Fleet Management Market

2020 Analysis and Review: Fleet Management Market by Component – Hardware, Software, and Industry for 2020 - 2030

Introduction

Fleet management comprises wide ranging solutions for a number of automotive associated applications, including data communication, data logging, and satellite positioning and tracking.

The widespread, global penetration of mobile networks and declining costs of hardware and services are boosting adoption of fleet management products and services. Fleet management solutions support driver management, vehicle management, and mobile workforce management through the integration of IT systems and vehicle fleets.

According to a new report by Future Market Insights (FMI), the fleet management market is expected to reflect impressive growth with the valuation of the sector surpassing US$ 29 billion by the end of 2030 at 10% CAGR, with applications in the transportation sector holding on to significant market share for the foreseeable future, with niche applications in aircraft and railcar fleets rapidly gaining attention.

The fleet management market has risen strongly over the past few years as manufacturers and service providers in construction, transportation, mining, and oil & gas sectors are adopting these solutions with data analytics and predictive maintenance trends gaining prominence.

Fleet Management Players Focus on Telematics

Telematics technology has largely become the backbone of fleet management solutions. Integration of informatics with telecommunications capabilities allow fleet owners and managers to monitor, track and analyze trends associated with the operations of their vehicles through systems such as the GPS.

Telematics allow access to real time data on the vehicle in terms of driver behavior, inventory of spare parts, driving patterns, vehicle maintenance, movement tracking, estimated travel times, and fuel efficiency among other things, helping in cost reduction for operations and capital in the long term.

Telematics are anticipated to gain a rapidly growing role with the introduction of autonomous vehicle and RFID technologies in transport and logistics bodies such as the NFT, owing to investments and innovations from companies such as Waymo and Tesla, which help in asset tracking, minimizing the risk of potential goods pilferage.

Fleet Management for Predictive Maintenance Gains Priority

In addition to telematics, fleet management services help businesses to take proactive action towards maintaining their vehicles, thereby reducing costs of expensive repairs and also minimizing vehicle downtime.

Rapid developments taking place in artificial intelligence and the Internet of Things have helped substantially in boosting the scope of predictive maintenance functionality. IoT sensors help in monitoring internal and external vehicle components to sense factors such as overheating, cutting down operational costs and boosting longevity of the vehicles.

The trend will also gain ground as operators are focusing on safety for not only their vehicles and drivers, but also for pedestrians, in terms of company regulations for driver behavior, which will aid market growth in the long term.

Key Challenges

The global demand for fleet management solutions aimed towards performance management, operation management, and cost effectiveness is rising rapidly. Improvements in fleet technology in terms of vehicle safety, time efficiency, and environmental impact generate positive market prospects.

On the other hand, security issues with fleet management software offerings, and the resultant access to unauthorized parties is a major challenge to market players. Further, the lack of transport infrastructure, in rural regions and developing countries remains a major issue for market players looking to expand geographically.

Other issues faced by market players include lack of transparency, and lack of standardization in safety and data integrity, which could restrain market growth if left unaddressed.

Region-wise Insights

North America Fleet Management Market

North America is currently the largest market in the global fleet management sector. Led by the United States, the region in recent times has witnessed a substantial increase in the number of warehousing operations, driven by earlier adoption of fleet management solutions, coupled with the rise in the number of 3rd party players in the logistics sector.

Also, a growing number of automotive OEMs in the region such as Fiat-Chrysler, Ford, General Motors, are investing in telematics innovations, which are likely to bolster revenue in commercial vehicles, supporting the growth of the market here for the long term.

Furthermore, strict regulations associated to vehicular emissions by bodies such as the Environment Protection Agency are expected to generate positive prospects for the industry. Other government bodies are also investing in fleet management solutions to manage federal and state fleets for applications ranging from public services, to security and defense.

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Europe Fleet Management Market

Europe currently is the second largest market for fleet management products and services, following North America. However, the region is projected to reflect a faster rate of growth through the assessment period, surpassing the value of the North American market before 2030.

Increasing investments being made into corporate vehicle fleets for employees is a key factor contributing to the market. Further, the growth of the vehicle leasing business in the region has resulted in increased investments.

Also, strict mandatory regulations for drivers operating fleet vehicles and the resultant increase in integration, deployment, and consultations are anticipated to contribute to managed services as companies seek to emphasize on primary operations.

The U.K. and Germany are leading European markets for fleet management solutions, and the trend is unlikely to change throughout the forecast period. However, uncertainty over the impact of Brexit on transport and logistics, and vehicles sales is a challenge to market players operating in the region.

