Fleet management involves the management of fleets within an organization, utilizing software to monitor vehicle diagnostics, driver behavior, and asset tracking. It finds applications across various sectors, including waste management, oil & gas, construction, chemicals, mining, retail and logistics, utilities, and public and private transport. The global fleet management market size is the subject of a report by Market Research Future (MRFR), which provides revenue and growth projections for the forecast period. The report also delves into drivers, opportunities, challenges, and the impact of the COVID-19 pandemic on the industry.
Market Scope: The global fleet management market is expected to grow at a CAGR of 22% during the forecast period. Key drivers of the market include the ongoing demand for logistics and transportation, efforts to reduce emissions, connectivity issues, and volatile fuel prices. Organizations can use fleet management software to track fleets and ensure driver safety. The integration of electronic logging devices into fleets to comply with the latest laws and the rise of smart transportation can significantly boost market demand.
The enforcement of laws to ensure more driver breaks and adequate rest can drive demand for fleet management software. This can ensure operational efficiency and reduce overall costs. Real-time alerts for managers, GPS tracking for precise vehicle location, and sustainability initiatives can benefit the market in the coming years. The integration of artificial intelligence and big data for real-time access to fleets and their routes can further favor the market. However, concerns about cyberattacks and a lack of network infrastructure in certain countries may dampen market growth.
Segmentation:
- Connectivity Type: Cellular system and satellite navigation.
- Deployment Type: Cloud, on-premises, and hybrid. The cloud segment is expected to dominate the market due to easy integration and cost-efficiency.
- Services Type: Professional services, managed services, and integration and deployment services. The professional services segment is expected to lead the market, driven by the presence of various logistics and transportation companies and mandatory emissions reduction laws.
- Management Type: Operation management, asset management, and driver management.
Regional Analysis: North America and Europe are expected to dominate the market due to stringent vehicle emissions regulations and significant innovations in fleet management technology deployment. Sustainability initiatives in these regions, combined with modernized infrastructure for fleet vehicle monitoring, can drive market demand. The presence of renowned logistics companies and a focus on efficiency and cost savings are favorable factors. For instance, the state of California has mandated that its vehicles must be emission-free by 2035 to promote sustainability.
The Asia Pacific region is expected to be the fastest-growing region, with opportunities in countries like China and India. The large-scale adoption of web and mobile-based business services in these countries is a primary driver for the market in the region. Efforts to incorporate low-emission vehicles and electrify transport infrastructure can further drive demand for the global fleet management market.
Competitive Outlook: Key players in the global fleet management market include Trimble Inc., I.D. Systems, Inc., Verizon Telematics Inc., Cisco Systems, Inc., WorkWave LLC, Fleetmatics Group PLC, and Zonar Systems, Inc. Acquisitions are the primary strategy employed by these players to gain a competitive edge in the market. For instance, Infobric acquired TelliQ AB, a Swedish telematics company, in 2020, allowing them to integrate fleet management systems into vehicles.
