Fleet Management Market size worth over $45 Bn by 2027
Published Date: June 11, 2021 Authors: Preeti Wadhwani, Smriti Loomba
Fleet Management Market size is set to surpass USD 45 billion by 2027, according to a new research report by Global Market Insights, Inc.
Growing adoption of AI technology in vehicle telematics to improve fleet efficiency is driving the fleet management industry growth. AI enables the use of present & historical data to come up with predictive analytics to minimize potential risks. AI-based fleet analytics helps fleet operators to gain insights into real-time fleet operations. Operators leverage IoT, machine learning systems, displays, and communication systems to integrate sophisticated fleet management systems with AI.
Increasing demand for connected fleet solutions will fuel the market revenue
The growing proliferation of IoT devices across the transportation industry is supporting the fleet management market demand. According to the GSMA Intelligence’s Mobile Economy Report 2020, in 2019, there were approximately 35 billion IoT connections across the globe, which are set to exceed 80 billion by 2024. The emergence of innovative auto tech companies, such as Aeris Communication and Telit IoT Platforms, LLC, has brought IoT-based fleet management solutions into the mainstream. Fleet operators connect fleet assets & vehicles by using IoT devices and provide the ability to monitor fleet operations remotely. Thus, the extensive adoption of IoT devices and telematics platforms is anticipated to fuel the market growth.
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Scalability offered by cloud-based fleet solutions is propelling the market expansion
The cloud deployment model is estimated to grow at over 15% CAGR through 2027 owing to the scalability and cost-effectiveness offered by cloud-based fleet management platforms. Fleet management solutions & services delivered over the cloud infrastructure make it possible for fleet operators to manage and monitor fleet operations remotely. In the present technologically evolved economy, traditional fleet solutions are unable to support the management of fleet operations. The use of an on-premise solution assists fleet operators in monitoring and administrating physically connected fleets & assets.
Browse key industry insights spread across 362 pages with 418 market data tables and 47 figures & charts from the report, “Fleet Management Market Size By Solution (Operation Management, Driver Management, Vehicle Tracking System), By Vehicle Type (Passenger Vehicle, Commercial Vehicle [Light-duty, Medium-duty, Heavy-duty (Tractor, Trailer)], By Deployment Model (On-premise, Cloud), By End-use (Transportation, Construction, Manufacturing, Utility), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2021 – 2027” in detail along with the table of contents:
Increasing concerns over vehicle on-road safety to support the demand for driver management systems
The driver management segment held around 25% of the fleet management market revenue share in 2020 led by the increasing emphasis on improving driving behavior to reduce road fatalities. Fleet management solutions collect real-time data from GPS & telematics and provide enhanced visibility to fleet managers on driver safety. With improved safety, driver management systems allow the profiling of driving offenses and accidents to analyze specific training requirements. To prevent potential violations and accidents caused by fleet drivers, the adoption of driver management solutions is growing significantly over the forecast period.
Rising demand to reduce fleet operational costs across the transportation sector
The transportation sector accounted for more than 25% of the market revenue share in 2020 on account of the growing focus on improving operation costs across transportation companies using vehicle telematics solutions. The increasing operational costs and the need to reduce expenditure on fuel are primary concerns driving transportation companies to adopt advanced methodologies. The use of fleet solutions including vehicle tracking & telematics solutions and driver management solutions helps transporters to minimize the expense of fuel and maintain the fleets.
Heavy-duty segment is likely to witness significant growth
The heavy-duty segment is growing significantly through 2027 driven by the rising demand for fleet management solutions across construction and mining. The expansive proliferation of heavy-duty commercial vehicles across the world is anticipated to contribute to the market growth. Companies, such as Valeo, offer a comprehensive suite of connected solutions for heavy commercial vehicles. For instance, Valeo offers InBlue, a software solution for fleet managers to remotely monitor and manage fleet operations across multiple locations.
Increasing number of commercial vehicles is expected to fuel the Asia Pacific market growth
The Asia Pacific fleet management market is forecast to register 20% growth rate till 2027 impelled by increasing number of commercial vehicles in the region. Transportation & logistics service providers are looking for innovative fleet management solutions to save their operational costs. These solutions are reliable and cost-effective, enabling them to track fleet operations in real-time.
Companies operating in the fleet management industry are leveraging the growing vehicle tracking market through the strategic acquisition of technology companies. For instance, in March 2021, Azuga acquired Mobikit, an insurance data science and analytics company. Through this acquisition, Azuga will integrate the SaaS platform to accelerate the benefits and insights of telematics, AI, and video & vehicle data. This acquisition helped the company to strengthen its fleet management portfolio and provide a sustainable solution to its customers.
Development of innovative solutions is the key strategy adopted by leading market players
The major companies are developing innovative fleet management solutions to strengthen their market position. For instance, in December 2020, Verizon introduced Reveal Starter, a plug-and-play fleet management solution for small businesses. This new solution helps small businesses to manage various fleet and driver parameters such as driver assignments, miles driven, and driver behavior. This product launch helped the company to acquire new customers, thus enhancing its fleet management business.
Major fleet management industry players operating in the industry 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.