Fleet Management Solutions Market - Growth, Trends, COVID-19 Impact, and Forecasts (2023 - 2028)

Fleet Management Solutions Market Analysis

The Fleet Management Solutions Market is expected to register a 15.34% CAGR over the forecast period. The increasing functionalities of fleet management solutions over the last decade have allowed them to grow into optimized solutions that can interact with and assist with maintaining highly robust and tight fleets within enterprises.

• The fleet management solution (FMS) market primarily integrates software, hardware, connectivity solutions, and network infrastructure to offer effective monitoring and reporting systems for fleet operators. The solution benefits fleet operators by saving costs and resource expenditure while ensuring that the fleet complies with the prevailing standards. The primary focus of the market vendors has been to drive the overall efficiency of a fleet business by eliminating services that offer marginal value.
• Deploying fleet management solutions reduces factors, such as fuel costs, that account for a significant portion of fleet operation spending. Thus, by the benefits they provide, FMS reduces the cost of fleet operation. In June of last year, the global fuel and fleet management solutions provider OMNICOMM announced that it has entered into a strategic partnership with the narrowband IoT solution provider Skylo. Both companies will be integrating and delivering a complete fuel management IoT solution for all businesses, irrespective of fleet sizes, to monitor fuel usage in real-time in remote locations with no cell coverage.
• The fleet management market has been greatly affected by rising operational costs, rooted in the increased demand for utility vehicles, rising expenditure on maintenance, and steady growth in compliance costs. Large- and medium-scale fleet owners widely use fleet management solutions for streamlining operations. The adoption rate among small fleet owners has been slow owing to factors like lack of awareness, limited operation scale, smaller budgets, limited compliance norms, high capital requirements, and a rise in operational costs.
• 5G expansion is also expected to tremendously impact the fleet management industry, as it will increase the speed at which information travels, thereby providing fleets with the opportunity to reduce latency and increase productivity. Organizations that leverage a mobile fleet management app will benefit from 5G. Fleet managers and their teams can stay connected and boost productivity from increased coverage to instantaneous notifications.
• Due to the spread of COVID-19, the vendors offering fleet management solutions for non-essential fleets were the most affected, as many vehicles were left idle. This is due to the global lockdown, travel limitations, and the work-from-home culture. The trend is still prevailing, as companies have extended the work-from-home policy, and people are avoiding ride-sharing.

Fleet Management Solutions Industry Segments

Fleet Management Solutions are a range of functions, such as vehicle financing, vehicle maintenance, vehicle telematics, such as tracking and diagnostics, driver management, speed management, fuel management, and health and safety management. The fleet management solution (FMS) market primarily integrates software, hardware, connectivity solutions, and network infrastructure to offer effective monitoring and reporting systems for fleet operators.

The scope of the study focuses on the market analysis of Fleet Management Solutions across the globe. The study also tracks the key market parameters, underlying growth influencers, and major vendors operating in the industry, which supports the market estimations and growth rates over the forecast period. The scope of the report encompasses market sizing and forecast for segmentation by deployment, by solution, by end-user industry, and by geography. The study further analyzes the impact that Covid-19 had on the ecosystem.​
The market sizes and forecasts are provided in terms of value (USD million) for all the above segments

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Fleet Management Solutions Market Trends

This section covers the major market trends shaping the Fleet Management Solutions Market according to our research experts:

Asset Management Segment Expected to Hold Significant Share

• Asset management systems and solutions allow for the creation of connections between financial, property and maintenance management, eliminating duplication of databases and maintaining a direct connection to the Fleet Automotive Statistical Tool (FAST). The availability of data and efficient analyses of the same allows for the consequences of each activity for an asset to be monitored such that a review of the cost-benefit analysis can be made.
• Asset management and tracking solutions are increasingly critical to achieving greater operational efficiencies in the current market scenario of rapid digitalization in manufacturing environments and office spaces. Recent advancements in IoT technology have enabled several end-users to acquire economical and efficient asset-tracking hardware. Compared to standard traditional asset tracking systems, modern wide-area and short-area IoT equipment that uses minimal electricity and infrastructure are driving the sales for asset tracking systems.
• Mobile assets are a significant source of demand for custom hardware tracking solutions. In the current deployment scenario, generic asset tracking solutions are combined with motion detectors, tilt sensors, temperature, and pressure sensors, to ensure the health of high-value assets in transit. Over the past few years, the global asset tracking market has witnessed several collaborations that were formed to build advanced tracking solutions.
• Telstra, an Australian telecommunication company, recently released a suite of Internet of Things (IoT) tracking solutions, having a Telstra Locator product that is consumer-focused and an enterprise-focused Track and Monitor solution. The company concentrates on the 'location of things,' thereby launching small business, consumer, and enterprise solutions for connected asset tracking.
• Moreover, Sierra Wireless, a communication equipment company, helps companies design, develop, and deploy reliable and cost-effective IoT and connectivity solutions. The company also provides end-to-end managed tracking solutions to create connected tracking networks that utilize the latest LTE-M and NB-IoT standards to provide highly-accurate geolocation capabilities in a highly compact size. Sierra Wireless offers end-to-end, market-ready managed services to track any asset spanning globally.
• Asset tracking is expected to grow considerably for industrial IoT, and most connected devices will be location-aware within the next decade. Due to the improvements in low-power RF chip technologies and the adoption of Low Power Wide Area Networks (LPWAN) and Bluetooth Low Energy (BLE) beacons, new asset-tracking IoT solutions have been created. Implementing asset trackers utilizing RFID technology is expected to strengthen demand in several industries, including industrial automation, supply chain, logistics, agriculture, construction, mining, and related markets.

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