Fleet Management Market by Component (Services, Solutions (Operation Management, Vehicle Maintenance & Diagnostics, Performance Management)), Fleet Type (Commercial Fleets, Passenger Vehicles), Vertical and Region - Global Forecast to 2028
[324 Pages Report] The fleet management market is estimated to be worth USD 28.6 billion in 2023. It is projected to reach USD 55.6 billion by 2028 at a Compound Annual Growth Rate (CAGR) of 14.2% during the forecast period. Operators are increasingly adopting fleet management systems because of compelling considerations such as strict regulatory obligations, particularly those about ELD regulations and pollution standards. The use of ELDs, which are required to log and track drivers' hours of duty precisely, guarantees adherence to labor laws, lowers the possibility of incidents involving fatigued drivers, and improves general road safety. Fleet operators must also use environmentally friendly procedures to comply with emission requirements intended to protect the environment. Fleet management systems are essential for helping businesses comply with these regulations because they offer tools for tracking and optimizing fuel usage, planning routine maintenance to keep cars up to code, and encouraging environmentally friendly driving habits.
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Fleet Management Market Trends
Driver: Increasing focus of fleet owners on operational efficiency
Every industry seeks the maximum output at a minimum cost. For fleet managers, the fleet's cost is a large portion of the company’s operating expenses. Fleet management solutions help increase the profit for fleet owners by optimizing routing, ensuring vehicle security, increasing driver safety, and improving fleet vehicles' performance and life cycle. It also helps visualize fleet performance and identify which drivers or savings categories should be targeted for improvement. Fleet management helps the managers rightsize fleet vehicles, provide maintenance management, reduce fuel costs and distance traveled, modify driver behavior, and lower overhead costs. The benefits boost the cost-effectiveness of business operations for fleet owners, providing them a competitive edge. The advantages have increased the business potential of fleet management solutions and enhanced the investment inflow in the fleet management market.
Restraint: Atmospheric interference causing problems for GPS connectivity
The atmospheric inference is one of the main problems hampering GPS connectivity. The GPS should give an accurate location for it to be functional. The most up-to-date navigation service, Google Maps, also offers a location that is 3–10 meters correct. These services also give the best result under certain conditions. For example, the users should be preferably in ideal conditions, being outdoors rather than indoors, being in a city, and having robust internet connectivity. The GPS signal must travel huge distances through the atmosphere and multiple satellites to reach the mobile phone. Accurate data can be gained by receiving data from at least 3–4 satellites and, at most, 7–8 satellites. Some natural barriers also exist, such as large buildings in cities, trees, mountains, and ridges; in short, it becomes harder to get an accurate GPS signal. The more open sky the device gets, the more precise the GPS tracking. The signal from the GPS satellite tower bounces back, and due to atmospheric interferences, the signal takes more time to reach the GPS device. This would cause sudden errors in the positioning.
Opportunity: Development of transportation in the logistics industry and growth in fleet size
Due to the development of transportation in the logistics industry, more logistic providers now require new fleets to meet the demand. Due to this growing purchase, acquisition, or leasing of new vehicles, their management also becomes a priority. The fleet management market thus becomes an indispensable tool for companies owning large fleets to increase profits and ensure operational efficiency and safety. Transportation is an integral part of logistics services and key to improving logistics efficiency. The Chinese government and transportation enterprises are accelerating transportation transformation to modern logistics services. China’s comprehensive transportation network continually strengthens its logistics service functions by improving its transport infrastructure, upgrading the technical level of its facilities and equipment, and innovating its transportation organizational models. The growth of advanced technologies such as blockchain, digitalization, big data and data analytics, automation, and IoT are significant reasons for the increasing demand for transportation in the logistics industry.
Challenge: Inaccurate geocoding
Accurate geocoding is a must feature-in fleet routing. Every route optimization algorithm works with an inbuilt geocoding functionality. However, converting addresses into a particular point on the map to precise latitude and longitude coordinates takes work. Understanding ambiguous addresses and local contexts is critical for accurate geocoding, coupled with a robust database of local addresses and apartment locations. With a precise address to geocode lookup, the best route optimization algorithms can work efficiently and might lead to non-desired locations and time and fuel wastage.
Ecosystem Of Fleet Management Market
The prominent players in the fleet management market include Geotab (Canada), Verizon Connect (US), Bridgestone Group (Japan), and other players. These companies have been operating in the market for several years and possess a diversified product portfolio and state-of-the-art technologies with a well-established geographic footprint.
By solution, the operation management segment will hold the largest market size during the forecast period.
