R&D and being able to redeploy those dollars for new product development, which enhances our growth profile.
It helps to improve our on-time delivery, helps our procurement organization have more scale on a fewer set of parts, and drive further cost out of the business. It enables the example to the right, our manufacturing footprint reduction. We started off with 3.8 million sq ft. We've taken the first steps to consolidate some of our European operations and take out 8% of our manufacturing footprint. We still see significant runway to further improve our productivity and consolidate our footprint. We already have attractive margin profile. As a lot of you are aware, over the last few years, we benefited from the regulatory-driven EMV super cycle in the US, during which we gained market share. The EMV upgrade super cycle sunset in 2022.
Our 2023 guide of approximately 21.8% operating profit margin includes base business operational improvements of 180-200 basis points, driven by $45 million of in-year savings from a restructuring program. That $45 million equates to a run rate of $55 million on a full year basis, and that's at the high end of our previous range. Over the next 3 years, we'll expand margins of 150+ basis points. This is driven by higher growth and higher margin elements of our portfolio. We regularly evaluate our portfolio for financial and strategic fit. VBS will continue to drive improvement and productivity. This margin expansion translates into strong 30%-35% incrementals in our business. Before moving to growth, as you've heard, we've resegmented our business.
Not only do these new segments align strategically with our business, they also provide more transparency to our investors. This is one of the first things I had heard when I joined the company seven months ago about breaking down our business and providing more transparency. The three segments serve a $30 billion TAM that's supported by secular tailwinds in all three segments. The market portfolio is underpinned by the Vontier Connected Mobility Strategy and is poised to deliver above market growth and expand margins. In mobility technologies, our margins will continue to expand further as we continue to scale our recurring revenue in that segment. Normalized for the EMV sunset of 2023, growth is expected to be mid-single digits. Looking forward to the next three years, mobility technologies will grow high single digits with growth in the higher growth verticals.
Secular drivers support this business, evolving customer needs, industry consolidation, multi-energy future. We'll continue to gain shares in our market-leading businesses like DRB. The repair solutions business is going to grow mid-single digits. The complexity of the car park, supported by our industry-leading product vitality, franchise growth, all support growth in this business of mid-single digits. Probably underappreciated, our environmental and fueling business is going to grow. There is low single-digit growth in this business. As you heard from Dave, his favorite slide, regulations are going up. There is more and more regulation in this business. Regulation for below the ground environmental, above the ground, vapor recovery, payments, PCI standards keep evolving. The old ones have to sunset. We're talking about PCI 2 sunsetting by 2027 in the U.S.
When you look at industry consolidation in this space, again, re-referring back to Dave's slide, there continues to be consolidation in this space, where the large national and regional players continue to grow, open new stores at the expense of the smaller single shop operators. We are poised well with these large national and regional players with our market share. We have programs like aftermarket growth that's all going to support this low single-digit growth in this business. Overall, this equates to an attractive mid-single digit growth for Vontier. Strong free cash flow is a hallmark of our business model. Over the previous 3 years, we've generated $1.4 billion in free cash flow or a 100% cash conversion. This fiscal year, we've guided to a 90%-100% free cash flow conversion or approximately $400 million of cash.
For 2024 to 2026, we'll generate another $1.5 billion of cash flow or approximately 100% cash conversion. Cumulative over this 4-year period, that's $1.9 billion of free cash flow. That equates to just under 50%. Under 50%, just under 50% of our market cap today. This cash flow gives us significant optionality for capital deployment using a returns-driven capital allocation framework. We have a healthy balance sheet with staggered maturities and attractive weighted average interest rate of 4.1%, assuming a 5% SOFR. We've indicated in the Q4 earnings call that we're going to pay down $150 million-$200 million of debt this year. It's going to be targeted on the 2024 maturities. We've actually paid down $50 million of debt in the first quarter already.
