According to a recent report published by Allied Market Research, titled,"Smart Fleet Management Market by Mode of Transportation, Application, and Connectivity: Global Opportunity Analysis and Industry Forecast, 2018–2025," The global smart fleet management market size was valued at $276.56 billion in 2017, and is projected to reach $537.53 billion by 2025, registering a CAGR of 8.9% from 2018 to 2025.
At present, Asia-Pacific dominates the market, followed by Europe, North America, and LAMEA. China dominated the global smart fleet management market in 2017, whereas South Korea is expected to grow at a significant rate in Asia-Pacific during the forecast period.
Incorporation of real-time fleet monitoring systems in automobiles, rise in use of cloud-based technology for smart fleet management solutions, and improvements in vehicle monitoring & fuel management are the main factors that boost the growth of smart fleet management industry. Furthermore, advent and integration of IoT and information, communication, & technology (ICT) into industries such as automobiles, logistics, and transportation drive the market growth. In addition, continuous tracking of driver behavior, vehicle tracking, real-time visibility, driver management, and others has resulted in significant market growth. Furthermore, effective communication network with emergence of 4G, 5G, and other wireless technologies; growth in vehicle replacement market; and increase in international trade fuel market expansion. However, price concerns of fleet owners and cyber security concerns restrain the market growth. On the contrary, increase in awareness about better driver and vehicle safety and enhancement of business decisions for fleet owners are expected to offer lucrative opportunities for the fleet management businesses in the near future.
Smart fleet management solutions comprise operation management, driver management, and vehicle management solutions. Increase in adoption of smart fleet management analytics is anticipated to drive the growth of the smart fleet management market in the next few years. Other driving factors include surge in demand for fleet monitoring & real-time tracking systems, increase in use of cloud-based technology for smart fleet management solutions, and improvement in vehicle monitoring & fuel management.
Smart fleet solution is a fully integrated system used in automotive to simplify creation of effective maintenance plans. By using software based on artificial intelligence (AI), Internet of Things (IoT) and data analytics smart fleet management solution enhance driver & fuel management,, vehicle maintenance, and tracking all other type of vehicles activity. Moreover, it benefits businesses that are considerably dependent on transportation of goods and services, with improved productivity and efficiency. It integrates commercial, technical, or operational requirements and restrictions. With access to real-time fleet status and fleet data, fleet managers can perform operations more effectively and increase driver productivity. The smart fleet management market share largely is directly related to the advancement and expansion of the ADAS & tracking applications. The smart fleet management market forecasted from year 2018-2025 by considering all the driving factors that influence equally to the smart fleet management market applications.
The safety services offered in smart fleet management are an appropriate example of cutting edge aftermarket asset & operation-based management technology, which involves sharing data between the vehicle and humans. Safety is a combination of telecommunication and automobile technology used to improve vehicle efficiency, reduce fuel consumption & maintenance cost, enhance security & safety measures, and assist the driver to enhance his overall driving experience. Advance driver assistance system (ADAS) is another feature of the smart fleet management that helps the driver find the most appropriate route to reach the destination. in addition, it prompts alert messages regarding traffic jams and parking space availability. All these fleet operation-based features provide intelligent transportation systems, which are designed to improve the overall driving experience. Moreover, AI and machine learning capabilities facilitate autonomous dispatching & routing and empowers fleet managers to predict vehicle health and driving habits based on a vehicle’s utilization with lower maintenance requirements and cost-effectiveness. All these factors together significantly contribute toward smart fleet management market growth.
The use of smart fleet management is increasing significantly, as it provide wide range of critical alerts, real-time alerts, driver behavior & anti-theft notifications, and safety alerts. Moreover, use of smart fleet management enhances safety, ensures compliance, and reduces costs. Smart fleet operators track vehicles in real time to reduce idle time and transportation costs, thereby increasing the operational efficiency of vehicle management.
Fleet operators track vehicles through route optimization or selection of best routes in real time that further reduces the transportation costs and idle time by increasing the operational efficiency. The purpose of smart fleet management is to deliver effective real-time monitoring, fleet tracking, and security. Moreover, data generated from IoT and sensors help in analyzing and making a cost-effective decision as per requirement. For instance, a manager of a fleet of cars can get the data of fuel efficiency based on the route taken.
Key Findings Of The Smart Fleet Management Market:
In 2017, based on mode of transportation, the roadways segment generated the highest revenue.
In 2017, by application, the ADAS segment was the highest revenue contributor.
In 2017, depending on connectivity, the short range segment was the highest revenue contributor.
In 2017, region wise, Asia-Pacific contributed the highest market revenue, followed by Europe, North America, and LAMEA.
The key players analyzed in this report are Cisco Systems, Inc., Continental AG, DENSO CORPORATION, Globecomm (Speedcast International Limited), International Business Management Corporation, Samsung Electronics Co. Ltd. (Harman International Industries, Inc.), Tech Mahindra Limited, Robert Bosch GmbH, Siemens, and Sierra Wireless.