Fleet management's operation management, powered by technologies such as fleet tracking, geofencing, routing, and scheduling, delivers unparalleled real-time visibility into every facet of a fleet. Fleet tracking enables immediate and accurate location insights, allowing fleet managers to monitor each vehicle's status in real-time. This visibility is crucial for making informed decisions promptly, addressing issues as they arise, and ensuring timely deliveries. Geofencing enhances this capability by setting virtual boundaries and triggering alerts when vehicles enter or exit predefined areas, aiding in security and compliance. Meanwhile, advanced routing and scheduling optimize the movement of vehicles, minimizing idle times and optimizing routes for efficiency. The smooth incorporation of these technologies not only elevates operational performance but also propels the expansion of the fleet management market. Businesses experience heightened efficiency, lowered operational costs, and enhanced customer satisfaction, collectively fostering the widespread acceptance and implementation of comprehensive fleet management solutions.
“Retail segment is expected to have the fastest growth rate during the forecast period.”
Within the retail industry, the coordination of inventory storage and transportation is greatly aided by the smooth integration of warehouse systems with fleet management. With the help of this connectivity, merchants may optimize loading procedures, save idle time, and ensure that trucks are accurately loaded with the correct goods, resulting in more streamlined and effective deliveries. In the retail sector, satisfying consumer expectations has become critical, and fleet management systems are crucial in ensuring customer satisfaction. Through precise delivery windows, live tracking, and order fulfillment process optimization, these tools greatly enhance the entire customer experience. Additionally, the availability of the appropriate items at designated locations is guaranteed by integrating fleet management solutions with inventory management systems.
“North America will have the largest market size during the forecast period.”
The expansion of the vehicle rental and leasing market in North America is driving a heightened demand for sophisticated fleet management solutions. Companies engaged in rental and leasing services turn to these solutions to effectively oversee their fleets, guaranteeing efficient utilization, timely maintenance, and compliance with industry standards. These comprehensive fleet management tools are central to improving operational efficiency by providing real-time tracking, predictive maintenance features, and extensive reporting capabilities. Concurrently, the North American fleet management market actively confronts workforce management challenges, particularly the persistent shortage of drivers. Recognizing the importance of solutions that optimize routes and schedules and contribute to driver retention and overall workforce productivity, the industry is leveraging technology-driven tools. This strategic approach not only helps counteract the impact of labor shortages but also ensures that the existing workforce operates at peak efficiency, reinforcing the dependability and performance of the entire fleet. The dual emphasis on optimizing vehicle usage and addressing workforce issues underscores the pivotal role of fleet management in supporting the growth and resilience of the rental and leasing market in North America.
Market Players:
The major players in the fleet management market are Geotab (Canada), Verizon Connect (US), Bridgestone Group (Japan), Trimble (US), Samsara (US), Wheels (US), Inseego (US), Solera Group (US), Verra Mobility (US), Teletrac Navman (US), Holman (US), Orbcomm (US), Mix Telematics (South Africa), Zebra Technologies (US), Motive (US), Chevin (UK), GPS Insight (US), Michelin (France), ClearpathGPS (US), Fleetcomplete (Canada), Gurtam (Lithuania), Automile (US), Via Transportation (US), Fleetroot (UAE), Ruptela (Lithuania), Freeway Fleet (UK). These players have adopted various growth strategies, such as partnerships, agreements and collaborations, new product launches and enhancements, and acquisitions to expand their fleet management market footprint.
