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The global fleet management market size is forecast to increase by USD 74.02 billion, at a CAGR of 19.93% between 2023 and 2028. Several factors play a crucial role in the market's growth such as the rise in e-commerce and last-mile delivery, the growing focus on asset tracking, and the increasing popularity of cold chain transportation. The market growth is being driven by a growing trend that focuses on the efficient use of data to enhance operations. Fleet operators have access to significant amounts of data related to their fleet's daily activities, including fuel expenses, routes taken, real-time traffic updates, telematics data, and work order performance. This market analysis and report also includes the key drivers, trends, and challenges of the market.
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The subscription segment is estimated to witness significant growth during the forecast period. Subscription models allow businesses to scale their management services based on their current needs. As the fleet size grows or changes, it is easier to adjust the subscription plan accordingly. This flexibility ensures that businesses only pay for the services and features they require. Subscription-based models provide businesses with predictable and consistent costs, simplifying financial planning.
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The subscription was the largest segment and was valued at USD 27.05 billion in 2018. Further, subscription-based solutions enable customers to efficiently manage, optimize, and protect their investments in their commercial fleets and personal vehicles, which increases the demand for subscription-based solutions. Vendors have a strong presence in the market for subscription offerings. For instance, till March 31, 2021, MiX Telematics Ltd. provided services to more than 744,000 vehicles under subscription, with customers ranging from small fleet operators and consumers to large enterprise fleets with more than 10,000 assets. Therefore, the subscription segment is expected to grow, which will enhance the growth of the market during the forecast period.
Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The management system market for fleet operations and fleet vehicles is experiencing notable growth, driven by the increasing demand for cold chain transportation. This surge is particularly evident due to the rising number of organized retail stores in developing economies, necessitating efficient cold chain solutions. Moreover, initiatives to reduce food waste by governments and the expansion of retail chains by multinational corporations further contribute to market growth. Notably, the integration of monitoring components within the cold chain is witnessing an uptick, fueled by advancements in technology and the imperative to uphold cargo integrity, efficiency, and safety.
Similarly, advancements are occurring in the back-end IT infrastructure and front-end devices utilized for real-time shipping information collection and reporting. Consequently, the rising prominence of cold chain transportation is set to drive market growth throughout the forecast period.
Growing focus on the efficient use of data to enhance is an emerging trend shaping the market growth. Fleet operators receive a large amount of data related to the daily operations of the fleet, such as fuel bills, routes traversed, real-time traffic data, telematics data, and work order performance. The operator collects the data to manage the smart fleet effectively. AI-powered enables real-time data management and reduces the probability of manual errors by automating the process. Big data analytics, along with AI, allows fleet managers to effectively manage the data with an improved understanding of the IoT fleet ecosystem and individual repair needs. Besides, AI provides a better understanding of changes in fleet capacity over time.
For instance, it will provide insight through data analytics on how fleet capacity changes on weekends compared with that on weekdays. This will allow fleet operators to assign a specific task to a specific vehicle, thus maximizing vehicle utilization while minimizing empty miles driven. Therefore, owing to such factors, the market is expected to witness significant growth during the forecast period.
The lack of industry standards for telematics is a significant challenge hindering market growth. Without standardized protocols, different telematics systems may use proprietary communication formats and data structures. This lack of uniformity can lead to interoperability challenges, making it difficult for systems from different vendors to seamlessly communicate and share data. Systems often involve the integration of various components, including telematics devices, sensors, and software platforms. The absence of industry standards can complicate integration efforts, requiring additional customization and development work.
In addition, standardized security frameworks can help establish a baseline for secure communication and data protection. Standardized telematics data would facilitate more efficient fleet optimization. The lack of common protocols hinders the ability to analyze and compare data uniformly, reducing the effectiveness of optimization efforts and, in turn, hampering the market growth and trends of the market during the forecast period.
The market research 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 and forecasting strategies.
Global Market 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.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market 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.
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APAC is estimated to contribute 32% to the market research and growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional market trends and analysis and drivers that shape the market during the forecast period. Economic stability and growth in North America contribute to increased commercial activities, leading to a higher demand for efficient management solutions. A thriving economy typically results in more businesses requiring transportation and logistics. The growth of e-commerce and the increasing demand for last-mile delivery services contribute to the expansion of the market. Companies in North America are investing to meet the growing demands of online retail and improve delivery efficiency. Urbanization and the resulting traffic congestion in metropolitan areas drive the need for efficient management. Solutions that help optimize routes, reduce idle time, and navigate through congested urban areas are increasingly valuable.
Moreover, government initiatives promoting the adoption of advanced transportation technologies and funding programs to support the deployment of intelligent transportation systems (ITSs) contribute to the growth of the regional market. Furthermore, the development and integration of autonomous vehicle technologies play a role in the growth of the market. Companies exploring autonomous fleets seek advanced management solutions to optimize and monitor these vehicles. Thus, these factors will drive the growth of the regional market during the forecast period.
Fleet management software integrates advanced technologies like real-time traction and telematics products for efficient transportation and logistics operations. It optimizes routes, monitors operation hours, and enhances field services, benefiting industries from FMCG to agriculture. Despite challenges like a lack of transporters, GPS-based fleet tracking software ensures seamless product delivery and fleet maintenance. With artificial intelligence (AI), IoT-enabled telematics, and cloud solutions, it empowers fleet managers, enhances supply chain networks, and reduces carbon emissions. This software revolutionizes mobility industries, from ride-sharing space to autonomous fleet management, ensuring connectivity, efficiency, and sustainability in transportation. The management system market, fleet operations management software market, and IoT fleet constitute the ecosystem of smart fleet and fleet vehicles.
Various industries, from passenger vehicle manufacturers to pharmaceuticals, benefit from fleet management solutions. These systems, incorporating GPS tracking systems and AI-driven algorithms, cater to transportation and logistics sectors, optimizing routes and enhancing efficiency. With elements like vehicle-to-infrastructure connectivity and autonomous fleet management systems, they streamline operations for commercial vehicle providers and government authorities alike. Moreover, mobility-as-a-service models promote carpooling and car sharing, supported by advanced technologies like machine learning and driver-vehicle communications. Through software-as-a-service solutions and GPS technologies, these platforms overcome challenges like low signal areas and obstructions, ensuring seamless fleet management even amidst storms or in areas with big buildings. Additionally, they accommodate evolving work-from-home policies, aligning with modern industrial activities and utility demands
The market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Market Scope |
|
Report Coverage |
Details |
Page number |
165 |
Base year |
2023 |
Historic period |
2018-2022 |
Market forecasting period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 19.93% |
Market Growth 2024-2028 |
USD 74.02 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
17.57 |
Regional analysis |
North America, Europe, APAC, South America, and Middle East and Africa |
Performing market contribution |
APAC at 32% |
Key countries |
US, China, Japan, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AT and T Inc., Avrios International AG, Bridgestone Corp., Chevin Fleet Solutions, Donlen Corp., Element Fleet Management Corp., Fleetio, Geotab Inc., GPS Insight, GURTAM, Holman Inc., MiX Telematics Ltd., Motive Technologies Inc., Samsara Inc., Solera Holdings LLC, TELTONIKA, TomTom NV, Trimble Inc., Verizon Communications Inc., Via Transportation Inc., Vontier Corp., and NetraDyne Inc. |
Market dynamics |
Parent market analysis, Market 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 the forecast period. |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Type
7 Market Segmentation by Vehicle Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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