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East Asia Fleet Management Market

Automotive fleets across countries in East Asia have been growing rapidly in recent years. However, the industry has also been facing challenges in terms of maintaining employee mobility and rising costs of capital and operations. Further, the East Asian market is also facing obstacles in terms of infrastructure, with traffic congestion being a major issue that is restricting adoption of fleet management solutions.

Commercial fleets are critical to the economies of China, South Korea, and Japan, as road transport remains the most widely used medium for goods. Further, the exponential rise of the e-commerce industry in the region has been a major contributor to the fleet management market.

The installation of telematics systems in commercial automobiles is a key factor aiding the industry. On the other hand, the East Asian market for fleet management is largely restricted to local players, with Beijing Zhongdou Technology, and Shenzen Weitongda Electronics being leading players in the region.

Category-wise Insights

Hardware Components to Reflect High Demand

Fleet management can largely be divided in terms of component by hardware, software, and services. Of these hardware components account for significant revenue share supported by reducing production costs and increasing integration with advanced driver assistance systems.

GPS tracking devices are highly popular among the varying hardware component options, driven by demand for real time goods tracking requirements for ecommerce, and the rise in international and domestic trade globally.

Fleet Management for Trucks/Cars/Buses are Key Revenue Contributors

Fleet management products and services find use in road-based vehicles, such as trucks, cars, and buses, in addition to marine vessels such as ships, aircraft fleets, and also railcars. Fleets of trucks, cars, and buses are the primary users of fleet management solutions, reflecting exponential growth through the forecast period.

Rising numbers of LCVs and HCVs and applications in multiple industries, coupled with major investments being made in road transport infrastructure is expected to drive demand in the long term

Fleet Tracking and Geofencing Applications Drive Growth

Fleet management solutions are largely aimed towards applications of fleet tracking and geofencing, vehicle maintenance and diagnostics, driver behavior monitoring, and fuel management. Of these, fleet tracking and geofencing applications account for significant revenue share, reflecting exponential growth in demand through the assessment period.

The demand can be attributed to the data analytics requirements and real time asset tracking solutions, with portable device applications, particularly in the logistics and transport sector, which will drive growth in the long term.

Transportation Industry to Reflect Exponential Growth

Fleet management solutions are gaining popularity in a number of end use industries including construction, manufacturing, mining, transportation, and oil & gas. The transportation industry remains the frontrunner for the adoption of fleet management solutions.

Growing concerns over fuel costs, connectivity, and pollution, and efforts towards operational efficiency, with reduction in the components of management systems will drive growth for the foreseeable future.

Competitive Landscape

Prominent market players in the fleet management market have been increasingly investing in acquiring partnerships with major end user businesses for sustainable revenue sources. Further, market participants are also pushing for strategic industry collaborations aimed towards product developments and integration of new technologies in fleet management products and services for varying end use sectors.

Zebra Technologies Corporation has announced a contract with Office Depot Inc. for TC 56 and TC 51 computer systems for warehouse delivery streamlining operations. The company has also entered into a contract with the United States Postal Service for TC77 computers to scan, trace, and track packages being moved through the network. The company has also unveiled its TC 57 android-based portable computer which provides hazmat filing, navigation, and ELD functionalities.

Geotab Inc. has collaborated with SAP to unveil a new app for data integration for users of SAP software to provide vehicle maintenance and fleet analytics data. The app available through the SAP App center, provides real time data through SAP’s cloud platform. The company has also introduced the Geotab Truck Solution for users in Europe providing real time data on infractions and tachograph status, aimed primarily towards the heavy-goods-vehicle market.

 Digital Matter has partnered with Senet Inc. for the development of battery powered tracking devices and fleet management telematics software. The company has leveraged the collaboration to certify its LoRaWAN sensors and for the Senet’s network with Digital Matter’s Guru GPS tracking software. The company has also joined hands with Icom Australia to develop bundled LTE two-way radios with GPS tracking functionalities with the companies using cloud-based platform for telematics.

Aside from these market participants, other major players include:

  • TomTom N.V.
  • GoFleet Corporation
  • GPS TrackIt
  • Trimble Inc.
  • Fleetmatics Group plc (Verizon)
  • Cisco Systems Inc.
  • GoGPS
  • Wireless Links
  • Embitel
  • Gurtam
  • Teletrac Navman
  • Linxio

The list is only indicative – full list of fleet management market key players is available upon request.

