Market Challenges And Opportunities

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 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.