Fleet Management Market Overview:
Fleet Management Market was valued at $7,755 million, and is expected to reach $34,629 million by 2022. Fleet management enables enterprises to track and maintain their vehicles in a cost-effective, quick, and accessible way. It involves functions such as vehicle tracking & diagnostics, financing, driver management, and others. It helps business organizations that depend greatly on transportation to lower or completely eliminate the risks associated with staff cost, operations, and others. Reduced fuel & overall running costs, enhanced safety, and optimized fleet operations, with real-time fleet tracking and monitoring are the benefits offered by fleet management.
Drivers of Fleet Management Market
Need of Operational Competency in Fleet Management
Efficient fleet management requires a lucrative operation management system, which can perform all the processes without much error. The activities that are crucial in fleet management include vehicle & driver tracking, asset management, two-way communication, driver safety & time management, after-sales services, customer relationship management, and others.
Rise in Concerns about Fleet Safety
Tracking and follow-up of the fleet as well as the driver is an important task of a fleet manager. Significant rise in number of accidents globally has become a crucial matter to be handled by the fleet owners. According to the statistics published by the Association for Safe International Road Travel, accident is a one of the leading cause of death, and costs individual countries around 1‐2% of their GDP.
Mandatory Government Regulations
Government plays an important role in fleet management for the safety of the citizens and authorized trades between two parties. Government organizations of various countries have policies to improve management as well as enhance the performance of a fleet. For instance, the U.S. General Services Administration offers centralized procurement for the federal government, which defines certain rules and regulations for the management of public sector fleet in the U.S.
Compulsion of Electronic Logging Device (ELD) Implementation
ELD is an electronic hardware attached to a commercial vehicle engine to gather the data about driving hours. For commercial drivers of trucks and buses, the driving hours are managed by set of regulations known as hours of service (HOS). The Federal Motor Carrier Safety Administration (FMCSA) mandates these rules for the commercial vehicles for safety of fleet and drivers. Incorporation of ELD has significantly increased the adoption of fleet management software and services, especially in the U.S.
Fleet Management Market By Vehicle Type
Rise in number of air passengers and significant increase in aircraft fleet globally are the major factors that drive the growth of the aircraft fleet management market. The market is expected to grow at a significant rate during the forecast period, as per AMR analysis. Furthermore, increase in aircraft fleet is especially observed in Asia-Pacific, and is expected to show 10% increase in aircraft fleet by 2033, as per the report published by AlixPartners, LLP.
Fleet Management Market By Communication Technology
Asia-Pacific shows the highest growth rate, and is projected to grow at a substantial growth rate of 11% per annum, reaching 4.2 billion devices by 2023. Rise in adoption of GNSS in fleet management is driven by rapid urbanization in developing economies, quick access & benefits of GNSS, and government initiatives to strengthen their satellite navigation systems.
Fleet Management Market By Industry
Automotive sector is the dominant sector in the market. As per data extracted from UN Comtrade, around 218 million light and heavy commercial vehicles were traded worldwide in 2014, where Asia-Pacific contributed more than 50% of the total trade. In Asia-Pacific, China is the leading economy with largest manufacturing facilities of automobiles, and is expected to grow at a significant CAGR during the forecast period, followed by India and Australia.
Fleet Management Market By Geography
LAMEA fleet management industry shows high potential to grow in the near future. Rise in GDP in African economies, adoption of telematics & GNSS in few Middle East countries, and rapid urbanization in Latin America are expected to drive the growth of the LAMEA fleet management market. As per the report published by Scotiabank in January 2017, Peru is one of the most stable automotive markets in Latin America, owing to the support gained from the developing mining industry.
Fleet Management Market Key Segments
By Vehicle Type
- Light Commercial Vehicle
- Heavy Commercial Vehicle
- Driver Management Solution
- Operation Management Solution
- Driver Management Solution
- After-Sales Services
- Claim Inspection Services
- Vehicle Tracking/Follow-Up Services
- Customer Relationship Management (CRM)
By Communication Technology
- GNSS (Satellite)
- Cellular System
- Transportation & Logistics
- Others (Manufacturing, Construction, and Energy)
- North America
Key Market Players
- TomTom N.V.
- Fleetmatics Group PLC
- AT&T Inc.
- MiTAC International Corporation
- IBM Corporation
- I.D. Systems
- Cisco Systems, Inc.
- Freeway Fleet Systems
Other organizations mentioned in the report include U.S. General Services Administration, Uber Technologies, Inc., Ola Cabs (ANI Technologies Pvt. Ltd.), Lyft, Didi Chuxing, Grab, European GNSS Agency (GSA), Spireon, Inc., Trimble Transportation & Logistics, Fleet Robo Fleet Management Solutions, DC Velocity, Scope Technologies, Troncalnet, FAMSA, CARSSA Courier Company, Altos Hornos de Mexico (AHMSA), Grupo Autofin de Monterrey, The Goodyear Tire & Rubber Company, Mercedes-Benz, Renault, and others.