“Global Fleet Management Market to Reach $41.54 Billion by 2031.”
The global fleet management market is projected to reach $41.54 billion by 2031 from $8.35 billion in 2022, growing at a CAGR of 19.52% during the forecast period 2022-2031. The growth in the global fleet management market is expected to be driven by increasing demand of cutting extra maintenance and operation costs.
Market Lifecycle Stage
Fleet Management tools used in commercial vehicles are advancing technologically and are expected to grow faster in the forecast period. Key market development activities are expected to be boosted by emergence of the connected vehicles.
The global fleet management market is still in the growth phase. An increasing awareness of fleet management system benefits in the fleet businesses is propelling the Fleet Management market. The growth of fleet management is also attributed to the industrial revolution with the adoption of new technologies.
- In U.S., since December 16, 2019, all fleet managers/commercial drivers have been required to replace their AOBRDs with modern ELDs. The exemption applies to fleets already using an AOBRD device by the original December 18 deadline, so they didn't need ELDs as urgently as others.
- In the United Kingdom, from 2022 The Government of the United Kingdom made mandatory to install speed limiter on all new vehicles produced. The Department for Transport confirmed this after the European Commission approved new rules. Even though the U.K. is no longer a member of the EU, this ruling is still followed. As a result, The U.K. fleet management market is expected to grow significantly in the coming years.
Segmentation 1: by Application Type
- Real Time Location Monitoring
- Fuel Management
- Maintenance Management
- Driver Management
- Weight/Volume Tracking
- Accounting and Insurance
Based on the application type segment, the global fleet management market is expected to be dominated by the real time location monitoring segment during the forecast period.
Segmentation 2: by Vehicle Type
- Light Commercial Vehicles
- Heavy Commercial Vehicles
The light commercial vehicles segment is expected to be the leading segment in the market with the increasing vehicle fleet and demand for applications such as last-mile delivery, logistics, and transportation.
Segmentation 3: by Component
The software component segment dominated the global fleet management market in 2021. The user-friendly features of fleet management software have helped this market sector grow in recent years despite its greater cost.
Segmentation 4: by Deployment
For the year 2021, the cloud segment dominated the global fleet management market. Cloud segment is expected to be the largest segment in the forecast period since they are having lower infrastructure costs, easy-to-use and less complex sophisticated features than on-premises fleet management system.
Segmentation 5: by Region
- North America
- Asia-Pacific and Japan
For the year 2021, North America was the largest region in the fleet management market due to the largest commercial vehicle fleets in the U.S. and fastest adoption of connected technologies in the commercial vehicles. However, the Rest-of-the World and Asia-Pacific and Japan fleet managements market is expected to grow at a high growth rate during the forecast period 2022-2031.
Recent Developments in the Fleet Management Market
- In December 2021, Geotab Inc., a global leader in IoT and connected transportation, announced its partnership with Sygic to provide customers with offline GPS navigation and route planning for trucks and light commercial vehicles.
- In February 2022, Veniam, an intelligent networking provider, combined its technology with TomTom IndiGO, a flexible digital cockpit platform, to deliver best-in-class connectivity for onboard applications and car manufacturers worldwide.
- In August 2020, MiX Telematics acquired Trimble's field service management business. The combination adds significant scale to Mix Telematics company's North American telematics subscriber base while diversifying that business into additional industry verticals.
- In May 2022, Astrata Europe BV. partnered with Bosch Group for five years. This may benefit the company in terms of optimizing its supply chain as it has started production in Europe to focus on reducing delay time and shipping risks of products.
- In April 2021, The world's leading provider of IoT devices and technologies, Queclink Wireless Solutions Co., Ltd., partnered with Sigfox, the OG network pioneer and IoT leader. This collaboration launched a series of initiatives to make asset management and stolen vehicle recovery (SVR).
Demand - Drivers and Limitations
The following are the demand drivers for the fleet management market:
- Growing Number of Vehicle and Asset Thefts
- Increase in Road Accidents
- Volatility in Fuel Prices
- Augmented Demand for Fleet Management Solutions from Transportation and Logistics Industry
The market is expected to face some limitations due to the following challenges:
- Connecting Information Together from a Variety of Sources
- Risk of Cyber Attacks
How can this report add value to an organization?
- Product/Innovation Strategy: The product segment helps the reader understand the different types of fleet management products available by Component (Hardware, Software, and Service), by Deployment (On-Premises and Cloud), by Application Type (Real Time Location Monitoring, Fuel Management, Maintenance Management, Driver Management, Weight/Volume Tracking, and Accounting and Insurance), by Commercial Vehicle Type (Light Commercial Vehicles and Heavy Commercial Vehicles). Increasing demand worldwide is pushing the sales of fleet management systems. Therefore, the fleet management business is a low-investment and high-revenue generating model.
- Growth/Marketing Strategy: The global Fleet Management Market is exponentially growing, with enormous opportunities for the market players. Some strategies covered in this segment are product launches, partnerships and collaborations, business expansions, and investments. The companies' preferred strategy has been product launches, partnerships, and collaborations to strengthen their positions in the global fleet management market.
- Competitive Strategy: Key players in the global fleet management market analyzed and profiled in the study involve fleet management-based product manufacturers and start-ups. Moreover, a detailed competitive benchmarking of the players operating in the global fleet management market has been done to help the reader understand how players stack against each other, presenting a clear market landscape. Additionally, comprehensive competitive strategies such as partnerships, agreements, and collaborations will aid the reader in understanding the untapped revenue pockets in the market.
Key Market Players and Competition Synopsis
The companies that are profiled have been selected based on inputs gathered from primary experts and analyzing coverage, product portfolio, and market penetration.
Key Companies Profiled
- Trimble Inc.
- Cisco Systems, Inc.
- TomTom International BV
- Geotab Inc.
- AT&T Inc.
- Zebra Technologies Corp.
- Teletrac Navman US Ltd.
- Wheels Donlen
- Astrata Europe BV.
- Navtelecom, LLC
- Queclink Wireless Solutions Co., Ltd.
- Wonder Wagen