According to Fleet Management Global Market Report 2022, the fleet management market size is expected to grow from $14.15 billion in 2021 to $16.27 billion in 2022 at a compound annual growth rate (CAGR) of 14.98%.
The growth in the market is mainly due to the companies resuming their operations and adapting to the new normal while recovering from the COVID-19 impact, which had earlier led to restrictive containment measures involving social distancing, remote working, and the closure of commercial activities that resulted in operational challenges.
As per TBRC’s fleet management market research, the market is expected to reach $30.80 billion in 2026 at a CAGR of 17.31%. The increasing demand for commercial vehicles is expected to drive the fleet management market during the forecast period.
- 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.
- 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.
- 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.
- According to a 2021 Fleet technology trend report by Verizon 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.
So, we can expect the adoption of cloud computing systems and the integration of the Internet of Things (IoT) with the transportation industry, which are among the key factors driving the growth of the market.
In addition to this, rapid adoption of wireless technology and advancement in 4G and 5G technologies offering wide area coverage, enhanced productivity, along with quick access and response to the users, are also creating a positive impact on the market.