The global Fleet Management Market is estimated to account for US$ 8.35 Bn in terms of value by the end of 2022. Fleet management is the process of overseeing, managing and improving a company’s transportation fleet. It involves a range of tasks such as driver safety, dispatch and planning, asset utilization, waste management, and oversight. Moreover, it also includes monitoring the performance of a company’s transport fleet to identify areas for improvement. One of the most important responsibilities of fleet management is establishing and managing maintenance procedures and programs to ensure that vehicles are operating at peak performance. This is typically a significant task that requires some type of software or tool to help establish and manage maintenance schedules, including preventative maintenance such as oil changes and filter replacement.
Global Fleet Management Market: Drivers
Instability of fuel prices is anticipated to boost growth of the global fleet management market over the forecast period. The fuel prices are surging due to the disruption in supply chains occurring from global conflicts and pandemic situations. As fleet businesses are highly dependent on fuel for operating, these businesses are losing money. In such scenarios, using fleet management software helps in saving fuel on daily basis for all the fleet vehicles. The operating expenses of trucking companies have increased significantly, owing to high cost of fuel. As a result, the demand for fleet management solutions is increasing, which is expected to support growth of the global fleet management market over the forecast period.
Global Fleet Management Market: Opportunities
Rising demand for fleet management solutions from logistics and transportation industry is generating business opportunities in the global fleet management market over the forecast period. The global population and industrialization has flourished significantly over the years. With growing industrialization, logistics services are becoming more indispensable. The demand for heavy and light commercial fleet vehicles has growing to transportation of goods. The fleet management thus has become necessary, with rise in the productivity of commercial fleet vehicles. Thus, the demand for fleet management solutions is rising from logistics and transportation industries, which is further offering opportunities in the market.
Global Fleet Management Market: Restraints
Atmospheric hindrance leading to connectivity issues in GPS is expected to hamper growth of the global fleet management market over the forecast period. The GPS connectivity can be disrupted due to atmospheric interference, which further affects transmission of signals between vehicle and satellite receivers. The GPS signals can be weakened due to factors such as physical obstructions, adverse weather conditions, ionospheric activity, and electromagnetic interference, this can further cause signal loss or inaccuracies. This factor is therefore expected to obstruct growth of the global fleet management market over the forecast period.
Covid-19 Impact Analysis:
The outbreak of COVID-19 pandemic has slowed down the supply chains, which further disrupted growth of several markets including the one in discussion. Many countries announced stringent lockdown regulations due to which industrial operations were closed down temporarily. The lockdown regulations impacted production and demand across several industries. Moreover, the transportation activities were shut down during the pandemic. Consequently, the demand for fleet management solutions declined substantially, which further adversely impacted growth of the global fleet management market during the COVID-19 pandemic.
Key Takeaways:
The global fleet management market was valued at US$ 8.35 Bn in 2022 and is forecast to reach a value of US$ 34.38 Bn by 2030 at a CAGR of 19.3% between 2023 and 2030.
Real-Time Location Monitoring segment held dominant position in the global Fleet Management market in 2022, accounting for 41.0% share in terms of value, increasing approval and launch of new products is expected to propel growth of the segment during the forecast period.
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Global Fleet Management Market Trends:
Growing digitization across industries is a prominent trend in the global fleet management market. Due to increased digitization, companies can now focus on restructuring departments and deploying additional personnel to the front lines to cater the rising demand for fleet management software as well as consultant services. Thus, this trend is expected to continue in the global fleet management market over the forecast period.
Increasing technological advancements are also trending in the global fleet management market. This in turn is expected to propel growth of the global fleet management market over the forecast period. Technological innovations are becoming more adaptable and user-friendly. The use of artificial intelligence (AI) solutions is increasing, and AI based on digital contact and consumer service are widely being utilized in automotive sector to ensure high levels of customization and details can be provided to replace vehicle dealerships.
Global Fleet Management Market: Competitive Landscape
AT&T Inc., Verizon, Zebra Technologies Corp., Trimble Inc., Teletrac Navman US Ltd., TomTom International BV, and Others
Global Fleet Management Market: Recent Developments
In June 2022, Renault and Geotab, a telematics supplier announced partnership for integration of Renault’s model into MyGeotab fleet management platform. With this collaboration, the fleet managers’ decision-making will be enabled through enriched data and access to connected solutions for all sizes of fleets.
