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The commercial vehicle fleet management system market size is forecast to increase by USD 7.4. billion, at a CAGR of 7.03% between 2023 and 2028. Commercial vehicle fleet management systems are under increasing pressure to reduce operating costs for fleet operators. One solution to address this challenge is the integration of video-based safety systems. These systems not only improve driver behavior by providing real-time feedback, but also help in reducing insurance claims and liability costs. Additionally, the growing focus on efficient use of data in fleet management is leading to the adoption of advanced analytics tools. These tools help in optimizing vehicle utilization, predicting maintenance needs, and enhancing overall fleet performance. By implementing these technologies, fleet operators can effectively manage their operations, reduce costs, and improve safety.
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In the realm of transportation logistics, private industries and public industries alike rely on robust software platforms to manage fleets efficiently. The primary motive is to optimize operations, reduce costs, and enhance service delivery. Key aspects such as storage of data, monitoring gas prices, and ensuring registration compliance are critical for fleet managers. Effective route planning not only saves on labor costs and gas costs but also ensures adherence to state and federal regulations governing transportation. Vehicle maintenance and driver safety are paramount, influencing decisions on cost-savings and vehicle metrics. Routine maintenance schedules and new vehicle purchases are managed through integrated systems that include GPS tracking, video features for real-time monitoring, and driving behavior analysis. Fuel management and route monitoring are enhanced through innovative mobile apps, enabling proactive adjustments to optimize efficiency and safety across the fleet.
One of the key factors driving growth in the commercial vehicle fleet management system market is the high-cost pressure on fleet operators. Rising cost pressure, owing to price fluctuation of fuels and inefficiency of fleet operation, has become a crucial challenge for fleet operators. Therefore, they are adopting cost optimization strategies. Improved transmission design and technology also add to better mileage and fuel efficiency. As FMS helps in the remote monitoring of vehicle components, data generated by each of the components will be a valuable source of information to improve the design parameters of the components. Advanced diagnostic technology in FMS, such as prognostics, is gaining popularity among fleet operators because of its ability to predict component RUL, which reduces unexpected downtime and cost. Several trucks are made to run for a longer period than their recommended economic life, which results in poor fuel efficiency. The prognostic system estimates the optimum time for a replacement part by monitoring real-time data. Thus, it is possible to avoid the replacement of certain parts before their actual economic life is over. This system helps reduce maintenance costs.
Key Market Trends
The growing popularity of 360deg fleet management system (FMS) is a commercial vehicle fleet management system market trend that is expected to have a positive impact in the coming years. In recent years, FMS has evolved from a mere vehicle tracking system to a holistic driving performance solution. The introduction of camera technology as a support system for the FMS to monitor various activities has increased the scope of FMS in enhancing fleet efficiency. The camera technology allows fleet managers to efficiently interpret safety-related issues. For instance, SmartDrive released SmartDrive 360 in 2017 which expands on-demand video capability by triggering up to four cameras based upon safety risks such as collisions. The feed from these cameras is analyzed by an expert driving analyst within an hour and confirmed collisions and alerts are sent to customers so that they can react quickly to the incident. As a result, fleet operators can improve their safety programs and reduce claim processes.
Major Market Challenge
The high cost associated with FMS will be a major challenge for the commercial vehicle fleet management system market during the forecast period. Initial costs of setting up FMS include license, setup, and installation fee, in addition to the payment for customization and integration with current systems. In addition, the license fee must be renewed periodically, which adds to the overall cost. Moreover, integration or customization can be more expensive than the price of telematics devices and license fees. For instance, the hardware cost of FMS offered by Verizon is USD3500-USD6500 per year for a fleet of 10 vehicles, with a monthly fee of USD35 for a one-year subscription. The charges for a subscription per month go up to USD60 for advanced FMS offerings. Hidden costs can also pose a challenge to market growth. Companies also charge in situations involving vehicle replacement and end-contractual equipment termination. The involvement of all these costs negatively affects the decision-making process of customers. In the current price-sensitive market, it has become difficult for manufacturers to shift the pricing pressure onto their customers. Therefore, manufacturers are compelled to keep their margins low.
