Fleet Management Market size worth over $55 Bn by 2026
Published Date: October 1, 2020 Authors: Preeti Wadhwani, Sachin Kasnale
Fleet Management Market size is set to surpass USD 55 billion by 2026, according to a new research report by Global Market Insights, Inc.
Increasing demand to improve the operational efficiency of the logistics and transportation sector is driving the fleet management industry growth. The development of wireless technology and advancements in the automotive sector, such as connected vehicles and autonomous driving, are also major factors contributing to the market demand. With increasing government support for Intelligent Transport Systems (ITS) to enhance road safety and reduce traffic congestion, fleet management technology has become mainstream.
Increasing stress on monitoring driver behavior will fuel the market growth trends
The fleet management market is expected to grow exponentially as fleet owners are increasingly emphasizing on tracking driver behavior. Advanced fleet management systems have a feature of driver-behavior monitoring, which prevents rash driving behavior and reduces on-road accidents. Drivers can also benefit from the On-Board Diagnostics (OBD) feature to monitor the performance and maintenance requirements of vehicle engine components.
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Amid the ongoing coronavirus pandemic, fleet management providers are witnessing a moderate decrease in their sales volumes and market revenues globally. The decline is expected to negatively impact the industry. Market conditions related to the COVID-19 pandemic have eroded the rental, supply chain automotive, and used-vehicle sales markets. The erosion has resulted in the majority of fleet management solution providers witnessing a significant decline in revenues. The declining sales of commercial fleets will also hamper the market statistics.
Browse key industry insights spread across 260 pages with 241 market data tables and 40 figures & charts from the report, “Fleet Management Market Size By Deployment Model (On-premise, Cloud), By Solution (Operation Management, Driver Management, Vehicle Tracking System), By End-use (Transportation, Construction, Manufacturing, Utility), Industry Analysis Report, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2020 – 2026” in detail along with the table of contents:
Increased control over fleet data to support the deployment of on-premise solutions
The on-premise fleet management market is expected to grow at a CAGR of over 15% during 2020 to 2026. On-premise deployment enables fleet operators with enhanced control and management capabilities over fleet operations. Unlike cloud-based solutions, solutions deployed over on-premise infrastructure reduce security concerns. Additionally, network outages do not affect fleet operation applications due to the absence of connection to cloud infrastructure.
Growing concerns over asset safety along with driver productivity
The driver management segment held around 30% market share in 2019 owing to the growing demand to monitor driver behavior consistently to minimize risks associated with asset management. The aggressive driving and instances of distractions pose potential risks to fleet drivers and may result in hefty financial loss. Moreover, fleet operators report extensive overtime claims made by fleet drivers. Sophisticated fleet management solution with driver management addresses these concerns, enabling fleet operators to gain operational efficiencies.
Rising demand to manage construction fleet assets including heavy equipment to trigger the fleet management market growth
The construction segment held a market share of more than 20% in 2019 propelled by the growing demand for cost-effective vehicle tracking technology from construction companies to manage their expensive assets. The use of vehicle tracking systems helps construction enterprises to locate heavy equipment across remote locations in real-time. Furthermore, considering the number of fatalities, one in five incidents are reported at construction sites, leading to the need to monitor the exact equipment behavior during working hours.
Increasing stress on passenger safety to fuel the APAC market growth
The Asia Pacific fleet management market share is expected to register steady gains at nearly 25% CAGR through 2026driven by the increasing adoption of smart cities and increasing awareness of passenger safety in the public transportation system. Government authorities are emphasizing on the safety and security of passengers in public transportation, especially women and children in urban areas.
Acquisition is the key strategy adopted by leading fleet management providers
The major fleet management solution providers are acquiring rival technology companies to leverage technological know-how and design innovative fleet management solutions. For instance, in September 2020, Omnitracs acquired SmartDrive, a major player in video-based safety and transportation intelligence. The acquisition is expected to help Omnitracs to develop an end-to-end platform that optimizes safety, driver productivity & workflow, routing, dispatch, and compliance.
Major players operating in the fleet management market are ARI Fleet Management Company, Astrata Europe BV, Automile Inc., Azuga, Inc., Bestmile SA, ClearpathGPS, Inc., Donlen Corporation, Element-Arval Global Alliance, Garmin Ltd., Geotab, Inc., GPS Insights, ID Systems, Inc. (Powerfleet), Inseego Corporation, KeepTruckin, Inc, LeasePlan Corporation., Masternaut Ltd., MiX Telematics International (Pty) Ltd., NexTraq, LLC, Omnitracs, LLC, Onfleet, Inc., ORIX Corporation, Samsara Networks, Inc., Teletrac Navman US Ltd., ThingTech, LLC, TomTom International BV, Tourmaline Labs, Inc., Trimble, Inc., US Fleet Tracking, Utilimarc, Inc., Verizon Connect, and Wheels, Inc.