Smart Fleet Management Market size is expected to register a commendable growth rate over 2021-2027. This is due to the extensive usage of fleet management systems to control lifecycle, reduce risks, ensure compliance with legislation, increase efficiency and productivity of commercial vehicles. Furthermore, the implementation of strict government regulations related to vehicle safety will further amplify the industry demand over the forecast spell.
A smart fleet management system refers to cloud-based software that plays a crucial role in the management of fleets and the automation of other business processes. The system is run by fleet management software and can be adopted across all industrial verticals that offer delivery services. It can efficiently conduct real-time monitoring of moving assets through the usage of a GPS tracking systems.
Deployment of innovative technologies to help fleet operators automate trip planning and other processes is a prominent trend driving the smart fleet management market growth. Telematics, for example, enables fleet managers to harness information from multiple devices and sensors to improve the overall safety, compliance, and productivity of vehicles.
However, high costs associated with in-house fleet management and difficulties in sourcing high-caliber staff to carry out the maintenance tasks may hinder the industry outlook over the coming years.
With regards to connectivity, the cloud segment is projected to hold a commendable share by 2027, owing to the rapid adoption of cloud computing technology for effective fleet management. The expansion of the fleet and automotive industry has resulted in the increased need for unprecedented flexibility in data exchange, storage, communication, and information tracking. The segmental expansion will further be driven by the ability of cloud solutions to eliminate errors caused by manual logistics and increase the efficiency of smart fleet tracking.
From a regional perspective, the Europe smart fleet management market demand will depict a strong growth rate through 2027. This is a result of the high emphasis of the European Union on developing sustainable, safe, and connected transport, as the transport sector is the key contributor to its economic growth. Escalating shipments of connected cars and the growing number of commercial vehicles equipped with telematics control units will further escalate the regional industry expansion over the upcoming years.
Prominent players in the smart fleet management market include Globecomm Systems, Precious Shipping Public Co. Ltd., OTTO Marine Ltd., CalAmp, Sierra Wireless, Cisco Systems, Continental AG, IBM Corporation, DENSO Corporation, Siemens AG, Robert Bosch GmbH, and Harman International Industries (Samsung Electronics), among others. These firms are incorporating various strategies like business expansions and mergers and acquisitions to sustain their strong position across the global market.
For instance, in June 2021, Siemens announced plans to launch a new fleet management model and app for the company cars used by its executives. This initiative has been taken with an objective to provide employees with greater access to vehicles equipped with eco-friendly drive systems and offer additional incentives to use EVs.
In light of the coronavirus outbreak, fleet management businesses are encountering challenges in day-to-day operations and logistics, causing a financial strain. The need to limit the virus spread and safeguard employees while keeping the business buoyant has become a difficult task, which created a hindrance in the deployment of smart fleet management technology over recent months.
However, logistics and delivery fleets have been recognized as highly essential even during the unprecedented crisis to keep the supermarkets stocked consistently. Rapid investment in fleet management solutions and the implementation of telematics to support drivers and optimize routes may thus aid smart fleet management market growth in the years ahead.