Fleet Management Market size is expected to surpass USD 53 billion by the end of 2035, growing at a CAGR of 11% during the forecast period, i.e., 2023-2035. In the year 2022, the industry size of fleet management was USD 19 Billion. The growth of the market can be attributed primarily to how transportation in logistics is evolving day by day. It was observed that worldwide, the share of the fleet that had incorporated GPS fleet tracking had increased from about 65% in 2019 to over 71% in 2020. Such technology in logistics transportation mainly helps reduce time wastage by monitoring the time spent by drivers in loading bays and work sites.
Further, the high reliance on public transportation is expected to create more demand in the global market for fleet management. It was estimated that public transportation was used for over 9 billion trips by Americans in 2019. Public transportation is a lifeline for people traveling in places where the use of private vehicles is inconvenient in terms of time and money spent. It also helps to maintain the health of an economy as companies are able to connect with a large employee base over a large area. Fleet management could improve the efficiency of the public transportation system in a place by using data such as the number of commuters in a route and vehicle location while making the trips profitable for the whole system.
Growth Drivers
Immense Significance of Fleet Safety – It was observed that the occupants of more than 51 goods vehicles got killed on the road annually between 2012 and 2021 in Great Britain. The crashes of fleet vehicles have grave consequences when they are at-fault accidents. The consequences of such accidents include high rates for insurance, expenses on overtime while covering for missing drivers, and high medical costs and employee downtime. Fleet management should ensure safe fleet movement to a great extent. Safety management using measures including in-vehicle computer system is a significant part of fleet management solutions. These solutions would also minimize the need for over speeding and abrupt braking, thereby reducing the probability of wear and tear in the vehicles used in transportation. The reduced incidences of wear and tear should also create a situation suitable for the reduction of fleet size and money savings.
Rapid Rise in the Use of Wireless Technology by Automotive - Wireless technologies are capable of improving driver performance considerably. They also play an important role in fleet management. On-board devices and sensors connected to different parts of the vehicles help collect actionable and real-time data from these components. Wireless technology goes beyond data collection and helps improve diagnostics and strategies for preventive maintenance. An instance is how 5G is used in fleet management. 5G improves alerts on real-time conditions of the road. The instant alerts on disruptions and traffic help fleet managers re-navigate their fleet and share the information with the whole fleet without delay. It is estimated that the share of cars with an active connection to 5G worldwide should increase from ~16% in 2020 to about 95% in 2028.
Growth of International Trade After the Pandemic - It was observed that during the first quarter of 2021, the recovery of international trade from the crisis of COVID-19 reached a record high. The year-over-year increase was by ~11%, while the quarter-over-quarter recovery increased by ~5%. The growth of international trade increases the use of commercial vehicles, and this is expected to lead to market growth.
Changing Mobility Needs with Growing Urbanization - It was estimated that about 58% of the world's population resided in urban areas in 2022. The strain on overall mobility worsens with the growth of the population in urban centers. The mobility needs of people continue to evolve, and this is expected to create opportunities for market growth.
Challenges
|
Base Year |
2022 |
|
Forecast Year |
2023-2035 |
|
CAGR |
~11% |
|
Base Year Market Size (2022) |
~ USD 19 billion |
|
Forecast Year Market Size (2035) |
~ USD 53 billion |
|
Regional Scope |
|
Industry (Construction, Manufacturing, Mining, Transportation, Oil & Gas)
The global fleet management market is segmented and analyzed for demand and supply by industry into construction, manufacturing, mining, transportation, oil and gas, and others. Out of these types, the transportation industry is estimated to gain the largest market share over the projected time frame. The industry is expected to grow at a CAGR of 14% to attain a market share of 40% by 2035. The use of fleet management solutions in transportation and logistics is becoming increasingly inevitable with time. These solutions are mostly used to plan and manage the dispatch schedule, optimize spending, and track the movement of goods and vehicles in real-time for smooth last-minute delivery. The traditional fleet management system failed to track the movement of items from their starting point to their destination. However, advanced fleet management solutions include metrics such as delivery routes, real-time position tracking, and movement speed to improve the trip and delivery time. Considering all these, the expanding transportation industry is expected to drive the market growth of the segment. For instance, the U.S. alone has over 4 million businesses in the transportation & warehousing industry as of 2023.