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Report Metrics |
Details |
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Market size available for years |
2018-2028 |
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Base year considered |
2022 |
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Forecast period |
2023–2028 |
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Forecast units |
Value (USD Billion) |
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Segments Covered |
By component (solution(operations management, vehicle maintenance and diagnostics, performance management, fleet analytics and reporting, compliance management, other solutions), services (professional services, managed services)), by fleet type (commercial fleets, passenger vehicles) vertical (retail, transportation & logistics, healthcare & pharmaceuticals, construction, utilities, oil, gas and mining, government, other verticals) and Region (North America, Europe, Asia Pacific, Middle East & Africa, and Latin America) |
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Region covered |
North America, Europe, Asia Pacific, Middle East & Africa, and Latin America |
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Companies covered |
Geotab (Canada), Verizon Connect (US), Bridgestone Group (Japan), Trimble (US), Samsara (US), Wheels (US), Inseego (US), Solera Group (US), Verra Mobility (US), Teletrac Navman (US), Holman (US), Orbcomm (US), Mix Telematics (South Africa), Zebra Technologies (US), Motive (US), Chevin (UK), GPS Insight (US), Michelin (France), ClearpathGPS (US), Fleetcomplete (Canada), Gurtam (Lithuania), Automile (US), Via Transportation (US), Fleetroot (UAE), Ruptela (Lithuania), Freeway Fleet (UK). |
This research report categorizes the fleet management market to forecast revenues and analyze trends in each of the following submarkets:
Based on the component:
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Solution
- Operations management
- Vehicle maintenance and diagnostics
- Fleet analytics and reporting
- Compliance Management
- Performance Management
- Other solutions
- Services
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Professional Services
- Consulting
- Deployment & Integration
- Support & Maintenance
- Managed Services
Based on fleet type:
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Commercial fleets
- Light commercial vehicles
- Medium and Heavy commercial vehicles
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Passenger Vehicles
- Internal combustion engine
- Electric Vehicles
Based on Vertical
- Retail
- Transportation & logistics
- Healthcare & pharmaceuticals
- Construction
- Utilities
- Oil, gas and mining
- Government
- Other verticals
By Region:
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North America
- United States (US)
- Canada
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Europe
- United Kingdom (UK)
- Germany
- France
- Italy
- Spain
- Rest of Europe
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Asia Pacific
- China
- Japan
- India
- Australia & New Zealand
- Rest of Asia Pacific
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Middle East & Africa
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GCC Countries
- Kingdom of Saudi Arabia (KSA)
- United Arab Emirates (UAE)
- Rest of GCC Countries
- South Africa
- Rest of the Middle East & Africa
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GCC Countries
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Latin America
- Brazil
- Mexico
- Rest of Latin America
Recent Developments
- In January 2024, MoveEV, an AI-powered EV transition platform, partnered with Geotab. The collaboration integrates MoveEV's flagship product, ReimburseEV, into the Geotab Marketplace, marking a significant step in advancing sustainable fleet management.
- In September 2023, Trimble partnered with transportation solution provider Next Generation Logistics to make its Engage Lane solution available to their base of shippers through the Transportation Cloud.
- In December 2022, Donlen and LeasePlan partnered to enhance the offering of fleet management and mobility solutions in the North American fleet market.
- In August 2021, Bridgestone acquired Azuga Holdings, Inc. (Azuga) and the Azuga fleet management platform from Sumeru Equity Partners, Danlaw, Inc., and other shareholders. The acquisition accelerates Bridgestone’s efforts to develop and deploy a comprehensive fleet management solution as a central pillar of the company’s advanced mobility strategy.
Frequently Asked Questions (FAQ):
What is the definition of the fleet management market?
Fleet management encompasses the activities necessary to maintain a fleet's optimal efficiency, punctuality, and financial adherence. It constitutes the systematic approach adopted by fleet managers for overseeing fleet operations, involving continuous monitoring of activities and strategic decision-making in areas such as asset management, dispatch, and routing, as well as the acquisition and disposal of vehicles.
What is the market size of the fleet management market?
The fleet management market is estimated at USD 28.6 billion in 2023 to USD 55.6 billion by 2028, at a CAGR of 14.2% from 2023 to 2028.
What are the major drivers in the fleet management market?
The major drivers in the fleet management market are the increasing adoption of cloud-based, analytical solutions to manage field vehicles and the growing focus of fleet owners on operational efficiency.
Who are the key players operating in the fleet management market?
The market leaders profiled in the fleet management market are Geotab (Canada), Verizon Connect (US), Bridgestone Group (Japan), Trimble (US), Samsara (US), Wheels (US), Inseego (US), Solera Group (US), Verra Mobility (US), Teletrac Navman (US), Holman (US), Orbcomm (US), Mix Telematics (South Africa), Zebra Technologies (US), Motive (US), Chevin (UK), GPS Insight (US), Michelin (France), ClearpathGPS (US), Fleetcomplete (Canada), Gurtam (Lithuania), Automile (US), Via Transportation (US), Fleetroot (UAE), Ruptela (Lithuania), Freeway Fleet (UK).
What key technology trends prevail in the fleet management market?
The key technology trends in fleet management include Big data, 5G, IoT, and Blockchain. .
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This research study involved extensive secondary sources, directories, and databases, such as Dun & Bradstreet (D&B) Hoovers and Bloomberg BusinessWeek, to identify and collect information useful for a technical, market-oriented, and commercial study of the fleet management market. The primary sources have been mainly industry experts from the core and related industries and preferred suppliers, manufacturers, distributors, service providers, technology developers, alliances, and organizations related to all segments of the value chain of this market. In-depth interviews have been conducted with primary respondents, including key industry participants, subject matter experts, C-level executives of key market players, and industry consultants, to obtain and verify critical qualitative and quantitative information.
