Fleet Management Market

Fleet Management Market Growth Outlook (2022-2032)

Global demand for fleet management was valued at US$ 39.1 Million in 2021 and is projected to reach US$ 48 Billion by 2022-end. From 2022 to 2032, the fleet management market is forecast to flourish at a 17.4% CAGR. By the end of the aforementioned forecast period, a valuation of US$ 239 Million is anticipated for the market.

Demand for fleet management solutions is likely to reign supreme, with a documented historical CAGR worth 20.8% from 2015-2021. Among components available, the demand for cloud deployment is expected to grow at a CAGR of 23% over the assessment period while operations management will exhibit a CAGR of 16.8% through 2032.

Report Attributes	Details
Anticipated Base Year Value (2021)	US$ 39.1 Million
Expected Market Value (2022)	US$ 48 Million
Estimated Market Size (2032)	US$ 239 Million
Global Growth Rate (2022-2032)	17.4% CAGR
U.S Market Size (2032)	US$ 70.4 Million
China Market Growth Rate (2022-2032)	20.9% CAGR
Key Companies Profiled	TomTom N.V. Zebra Technologies Corp. Trimble Inc. Cisco Systems, Inc. GoFleet Corporation Geotab Inc. Digital Matter GPS Trackit Fleetmatics Group PLC GoGPS Wireless Links Embitel Gurtam Teletrac Navman Linxio StreetFleet TigerFleet Ruptela Trakm8 Limited WebEye Telematics Group

Revenue Analysis of Fleet Management 2015-2021 vs. Demand Outlook 2022-2032

As per market research and competitive intelligence provider Fact.MR, sales of fleet management grew at a 20.8% value CAGR from 2015 to 2021. The market is projected to witness significant growth due to various factors including the rise in fuel cost, the growing need for operational efficiency, reliable and cost-effective fleet management, coupled with the growing demand for cloud-based and big data analytics solutions.

To add to these factors, technological innovation is playing a significant role in every industry vertical. Technological advancements have been backing up the logistics and transportation industry exceptionally. In today's times, the need for faster delivery is increasing. A fast and timely consignment delivery is ensured with the rising penetrations of smartphones along with the launch of outstanding applications which provide massive availability of real-time tracking solutions.

Furthermore, fleet management solutions are being widely used by large- and medium-scale fleet owners for streamlining operations and ensuring standardized work. Owing to such advancements in technology, fleet management solutions enable consumers and businesses to facilitate cost-efficient transport and logistics with fuel and route choice optimization.

Prominent Drivers Influencing Fleet Management Market Growth

Digital Transformation to Drive the Sales for Fleet Management Solutions

With the advent of technology, firms at various levels have gained the leverage to de-structure departments and deploy additional staff on the front line to offer support in the consultancy services. Increasing digitization plays an important role in providing visibility into the warehouse supply chains.

Currently, the use of 5G technology by fleet operators enables tracking the products in real-time and also provides an accuracy of its location, due to which the demand for fleet management systems is expected to increase in the coming period. This information could deliver potentially huge benefits in terms of predictive maintenance, safety, and asset management.

Further, enterprises can take the advantage of smart technologies to monitor storage conditions and autonomously adjust them. The authorities are alerted right away if any product is lost, increasing the odds of product retrieval and determining the person responsible for the occurrence. Various companies working in the global network provider industry are offering satellite communication solutions ;to better monitor the fleet vehicle.

For customers, such smart digital platforms are becoming ever more intuitive and flexible. Digital interaction and customer service-based Artificial Intelligence (AI) systems are high in demand across the industry to ensure high levels of personalization which are increasingly replacing car showrooms.;

Rise in Fuel Costs to Turn out Opportunistic

With government regulations’ changing very frequently, the fuel economy has been in a state of flux. Any increase in fuel costs can impact the carriers and small shipping companies by influencing overhead costs and profitability. For instance, in India, in March 2022, industry sources said that fuel retailers need to raise the price of petrol and diesel by Rs 15 per liter to break even.

The rising price has forced many fleet management companies catering to the last-mile delivery needs of pharmacies, restaurants, large marts, couriers, and logistics companies, to opt for fully to low-speed two-wheeler Electric Vehicles (EVs). This helps them in saving close to 90% of the fuel cost.

To cater to the demand, various industry leaders are investing themselves in innovation and development of impressive products. In February 2022, Element Fleet Management Corp., the largest pure-play automotive fleet manager in the world, announced the launch of Arc by Element — an end-to-end electric vehicle (EV) fleet offering designed to help clients navigate and simplify the complex transition from internal combustion engine (ICE) vehicles to EVs.

Key Restraints/Challenges to Market Expansion

Concerns Regarding Driver Productivity and Safety 

For every fleet management company, the safety of its drivers is absolutely important for effective fleet management operations. Fleet managers need to educate themselves regarding safe driving programs, regulations, and analytics in order to ensure the safety of the drivers and their rigs and cargo.

The prevalence of preventable accidents is on a rise due to the increasing utilization of cell phones and GPS systems. Here, driver’s education comes into play as developing proper knowledge of how to use technology properly and safely is necessary. The prevention of such accidents helps in controlling unexpected costs like repairs, downtime, and liability. Furthermore, fleets’ safety history is directly linked with insurance costs. Therefore, a lesser number of accidents keep the insurance costs down.