We expect to be in our target leverage range of 2.5 times to 3 times net leverage by the end of 2023 and committed to our investment grade rating. Over the last 2 years, we've deployed $1.7 billion in capital focused on delivering strong returns for our shareholders. For 2023, as I mentioned, we'll generate approximately $400 million of cash, $150 million-$200 million is earmarked for debt reduction. The remainder of the capital allocation will be heavily biased towards share buybacks. At the current multiple, it's hard for M&A to compete with buybacks from a returns perspective. From 2024 through 2026, we'll have approximately $1.5 billion-$2 billion of capital to deploy while maintaining our leverage. Expect disciplined, balanced, return-driven capital allocation, which will also include acquisitions.
Our M&A lens includes both financial hurdles and strategic filters. Our M&A process is strategy-led. It must align with our strategy. It must enhance our core capabilities. From a financial criteria perspective, we target double-digit return on invested capital in 3-5 years. We look for opportunities to deploy the VBS playbook to drive synergies to accelerate growth and improve margins. We target acquisitions to be accretive to our growth and profitability profile over time. As an example of capital deployment on M&A, let's look at DRB. This accounted for over 50% of the capital we deployed, of the $1.7 billion we deployed over the last 2 years. This acquisition demonstrates the capabilities and strength of our acquisition process. Car wash is an attractive fuel-agnostic market adjacency where we had very little presence before this acquisition.
It plays in an attractive segment of the market aligning with our connect, manage, scale competencies. DRB is the clear leader in the car wash point of sale, payment, workflow automation, and control software. It provided us opportunities to deploy VBS to accelerate growth and improve margins. Let's look at the results for the first year of ownership. Revenue increased by over 30%. Our profit margin expanded by more than 400 basis points. Let's look at the multiple we paid as a basis of 2022 EBITDA. Net of the tax asset, we paid 10x on 2022 EBITDA. While we're extremely proud of the accomplishments of the DRB team over this past year, we're even more excited about what this business brings to the future. Since my colleagues started naming their favorite slide, this is my favorite slide. It is the money slide.
I started off with the value creation framework, above-market growth, margin expansion, robust free cash flow generation, and disciplined capital allocation. Our midterm targets align with this framework. A three-year CAGR in the mid-single digits, supported by the Connected Mobility Strategy, which will accelerate our growth. We'll expand operating profit margins 150 basis points plus, enabled by VBS. Based on our current share count, double-digit EPS growth. 100% free cash flow generation or approximately $1.5 billion, enabling return-driven capital allocation to drive shareholder value. As a reminder, the EPS target of 10% or greater is at the current share count and the current portfolio. The capital deployment gives us incremental upside. I'm confident in our abilities to deliver on these targets. In summary, we have a clear path to value creation. We operate in attractive markets supported by secular tailwinds.
We have a portfolio of market-leading resilient businesses. Coming off the sunset of EMV, a strategy that provides attractive growth, margin expansion, and significant free cash flow generation. Thank you, and I'd like to turn it back to Mark.
Let me wrap up for a couple minutes. Thank you for being here today. We are so happy to share with you our story. We are well on our way of establishing a premier industrial technology company, demonstrating operational excellence and accelerating growth. I think when you think of Vontier, think of disciplined capital allocation. There's no question on my mind that we're making great early strides on that. We intend to continue to do so. When you look to see why we're so excited, we serve this $30 billion mobility ecosystems market that is growthy, it supports a multi-energy future, and we have so much here that we have penetrated where we can serve high value customer problems today and into the future. As we advance in a digitally enabled world, we have the talent and proven capabilities to untap that value.
This is a strategy on a page. This puts together pretty much everything that we've summarized for you. It talks about our purpose and our vision that is deeply embedded into trench with ESG. We believe in building a great company by doing good in the world, and we can change the world with what we're doing. Our strategy for connected mobility is a three-pillar strategy, operational excellence and accelerating growth, and here's our value creation framework. I think the most important thing also to say is that we are doing this value-driven with our basis built around the Vontier Business System.
