India Fleet Management Software Market Size

India Fleet Management Software Market Analysis

The Indian Fleet Management Software Market is estimated at USD 1.45 billion in the current year and is expected to reach USD 3.25 billion by the end of the forecast period by registering a CAGR of 17.5% during the forecast period.

• Fleet management software includes a range of functions, such as vehicle financing, vehicle maintenance, tracking and diagnostics, driver management, speed management, fuel management, and health and safety management, to name a few. The market for such solutions in India is observed to be still at a nascent stage, thereby portraying ample opportunities for the vendors.
• According to the Government of India report, Indian national and state highways account for a little over 5% of all road length but are responsible for more than 61% of traffic fatalities. Millions of cars drive through these roads every day, either managing the movement of goods exceeding a billion dollars or being used by industries like mining, construction, transport, and even public services. Rising cases of road accidents are anticipated to drive growth during the projected period.
• India has become the world's hottest-growing economy. For four of the last five years, this is a very big economy due to an increase in demand for goods and services. The movement of goods in and out of the country and beyond its borders has created economic opportunities for millions of Indians.
• The logistics sector currently accounts for 5% of India's Gross Domestic Product (GDP) and employs 2.2 crore people. India handles 4.6 billion tons of goods every year, amounting to a total annual cost of INR 9.5 lacs (USD 11421). These products represent a wide variety of industries in the country and products: 22% of the goods are agriculture, Mining products represent 39%, and 39% are manufacturing-related commodities. Trucks and other vehicles majorly handle the movement of these goods. Railways, inland waterways, coastal, pipelines, and airways are involved for the rest of transport.
• Additionally, in August 2022, the Ministry of Road Transport and Highways (MoRTH) mandated that all goods vehicles used for transporting dangerous or hazardous products must be equipped with a location tracking device, effective for any vehicles constructed on or after September 1, 2022.
• The region is witnessing increased funding towards fleet management due to increasing awareness and offered benefits. For instance, in May 2023, third-party logistics startup Zyngo EV raised USD 5 million in a Pre-Series A round led by Delta Corp Holdings. This round was also attended by an existing investor, LC Nueva Investment Partners LLP. The funding will allow for fleet enlargement, entering new regions, and improving technology.
• Looking at other stakeholders in the market, that is, fleet leasing companies, the trend suggests that the growth of renewable energy resources is likely to further push the market in the adoption of fleet management.