Fleet Management Solutions Market Size, Share | Trends | Industry Overview

Fleet Management Solutions Market - Growth, Trends, and Forecast (2019 - 2024)

The Fleet Management Solutions market was valued at USD 5.12 billion in 2018, and it is expected to reach a value of USD 15.4 billion by 2024, at a CAGR of 20.07% over 2019-2024. The market is segmented by Deployment Model (Cloud, On-premise, Hybrid), Solutions (Driver Management, Information Management, Operation Management), End-User (Construction, Energy, Transportation), and Region - Growth, Trends, and Forecast (2019 - 2024)

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Study Period:

2019-2024

Base Year:

2018

Fastest Growing Market:

Asia Pacific

Largest Market:

Europe

Key Players:

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Market Overview

  • The Fleet Management Solutions market was valued at USD 5.12  billion in 2018, and it is expected to reach a value of USD 15.4 billion by 2024, at a CAGR of 20.07% over 2019-2024. Recently, businesses are increasingly adopting transportation to enhance their offerings. Thus, commercial fleets have witnessed a considerable rise over the past few years. According to the data from the Automotive Fleet, in the United States, sales of vehicles to commercial fleets, from eight major manufactures, increased by 2.1%, to 69,145, in May 2018, as compared to the previous year.
  • Fleet management market has been greatly affected by rising operational costs, rooting from increased demand for utility vehicles, rising expenditure on maintenance, and steady growth in compliance costs.
  • Fleet management solutions are being widely used by large- and medium-scale fleet owners for streamlining operations. The rate of adoption 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 rise in operational costs.
  • According to AT&T, the annual accident rate for commercial fleets is about 20%. Fleet accidents have the most expensive injury claims for business, with an average cost of about USD 70,000 per accident. This has emphasized on the need to manage the commercial fleet.

Scope of the Report

Fleet vehicle management can include 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.

Deployment Model
On Premise
On Demand
Hybrid
Solution
Asset Management
Information Management
Driver Management
Safety and Compliance Management
Risk Management
Operations Management
Other Solutions
End User
Transportation
Energy
Construction
Manufacturing
Other End Users
Geography
North America
US
Canada
Europe
Germany
UK
France
Rest of Europe
Asia Pacific
China
Japan
India
Rest of Asia-Pacific
South America
Brazil
Argentina
Rest of South America
Middle East and Africa
UAE
Saudi Arabia
South Africa
Rest of Middle East and Africa
  • MARKET SEGMENTATION
    • Deployment Model
      • On Premise
      • On Demand
      • Hybrid
    • Solution
      • Asset Management
      • Information Management
      • Driver Management
      • Safety and Compliance Management
      • Risk Management
      • Operations Management
      • Other Solutions
    • End User
      • Transportation
      • Energy
      • Construction
      • Manufacturing
      • Other End Users
    • Geography
      • North America
        • US
        • Canada
      • Europe
        • Germany
        • UK
        • France
        • Rest of Europe
      • Asia Pacific
        • China
        • Japan
        • India
        • Rest of Asia-Pacific
      • South America
        • Brazil
        • Argentina
        • Rest of South America
      • Middle East and Africa
        • UAE
        • Saudi Arabia
        • South Africa
        • Rest of Middle East and Africa

Key Market Trends

MARKET SEGMENTATION - BY SOLUTION - DRIVER MANAGEMENT

  • The driver management systems in fleet management solutions include applications, such as driver registration, insurance risk management, and analysis. The prime motive in most of the driver management systems is to study the driver behavior and make necessary changes to the driving styles, which will reduce the fuel consumption and improve the vehicle’s maintenance.
  • The driver management system promote better driving behavior and continuously sends feedback indicating the driving style with alerts. The organizations are adopting this solution as it provides them fuel savings and lower maintenance cost, and makes them feel secure about the management of the vehicle and the customers.
  • According to a recent safety report by Volvo Trucks, more than 90% of the accidents were caused due to human factors. The survey indicates that more than 13% of the accidents caused fatalities to heavy goods vehicle occupants.
  • In North America alone, there has been a severe increase in the number of warehouses form third-party logistics players, like DHL, XPO, Ryder, and Geodis. It is estimated that in the period from 2016 to 2017, DHL increased its warehouse count in North America by 60%, XPO Logistics by 18%, and NFI Logistics by 11%.
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MARKET SEGMENTATION - BY GEOGRAPHY - UNITED STATES

