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The smart fleet management market size is forecast to increase by USD 305.58 billion at a CAGR of 11.37% between 2022 and 2027. Market expansion hinges on diverse factors such as stringent government regulations governing fleet management, the imperative of real-time fleet monitoring, and the continual pursuit of enhanced operational efficiency within fleets. Additionally, emphasizing convoy security and optimizing fuel management play pivotal roles in propelling market growth. These intertwined elements collectively drive innovation and investment in fleet management technologies, ensuring compliance, safety, and cost-effectiveness across various industries reliant on convoy operations. As organizations strive for greater operational visibility, control, and productivity, the demand for advanced convoy management solutions is poised to surge, reflecting an industry-wide shift toward more efficient, secure, and sustainable fleet management practices.
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This report extensively covers market segmentation by application (tracking, ADAS, optimization, fuel cards, and automatic vehicle identification), type (roadways, railroad, marine, and aviation), and geography (APAC, Europe, North America, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
The market is propelled by the study of market dynamics and trends, establishing a solid base year for assessments. The increasing volume and value of fleet operations, coupled with advancements in mode of transportation and connectivity solutions, are significant drivers. However, challenges such as complying with legislation for transport safety, combating theft activities, minimizing road accidents, optimizing fuel consumption, and enhancing vehicle maintenance through data analysis and real-time alerts remain critical areas for improvement in this sector. Our researchers analyzed the data with 2022 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 government regulations for fleet management are the key factor driving the global market growth. Fleet operators are closely monitoring fleet vehicles and driver behaviour patterns, and are placing increasing emphasis on regulating the working environment. The government also advocates increased surveillance of convoy off-road vehicle to improve safety and reduce the number of accidents that can occur due to driver negligence. Enforcement is being strengthened. For example, the Compliance Safety Accountability (CSA) program was initiated by the US Department of Transportation's Federal Motor Carrier Safety Administration.
In addition, the Federal Travel Regulation (FTR), Facilitating the Federal Fleet Policy Council (FEDFLEET), and Federal Management Regulation (FMR) is also regulating convoy management in the US. The increasing number of regulations coming into effect this year and in the future will drive a relentless focus on software and data. Owners and operators will increasingly look for ways to automate the reporting of regulatory and operational data, leading to greater efficiency and simpler shoreside intervention and control. Such factors will increase the market growth during the forecast period.
Increasing adoption of telematics and electric vehicle, and the growing incorporation of electronic vehicles in company fleets is the primary trend in the global market growth. Advanced technologies such as telematics are core components to ensure driver safety and proper accident management. Adaptive headlights, frontal collision avoidance systems, adaptive cruise control, and reversing cameras for parking assistance help reduce the number of accidents. Telematics helps convoy managers operate vehicle convoy effectively and safely.
Moreover, autonomous vehicles are self-driven vehicles and can operate without human interference and supervision. They sense their environmental conditions and navigate autonomously using technologies such as GPS, Light Detection and Ranging (LIDAR), radar, and advanced control systems. Although the concept of autonomous vehicles is yet to be accepted, it is expected to pick up the pace during the forecast period.
Fleet data management issues are a major challenge to the global market growth. Fleet operators receive a huge volume of data about the daily operations of the fleet through various channels, such as documents from their workers and technicians, fuel bills, routes traversed by commercial vehicle, and reports such as work order performance. The evolution of maritime information technology has two prevailing characteristics: an ever-increasing pace of change and a focus on regulatory reporting and performance management, both of which require comprehensive data management. The changes taking place can be seen in the rapid increase in the take-up of cloud and mobile solutions. These improve the accessibility of data and encourage interest in accessing sensor data that affects the volume of data available.
Moreover, for providing customized services in FMS, companies need to use specific software to collect the required data and evaluate it as per the demand of convoy operators. Information provided by fleet workers is often inaccurate and can cause losses in business. For instance, there are often inaccuracies in the number of hours clocked by workers, and such inaccuracies cannot be corrected by convoy management systems. These factors are expected to challenge the growth of the market during the forecast period.
The 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 growth strategies.
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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:
Qualitative and quantitative market growth 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 Market is a dynamic sector driven by various factors such as the study of market trends, base year assessments, and continuous volume and value evaluations. Advancements in mode of transportation and connectivity solutions have revolutionized fleet management, making it imperative for fleet operators to comply with legislations and prioritize transport safety. The rising demand for efficient transportation across various sectors, like ships, has led to the adoption of Smart transport systems and the involvement of Governing bodies in regulating energy consumption and curbing theft activities and road accidents. Fleet management solutions now focus on driver's performance, optimizing fuel consumption, effective route management, and proactive vehicle maintenance through data analysis and real-time alerts.