With that, if you look at our investment thesis, we provide the critical mobilities and alternative energy technologies that will bring this $30 billion very attractive market opportunity into reach. We have excellent opportunities for growth based on the secular tailwinds that are available to us. We think that we can do this through disciplined capital allocation. We've got strong free cash flows to be able to untap value. We have an energized team with the talent and capabilities to make this happen. With that, folks, I think I'm so happy to say that we've sunset at EMV, that we're through this, and 2023 is a trough year. What underpins everything we're doing here is that growth rate and that margin expansion that I think you can see at work already today.
The momentum is there, and it'll read through as we look to the next couple of years. With that, let's have some Q&A, and we'll wrap up today's session with some Q&A. Brian? Thank you.
Just give us a second here. For those of you online, we're gonna get some chairs on stage again. As a reminder, if you do have questions, please feel free to submit those via the portal. We have some questions here in the room as well. If you could wait for those mics again, just as we did last time.
Hi.
Yeah. I'll stand. Okay. All right. Guy, I missed you last time, so I'll start with you.
Hi. Thank you. Guy Hardwick from Credit Suisse. Can we talk a little bit about the aftermarket opportunity in fueling? It's very helpful you gave $375 million for aftermarket revenues, of which $175 million was parts. If you're serving 260,000 sites, it kind of implies like $1,400 of annual spend, of which $600 is in parts. Are those numbers realistic numbers in terms of, like, can you put that in context for us? How, how does it vary from developed to emerging markets, and where could you get it to? In terms of aftermarket, what sort of pricing should we assume going forward?
Yeah. Let me answer that. I'll turn it over to Dave for some additional color. What we recognize is that this parts opportunity is gonna be with us for a long period of time. We started looking at the net opportunity by doing some of the math that you exactly talked about. We recognized that this was an area that we hadn't focused on. We were roughly probably 10% penetrated, where we saw not only an opportunity in the United States, but an opportunity internationally. From a scoping and scaling perspective, the developed markets have a lot more installed from technology and capabilities, just, you know, the number of dispensers.
As you see that building out globally, and particularly in high growth markets, as you saw the content going from, let's say, a fueling depot, which is roughly $6,000-$7,000 per site to like $90,000+. There's just a lot more in the ground that needs to be maintained. As you can see, these things use parts, and so it's a great long-term opportunity for us. Dave, would you like to add some color?
I mean, all I think I would add to that, Mark, is that I think, you know, with the compliance and regulatory frameworks that are being driven, what that's driving is more security standards for equipment out there, whether that be fiscal regulations, not all related to payment, et cetera. That's just creating that longer runway for a bigger install base of, you know, secure parts. Because they're secure, they're heavily regulated, it means we've got a pretty captive install base out there as we drive that.
All right. David, in the back.
Just a quick question. After hearing about all the organic growth opportunities, is it safe for us to assume that billion and a half of free cash flow in 2024 through 2026, if the valuation stays anywhere near where it is, we should see a large majority of that to be share repo?
I'll answer, and I'll let Anshuman chime in on one of his favorite questions as well. There's no question that we have prioritized share repo based on the outstanding returns that it generates at these kind of prices. I think that we have pivoted to that, and I think that that demonstrates our commitment to a very disciplined returns orientation for capital deployment. You wanna go ahead and chime in on this as well, Anshuman?
Yeah, Dave. We have a returns-driven capital allocation framework. We evaluate every opportunity based on, from a lens of a shareholder, what drives the highest return. At this valuation, it's hard for M&A to compete, but we did one with Invenco, which did a 20% return on invested capital for our shareholders. You could assume at this valuation, share buybacks remain a priority.
Thank you. A quick question on Invenco. I'm just curious, the evolution from point-of-sale from in-store to the pump, can you tell us how that's evolving and how that could change the potential replacement of the pump system out in the forecourt?
