Fleet Management Market is Amped Up and on the Rise

The global fleet management market size was valued at USD 22 billion in 2022 and it is projected to be worth around USD 57.84 billion by 2032, representing a CAGR of 10.2% during the forecast period 2023 to 2032.

Key Takeaways:

By vehicle type, the commercial vehicle segment dominated the market in 2022 with a revenue share of about 73.8%.
By component, the solutions segment dominated the market in 2022 with a share of about 64.6% in terms of revenue.
North American region accounted for a share of about 33.8% in the past.
Asia Pacific region is expected to grow at a CAGR of 12.3% over the forecast period 2023 to 2032.

Key Takeaways:

By vehicle type, the commercial vehicle segment dominated the market in 2022 with a revenue share of about 73.8%.
By component, the solutions segment dominated the market in 2022 with a share of about 64.6% in terms of revenue.
North American region accounted for a share of about 33.8% in the past.
Asia Pacific region is expected to grow at a CAGR of 12.3% over the forecast period 2023 to 2032.

Maximizing the profitability, Maintaining the costs and reducing risk of the fleet are some of the functions of a fleet manager. The demand for fleet management has increased in the recent years for all of these reasons. In order to have competency in all its operations the demand for management in this field has grown to a great extent as it helps in providing profitability for a business.

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Report Highlights

On the basis of the type of vehicle, the commercial vehicle segment is expected to have the largest market share in the coming years. Growing demand for transportation and increased use of public transport will help in the growth of the market in the coming years.
On the basis of the component, the solution segment will have the largest market share in terms of revenue in the coming years due to a growing demand for fleet management solutions through various industries. In order to improve the profitability of our business at minimum costs the demand for the solutions is expected to grow in the coming years. The challenge of safety which is faced by most of the fleet operators will lead to an increased adoption of management solutions. The innovations like the integration of Internet of Things and the integration of telematics have proved to be extremely beneficial for the market
On the basis of the communication technology, the cellular system is expected to have the largest market share as this type of technology will help in using applications for tracking buses, cars, ships and cargo logistics. In the absence of the Internet connectivity vehicle tracking could be disrupted and the deliveries that are assigned could also be delayed. It could lead to the cases of emergencies due to the traffic congestions in various regions. The productivity of the organization may also be affected due to a gap in communication.

Recent Developments

A partnership between Chevin and AT&T and Cisco Systems for embedding SaaS package with the model of fleet management will ensure compliance while performing the responsibilities.

Regional Snapshots

In the coming years Asia Pacific region is expected to grow with the highest compound annual growth rate. During the countries like India and China which are the developing regions of Asia Pacific area, will contribute maximum in the growth of the market. Increase in the pollution in this region which is associated with the transportation sector Will play an important role in the growth of the market in the coming years. The demand for the vehicles that have low emissions will grow in the Asia Pacific region leading to the growth of the fleet management market in the coming years. increase in the demand for public transport will also help in the growth of the market.

The outbreak of COVID-19 had hampered the supply chain and logistics across the world. Total lockdown across various regions had shut many industries worldwide. As the workforce had reduced the production had also reduced. In order to ensure safety of workers the industries Had adopted many measures that reduced the manufacturing functions. The transportation as well as the automobile industries what affected to a great extent due to the lockdowns.

Market Dynamics

Drivers

In order to have a greater output the fleet managers are constantly engaged in reducing the operation costs. The use of the fleet management solutions has increased the profitability for various businesses as it helps in ensuring safety for the vehicle and optimizes the route which helps in saving fuel. The use of this management system is expected to grow in the coming years as the organizations are increasingly focusing on safety of the drivers and the performance. Predictive maintenance is another feature that has helped in the growth of the market in the recent years and the increased use of the management system will help in reducing the cost of fuel for the distance that is traveled. the overhead costs are also reduced to a great extent and the use of this management system has modified the behavior of the drivers. All of these factors will help in improving the operations of the business and provide competitive edge in the market.

Restraints

GPS connectivity of the fleet is altered on the basis of the surroundings and the environment. The existing mountains, trees and buildings hamper the connectivity. Connectivity issues will hamper the growth of the market in the coming years. As huge distances are traveled by GPS signal in order to reach a mobile phone the atmospheric barriers will affect the connectivity.

Opportunities

Increased trend of ride hailing and the use of applications that help in sharing cars in the urban areas is expected to help in the growth of the market in the coming years period the demand for fleet management will increase due to all of these reasons. Transport services are provided to the users on the basis of their necessities and all of this is possible with the help of the fleet management tools. As the personally owned cars or other vehicles have reduced the demand for public transport or shared transport is expected to grow in the coming years due to which the fleet management market is expected to grow in the forecast.

Challenges

Two security reasons that will challenge the growth of the market in the coming years are privacy and cyber-crimes. Infringement of private data will hamper the growth of the market and is expected to be the major challenge in the growth of the market in the coming years. The use of telematic solutions will reduce due to the infringement issue. The availability of the personal details of a driver and the routes taken by the vehicle are all sensitive information and the access ability to criminals to all of this information and can be a path to a planned crime.

Market Segmentation

By Vehicle

Heavy Commercial Vehicle
Aircraft
Railway
Watercraft
Trucks/Cars/Buses
Ships/Vessels
Electric Vehicle
Light Commercial Vehicle

By Component

Solutions
- Operation Management
- Vehicle Maintenance and Diagnostics
- Performance Management
- Fleet analytics and reporting
- Others
Services
- Professional Services
  - Consulting & Advisory
  - Integration & Implementation
- Managed Services