What are the upcoming trends for the fleet management market?
The global fleet management market size is expected to grow from USD 15.9 billion in 2018 to USD 31.5 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.7% during the forecast period. The growth of the fleet management market can be attributed to the rising focus of fleet owners on fleet efficiency, and cloud-based deployments of fleet management solutions. The primary factor driving the growth of fleet management market include the increasing government regulations. The other factors supporting the market growth include the decreasing hardware and software costs and the introduction of autonomous fleets.
Where the key developments in the fleet industry are implemented in the last 3 years?
Market Developments in the past 3 years are:
In March 2019, Trimble announced that it introduced an enhancement to its fleet management solution, Trimble PULSE, by adding in it an intelligent telematics platform that connects, monitors, and manages assets for improved decision-making at reduced time. In February 2019, Omnitracs launched Active Mobile Gateway with Communications (AMG-C), an advanced BYOD solution that offers device pairing, flexible connection options, such as WiFi, 4G, LTE, Bluetooth, and simple management. This new launch would help drivers have more flexible solutions using the LTE connectivity while working from anywhere.
Which segment of fleet management industry provides growth opportunities?
The cloud segment to constitute a larger market size during the forecast period. By deployment type, the fleet management market is segmented into on-premises and cloud. The cloud segment is expected to grow at a higher CAGR during the forecast period, due to its cost-efficiency and hassle-free integration. Among fleet types, the passenger cars segment is expected to lead the fleet management market in terms of market size during the forecast period. Among services, the managed services segment is expected to witness a higher CAGR during the forecast period, due to the increasing focus on primary operations by major companies. These services offer technical skills that are required to maintain and update the software in the fleet management ecosystem. All pre- and post-deployment queries and needs of customers are addressed under managed services. Companies mainly outsource such services to offer customers on-time delivery. Integrated facility management, consultancy, and round-the-clock helpdesk are some upcoming managed services fleet operators require. The managed services segment is mainly driven by the increasing adoption of outsourced managed services across fleets.
Who are the leading vendors operating in the fleet management market?
The key and emerging market players in the fleet management market include ARI Fleet Management (US), Azuga (US), Chevin Fleet Solutions (Australia), Ctrack (US), Donlen Corporation (US), Geotab (Canada), GPS Insight (US), Masternaut (UK), MiX Telematics (South Africa) , Nextraq (US), Teletrac Navman (US), Trimble (US), Verizon Connect (US), Wheels, Inc (US), and Fleetroot (UAE). These players have adopted various strategies to grow in the global fleet management market.
What are the opportunities for new market entrants in fleet management industry?
Growing adoption of cloud computing and big data analytics solutions for streamlining fleet management operations. The adoption of cloud computing provides much needed benefits to fleet owners in terms of real-time fleet visibility, cost-effectiveness, improved vehicle uptime, and lower maintenance cost. On-premises fleet management solutions may not provide these advantages. Hence, fleet management vendors are increasingly leveraging cloud technologies to provide scalable solutions that cater to changing customer needs. Cloud-based solutions can be accessed from anywhere through multiple devices. It enables fleet managers and owners to easily monitor their fleets and make quicker and more informed decisions related to fleet operations. Big data analytics is among the biggest drivers in fleet management. Speed, efficiency, and reliability are the factors that determine the success of fleet business. With technology advancements and increasing digitization, organizations generate enormous amounts of data, but struggle to gain significant benefits from them. Big data analytics brings the real value of data to improve operational efficiencies and customer satisfaction at reduced costs. The rapid increase in big data applications has led to the need for developing innovative technologies to optimize cost efficiency. Thus, these factors are expected to drive the demand for new analytics platforms and new data storage centers.
How are the green fleet initiatives helping the fleet management market to grow exponentially?
Fleet operators are increasingly adopting green practices that mutually benefit the environment and enterprises’ fleet operations. The prevalent approach of implementing green technology involves scaling down vehicle weight, using lower carbon fuels, and regular maintenance of fleets, but these approaches are cost prohibitive and time consuming. As fleets’ contributions to harmful greenhouse emissions continue to rise, there is a growing need to find solutions that offer both fiscal and environmental benefits. To support the need, governments are now incentivizing fleet owners on every purchase of fuel-efficient fleets or the use of alternate fuels. The rewards can be offered as low-cost loans, tax credits, and vouchers. For instance, in May 2017, the Ministry of Energy, Dubai, launched an incentive program advocating the purchase of new zero carbon emission electric vehicles. The incentives comprise green bank loans, green insurance plans, attractive electric vehicle prices, and green registration of vehicles. According to the International Energy Agency (IEA), global sales for electric vehicles grew by 54% in 2017 with China accounting for about 50% of total sales. Though the penetration rate for electric car fleets still is less than 1%, it is expected to grow rapidly during the next decade.