Market Research

Fleet management market to hit $55.6B by 2028

CHICAGO , Feb. 13, 2024 /PRNewswire/ — The Fleet Management Market is expected to reach USD 55.6 billion by 2028 from USD 28.6 billion in 2023, at a Compound Annual Growth Rate (CAGR) of 14.2% during 2023–2028, according to a new report by MarketsandMarkets™. The fleet management industry is driven primarily by the increasing prevalence of automation technology. Companies are progressively incorporating automation into a broader range of operational aspects, particularly fleet management systems for maintenance reminders, dispatching, and route planning. Human resources are freed up by this adoption to concentrate on more strategically important work. The sector is seeing a transition towards automated processes, and automated fleet management jobs’ increased efficiency, lower operating overhead, and better decision-making capabilities are significant factors driving the market’s expansion.

“By vertical, the transportation & logistics segment to hold the largest market size during the forecast period.”

The escalating fuel costs have become a pivotal factor driving the adoption of advanced fleet management technologies to optimize fuel efficiency. Fleet managers increasingly invest in sophisticated route optimization systems. These systems leverage real-time traffic data, historical route information, and predictive analytics to identify the most fuel-efficient vehicle paths. These systems consider traffic congestion, road conditions, and elevation changes to minimize fuel consumption.

Moreover, integrating eco-driving technologies plays a crucial role in this scenario. These technologies, often facilitated by telematics and onboard sensors, provide real-time feedback to drivers on their driving behavior. They encourage fuel-efficient practices such as smooth acceleration, deceleration, and optimal speed maintenance. The synergy of route optimization and eco-driving reduces fuel consumption. It also contributes to lower emissions, aligning with environmental sustainability goals. This technological approach addresses the immediate cost concerns associated with fuel. It also positions fleet management systems as indispensable tools for achieving operational efficiency and environmental responsibility in the logistics and transportation sector.

“By solution, the performance management segment is expected to hold a higher growth rate during the forecast period.”

Solutions for scalable performance management are essential for tackling the changing problems expanding fleets encounter. As fleets expand and undergo operational changes, these solutions provide a level of flexibility and adaptability that is crucial for seamless integration into evolving business operations. The scalability feature allows fleet managers to effortlessly accommodate an increasing number of vehicles, diverse assets, and a growing workforce. Scalable solutions ensure that the performance management system can readily grow alongside the fleet. Moreover, whether expanding to new geographic locations, adjusting to fluctuating demand, or incorporating additional functionalities. This adaptability not only future-proofs the investment in technology. It also facilitates a smooth transition during periods of change, ultimately contributing to sustained operational efficiency and optimized fleet performance in the face of evolving business landscapes.

“Asia Pacific is expected to hold a higher growth rate during the forecast period.”

Governments in Asian cities with high population densities invest heavily in sophisticated traffic control systems to deal with traffic bottlenecks and guarantee efficient traffic flow. In this urban setting, fleet management is essential since it increases the overall effectiveness of traffic control systems. Fleet management systems reduce traffic congestion and increase traffic flow. They do this by optimizing routes, minimizing idle times, and improving vehicle coordination via real-time data and analytics. Additionally, effective fleet management systems have become essential in the larger framework of commerce and cross-border transportation in the Asia Pacific area. They are critical to maintaining adherence to customs laws. They also enable smooth logistical processes and raise the general effectiveness of supply networks that span international borders. In these instances, the use of fleet management systems improves operational efficiency. It also supports the larger regional objectives of trade facilitation and economic connection.

Market Players

The major vendors covered in the fleet management market are Geotab (Canada), Verizon Connect (US), Bridgestone Group (Japan), Trimble (US), Samsara (US), Wheels (US), Inseego (US), Solera Group (US), Verra Mobility (US), Teletrac Navman (US), Holman (US), Orbcomm (US), Mix Telematics (South Africa), Zebra Technologies (US), Motive (US), Chevin (UK), GPS Insight (US), Michelin (France), ClearpathGPS (US), Fleetcomplete (Canada), Gurtam (Belarus), Automile (US), VIA (Israel), Fleetroot (UAE), Ruptela (Lithuania), Freeway Fleet (UK).

These players have adopted various growth strategies, such as partnerships, agreements, and collaborations. They have also pursued new product launches, enhancements, and acquisitions to expand their footprint in the fleet management market.

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