Fleet management is a process or an approach that enables companies to systemize and co-ordinate work vehicles with the aim to reduce costs, improve efficiency, and provide compliance to government regulations. Solutions such as driver management, vehicle management and operations management are encompassed in the scope of fleet management solutions. The rising adoption of fleet management analytics and a shift towards smaller fleets are some of the reason that are expected to drive the fleet management solution market in the next few years.
The market is also expected to benefit from the vast technological advancements recently observed in the field of automatic vehicles. Transparency Market Research estimates that the global fleet management solutions market will exhibit an exponential CAGR of 22.6% during the period between 2017 and 2025, rising from a valuation of US$12.57 bn in 2015 to US$91.94 bn in 2025.
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Cloud-based Deployment to Contribute Massive Share in Revenue
On the basis of deployment, the global fleet management solution market is segmented into cloud and on-premise. The cloud-based deployment segment is anticipated to contribute major share in the global fleet management solution market. With the increased demand and adoption of Software as a Service model, the cloud deployment segment is anticipated to witness rapid and steady growth throughout the forecast period. The on-premise deployment segment is expected to hold a comparatively smaller share of the global fleet management solution market.
On the basis of type, the global fleet management solution market has been segmented in the report into vehicle management, driver management, and operations management. Of these, the segment of operations management solutions is expected to hold the dominant share of the global market throughout the forecast period. The segment is expected to be followed by the segment of vehicle management solutions in terms of market share. Moreover, the vehicle management solutions segment is also projected to be the segment with the most promising growth opportunities owing to high rate of growth. This segment is expected to grow at a CAGR of 24.7% during the period from 2017 to 2025. This growth is primarily attributable to increased demand for green fleets.
Asia Pacific Market to Lead in Terms of Growth Rate
The global fleet management solution market is expected to be led by North America throughout the forecast period. The North America market for fleet management solutions is estimated to contribute a massive share in the global market over the forecast period, with the U.S. providing most of the revenue. The presence of key industry players along with support from OEMs is expected to drive the market in the region.
Europe is expected to follow North America in terms of market revenue. The presence of several local industry players, increasing trade through Pan-European corridor and the growing awareness about technology and solutions is expected to drive the market in the region. Favorable regulatory initiatives in the region are also expected to add to the market growth. The market in Asia Pacific is expected to be lead in terms of growth rate over the report’s forecast period. This growth is expected to be driven by demand across countries such as China, Japan, and India, while South East Asian countries with their superior infrastructure and impressive communication network are also expected to contribute substantially to the region’s growth.
Some of the leading players operating in the global fleet management solution market are Trimble Inc., Element Fleet Management Corp., Daimler Fleet Management GmbH, JDA Software Group, Inc., Wheels, Inc., MiX Telematics Ltd., TomTom Telematics BV. , Magellan Navigation, Inc., Emkay, Inc., and Telogis, Inc.
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Increased Adoption of Fleet Management Solution Drives Promising Avenues for Market Players
Fleet management refers to an approach or a process that allows organizations to systemize as well as synchronize work vehicles in order to achieve various benefits. Some of the advantages of fleet management include cost reduction, improved efficiency, and government regulations compliance. Owing to all these advantages, there is remarkable growth in the acceptance of fleet management solution among organizations from all across the globe. This scenario is creating promising expansion avenues for vendors in the global fleet management solution market.
In recent years, there is considerable growth in the acceptance of Software as a Service model. As a result, the vendors from the global fleet management solution market are experiencing high demand for the cloud deployment. Vehicle management, driver management, and operations management are some of the solutions included in the scope of fleet management solutions.
In recent few years, there is considerable growth in acceptance of fleet management analytics. Majority of companies across the globe are inclined toward smaller fleets. These factors are projected to stimulate sales opportunities in the fleet management solution market in the next few years. Apart from this, the market for fleet management solution is likely to gain the advantage of recent technological advancements the automatic vehicles sector.
The recent COVID-19 pandemic has impacted adversely on the growth of the companies working in the global fleet management solution market. Many companies in the market for fleet management solution have experienced sudden drop in their sales as well as revenues. Thus, many industry leaders are investing time to develop strategies, which will help them in coming out of the losses occurred due to this pandemic. This scenario confirms that the global fleet management solution market will experience short-term downward growth curve; however, the market will bounce back in the forthcoming years.
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