For fleet managers, extracting maximum productivity out of the drives is a major challenge. Technology can play a role in this through services like GPS and speak-to-call technology. Drivers can operate these tech services in the most efficient manner. These services also help in saving time when combined with other technology options, like geofencing and automated cellular tracking as by using such combinations drivers spend less time on tactical phone calls and give their full attention to the road.

Country-wise Analysis

What is the Scope for fleet management in the U.S?

High Deployment and Extensive Cost Benefits of Fleet Management

The fleet management industry in the U.S is expected to reach US$ 70.4 Mn in value terms by 2032-end, exhibiting a CAGR of 18.2%. As per a 2021 Fleet technology trend report by Verizon that encompasses surveys undertaken by more than 700 U.S. fleet managers, executives, and other mobile-business professionals, the fleet businesses are achieving value by investing in fleet tracking technology.

The report further stated that approximately 96% of fleets in the country are deploying GPS fleet tracking software. Then, 32% of respondents reported a positive return on investment (ROI) in just six months of implementing fleet tracking technology, whereas 45% of 1,200 respondents achieved positive ROI in 11 months or less with fleet management solutions, increasing 18.4% from last year.

In the US, growth is attributed to the high adoption of remote sensing capabilities by notable end use industries, including utilities, transportation, defense & intelligence and infrastructure development. New frontiers are being opened up by drone, aerial, satellite imagery, and other types of remotely sensed data. Furthermore, the US Department of Homeland Security has also taken fleet management solutions to provide fleet managers access to data-driven insights to manage the daily operations of the fleet. The Department of Homeland Security (DHS) landed a telematics contract with WEX Inc. to supply vehicle telematics products and services.

In addition, fleet management is increasingly being used for strengthening defense and military capacities across the U.S. According to WEX, Homeland Security operates a fleet of around 52,000 vehicles, making it one of the largest federal agency fleets in the United States. Given the aforementioned factors, demand for defense fleet management is rising impressively, registering an absolute dollar growth of US$ 57.2 Mn.

How is China Generating Demand for Fleet Management Uptake?

Strengthening Internal Security, Swift Urbanization Driving Market Demand

According to Fact.MR, fleet management is forecast to exhibit high demand across China, registering a CAGR of 20.9%. The growth is attributed to the rising emphasis on the potential fleet operators and their operational efficiency.

The Chinese government is concerned about building the gap between the people having a driving license and the people owning a car. This gap is the explanation for the flourishing of rental and car-haling services. Speaking of hybrid and electric vehicles, China, they have a high uptake in China.

All these elements influence the future and the nature of the fleet management industry in China. Fact.MR projects the fleet management market in China to surpass an impressive valuation of US$ 38.4 Mn.

Country-wise CAGR from 2022-2032

Country	CAGR
U.S	15.6% CAGR
U.K	18.4% CAGR
China	20.9% CAGR
Japan	13.6% CAGR
India	17.3% CAGR

Category-wise Insights

Which Deployment Leads the Way in the fleet management industry?

Demand for Cloud to Experience Significant Adoption

By technology deployment, Fact.MR expects the cloud to be the most widely adopted, expected to flourish at a 23% CAGR from 2022-to 2032. Cloud has emerged as an important source of innovation, and growth in inventory management, workforce management, electronic data interchange, and others.

Cloud service providers help fleet management units get rid of the physical infrastructure and have access to virtual machines. These machines can help with data storage, and data processing, and offer computing power for running their applications with reduced cost, time, and space required.

By Type, Which is Likely to be the Most Preferred?

Operations Management to Reign the Fleet Management Market Services

According to Fact.MR, demand for fleet operators in operations management is expected to incline at a staggering 23% CAGR until 2032. Fleet management tools can help fleet managers gain real-time visibility into their operations. This increases driver satisfaction and reduces fuel usage through predictive analytics and accurate reporting. Nearly 3/4th of fleet managers rely on fleet management software to help support their day-to-day operations.

Competitive Landscape

Prominent providers are focusing on offering a level of competition due to high market consolidation by market leaders and increased R&D activities, leading to innovations in telematics and analytics solutions. Furthermore, top-ranking providers are relying on collaborations, acquisitions, and partnerships with existing players to widen their outreach. Some notable developments are as follows:

• In October 2021, Ctrack announced the launch of PC Secure which allows devices to be tracked and recovered in the same way that Ctrack has done for the past 30 years with stolen vehicles and other assets. Ctrack PC Secure makes any laptop or desktop computer visible for Ctrack to recover stolen laptops or desktops using innovative software.
• In June 2021, Dtac Business announced its partnership with Cartrack Technology to provide fleet management solutions to small and medium enterprises in Thailand. The Fleet Management solution powered by dtac’s full suite of IoT connectivity solutions has advanced features, such as fuel usage monitoring, intelligent transport planning solutions, and driver behavior monitoring, through which business owners can easily monitor via both mobile app and web portal. Using Cartrack’s advanced AI technology, Fleets can be optimized to reduce fuel consumption, creating driving zones to help increase work efficiencies and reduce operational costs.

Key Segments Covered in the Industry Report

• By Deployment :

  • Cloud
  • On-Premise

• By Type :

  • Vehicle Management
  • Driver Management
  • Operations Management

• By End User :

  • Transportation & Logistics
  • Automotive
  • Retail
  • Government
  • Shipping

• By Region :

  • North America 
  • Latin America 
  • Europe 
  • Asia Pacific 
  • Middle East & Africa