The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth analysis strategies.
Customer Landscape
Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AT and T Inc. - The communications segment provides wireless and wireline telecom, video, and broadband services to consumers located in the US or US territories and businesses globally. It also includes mobility services, wireless services, and equipment such as handsets, wirelessly enabled computers, and wireless data cards manufactured by various suppliers of the company.
The market research and growth report also includes detailed analyses of the competitive landscape of the market and information about key companies, including:
Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The third party segments is estimated to witness significant growth during the forecast period. The third party FMS segment will continue its dominance over the global commercial vehicle fleet management system market and will gain more market share during the forecast period as the fleet operators are adopting FMS for their existing CVs, which will drive the growth of the segment. The technologies used within fleets vary across the globe.
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The third party segments accounted for USD 13.70 billion in 2018 and showed a gradual increase during the forecast period. Thus, third party FMS is crucial for fleet operators to optimize their operations. As a result, third party FMS providers will continue to achieve significant penetration in the CV segment. The industry requirement to manage breakdowns with minimum downtime is key to sustaining competition in the fleet business. This can be achieved through the introduction of prognostic solutions in FMS offerings. In addition, FMS informs fleet managers about any deviations in emissions from the fleet, which makes it possible to schedule maintenance only when required. All these factors offer significant financial benefits to the fleet operators having a large number of vehicles and are likely to drive the penetration of commercial vehicle FMS through third party FMS providers.
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APAC is estimated to contribute 30% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.In 2023, the US was the major contributor to the commercial vehicle fleet management system market in North America. The demand for commercial vehicle FMS is high in this region owing to the increased adoption of advanced telematics in CVs. The need for advanced telematics applications, such as FMS, is high in this region due to the increased sales of on-road CVs. In addition, the growing adoption of wireless technology, increasing investment in fleet management solutions to optimize the fleet operating expenses, rising international trades are some of the major factors driving the growth of the fleet management solution market in North America.
The market research report provides comprehensive data (region-wise segment analysis), with forecasts and estimates in "USD billion " for the period 2024-2028, as well as historical data from 2018-2022 for the following segments.
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2. Smart Fleet Management Market Analysis APAC, Europe, North America, Middle East and Africa, South America - US, China, UK, Germany, Japan - Size and Forecast
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Market Analyst Overview
In today's interconnected world, a robust software platform serves as the backbone for various industries, including food delivery, emergency services, utility companies, construction, landscaping, public transportation, and courier and package delivery services. These sectors rely on efficient fleet management solutions overseen by dedicated fleet managers who ensure compliance with state regulations and streamline operations. Integrated video features play a crucial role in monitoring fleet activities and ensuring logistics operations run smoothly. The global fleet management market caters to diverse commercial fleets encompassing vans, buses, cars, and SUVs, each requiring specific maintenance procedures to maintain vehicle health and optimize fuel consumption while prioritizing vehicle safety and operational efficiency. By leveraging sophisticated software platforms, companies can enhance vehicle model tracking, implement proper operation protocols, and achieve overall fleet optimization to meet the dynamic demands of modern transportation and logistics landscapes.
Market Scope |
|
Report Coverage |
Details |
Page number |
150 |
Base year |
2023 |
Historic period |
2018-2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 7.03% |
Market growth 2024-2028 |
USD 7.4 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
6.56 |
Regional analysis |
North America, APAC, Europe, South America, and Middle East and Africa |
Performing market contribution |
APAC at 30% |
Key countries |
US, China, Germany, India, and Japan |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AT and T Inc., Azuga Inc., Continental AG, Faststream Technologies, Fleetx Technologies Pvt. Ltd., Garmin Ltd., Geotab Inc., Jaama Ltd., Masternaut Ltd., Microlise Group Plc, Numadic Ltd., Omnitracs LLC, Rolta India Ltd., TomTom NV, Trimble Inc., TUV SUD AG, VAMO Systems Pvt. Ltd., and Verizon Communications Inc. |
Market dynamics |
Parent market analysis, Market forecasting growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Product
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Opportunity/Restraints
10 Competitive Landscape
11 Competitive Analysis
12 Appendix
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