FLEET MANAGEMENT MARKET ANALYSIS

The global fleet management market size was valued at US$ 8.35 billion in 2022 and is anticipated to witness a compound annual growth rate (CAGR) of 19.3%from 2023 to 2030. A rise in demand for improved tracking capabilities in vehicles is driving the market growth. The market is primarily driven by a need to ensure safe delivery of goods and equipment across the globe, mandatory government regulations related to vehicle maintenance & tracking, and growing concerns about vehicular safety.

Global Fleet Management Market: Regional Insights

North America is anticipated to show substantial growth in the global fleet management market over the forecast period. This is attributed to widespread use of real-time tracking systems across various sectors for ensuring smooth business operations. Moreover, early adoption of digital technologies in the region is also expected to drive growth of the global fleet management market in North America.

Along with this, Asia-Pacific is expected to gain significant growth in the global fleet management market over the forecast period, owing to strong presence of number of industrial facilities in countries such as India, Japan, and china. Along with this, the expansion of radio taxi business in the region and rise in appetite for mobility services are also the factors anticipated to boost growth of the market in Asia Pacific region.

Figure 1: Global Fleet Management Market Share (%), By Region, 2022

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Global Fleet Management Market Drivers:

Rise in number of asset and vehicle thefts to boost the market growth

The rate of vehicle theft crime has significantly increased in past few years and it is likely to continue to grow all over the world in the coming future. As a result, the demand for fleet management system is growing due to its ability of reducing the risks of vehicle theft. The use of fleet management solutions allows to keep drivers safety in transportation, owing to advanced security features provided by these solutions. The fleet management technology allows fleet managers to block the vehicle through a control switch in case of vehicle theft. Thus, such lucrative features among several others are driving the demand for fleet management technology, which in turn is driving growth of the market.

Increasing cases of road accidents to fuel the market growth

The adoption of fleet management technology offers rise in the quality of life by providing functionality for commercial fleet vehicles and offers risk evaluation data. This increases the safety of driving. The accident cases could be minimized with the use of telematics in fleet management, as it can track real-time data and use observations produced through this data help the drive make mindful decisions. As the security issues are increasing, many countries are opting for emergency management system models. With increasing road accidents, the demand for these fleet management solutions is increasing, and this factor is further expected to augment growth of the global fleet management market over the forecast period.

Global Fleet Management Market Opportunities:

Growing demand for autonomous and connected vehicles to create growth opportunities in the global fleet management market over the forecast period. The use of connected vehicles enable drivers to interact with other vehicles on the road and infrastructures at the roadside. There are several field trials are being conducted for development of sophisticated vehicles such as connected vehicles. These connected vehicles are capable of sharing information over the internet and are safe and secure. Thus, rise in demand for such vehicles is expected to generate lucrative opportunities in the global fleet management market over the forecast period.

Advent of Internet of Things (IoT) to present significant opportunities in the global fleet management market over the forecast period. Internet of Things refers to connected devices that can exchange and collected data. This technology can connect devices with sensor to a network using algorithms for exchanging data and meet the needs of apps customized for individual users. The use of IoT in fleet management allows communication and engagement for vehicles with other devices using networking, electronics, and hardware. Thus, emerging IoT technology is creating beneficial opportunities in the global market.

Global Fleet Management Market Trends:

Demand for asset management solutions is a recent trend in the market

Using asset management solutions and systems allows user to create connection between property, financial, and maintenance management. This eliminates the duplication of databases and maintains a direct connection with Fleet Automotive Statistical Tool. As this technology offers efficient analysis and gathers data, it can monitor consequences of each activity in such a way that it can review the cost-benefit analysis. Thus, the trend of growing demand for asset management solutions is likely to support growth of the global fleet management market over the forecast period.

Rise in adoption of mobility-as-a-service is another trend in the market

Government authorities and mobility industries around the world are involved in implementation of mobility-as-a-service model for reducing carbon emissions and traffic on roads. Through various initiatives, these authorities are launching car sharing, ride-hailing, carpooling, and various other options for commuters to reduce use of private vehicles. The use of fleet management software will allow users to get insights regarding pick-ups, drop-offs, vehicle telematics, and payment activities. Thus, this trend is expected to aid in growth of the global fleet management market over the forecast period.

Global Fleet Management Market Restraints:

Need to connect information together through various sources to limit the adoption of fleet management

Fleet management technology has various applications and connecting this technology in order to obtain desired insights on fleet management acts as a major challenge. Several times, different application provider offer five different applications. This factor further impacts adoption of these solutions adversely. Each of these applications are designed individually by a provider of fleet management software, and integrating these applications is limiting factor towards adoption of these solutions. Thus, this factor is expected to hinder growth of the global fleet management market over the forecast period.