The integrated payment system, the point of sale, is no question, you know, quite integral as you know to the c-store environment. There's regulation that is constantly requiring upgrades in that technology. What iNFX does particularly is it enables you to modify the software just around that regulatory change and provide that upgrade. Instead of changing the entire set of that monolithic C-suite software point of sale, you're just changing that one element, which means you can do a very quick upgrade to the system. That's different. That's dramatically different than what's available in the market today. It's different than what we had previously. It's different than what other folks have. I think if you think of this as a contemporary microservices application-based software, those are all the words you use, but that's what it practically does.
That's what it enables for our customers, and that's why it's so valuable as part of this mobility ecosystem. It's gonna enable us to adapt very quickly to those changes for our customers, so they can meet that really quickly.
I see the value to the customer. I'm just trying to make sure, is there any impact on the hardware needed around it, or is it just a replace of the display? Then how much does it cannibalize your point of sale business inside the convenience store?
Oh, I see.
I'm just trying to get that dynamic there.
Yeah. It is the software we provide in the convenience store, and we can continue to upgrade the hardware when the hardware has needed an upgrade for regulation. I think it provides more flexibility for our customer base, but this is the in-store software that folks would buy from us on a recurring revenue model. This is accretive to us.
The key is it's accretive to everything we do today or did before we got to this.
It doesn't cannibalize.
Thank you.
Yeah.
I think I'll just take one on online since we have one. This will be for Anshuman. We mentioned in the slide there that we had 70% non-ICE revenue by 2028. Does that model in capital deployment?
Yeah. By 2028, there's a large part of that that comes through organic. There is some M&A factored in there. Since it's more of a 2028 number, we do have some capital deployment in there.
Not much.
No.
Trying to spread it out a little bit. Go to Joseph down here.
Yeah. Joe Donahue at Baird. I guess on Anshuman, you first. Can you talk about the expectations built into the operating margin expansion, whether that's gonna come more from leverage or for gross margin?
It's coming from both. Our Vontier Business System drives for productivity across whether it's driving improved margins, optimizing the cost structure, and then obviously as we grow, there's some scale benefits also from that. It's really a blend of both growth and productivity that gets to the margin expansion targets. We target a 30%-35% incrementals, and that also allows us for some organic investments in the business.
Thank you. On the product side, kind of, two questions. How is Driivz market share in the U.S.? There was some mention, like on earlier calls, of a retail build-out potentially for the Matco network. Has there been any update to that?
Yeah. I'll take the Driivz question, and we'll turn the Matco one over to Tim. Look, the electric charging, fast-charging networks are mostly established in Europe, where we have established the leadership position, you know, predominantly in the Nordics, but we have strong presence in the UK, Ireland, other parts of Europe as well. Obviously, we're very excited to bring this technology to the US. EVgo is in the US. They're a large customer of ours already that has adopted our operating system software. Even though you go to EVgo, you may not see Driivz there, but Driivz is the operating software. And what's compelling about this is that folks that have to manage networks of chargers, they're gonna have to make a decision.
Am I gonna write that software myself, or am I gonna leverage a leading software capability already out there in Driivz? We're of the bet that as we go forward, there'll be a large population of folks, whether destination-related, whether on-the-go related, or whether managing fleets, will also opt to make that decision to source our hardware, excuse me, our software, and it's hardware agnostic. I think the EVCI network in the United States, there's a tremendous amount of investment from an infrastructure perspective that the government has funded, and I think that represents a net pretty strong opportunity for us in the United States. You wanna answer the Matco question?
Yeah. On the, on the storefront side of us, retail or employee, we started that program last year just to learn the ins and outs of managing it from inventory, AR and everything else, and managing employees. We had 7 out there by, you know, last year, end of last year. We are gonna start increasing. Our strategy with that program is more about going into under-penetrated areas that we have in the marketplace, and then how do we flip those over into a franchisee system? 'Cause that's our preference is to run it as the franchisee business.
We got Joe in the back.
