Fleet Management Market Size, Share, Competitive Landscape and Trend Analysis Report, by Vehicle Type, by Component, by Communication Technology, by Industry and Region: Global Report opportunity Analysis and Industry Forecast, 2020-2030

Fleet Management Market Outlook, 2030

The global fleet management market was valued at $19.47 billion in 2020, and is projected to reach $52.50 billion by 2030, registering a CAGR of 10.6% from 2021 to 2030.

Fleet management is the management of commercial vehicle operations at larger scale. It can be defined as the processes used by fleet managers to monitor fleet activities and make decisions from asset management, dispatch & routing, and vehicle acquisition. Businesses that rely on transportation utilize fleet management to control costs, productivity, fuel management, and compliance. Thus, fleet managers are responsible for maintaining costs, maximizing profitability, and reducing fleet vehicle risks. Furthermore, it involves vehicle financing, driver management, and vehicle telematics related to watercraft, aircraft, commercial vehicles (LCVs & HCVs) and railways.
In addition, fleet management offers finance management, enhanced safety of vehicle & driver, and operational competency with real-time fleet tracking analysis. Most fleet managers use fleet management software to improve overall fleet safety, customer services, and increase visibility & profitability with process management & research.  

Factors such as rising concerns about fleet safety, mandatory government regulations towards vehicle maintenance & tracking, need for operational competency in fleet management, and increase in the adoption of wireless technology owing to their low cost & availability supplement the market's growth across the globe. However, factors such as cost sensitivity among local players and lack of uninterrupted & seamless internet connectivity hamper the market's growth around the world. Moreover, factors such as the development of transportation in the logistics industry, the adoption of intelligent transport systems, and the strengthening of communication networks create ample opportunities for the market's growth during the forecast period.

The global fleet management market report is segmented on the basis of vehicle type, component, communication technology, industry, and region. Depending on vehicle type, the global market has been segmented into light commercial vehicle, heavy commercial vehicle, aircraft, railway and watercraft. By component, the global market has been segmented into solution and services. By communication technology, the market has been segmented into global navigation satellite system (GNSS) and cellular system. By industry type, the market has been segmented into retail, government, transportation & logistics, automotive, and other.  Region wise, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA. 

Key Market Players

The key players operating in the global fleet management market are AT&T, Cisco Systems, Inc., Freeway Fleet Systems, Geotab Inc., IBM Corporation, I.D. Systems Inc., MiTAC Holdings Corporation, Navico, TomTom International BV., and Verizon. 

Need Of Operational Competency In Fleet Management

The practice of efficient operational fleet management requires a system of technologies that makes the process easier for the fleet managers to coordinate & track the activities right from fuel management to route planning. At present, fleet operators have adopted technologies such as enormous fleet tracking processes, electronic information systems, and cloud-based applications to efficiently accomplish fleet management operations. Moreover, the introduction of wireless technology, including asset management & tracking, vehicle & driver tracking, two-way communications, customer relationship management, and others in various firms & industries, fuels the functioning management of fleet operators. Thus, the fleet management software acts as a critical component to increase operational competence & deliver efficient business decisions. 

In the UK, several organizations, including Tesco, NatWest Group, and The Environment Agency, started accelerating the deployment of electrified fleets in their vehicle fleets to overcome & develop innovative solutions based on asset availability, asset utilization, asset finance, and asset efficiency to reduce risks & built collaborative demand in the fleet management market. Hence, the demand for technological innovations to access wider regions fuels the need for operational competency in fleet management.

Rising Concerns About Fleet Safety

Safety is one of the top work challenges faced by fleet operators. Thus, due to the disastrous impact of accidents and other emergencies, the demand for technologically innovative applications such as alarm systems, real-time notification devices, driver behavior monitoring systems, and other AI-based software has increased. Furthermore, integrating IoT & telematics in the automotive industry fetched key innovations for vehicle & driver’s safety creates wider scope for the growth of the market. Moreover, it includes connected fleet technology such as collision avoidance system to improve fleet safety, remote diagnostics to access real-time vehicle services, in-cab video cameras to protect fleets against false claims, and other sensor-based applications to transform the fleet services hub by integrating more technology & robust virtual solutions.
In January 2021, Altrad Services UK announced a strategic partnership with Trakm8, a recognized leader in telematics data, to improve safety across fleet using Trakm8 technology and made significant improvements to combat poor driving & blowout best practices throughout the fleet drivers. Hence, such advancements in technology concerning fleet & driver’s safety foster fleet tracking products in the fleet management market. 

Lack Of Uninterrupted & Seamless Internet Connectivity

Fleet management is a system that uses applications or technology to track and manage different kinds of fleets such as cars, cargo logistics, buses, ambulances, ships, and others. It uses fleet management software to maintain records & send emails as per the stored database. However, it requires continuous internet subscription & data to power the fleet management software actively. Meanwhile, lack of internet connectivity, specifically in developing or underdeveloped economies, causes a delay in assignment deliveries, disruption in the vehicle tracking system, and unable to identify congested traffic circumstances in emergency scenarios. Hence, lack of uninterrupted & seamless internet connectivity leads to ineffective data management, loss of productivity due to unreliable data, lack of available fleet information, and poor routing, may hamper the fleet management market during the forecast period.

Strengthening Communication Network

Fleet solution devices provide analytical data that offers fleet managers a much broader & detailed view of activity in the field. At present, the use of 5G technology by fleet operators has offered more accurate tracking, routing, and vehicle diagnostics. Furthermore, intelligent city functions such as smart traffic management, powered by 5G connectivity, helps drivers to take appropriate routes for time-saving & fuel consumption and offer more efficiency and flexibility through real-time route planning & high-speed communication. Moreover, companies such as Hisky, the global terrestrial network provider, offers satellite communication solutions to monitor the location of vehicle fleets along with drivers worldwide. It also provides an efficient solution for fleet management with unified connectivity & on-the-move satellite communication to offer cost-effective, efficient, and safer fleet operations in rural areas. Thus, the rising demand and enthusiasm for the developments & establishment of intense communication network of fleet management software & other technology devices are opportunistic for market expansion. 

Covid-19 Impact Analysis

• The COVID-19 crisis is creating uncertainty in the market by slowing down the supply chains, hampering business growth, and increasing panic among the customer segments.
• Governments across different regions announced total lockdown and temporarily shutdown of industries, which adversely affected the overall production and sales.
• The global business outlook has changed dramatically post COVID-19 health crisis.
• Moreover, the overall production activities of market players have declined, owing to operations with limited workforce capacity and inadequate health safety measures along with current demand dynamics of the fleet management industry.
• With the advent in pandemic, the automobile & transportation sector came to halt due to the imposed lockdown across the globe, which has also created an adverse effect on the automotive industry across the globe.
• As per the current scenario, overall world is getting back on track slowly with the new restriction and policies to support the economic activities in all industries.

Key Benefits For Stakeholders

• This study presents the analytical depiction of the global fleet management market analysis along with the current trends and future estimations to depict imminent investment pockets.
• The overall market opportunity is determined by understanding profitable trends to gain a stronger foothold.
• The report presents information related to the key drivers, restraints, and opportunities of the market with a detailed impact analysis.
• The current market is quantitatively analyzed from 2020 to 2030 to benchmark the financial competency.
• Porter’s five forces analysis illustrates the potency of the buyers and suppliers in the industry.

  Fleet Management Market Report Highlights