Risk of cyber-attacks to limit the market growth

As the technology continues to change with time, the adoption of software across various industries including automotive, finance, military and others is growing rapidly to gather more information. This information has become digital and can be accessed through wired and wireless digital communication networks, and also with ubiquitous internet. However, the rise in cases of cyber-attacks are increasing the risk of data breaches in such technologies. The risk of data leak thus increases, with increasing digitization. This factor in turn is anticipated to hamper growth of the global fleet management market over the forecast period. However, technological innovations are being introduced to mitigate the above-mentioned challenges, which is likely to support the market growth in the future.  

Figure 2: Global Fleet Management Market Share (%), By Application, 2022

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Global Fleet Management Market Segmentation:

The global fleet management market report is segmented into Application Type, Commercial Vehicle Type, Component, and Deployment.

Based on Application Type, the market is segmented into Real-Time Location Monitoring, Weight/Volume Tracking, Fuel Management, Driver Management, Maintenance Management, and Accounting and Insurance. Out of which, Real-Time Location Monitoring is expected to dominate the global market over the forecast period and this is attributed to the increasing demand for GPS systems in vehicles. Real-time location monitoring tracks status of vehicle. The use of GPS helps to know the location of the vehicle. With this fleet managers receive alerts for avoiding abnormal driver behavior, which can cause accidents. Thus, the demand for GPS systems is likely to drive growth of this segment in the near future.

Fuel Management segment is also expected to witness significant growth in the near future and this is owing to the rise in the need for fuel management, as it involves controlling and monitoring fuel expenses. Several market players are focusing on development of fuel management software as well as hardware. As a result, the segment is likely to gain major growth in the coming future.

Based on Commercial Vehicle Type, the market is segmented into Light Commercial Vehicles, and Heavy Commercial Vehicles. Out of which, Light Commercial Vehicles is expected to dominate the global market over the forecast period and this is attributed to the growing adoption of LCVs. Light commercial vehicles are highly preferred for short distances. These vehicles usually carry passengers and goods. These vehicles have a lesser load capacity compared to minibuses or trucks. Yet due to their feasibility, the adoption of these vehicles is growing, which is further expected to support growth of the segment.

Heavy Commercial Vehicles segment is also expected to witness significant growth in the near future and this is owing to the rising use of heavy trucks across various applications including mining, freight transportation, municipal facilities, industry, and other. With increasing need for these vehicles, manufacturers are focusing on launching novel heavy commercial vehicles. This in turn is expected to aid in growth of this segment over the forecast period.

Based on Component, the market is segmented into Hardware, Software, and Service. Out of which, Hardware is expected to dominate the global market over the forecast period and this is attributed to the rise in use of hardware by fleet management end user. Hardware such as control devices, remote dashboard, routing or bride devices, servers, and sensors are widely used by fleet management providers. These hardware are essential to support particular actions and goals, in functions and tasks such as system activation, location tracking, security, action specifications, detection, and communication. With growing use of these devices, the segment is likely to gain strong growth in the near future.

Services segment is also expected to witness significant growth in the near future and this is owing to the increasing adoption of fleet management services by end users. These services offer predictive maintenance solutions in order to reduce the downtime of engine. As a result, the demand for this segment continues to grow, which in turn is driving growth of the global fleet management market over the forecast period.

Based on Deployment, the market is segmented into Cloud, and On-Premises. Out of which, On-Premises is expected to dominate the global market over the forecast period and this is attributed to the various benefits of on-premise deployment leading to growing demand. On-premise deployment of fleet management solutions offer benefits such as complete control of software and hardware, high uptime, and low cost of ownership. Due to this, this deployment method is increasingly being adopted for fleet management software.

Cloud segment is also expected to witness significant growth in the near future and this is owing to the growing emergence of cloud-based fleet management solutions. The use of these solutions offer reduced costs of IT, high scalability, high collaboration efficiency, and business continuity among others. Thus, demand for cloud-based solutions is on the rise, which is further driving growth of this segment.

Global Fleet Management Market: Key Developments

In August 2021, eBikeGo, announced the launch of EBG-Matics, an advanced artificial intelligence and IoT-based fleet management system. The new systems can analyze vehicle and rider behavior for improving efficiency.

In May 2022, Motive Technologies Inc. also called KeepTrucking raised US$ 150 million in new funding for scaling up the investment in AI and expand its product suite into spend management on increasing the enterprising capabilities.

In March 2021, Azuga, a fleet technology provider introduced an advanced software-as-a-service solution, SafetyIQ for providers of commercial auto fleet and insurance.

In 2021, Inseego sold the Ctrack South African branch to the convergence partners, which is an investment management organization focusing on telecommunication industry, technology and media industries in Africca.

Global Fleet Management Market: Key Companies Insights

The global fleet management market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global fleet management market are AT&T Inc., Verizon, Zebra Technologies Corp., Trimble Inc., Teletrac Navman US Ltd., TomTom International BV, and Others

*Definition: Fleet management is a set of business processes and tools that are used to oversee a company’s vehicles and drivers, from on-time deliveries to cost efficiency. It includes everything from procurement, titling and insurance to maintenance schedules, fuel costs and more. The best fleet managers are constantly looking for ways to improve their operations and increase profitability.