Thanks. My question's for Anshooman Aga. Thanks for listening and providing the additional financial detail. When you take a look at the mobilities technologies margins today, I would imagine that that's probably where the biggest opportunity is, given the growth rate, given some of the issues that we've already discussed with Teletrac Navman. Help us kinda understand where those margins can go. Where can they go? Can they go as far as where the other two segments are?
Over time, they definitely will get to where the other segments are. In there is not only Teletrac that's right now in the early stages of a very successful turnaround. They've done a phenomenal job. There's also the Driivz investment in that business. This business is software margins. We've got 60-plus premier customers, the revenue model is a true SaaS model. There's a 2-fer out there you get. Every time our customers add another charger, we manage that charge point, we get a monthly recurring revenue. As there's more and more transactions, as more EV vehicles come into play, we get a transaction fee per transaction. There's exponential growth in that business. Right now, it's obviously a very fast growth area where we're investing money.
Okay, great. Great. My one follow-up to Dave, since we've referenced your favorite slide a couple times now. The 20-25 timeframe, clearly there's more regulations. I'm just curious if the impact from those regulations can be as great as the impact as you've seen in the previous decade, and what regulations specifically should we be paying close attention to?
That's a great question. I think regulations continue to play out over time here for sure, that we've seen. The challenge with some of the regulations, and we've seen that historically as well, sometimes they don't quite hit the time frames, that you'd expect from an enforcement perspective. I think there was a lot on there in a slide that we talked to. As Anshooman Aga talked about, there's, you know, PCI sunsets on the Payment Card Industry that's taking place in multiple markets as those regulation sunsets. I think that's always an important one to pay attention to. It's pretty well known. Due to fiscalization in certain markets like Brazil as an example that's rolling out now. I think there are some of the core ones.
I think vapor recovery continues to roll out in a number of markets, India, Mexico, that's enforcing now. That's driving investment in that fueling infrastructure for sure.
One I'd like to piggyback on a little bit that's closely related here is that, you know, in the United States, tanks have been in underground now. There's a lot of them are coming up on 30 years. What's happening is when they reach past 30 years, the owner of those sites can no longer get insurance. So it's also they're prone to leak, you know, at that age. So there's a big tank upgrade cycle that we're kind of in the early innings of right now. I think the good news is we don't see anything as big as the U.S. EMV because it was great, but it was just, you know, a little bit large. It's great on the upside. It's certainly bad on the downside.
We see sort of this steady drumbeat of many of these kind of regulatory drivers that are all bite-sized and meaningful and an increasing number of them. I think that's a good backdrop.
Coming to Julian down here.
Thanks. maybe just wondered if you could flesh out any more color on the near term. You know, understand you've reiterated guidance, but kind of anything to call out specifically on the top line? Also, there's obviously been some sort of ruptions in the financial world recently. You know, how are you thinking about that financing book at Matco in that light? looking out further, you know, going back to that point on the margins by segment, are we assuming kind of similar operating leverage medium term across the three?
Yeah. I'll give the Matco comment or question to Anshuman. Before we do, let me sort of give you a little sense on the macro environment. Obviously, we've spun the company in, I would say, historically unprecedented amount of turmoil. We brought the company public in 2020. You know, this team is battle tested, and I can tell you one thing for sure, we never take anything for granted. With the EMV super cycle going over with, you know, we are agile, we're nimble. Obviously, we read, just like everybody, you know, some concerns what could happen with the economy longer term.
I would definitely say this, even though we are agile and we're nimble, we're looking and watching, we're not seeing signs of the market, you know, sort of giving way. We have a lot of leading indicators out there. We definitely see a very constructive market right now. At the same time, these are resilient businesses. I mean, if you looked at how they performed in the last major downturn, like 2008-2009, they're pretty resilient. That doesn't mean they're immune to a major recession. At the same time, they fared much better than many other industrial tech type companies out there. We have reason to be encouraged. Once again, we're a team that's used to dealing with some pretty tough stuff.