The market share growth by the tracking segment will be significant during the forecast period. A GPS vehicle monitoring and fleet management solution is not complete without a GPS tracking device. Better management of vehicles is possible with the help of smart fleet management. By using real-time traffic data, route planning can be improved, and idling time and unnecessary travel can be reduced. It can maintain the efficiency of your fleet by making the most of all your resources, including tires and fuel.
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The tracking segment was valued at USD 95.50 billion in 2017 and continue to grow by 2021. The movement and location of any vehicle in real-time can be tracked once the technician has installed these devices in the fleet. A reputable telematics solution may give you access to this data so you can accurately track vehicles' whereabouts, where they were when they started their journey, where they stopped, and for how long. Tracking with boosting efficiency and will also enhance customer service because of the ability to let consumers know when their vehicle will arrive. To increase cost savings, the system can potentially be expanded to include sensors that monitor fuel levels, open doors, and other events. Such factors are expected to drive the adoption of the smart fleet management system, which in turn fuels the growth of the market during the forecast period.
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APAC is estimated to contribute 40% 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. APAC will witness the highest growth during the forecast period due to a surge in the transport facilities in China, India, Japan, Malaysia, Australia, and Singapore, among other countries. The changing approach of governments toward fleet drivers, operators, goods, and passenger safety has imposed many regulations that mandate transportation original equipment manufacturers (OEMs) to deliver the installed safety features. Improving socioeconomic conditions in countries such as Thailand, Indonesia, India, and China have resulted in the growth of the demand for a premium segment fleet. This has fueled the market in these countries during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides a market research and growth analysis of the latest market trends and growth opportunities from 2017 to 2027.
The Market is witnessing significant growth driven by various factors such as advancements in connectivity technologies, stringent legislations promoting transport safety, and the increasing adoption of smart transport systems. As the transportation industry embraces digital transformation, real-time monitoring and fleet optimization are becoming critical for mode of transportation across various sectors, including ships, automotive, and rolling stock. Key players in the market are utilizing competition mapping, secondary sources, and paid databases to gather insights, employing a bottom-up approach to understand fleet production trends and penetration rates. The focus is on enhancing vehicle intelligence and security, implementing Real-Time Monitoring solutions, and leveraging connectivity type for efficient route management and fuel consumption.
Moreover, government bodies and governing bodies are actively involved in promoting transport safety and reducing carbon emissions through traffic congestion management and infrastructure improvement. The market is witnessing innovations in Smart surveillance, Real-time alerts, and AI and machine learning capabilities for driver behavior analysis and maintenance requirements prediction.Cloud-based technology is playing a crucial role in fleet tracking, remote diagnostics, and security features implementation, addressing cyber security concerns and enabling two-way communication for rescheduling and asset management. Overall, the Market is poised for significant growth with the adoption of innovative products and smart devices for fleet optimization and cost-effective measures.
Smart transport system integrate anti-theft notifications with real-time fleet monitoring, utilizing remote servers to enhance transportation medium. These Remote server offer heightened security and efficiency, ensuring safer journeys and effective management. Embracing technological advancements like Real-time fleet monitoring systems, they revolutionize how we navigate the world, promising a seamless and secure transportation experience.
Market Scope |
|
Report Coverage |
Details |
Page number |
184 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 11.37% |
Market growth 2023-2027 |
USD 305.58 billion |
Market structure |
Fragmented |
YoY growth 2022-2023(%) |
7.53 |
Regional analysis |
APAC, Europe, North America, Middle East and Africa, and South America |
Performing market contribution |
APAC at 40% |
Key countries |
US, China, Japan, UK, and Germany |
Competitive landscape |
Leading companies, Market Positioning of companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
Avnet Inc., Cisco Systems Inc., CLM Fleet Management Plc, Continental AG, Cyrrup Solutions Pvt. Ltd., DENSO Corp., FleetGO Group Ltd., Fleetsmart, International Business Machines Corp., Oracle Corp., ORBCOMM Inc., Robert Bosch GmbH, Samsung Electronics Co. Ltd., Siemens AG, Sierra Wireless Inc., Speedcast International Ltd., Tech Mahindra Ltd., TomTom International BV, Total Motion Ltd., and Trakm8 Holdings Plc |
Market dynamics |
Parent market analysis, Market forecasting, 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 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. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Application
7 Market Segmentation by Type
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
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