Fleet and Transportation Management System for Transportation and Logistics Market Expected to Reach $64.9 Billion by 2031

Presently, the global fleet and transportation management system for transportation and logistics market is dominated by Asia-Pacific followed by Europe, North America, and Latin America & Middle East. In Asia-Pacific, the market is mainly driven by China owing to the optimistic automotive sector scenario coupled with rise in demand for vehicle tracking and telematics. In North America, the U.S. is expected to witness considerable growth in the fleet and transportation management system for transportation and logistics industry during the forecast period.

Fleet management deals with the management of commercial vehicle operations on a 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. 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. In addition, a transportation management system is a platform designed to streamline a shipping process. It is a subset of supply chain management concerning transportation solutions. A transportation management system allows shippers to automate processes within supply chain and receive valuable insights to save time and reduce expenditure on future shipments.

In addition, key manufacturers have carried numerous developments such as Trimble Inc., Verizon Communications Inc., Wheels LLC, SAP, Geotab Inc., and others, which has created ample opportunities for the market's growth across the globe. Moreover, the key players operating in the industry have launched some fleet management services & telematics apps for fuel management, asset management, android apps, camera & video solutions, SAP solutions, reverse geocoding, and ADAS map solutions, which effectively leads to the growth of the fleet and transportation management system for transportation and logistics market across the globe. For instance, in 2020, Geotab Inc., a prominent player in IoT & connected transportation, launched a Geotab Public Works Solution designed to support government agencies by providing improved fleet management capabilities to control cost without hampering the environment.   

The fleet and transportation management system for transportation and logistics market is segmented on the basis of application, component, and region. By application, the market is further categorized into scheduling, routing and tracking, ADAS, fuel management, telematics and others. On the basis of component, the market is segmented as solutions and services. By region, the market is analyzed across North America, Europe, Asia-Pacific, Latin America, Middle East and Africa.

Factors such as rapid technological integration and adoption across the transportation & logistics sector, are creating a positive correlation for the fleet and transportation management system for transportation and logistics market. Furthermore, exponential growth within the e-commerce industry is also projected to fuel the adoption of fleet and transportation management systems. However, high upfront cost create a staggering effect on the market. However, strengthening communication network vehicles coupled with rise in concerns about fleet safety is estimated to have a positive impact on the fleet and transportation management system for transportation and logistics market growth during the forecast period.

COVID-19 Impact Analysis:       

COVID-19 has presented the world with an unprecedented economic, humanitarian, and healthcare challenge. Lockdown measures have helped to contain the spread of coronavirus, but exacted an immense economic toll. On the business side, the transportation and logistics is one of the considerably hit sectors. Supply chains are exceptionally complex, with myriad companions unfold throughout more than one area as a part of an unprecedented, intertwined worldwide alternate ecosystem. The COVID-19 pandemic has induced a huge strain on global supply chains as they rush to complete and ship orders as quickly as possible. Transportation organizations needed to ensure that transportation networks can continue to operate throughout the lockdown measures, striking a balance between reduced operations and providing enough capacity for key workers to practice social distancing.

In addition, several companies active in mergers and strategic partnership to sustain in pandemic period. For instance, in November 2020, Athene Holding Ltd. and Hertz Global Holdings, a renowned financial services business, entered into a stock and asset purchase agreement to acquire Donlen. In addition, Geotab teamed with SAP (Germany) in October 2020 to give businesses that use SAP solutions and Geotab’s fleet management service visibility into their company’s telemetry data via the SAP Cloud Platform. In addition, with initiation of coronavirus vaccination across the world and consequent resuming of all domestic and international ports, the global fleet and transportation management system for transportation and logistics market is expected to grow considerably.

KEY FINDINGS OF THE STUDY

• By application, the scheduling, routing and tracking segment dominated the global fleet and transportation management system for transportation and logistics market in 2021, in terms of revenue.
• By component, the solution segment is expected to register significant growth, registering a CAGR of 9.2% during the forecast period.
• By region, Asia-Pacific dominated the global fleet and transportation management system for transportation and logistics market in 2021 in terms of market share.

The prominent players operating in the fleet and transportation management system for transportation and logistics market are Azuga Inc., E2open Parent Holdings Inc., Element Fleet Management Corp, Geotab Inc., Holman Inc., MercuryGate International Inc., Solera Holdings LLC, Trimble Inc., Verizon Communications Inc., Wheels LLC, SAP SE, and Samsera Inc.