We're fit for whatever the world is going to throw at us.
I'll take the Matco question first. One thing to keep in mind for Matco is the health of the technician is extremely strong. When you look at technician employment, it's at record levels. When you look at technician wages, it's at record level. If there were to be a recession, what happens? People keep their cars longer. They still have to repair their cars. Generally, technicians board well through a recession. Also, these are the tools of their trade. They have to make payments on the tools of their trade to stay gainfully employed. Our portfolio has historically performed pretty well when you look at delinquencies, which we're looking at a weekly basis. When you look at write-offs and reserves, I'll take reserves as an example. It's graded between 150 basis points from the lowest to the highest.
Through the end of the fiscal year, we're probably at in the top quartile just from a conservatism perspective. It's a pretty healthy portfolio, and we have a lot of discipline and control around this portfolio. Your other question around operating, leverage in the three businesses. At this time, I'll say yes. Near term, think of similar operating leverage across the three businesses. Over time, you know, as our recurring revenue and mobility technologies grows, this is a pure SaaS business that we're growing. There is opportunity over time to grow the operating leverage in that business.
I'm gonna pause and take another online question here. I'm gonna give one to you, Katie, then Mark, you can probably chime in on this as well. Can you talk a little bit about what we're doing from an employee retention standpoint, how we're attracting and keeping best talent?
It's a great question. I think first and foremost, I think a lot of what we all talked about throughout the course of today has been really critical. It's allowed us to punch above our weight. People want to work somewhere where they feel like it has purpose and meaning. When we talk to candidates about our vision, our purpose, what we're doing across the globe, we get a lot of traction with candidates. It's certainly allowed us to punch above our weight as this entire management team has been kind of remade by Mark over the last 18 months, and we've brought in a lot of talent.
In addition to that, a number of things across the inclusion, diversity, and equity landscape, a lot of growth and development opportunities that Amy Placha, our CHRO, has led and brought to the table. It's across the whole kinda life cycle of employees, from recruitment to development to promotion, and too many things to sort of mention here with this audience. Those are the comments I would make.
Yeah, I'll just chime in that our values and purpose are very meaningful to me personally, and I think all of our senior executives. I think when, you know, the authenticity around that and when we engage with employees about the ability for us to impact the world in a very sustainable way through not only what we touch today, but also our new technologies bringing forward, is also very meaningful to us. I think that's a big part of where people wanna work these days. I mean, they need to identify with, you know, is this company really committed to doing something good? Are they really adding value? Are they authentic in what they mean about that? Do they have a strong value system within their company that is affirming to them?
You know, we have a lot of genuine intent around inclusion and diversity. We have a theme, we belong here, where we want employees to feel like no matter where they come from, whatever walk of life, they're gonna be included, and they're gonna be celebrated for that. I think it's just in a very contemporary sense, I think we're connecting with folks. I think we're bringing in the right talent to lead this business into this next decade. I think that's incredibly critical 'cause there's three things that I think about intensely. One is strategy, the other is the operating system to unlock that strategy, and then the third is talent. If you can attract that talent, which I think we have, then you've got a real formula here for success.
Okay. We have about five more minutes. I'm gonna try and sneak in one or two more. Come down front here.
You'd have retail married in with what you guys are now calling Environmental and Fueling. How are you going to ensure that that business logic, you know, kind of isn't lost under this new structure that you have?
Yeah. Thank you. That's a really good question. You know, essentially evolved GVR. You know, there was a business logic and strategy from our above ground and below ground fueling systems. It was because there was a gas station, and they started with some beverage cooling. They needed to have a point-of-sale system. It kind of the entire format, if you will, started as a gas station. It was kind of a natural birthplace to get started. Now as you see it evolving, it's actually a liability that you are so closely tied with the hardware because customers want a software system. In fact, the buyers are different buyers of the petrol-based infrastructure versus the in-source stuff.
