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The Fleet Management Market Presents Enormous Growth Opportunities for the Technology Vendors
Fleet management technologies aim at ensuring cost efficiency, improved productivity along with compliance to government regulation. Nowadays, fleet industries seek to obtain maximum output from minimum input. The deployment of fleet management solutions results in optimized routing, vehicle security, driver security, and improved performance.
The dire need of operational efficiencies in fleet industries and rising environmental concerns of the world are propelling the growth of fleet management market. Besides, IT-based hardware components are experiencing negative growth rate in terms of price which has made it easier for mid-sized and small-sized companies to adopt fleet management solutions. Growing regional economies such as Asia-Pacific (APAC), Middle East and Africa (MEA), and Latin America are expected to open new business opportunities for the fleet management industry due to the increasing demand of commercial and freighter aircrafts.
The fleet management market presents enormous growth opportunities for the technology vendors, which has resulted in the major penetration of different strategy measures such as mergers & acquisitions, partnerships and collaborations, and product developments among different classes of technology vendors to increase their share in the market. In line with this, AT&T signed a partnership agreement with Telogis to offer solutions to companies with mobile workforces. The solution connects vehicles of all sizes from small trucks to 18-wheelers and heavy equipment. This collaboration would create full-fleet solutions by combining AT&T’s network and Telogis Telematics’ compliance and mobile navigation software. Similarly, Cisco and Continental, an automotive parts supplier, partnered to provide proof-of-concept for connected fleets. This aimed to provide secure networking technology to assist drivers with real-time traffic and navigation guidance.
The fleet management market has been segmented into solutions, connectivity technology, services, and verticals. Fleet management solutions include operation management, asset management, and driver management. The connectivity technology is of two types, namely, satellite Global Navigation Satellite System (GNSS) and cellular systems. The services have been segmented into professional services, system integration and deployment services, and managed services. Furthermore, the verticals include the penetration of fleet management solutions in manufacturing, government, transportation and logistics, energy and utilities, retail, construction, and others.
The North American market, being early adopters of fleet solutions has the largest fleet management market penetration due to the technological advancements in the region. MarketsandMarkets expects the fleet management market to rise in the emerging economies especially in APAC countries due to the increasing demand and adoption of fleet solutions and technology. The region has fast developing countries and increasing expenditure on ever growing size of fleet of public and corporate vehicles. The total fleet management market is expected to grow from USD 8.03 Billion in 2015 to USD 22.35 Billion by 2020, at a Compound Annual Growth Rate (CAGR) of 22.7% from 2015 to 2020.
Fleet Management Market by Deployment Type, Solution (Operation, Asset, Driver Management, Vehicle Maintenance & Leasing, and Driver Information System,) Connectivity Technology, Industry, Service, and Region - Global Forecast to 2021
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