Fleet management refers to a process of enabling companies to streamline and coordinate work vehicles with an objective to reduce costs, provide compliance with government regulations, and enhance efficiency. Different solutions are offered under fleet management such as operations management, driver management, fuel management, speed management, health and safety management, vehicle telematics, and vehicle management. Furthermore, fleet management solutions include various advanced technologies including GPS, data communication, Internet of Things (IoT), artificial intelligence (AI), machine learning, Fleet Management Solution, etc. The global fleet management solution market focuses on six regions namely North America, Latin America, Europe, Asia Pacific, Middle East, and Africa.
The global fleet management solution market is estimated to be valued at US$ 37.89 million in 2021 and is expected to exhibit a CAGR of 23.5% over the forecast period (2021-2028).
Recent Developments:
In July 2020, Tata Motors Limited, an Indian multinational automotive manufacturing company introduced Tata Motors Fleet Edge — a next-generation connected vehicle solution for fleet management.
In July 2020, Bridgestone Americas, a tire and rubber company announced the agreement to buy Azuga Holdings Inc., a provider of fleet management software for $391 million.
In February 2020, Royal Dutch Shell plc introduced advanced fleet management solutions in India.
Figure 1. Global Fleet Management Solution Market Value (US$ Mn), by Region, 2020
North America held dominant position in the global fleet management solution market in 2020, accounting for 34.2% share in terms of volume, followed by Europe and Asia Pacific, respectively.
Global Fleet Management Solution Market- Drivers
Increasing adoption of fleet management analytics is expected to drive growth of the global fleet management solution market during the forecast period. Fleet management solution includes data management and analytics, which has increased its adoption significantly. Data management and analytics have become crucial since companies have been able to save additional costs. Moreover, these features help collect data from various business processes, synthesize them, and make sense of data points. Data management and analytics form the backbone of an effective and competitive fleet management company.
Growing shift towards smaller fleets is expected to propel the global fleet management solution market growth over the forecast period. North America region dominated the global Fleet Management Solution Market in 2020, accounting for 34.2 % share in terms of value, followed by Europe, Asia Pacific, Middle East and Africa and Latin America.
Global Fleet Management Solution Market: Opportunities
Advancements in technology are expected to present new technologies such as connected vehicles and autonomous cars. Constant developments in technology have given rise to this new breed of vehicles is anticipated to re-shape the fleet management market. This paradigm shift would also affect roadways, roles, fleets, business models, and drivers. Moreover, the proliferation of Advanced Driver Assistance Systems (ADAS) is expected to make mobile technology common among fleets. Declining costs of telematics both in terms of software and hardware had increased the use of telematics solution, in order to enhance operational safety.
Since the number of fleets and their constituents is increasing, on-demand trucking service can emerge as a new segment in the market. Uber-like functionality is expected to be the centerpiece of this new segment, which would witness a rise in the number of companies offering on-demand trucking services. Hence, these developments are expected to result in a more efficient resource management and give rise to a new segment for telematics service providers to act as intermediaries.
| Report Coverage | Details | ||
|---|---|---|---|
| Base Year: | 2020 | Market Size in 2021: | US$ 37.89 Mn |
| Historical Data for: | 2017 to 2020 | Forecast Period: | 2021 to 2028 |
| Forecast Period 2021 to 2028 CAGR: | 23.5% | 2028 Value Projection: | US$ 166.23 Mn |
| Geographies covered: |
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| Segments covered: |
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| Companies covered: |
Emkay, Inc., Element Fleet Management Corp., Magellan Navigation, Inc., Daimler Fleet Management GmbH, Telogis, Inc. (Verizon), JDA Software Group, Inc., Trimble Inc., Wheels, Inc., TomTom Telematics BV, and MiX Telematics Ltd. |
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Market Trends
Safety remains one of the most critical issues for fleet management companies and managers. Concerns regarding the safety of the vehicle and the driver is a perennial concern in the industry. Factors such as lack of compliance, especially by the drivers regarding safety policies such as cell phone usage while driving, make enforcing safety measures difficult. Since fleet company drivers drive comparatively more than other drivers, it becomes challenging to achieve an optimum balance of limiting the use of mobile devices while driving. This, in turn, can endanger the driver as well as the fleet. However, technology can help leverage fleet operations and lower accident rates. Many automakers are laying emphasis on safety features, while companies are adopting vehicles with enhanced safety features such as vehicle-to-vehicle communication. Hence, fleet management solutions are expected to witness significant demand in the near future.
Telematics is a branch of information technology relating to the long-distance transmission of computerized information. The telematics data can help connect with business processes and operations. High growth of data points is expected to increase adoption of telematics data that can be mined with basic fleet data to track and trace vehicles or to plan the course from point A to point B. It is also possible to track driving behavior, driving patterns, mapping, diagnostics, etc.
Figure 2. Global Fleet Management Solution Market Share, By XX, 2020
Key Takeaways of the Graph:
Global Fleet Management Solation Market- Restraint
Constant fluctuations in fuel prices are expected to hinder the global fleet management solution market growth over the forecast period. The volatility in fuel prices is the major factor restricting growth of the market. As fuel prices are difficult to be projected, it is difficult to plan and budget for them. Moreover, the pressure to reduce fuel costs while increasing the efficiency calls for new and creative measures to save on fuel. However, learning to plan for variance in fuel prices remains a major challenge.
Presence of blind spot in network coverage is expected to restrain growth of the global fleet management solution market growth during the forecast period. There are certain blind spots in network coverage where there is no signal or the signal is weak and the existence of the receiver within the blind spot, which decelerates the performance of the communication system. Such laps in communications can cause major damage to the process of goods transportation and hinder overall fleet management.
Competitive Section
Major companies operating in the global fleet management solution are Emkay, Inc., Element Fleet Management Corp., Magellan Navigation, Inc., Daimler Fleet Management GmbH, Telogis, Inc. (Verizon), JDA Software Group, Inc., Trimble Inc., Wheels, Inc., TomTom Telematics BV, and MiX Telematics Ltd.
Key Developments
Fleet management refers to a process of enabling companies to streamline and coordinate work vehicles with an objective to reduce costs, provide compliance with government regulations, and enhance efficiency. Different solutions are offered under fleet management such as operations management, driver management, fuel management, speed management, health and safety management, vehicle telematics, and vehicle management. Furthermore, fleet management solutions include various advanced technologies including GPS, data communication, Internet of Things (IoT), artificial intelligence (AI), machine learning, Fleet Management Solution, etc. The global fleet management solution market focuses on six
Market Dynamics
Fleet management solution includes data management and analytics, which has increased its adoption significantly. Data management and analytics have become crucial since companies have been able to save additional costs. Moreover, these features help collect data from various business processes, synthesize them, and make sense of data points. Data management and analytics form the backbone of an effective and competitive fleet management company. This, in turn, is expected to drive growth of the global fleet management solution market during the forecast period. A majority of transport companies are shifting towards smaller vehicles and fleets, in order to reduce fleet costs and offer better fuel efficiency. With this, many organizations are focused on reducing their operational expenses. Furthermore, downsizing to smaller vehicles offers much lower total cost of ownership (TCO) as compared to heavy vehicles. Numerous fleet management organizations across the globe are trying to program and put a limit on the fleet performance while maintaining balance between driver satisfactions. Thus, these factors are expected to propel the global fleet management solution market growth in the near future.
Key features of the study:
Detailed Segmentation:
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