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Market Overview

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The global fleet management market is projected to reach $41.54 billion by 2031, growing at a CAGR of 19.52% during the forecast period of 2022-2031. This growth is mainly driven by the increasing demand for cutting maintenance and operation costs in fleet management.

Fleet management systems, consisting of hardware, software, and services, provide fleet managers and businesses with the ability to make informed decisions easily. These solutions help improve the efficiency and productivity of fleet vehicles, leading to a high demand for fleet management systems. Ongoing research and development activities have resulted in the launch of new products tailored for fleet owners, managers, and businesses that rely on fleet management.

The impact of COVID-19 and conflicts such as the one between Ukraine and Russia has caused significant changes in energy prices. The rising energy prices are expected to drive the adoption of fuel management as part of fleet management applications, thereby positively impacting the overall fleet management market.

The cloud segment of the fleet management market is expected to experience high growth during the forecast period. This is due to its advantages, including simplicity, cost-effectiveness, and ease of storing fleet management data. The subscription model is widely adopted in this market, with providers offering different packages based on the number of fleet management applications chosen by clients.

The increasing demand for commercial vehicles in the transportation and logistics sector is expected to drive significant growth in the global fleet management market. Technological advancements and the widespread adoption of fleet management hardware and software from manufacturers will further boost market growth. Government mandates on the use of fleet management hardware in commercial vehicles play a key role in driving the market forward. Fleet management software providers are introducing innovative and customizable products to meet customer needs. While the fleet management market is still in its early phase in regions like Asia-Pacific, Japan, and the rest of the world, these regions are expected to witness substantial revenue growth in the forecast period.

One of the key drivers of the global fleet management market is the increasing awareness of the benefits of fleet management systems. These systems manage significant amounts of vehicle fleet data and assist users in making informed decisions. Start-ups in the fleet management industry have lucrative opportunities to grow their businesses and generate substantial revenues through the sale of fleet management solutions.

There are several demand drivers for the fleet management market, including the rising number of vehicle and asset thefts, an increase in road accidents, volatility in fuel prices, and a growing demand for fleet management solutions from the transportation and logistics industry. However, there are also challenges that the market may face, such as integrating information from various sources and the risk of cyber attacks.

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Market Segmentation

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The market is segmented based on various factors, including application type, vehicle type, component, deployment, and region.

Segmentation by Application Type
Real Time Location Monitoring
Fuel Management
Maintenance Management
Driver Management
Weight/Volume Tracking
Accounting and Insurance

Segmentation by Vehicle Type
Light Commercial Vehicles
Heavy Commercial Vehicles

Segmentation by Component
Hardware
Software
Service

Segmentation by Deployment
On-Premises
Cloud

Segmentation by Region
North America
Asia-Pacific and Japan
China
Europe
U.K.
Rest-of-the-World

The global fleet management market comprises eight main applications: real-time location monitoring, weight/volume tracking, fuel management, tracking road conditions, route management, time and driver management, maintenance management, and accounting and insurance. Among these, real-time location monitoring is expected to dominate the market for commercial vehicles, as most vehicles utilize GPS trackers for tracking real-time locations. As fleet management technologies evolve, the adoption of different applications in commercial vehicles also increases. Real-time location monitoring is projected to experience significant growth in the coming years, driven by GPS tracking mandates from governments worldwide. This application allows fleet managers to monitor the status of vehicles in real-time, including their position, speed, and distance traveled. It enables them to receive alerts regarding abnormal driver behavior that may compromise efficiency and safety. For small logistics companies, GPS vehicle tracking is considered a long-term investment, as it provides detailed information about the vehicle’s diagnostic systems and additional connected sensors. Route management, time management, and road condition tracking are also widely utilized applications in the fleet management market.