Secondary Research
The market for companies offering fleet management solutions and services to different verticals has been estimated and projected based on the secondary data made available through paid and unpaid sources, as well as by analyzing their product portfolios in the ecosystem of the fleet management market. It also involved rating company products based on their performance and quality. In the secondary research process, various sources such as the International Journal of Advanced Research (IJAR), EA Journals, and the International Journal of Technology, Innovation, and Management (IJTIM) have been referred to for identifying and collecting information for this study the fleet management market. The secondary sources included annual reports, press releases investor presentations of companies, white papers, journals, and certified publications and articles by recognized authors, directories, and databases. Secondary research has been mainly used to obtain critical information about the supply chain of the market, the total pool of key players, market classification, segmentation according to industry trends to the bottommost level, regional markets, and key developments from both market- and technology-oriented perspectives that primary sources have further validated.
Primary Research
In the primary research process, various primary sources from both the supply and demand sides were interviewed to obtain qualitative and quantitative information on the market. The primary sources from the supply side included various industry experts, including Chief Experience Officers (CXOs); Vice Presidents (VPs); directors from business development, marketing, and product development/innovation teams; related critical executives from fleet management solution vendors, SIs, professional service providers, and industry associations; and key opinion leaders. Primary interviews were conducted to gather insights, such as market statistics, revenue data collected from solutions and services, market breakups, market size estimations, market forecasts, and data triangulation. Primary research also helped understand various trends related to technologies, applications, deployments, and regions. Stakeholders from the demand side, such as Chief Information Officers (CIOs), Chief Technology Officers (CTOs), Chief Strategy Officers (CSOs), and end users using fleet management solutions, were interviewed to understand the buyer’s perspective on suppliers, products, service providers, and their current usage of fleet management solutions which would impact the overall fleet management market.
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Market Size Estimation
Multiple approaches were adopted to estimate and forecast the size of the fleet management market. The first approach involves estimating market size by summing up the revenue generated by companies through the sale of fleet management offerings.
Both top-down and bottom-up approaches were used to estimate and validate the total size of the fleet management market. These methods were extensively used to estimate the size of various segments in the market. The research methodology used to estimate the market size includes the following:
- Key players in the market have been identified through extensive secondary research.
- Regarding value, the industry’s supply chain and market size have been determined through primary and secondary research processes.
- All percentage shares, splits, and breakups have been determined using secondary sources and verified through primary sources.
Market Size Estimation Methodology-Bottom-up approach
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Market Size Estimation Methodology-Top-Down Approach
Data Triangulation
After arriving at the overall market size, the fleet management market was divided into several segments and subsegments. A data triangulation procedure was used to complete the overall market engineering process and arrive at the exact statistics for all segments and subsegments, wherever applicable. The data was triangulated by studying various factors and trends from the demand and supply sides. Along with data triangulation and market breakdown, the market size was validated by the top-down and bottom-up approaches.
Market Definition
Fleet management encompasses the activities necessary to maintain a fleet's optimal efficiency, punctuality, and financial adherence. It constitutes the systematic approach adopted by fleet managers for overseeing fleet operations, involving continuous monitoring of activities and strategic decision-making in areas such as asset management, dispatch, and routing, as well as the acquisition and disposal of vehicles.
Key Stakeholders
- Fleet Managers
- IT Departments
- Drivers
- Digital maps providers
- Automotive suppliers
- Government Agencies
- Investment Firms
- Fleet management Alliances/Groups
Report Objectives
- To determine, segment, and forecast the fleet management market by component, fleet type, vertical, and region in terms of value
- To forecast the size of the market segments concerning 5 main areas: North America, Europe, Asia Pacific, Middle East Africa, and Latin America
- To provide detailed information about the major factors (drivers, restraints, opportunities, and challenges) influencing the growth of the market
- To study the complete value chain and related industry segments and perform a value chain analysis of the market landscape
- To strategically analyze the macro and micro-markets concerning individual growth trends, prospects, and contributions to the total market
- To analyze the industry trends, pricing data, patents, and innovations related to the market
- To analyze the opportunities for stakeholders by identifying the high-growth segments of the market
- To profile the key players in the market and comprehensively analyze their market share/ranking and core competencies
- To track and analyze competitive developments, such as mergers and acquisitions, product launches & developments, partnerships, agreements, collaborations, business expansions, and R&D activities
Available Customizations
With the given market data, MarketsandMarkets offers customizations as per the company’s specific needs. The following customization options are available for the report:
Country-wise information
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Company Information
- Detailed analysis and profiling of additional market players (up to 5)
Generating Response ...
Growth opportunities and latent adjacency in Fleet Management Market