Fleet Management Market Report: Scope

Attribute

Details

Forecast Period

2020-2030

Historical Data Available for

2015-2019

Market Analysis

US$ Million for value,

Key Regions Covered

North America, Latin America, Europe, East Asia, South Asia & Pacific, and Middle East & Africa (MEA)

Key Countries Covered

US, Canada, Brazil, Mexico, Germany, Italy, France, U.K., Spain, BENELUX, Russia, China, Japan, South Korea, India, Thailand, Indonesia, Malaysia, Australia, New Zealand, GCC Countries, Turkey, Northern Africa, South Africa

Key Segments Covered

Component, Fleet Type, Applications, Industry, and Region

Key Companies Profiled

TomTom N.V., Zebra Technologies Corp., GoFleet Corporation, Geotab Inc., Digital Matter, GPS TrackIt, Trimble Inc., Fleetmatics Group plc, Cisco Systems Inc., GoGPS, Wireless Links, Embitel, Gurtam, Teletrac Navman, Linxio

Report Coverage

Market Forecast, brand share analysis, competition intelligence, DROT analysis, Market Dynamics and Challenges, Strategic Growth Initiatives

Customization & Pricing

Available upon Request

Key Questions Answered by the Report

  • What is the size of the fleet management market?

    The global fleet management market surpassed a valuation of US$ 10.1 billion in 2019. The estimated growth rate for the fleet management market will be an impressive 10% CAGR between 2020 and 2030.

  • Which is the largest market for fleet management products and services?

    North America is the largest market for fleet management services and products at present, owing to the presence of key market players and demand for real time logistics data.

  • Which are the top companies in global Fleet management market?

    TomTom N.V., Zebra Technologies Corp., GoFleet Corporation, Geotab Inc., Digital Matter, GPS TrackIt, Trimble Inc., Cisco Systems Inc., and Fleetmatics Group PLC (Verizon) are among the leading market players.

  • What are the applications of Fleet management?

    Fleet management technologies are largely used in managing land, marine, and aviation automotive fleets in commercial settings in terms of location tracing, predictive maintenance, fuel efficiency, and monitoring operators.

  • In which types are fleet management services available?

    Companies usually make use of fleet management services for 2 types – professional services and managed services. The demand for managed service solutions is expected to remain strong.

  • What is the outlook of Europe in the fleet management market?

    The fleet management market of Europe is reflecting exponential growth, supported by efforts towards emission reduction and increasing adoption of real time fleet diagnostics in the industry.

Enquiry before Buying

  • Is this research conducted by Future Market Insights?

    Yes, the research has been conducted by expert analysts of Future Market Insights through a combination of primary research and secondary research. To know more about how the research was conducted, you can speak to research analyst

  • What research methodology is followed by FMI?

    FMI follows a methodology that encompasses demand side assessment of the market, and triangulates the same through supply side analysis. This methodology is based on use of standard market structure, methods and definitions.

  • Who are the respondents for primary research?

    FMI speaks to stakeholders across the spectrum, including C-level executives, distributors, product manufacturers, industry experts. For a full list of primary respondents, please reach out to us.

  • What are the sources of secondary research?

    FMI conducts extensive secondary research through proprietary databases, paid databases, and information available in the public domain. We refer to industry associations, company press releases, annual reports, investor presentations, and research papers. More information about desk research is available upon request. 

  • Is a sample of this report available for evaluation?

    Yes, you can request a sample and it will be sent to you through an email.

  • How can I buy this report?

    FMI provides a secure online payment system to buy report seamlessly. You can buy the report securely and safely.

Key Segments

Component

  • Hardware
    • GPS Tracking Devices
    • Dash Cameras
    • Bluetooth Tracking Tags (BLE Beacons)
    • Data Loggers
  • Software
    • Fleet Management Software
    • Telematics Software
  • Services
    • Professional Services
      • Integration and Deployment
      • Consulting
      • Support and Maintenance
    • Managed Services

Fleet Type

  • Trucks/cars/buses
  • Ships/vessels
  • Aircraft
  • Railcars

Application

  • Fleet Tracking and Geofencing
  • Vehicle Maintenance and Diagnostics
  • Driver Behavior Monitoring
  • Fuel Management
  • Others

Industry

  • Construction
  • Manufacturing
  • Mining
  • Transportation and Logistics
  • Oil and Gas
  • Others

Regional Outlook

  • North America (US, Canada)
  • Latin America (Brazil, Mexico, Rest of LATAM)
  • Europe (Germany, UK, Russia, France, Italy, Spain, BENELUX, Rest of Europe)
  • South Asia & Pacific (India, Thailand, Indonesia, Malaysia, Australia & New Zealand, Rest of South Asia & Pacific)
  • East Asia (China, Japan, and South Korea)
  • Middle East & Africa (GCC Countries, Turkey, Northern Africa, South Africa, and Rest of MEA)

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