  • The US government is currently assessing the potential of telematics to reduce cost of accidents, which in turn, is driving the market for fleet management services. The US fleet market is dominated by Ford, General Motors, and Fiat-Chrysler. OEMs are moving fleet sales to retail channels to increase their profitability could reduce volumes.
  • Increasing awareness of the cost benefits of fleet management and leasing will attract more new customers. Additionally, reduced government spending and anxieties of a double-dip recession could restrain growth in the market.
  • According to the EPA, combustion of fossil fuels, such as diesel and gasoline, to transport goods and people, is the second largest source of carbon dioxide emissions, totaling to about 31% of the US carbon dioxide emissions, and more than one-fourth of the US greenhouse gas emissions.
  • Apart from various industries adopting the fleet management solutions, the US Department of Homeland Security has also taken fleet management solutions to provide its fleet managers access to data-driven insights to manage the daily operations of fleet. The Department of Homeland Security (DHS) landed into an into a telematics contract with WEX Inc., to supply vehicle telematics products and services. According to WEX, the Homeland Security operates a fleet of around 52,000 vehicles, creating it one of the largest federal agency fleets in the United States.
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Competitive Landscape

  • Fleet management solution market is characterized by high fragmentation, growing presence of original equipment manufacturers, low levels of product differentiation, and sinking hardware and connectivity costs. The level of competitiveness has been growing steadily, due to high market consolidation by market leaders and increased R&D activities, leading to innovations in telematics and analytics solutions.
  • Moreover, companies have been investing in cloud technologies, owing to the growing data in the fleet management sector. For instance, Fleetonomy is focused on offering a cloud-based fleet management service for carmakers, car rental companies, and ride-sharing services.
  • Similarly, Chevin launched SaaS package designed to support essential fleet, maintenance, and compliance management responsibilities.Some of the major players include AT&T Inc, Cisco Systems. 
  • AT&T and Fleet Complete has done a partnership with the Vision Zero Network to helps different communities to eliminate traffic fatalities and severe injuries using connected vehicle technology.
  • Cisco Jasper introduced automated mobility management platform, Control Center for Mobile Enterprise, that automates the management of enterprise mobile services and devices.

Major Players

  1. Cisco Systems Inc
  2. AT&T INC
  3. CTRACK (INSEEGO CORP. )
  4. I.D. SYSTEMS
  5. IBM CORPORATION

* Complete list of players covered available in the table of contents below

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Table of Contents

  1. INTRODUCTION
    1. Study Deliverables
    2. Study Assumptions
    3. Scope of the Study
  2. RESEARCH METHODOLOGY
  3. EXECUTIVE SUMMARY
  4. MARKET DYNAMICS
    1. Market Overview
    2. Introduction to Market Drivers and Restraints
    3. Market Drivers
      1. RENEWED EMPHASIS ON STREAMLINING FLEET OPERATIONS
      2. AVAILABILITY OF WIDER RANGE OF REPORTING AND ANALYTICS SERVICES
      3. AFFORDABLE HARDWARE AND ACCESS TO GREATER CONNECTIVITY
    4. Market Restraints
      1. LACK OF AWARENESS AMONG SMALLER-FLEET OWNERS
      2. RISING OPERATIONAL COSTS FOR FLEET VENDORS
    5. Value Chain Analysis
    6. Industry Attractiveness Porters Five Force Analysis
      1. Threat of New Entrants
      2. Bargaining Power of Buyers/Consumers
      3. Bargaining Power of Suppliers
      4. Threat of Substitute Products
      5. Intensity of Competitive Rivalry
  5. MARKET SEGMENTATION
    1. Deployment Model
      1. On Premise
      2. On Demand
      3. Hybrid
    2. Solution
      1. Asset Management
      2. Information Management
      3. Driver Management
      4. Safety and Compliance Management
      5. Risk Management
      6. Operations Management
      7. Other Solutions
    3. End User
      1. Transportation
      2. Energy
      3. Construction
      4. Manufacturing
      5. Other End Users
    4. Geography
      1. North America
        1. US
        2. Canada
      2. Europe
        1. Germany
        2. UK
        3. France
        4. Rest of Europe
      3. Asia Pacific
        1. China
        2. Japan
        3. India
        4. Rest of Asia-Pacific
      4. South America
        1. Brazil
        2. Argentina
        3. Rest of South America
      5. Middle East and Africa
        1. UAE
        2. Saudi Arabia
        3. South Africa
        4. Rest of Middle East and Africa
  6. COMPETITIVE LANDSCAPE
    1. Company Profiles
      1. Cisco Systems Inc
      2. AT&T INC
      3. CTRACK (INSEEGO CORP. )
      4. I.D. SYSTEMS
      5. IBM CORPORATION
      6. Astrata Group
      7. Mix Telematics Limited
      8. Omnitracs LLC
      9. Tomtom NV
      10. Trimble Navigation Limited
      11. Verizon Communications, Inc.
      12. Wheels Inc.
    2. *List Not Exhaustive
  7. MARKET INVESTMENT ANALYSIS
  8. MARKET OPPORTUNITIES AND FUTURE TRENDS