The Global Fleet Management Solutions Market is expected to register a CAGR of approximately 15. 34% over the forecast period (2021 - 2026). The increasing functionalities of fleet management solutions over the last decade have allowed it to grow into an optimized solution that is able to interact with and assist with the maintenance of highly robust and tight fleets within enterprises.
New York, Dec. 01, 2021 (GLOBE NEWSWIRE) -- Reportlinker.com announces the release of the report "Global Fleet Management Solutions Market - Growth, Trends, COVID-19 Impact, and Forecasts (2021 - 2026)" - https://www.reportlinker.com/p06187399/?utm_source=GNW
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.
The fleet management market has been greatly affected by rising operational costs, rooting from the 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 a 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 businesses, with an average cost of about USD 70,000 per accident. This has emphasized the need to manage the commercial fleet.
Due to the spread of COVID-19, the vendors offering fleet management solutions for non-essential fleets were the most affected, as a large number of 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 to contain the spread of the virus.
Key Market Trends
Driver Management Segment Expected to Hold Significant Share
The driver management systems in fleet management solutions include applications, such as driver registration, insurance risk management, and analysis. The prime motive of driver management systems is to study the driver behavior and make necessary changes to driving styles, which will reduce fuel consumption and improve the vehicle’s maintenance.
These systems promote better driving behavior and continuously send feedback indicating the driving style with alerts. Organizations are adopting this solution, as it provides fuel savings, lowers maintenance costs, and makes them feel secure about the management of the vehicle and 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.
Furthermore, a recent product release by KeepTruckin also emphasizes driver management. The compliance-oriented product features a function called Smart Trip Match that automatically matches unidentified trips with recommended drivers by analyzing historical data to ensure the best driver for each trip and notifies the said drivers in real-time through an App. Proprietary AI models analyze historical patterns to pair the correct driver to the correct trip.
United States to Witness Significant Growth
The United States government is currently assessing the potential of telematics to reduce the cost of accidents, which, in turn, is driving the market for fleet management services. The United States fleet market is dominated by Ford, General Motors, and Fiat-Chrysler. OEMs are moving fleet sales to retail channels to increase their profitability.
Increasing awareness about the cost benefits of fleet management and leasing may attract more new customers. Additionally, reduced government spending and anxieties of a double-dip recession could restrain the growth in the market.
As per a 2021 Fleet technology trend report by Verizon that encompasses surveys undertaken by more than 700 U.S. fleet managers, executives, and other mobile-business professionals, the fleet businesses are achieving value by investing in fleet tracking technology. Approximately 96% of fleets in the country are deploying GPS fleet tracking software. Then, 32% of respondents reported a positive return on investment (ROI) in just six months of implementing fleet tracking technology, whereas 45% of 1,200 respondents achieved positive ROI in 11 months or less with fleet management solutions, increasing 18.4% from last year.
Furthermore, according to the EPA, the combustion of fossil fuels, such as diesel and gasoline, to transport goods and people is the second-largest source of carbon dioxide emissions, totaling about 31% of the US carbon dioxide emissions, and more than one-fourth of the US greenhouse gas emissions.
Apart from various industries adopting fleet management solutions, the US Department of Homeland Security has also taken fleet management solutions to provide it is fleet managers access to data-driven insights to manage the daily operations of the fleet. The Department of Homeland Security (DHS) landed a telematics contract with WEX Inc. to supply vehicle telematics products and services. According to WEX, Homeland Security operates a fleet of around 52,000 vehicles, making it one of the largest federal agency fleets in the United States.
The fleet management solution market is characterized by high fragmentation, rising presence of original equipment manufacturers, low levels of product differentiation, and sinking hardware and connectivity costs. The level of competitiveness has been increasing 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 increasing data in the fleet management sector. Some of the key players operating in the market include Cisco Inc., AT&T Inc., IBM Corporation, etc.
October 2021 - Ctrack innovates by launching PC Secure. Ctrack PC Secure allows devices to be tracked and recovered in the same way that Ctrack has done for the past 30 years with stolen vehicles and other assets. Ctrack PC Secure makes any laptop or desktop computer visible for Ctrack to recover stolen laptops or desktops using innovative software.
October 2021 - MiX Telematics, a leading global Software-as-a-Service (SaaS) supplier of connected fleet management solutions, recently announced the extension of a major logistics company’s contract with MiX Telematics in Australasia. The company’s decision to continue working with MiX Telematics is based on the positive results observed in their organization from implementing MiX’s innovative technology across 3,700 cars and assets.
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