The light commercial vehicles segment is expected to lead the market, driven by an increasing vehicle fleet and growing demand for applications such as last-mile delivery, logistics, and transportation. Advanced technologies are rapidly being incorporated into light commercial vehicles, which will have a positive impact on the fleet management market for these vehicles. Light commercial vehicles, which are preferred for short distances, typically transport goods and passengers. Examples of light commercial vehicles include pickup trucks, vans, and multi-utility vehicles. Leading manufacturers in this segment include BYD, Ford, Nissan, Hyundai, Toyota, and Volkswagen. Given the higher energy consumption of light commercial vehicles compared to passenger vehicles, reducing maintenance and operational costs is of utmost importance.

In 2021, the software component segment dominated the global fleet management market. Despite its higher cost, the user-friendly features of fleet management software have contributed to its growth in recent years. The software segment is expected to grow at a high rate between 2022 and 2031, driven by recent developments and its ability to provide fleet vehicle data insights for decision-making. The cloud segment was the largest segment in 2021 and is expected to maintain its dominance in the forecast period. Cloud-based fleet management solutions offer lower infrastructure costs, ease of use, and less complex features compared to on-premises systems. The deployment of fleet management solutions in the cloud is projected to grow at a high rate between 2022 and 2031. The cost-effectiveness, ease of handling, and data storage capabilities of cloud servers contribute to the segment’s growth.

In 2021, North America was the largest region in the fleet management market, driven by the presence of large commercial vehicle fleets in the U.S. and the rapid adoption of connected technologies. However, the Rest-of-the-World and Asia-Pacific and Japan markets are expected to experience high growth rates during the forecast period. The demand for fleet management systems varies across countries in these regions. North America will continue to lead the market due to its early adoption of fleet management systems, increasing sales of light and heavy commercial vehicles, government mandates, and the launch of innovative products. The focus on key development activities such as expansion, acquisition, and partnership by fleet management system providers in North America is also expected to positively impact the market’s long-term growth.

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Competitive Landscape

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The selection of the profiled companies has been based on inputs gathered from primary experts, as well as an analysis of their coverage, product portfolio, and market penetration.

Key companies profiled in this report include Trimble Inc., Cisco Systems, Inc., TomTom International BV, Geotab Inc., Verizon, AT&T Inc., Zebra Technologies Corp., Embitel, Teletrac Navman US Ltd, Gurtam, Wheels Donlen, Astrata Europe BV., TELTONIKA, Navtelecom, LLC, Queclink Wireless Solutions Co., Ltd., Fleetx, Fleeti, Wonder Wagen.

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Recent Industry Developments

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In December 2021, Geotab Inc., a renowned global leader in IoT and connected transportation, announced its strategic partnership with Sygic. The objective of this collaboration is to offer customers offline GPS navigation and route planning specifically designed for trucks and light commercial vehicles.

In February 2022, Veniam, a provider of intelligent networking solutions, integrated its advanced technology with TomTom IndiGO, a flexible digital cockpit platform. This alliance aims to deliver top-notch connectivity for onboard applications and cater to the needs of car manufacturers worldwide.

In August 2020, MiX Telematics successfully acquired Trimble’s field service management business. This merger significantly enhances MiX Telematics’ North American telematics subscriber base while diversifying their business across various industry verticals.

In May 2022, Astrata Europe BV entered into a strategic five-year partnership with Bosch Group. This collaboration holds potential benefits for Astrata Europe BV, particularly in optimizing its supply chain operations. With a focus on reducing product delivery time and mitigating shipping risks, Astrata Europe BV has begun production in Europe to achieve these objectives.

In April 2021, Queclink Wireless Solutions Co., Ltd., known as the world’s leading provider of IoT devices and technologies, established a partnership with Sigfox, a pioneer and leader in the OG network and IoT domain. Through this collaboration, a series of initiatives have been launched to enhance asset management and enable efficient stolen vehicle recovery (SVR) solutions.

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Key Questions Answered

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What are the primary market drivers, challenges, and opportunities in the fleet management market?

How do key industry participants within fleet management companies perceive the latest trends and developments relevant to fleet management?

What are the main development strategies employed by key players to maintain their presence in the market, and what initiatives have new entrants taken in this ecosystem?

Which regions and countries are effectively utilizing fleet management?

How has the COVID-19 pandemic affected the fleet management business throughout the global supply chain?