It has evolved so significantly that you really have to be seen as a modern contemporary software company with some connected hardware. We got that right. We know how to connect the petrol to the inside of the store. Now it's so much more than that now that we've got to evolve that and be in a contemporary sense. There are still customers that want to buy from us in an integrated fashion. Costco is a great example. We provide the technology and capabilities for Costco, which is one of the largest retail fueling networks out there and very robust and reliable, very high quality product. We approach them with one face to them. Sometimes there's customer preferences. We're gonna take that into account.
There's no question that the underpinnings of these businesses are set up the right way now to untap volume into the future.
All right, one more. Steve, I've seen you a couple times. Jason, that's you wanting.
Two questions. So for Tim, your unnamed number one competitor, if you benchmark the margin profile of Matco versus them, you guys are, call it 300 basis points above them. Can you help us understand why that is, number one, and how you can sustain? Should we worry about margins going down as you guys grow? Just wanna understand those dynamics. Then just for the broader team, you made a point of calling out organic growth has historically been 8% ex EMV. You've called the trough an EMV. I'm just, you know, it's really striking to me that now, you know, you did 8% growth before, but now you're saying 4% to 6%. I'm just really curious to understand that dynamic as well.
Yeah. Well, let me jump in there on both, and I'll let Tim answer, certainly more in-depth on the Matco one. First of all, we're very happy to disclose these kind of margins. But as Tim will explain, we have incredible leverage and capabilities with our supply chain that both enables a high degree of vitality, that 30% is a 1-year number. That means 30% of what Matco is bringing to market every year is new that year. That's what that number means. A high degree of innovation also with great leverage and great margins. I'll let him get a little bit more into depth on that. By the way, that is sustainable because we've seen it. It's sustainable over a long period of time. We anticipate we'll continue to see that sustainability.
Why don't you go ahead and jump in on that one? Yeah. I think the key difference between, you know, as I mentioned early on, that, you know, we've been part of the Danaher businesses supportive and driving productivity through our business now for the last 30 some odd years. That's been our approach, and I think that's what separates the two of us. The other thing that I'd like to be able to answer for you is the outlook on growth. I think no question you see the underpinning of growth there. I think what we're giving to the market is responsible guidance, you know, given the overall possible, you know, softening in the macro environment that could occur. Right now we see a pretty constructive backdrop to that. I'll just leave it at that.
All right, cool. One more. Cliff.
I have a question that's prompted by the fact that I was force-fed by Danaher and United Technologies, and that's your backgrounds. The 150 basis points over three years in the kinds of businesses you run, particularly in the transition to a software business, strikes me as very low. I appreciate you gotta give guidance someplace. Talk to us a little bit about if you are more successful than that, how nimble can you be about redeploying that money into something other than share buybacks, in terms of investment internally or M&A? How nimble can you be if you have more money to spend?
Thank you for that question. First of all, we appreciate that what we're giving represents certainly opportunity for us to beat that. I think DRB is a great example. I think we gave guidance. We didn't slow down based on the guidance that we gave. We took advantage of every opportunity available to us because it was good for our customers, it was good for our employees, good for the shareholders. We're gonna, you know, we put our hands on the steering wheel, and we push on the gas, and sometimes we go further faster than we anticipated. That's happened a lot in the businesses we've had the pleasure of running. I would say that's exactly what we try to do.
There are lots of opportunities for us to deploy in organic opportunities for growth within these businesses, but the businesses compete for capital. Within the businesses, they compete for capital. We take the best of the best ideas, and we deploy around those. If we have more money to spend, we'll spread that a little bit more, and we'll probably go a little more faster. Once again, we're giving you the direction, we're giving you sort of our sense of magnitude, but as always, we'll do our best to exceed that.
All right, we're gonna wrap it there. As a reminder for those of you staying for lunch, it's down on the twelfth floor. There are stairs if you need it. We'll see you guys down there. Thanks again for coming. Appreciate your attention, and, we'll thank you.
Thank you. Thank you. Thank you for coming.
Thank you.