Deployment Type (On-premises, Cloud)
The global fleet management market is also segmented and analyzed for demand and supply by deployment type into on-premises and cloud. Between these, the cloud segment is expected to hold a significant market share by growing at the fastest rate during the forecast period. The growth of the segment is expected to be driven primarily by the capabilities of cloud-based solutions for a cost-effective and hassle-free integration. Further, cloud-based deployment has been observed to improve fleet management activities such as GPS tracking, which otherwise suffer in areas with low connectivity. With the incorporation of more such devices in the fleet management system, the demand for cloud deployment should also rise. Only in 2018, the volume of vehicle tracking devices that were sold is estimated to exceed 19 million units. Further, the initial expense of cloud-based fleet management software is low, and businesses get access to more scalable and flexible solutions.
Our in-depth analysis of the global market includes the following segments:
|
By Component |
|
|
By Fleet Type |
|
|
By Deployment Type |
|
|
By Application |
|
|
By Industry |
|
North American Market Forecast
The North American fleet management market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2035. The market share of the region is calculated to reach ~31% by the end of 2035. The two countries that should help the region garner such a huge market share are the U.S. and Canada, which are estimated to hold a share of 75% and ~25%, respectively, in the regional market in 2023. The growth of the market in North America region can be attributed majorly to the gains of fleet management businesses in the region after investing timely in fleet tracking technology. For instance, in the U.S., where about 97% of the fleet had deployed GPS fleet tracking software in 2021, close to 33% of the users reported gaining a good return on investment (ROI) in half a month after implementing the fleet technology. Further, the strong presence of the logistics, transportation, and manufacturing industries, the partnership between fleet management businesses and commercial vehicle enterprises, and strict government regulations to control emissions are thought to contribute towards market growth.
APAC Market Statistics
Asia Pacific is another region that is expected to show remarkable growth in the fleet management market during the forecast period. East Asia alone is expected to hold ~19% of the market revenue by the end of 2035. The market growth in Asia Pacific should be led by China and India, with respective shares of ~ 52% and ~41% of the regional market revenue in 2023. China, which is expected to grow at a CAGR of ~9% till 2035, has expanding industries in the oil and gas, transportation, and construction sectors that would require large-scale adoption of fleet management solutions. Another significant factor that is supposed to contribute to the market growth is the increasing use of commercial vehicles in the booming e-commerce industry in China. With a user penetration of ~93%, the number of e-commerce consumers in China is expected to exceed 1 billion by 2027. India's growth in the regional market for fleet management should be mainly a result of the presence of thriving e-commerce and construction sectors. In August 2022, the construction sector made up ~10% of India's gross domestic product (GDP). Further, the demand for connected vehicles is also on the rise in India. Japan and South Korea are two other important contributors to regional market growth.
Europe Market Forecast
Europe is another region that is expected to excel during the forecast period. The region is expected to grow at a CAGR of ~8% during 2023-2035. The primary reason for the growth of the fleet management business in Europe is the presence of Germany, which has the leading auto industry in the world. Further, the region has been estimated to produce ~19 million trucks, cars, vans, and buses in its automotive and heavy manufacturing industries, and this is expected to lead to market growth.
February 2022: TomTom International BV partnered with Webfleet Solutions, a leading provider of telematics solutions in the world. The partnership resulted in the launch of the TomTom GO Fleet App and WEBFLEET Work App, which exhibit the combined expertise of the two companies. The apps aim to help fleet managers and drivers address the everyday challenges of safety concerns, route compliance, and on-time delivery.
January 2021: Freeway Fleet Systems announced its cloud-based fleet management solution being adopted by the London-based bus operator HCT Group. The adoption of the fleet management solution followed HCT's switch from internal servers to a hosted IT platform.
Author Credits: Abhishek Verma, Hetal Singh
FREE Sample Copy includes market overview, growth trends, statistical charts & tables, forecast estimates, and much more.
Have questions before ordering this report?