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The global fleet management software market size was valued at USD 18.20 billion in 2021. The market is projected to grow from USD 20.73 billion in 2022 to USD 67.38 billion by 2029, exhibiting a CAGR of 18.3% during the forecast period. The global COVID-19 pandemic has been unprecedented and staggering, with this software experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. Based on our analysis, the global fleet management software market exhibited a decline of -0.6% in 2020 as compared to 2019.
The report includes fleet management services and solutions offered by companies such as Geotab, Inc., Verizon Connect, Omnitracs LLC, Trimble, Inc., MiX Telematics, and AT&T, Inc. AT&T Inc. offers several fleet software solutions such as GPS Fleet Tracking, AT&T Fleet Complete software, all-in-one GPS fleet, and a worker management system. This software offers real-time tracking, maintenance, smart transportation, and driver safety. For instance, with the company’s solution, the end-use industries are able to locate vehicle whereabouts such as departure, destination, route, and operation hours. Various passenger and commercial vehicle manufacturers are implementing the software to boost sales. For instance,
Further, several companies in the market are adopting advanced technologies to gain real-time traction of their vehicles. For instance,
Delivery of Essential Products amid COVID-19 Pandemic to Drive Market Growth
The COVID-19 impact has significantly changed an individual’s day-to-day activities. While several industries have opted for work from home policies, the industries, such as transportation, utility, field services, logistics, and others are operating to the full potential to cater to the essential services. Due to crisis and supply chain disruption, the transportation and logistics industries face extreme challenges. Key players operating in the market recorded a significant decline in their revenues owing to the COVID-19 pandemic. This has weakened demand for fleets, drivers, dispatchers, organizers, and other fleet operators. In terms of revenue, the market witnessed a decline of 0.6% in 2020.
Additionally, FMCG, retail, agriculture, pharmaceuticals, and other essential services providers are not being able to dispatch the stored products owing to the fewer number of transporters. The demand for management software increased to manage and cater to the rising demand for supply of essentials. Amid the pandemic, fleet managers are keen on efficiently managing product delivery, fleet maintenance, transportation, driver’s safety and needs, and more. The software is expected to gain remarkable growth in the long term to ensure a proper supply chain.
During the post-pandemic, several commercial vehicle providers have implemented advanced software solutions and GPS tracking systems in their vehicles. According to the Verizon Connect Report, in 2021, 68% of the fleets used GPS tracking technology and software solutions in their vehicles. Among these, 74% of fleets used GPS-based fleet tracking software were found extremely beneficial. Thus, in the long term, fleet software will witness potential demand in commercial and passenger vehicle tracking.
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Growing Adoption of Mobility-as-a-Service to Bolster Demand
The mobility industries and government authorities are implementing the mobility-as-a-service model to reduce traffic and carbon emissions. They are introducing ride-hailing, carpooling, car sharing, and more options for commuters instead of using their private vehicle. The software is expected to assist in gaining insights regarding pick-ups, drop-offs, and vehicle telematics, and payment activities. For instance,
Also, key players in ride-sharing, such as Lyft, Uber, Ola, and DiDi, are expected to take advantage of autonomous fleet management in the near future. Thus, the implementation of the mobility-as-a-service is expected to drive the market growth.
Implementation of Advanced Connecting Technologies with Fleet Management to Surge Demand
The market drivers have already marched into the era of digitalization by delivering enhanced vehicle-to-infrastructure connectivity and driver-vehicle communications. The diverse technologies, such as machine learning, artificial intelligence, cloud-based, GPS, and big data analytics have advanced software to the next level. The key players in the market are developing an advanced software solution to manage the fleet and get real-time insights into the vehicles. For instance,
Similarly, players are combining telematics and GPS technologies with the software to offer real-time track of current and forecast data. For instance, WebillionMS fleet software is GPS-controlled and an IoT-powered telematics fleet tracking solution. It enables businesses to optimize, track, and analyze operations for their fleet, irrespective of its variant and size.
Thus, emerging and connecting technologies are reshaping the fleet industry in every possible aspect.
Low Signal and Employee Pushback May Impede Market Growth
The mechanism of fleet software works by interpreting the signal from various satellites. The chances of these signals getting affected by big buildings, storms, and other obstructions are high. In this scenario, the components used in this, such as GPS, become weak and inefficient. This can create havoc if the driver travels to a new place and requires continuous assistance from the service provider.
Besides, the employee may find it difficult to get acquainted with new software. It might take a considerable amount of time to understand and learn about software, especially if the employee has never used a fleet management system before. These are some of the factors that might impede the growth of this market.
Operation Management Solutions to Dominate Market
By component, the market is categorized into solution and services. The solution is further segregated into operation management, vehicle maintenance and diagnostics, performance management, fleet analytics & reporting, and others. The operation management solution is further segmented into fleet tracking & geo-fencing and routing & scheduling, and the performance management solution is divided into driver management and fuel management.
Among all solutions, operation management is expected to lead the market. The industries are heavily dependent on the operational management of the fleet to ensure supply chain management. The performance management segment is to gain rapid growth as it offers predictive maintenance technologies to reduce the chances of engine downtime. For instance, built-in sensors provide operational data about the components, such as hydraulics, tires, engine, and others. This is expected to drive market growth.
Commercial Fleet Segment to Grow Rapidly Backed by Dependence on Supply Chain
Based on fleet type, the market is divided into commercial fleet and passenger cars.
The commercial fleet is likely to gain significant growth during the forecast period. Industries such as manufacturing, logistics, transportation, and others are highly dependent on the supply chain and on-time delivery. To maintain the proper exchange of material scheduling and tracking, maintaining fleet timings is essential. To cater to such requirements, industries are highly adopting these solutions in commercial fleets.
Similarly, the rising demand for passenger cars, such as connected and electric vehicles offers huge opportunities for the software market. It can enhance self-driving capabilities while improving road safety with integrated technology such as collision avoidance.
Rising Development of Cloud-based Real-time Software Solutions Aids Market Growth
By deployment, the market is categorized into cloud and on-premises. Among these, on-premises captures maximum share owing to its ability to upfront investment, minimize monthly expenses, in-house control of data storage and security, among others.
The cloud is expected to show the highest CAGR in the near future, owing to its hassle-free and cost-efficient integration capabilities. Cloud-based connectivity has offered effective ways for managing fleet activity. For instance, GPS tracking has become more efficient by connecting with the cloud and can work properly in low connectivity network areas. Also, leading players are developing advanced cloud-based software solutions. For instance,
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Growing Supply Chain Activities to Drive Software Adoption in Logistics Industry
By industry, the market is categorized into manufacturing, logistics, transportation, oil & gas, chemical, and others.
The manufacturing is set to lead owing to the high dependency on scheduled delivery of materials and components for product manufacturing. The adoption of this software solution is likely to gain demand in logistics owing to the growing preference for real-time tracking solutions by fleet managers. As the industry is entirely based on the transportation of goods, any fault in this flow can lead to the disruption of work. This is increasing its demand in the logistics industry. Similarly, oil and gas and chemical transportation require efficiency, timely distribution, and safety. The software manages and coordinates with the fleet by improving efficiency, reducing operational costs, and helping in following government regulations. This is likely to create market opportunities.
North America Fleet Management Software Market Size, 2020 (USD Billion)
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Geographically, the market is fragmented into five major regions such as North America, Europe, Asia Pacific, the Middle East & Africa, and Latin America. They are further categorized into countries.
North America is set to dominate the global market owing to the large-scale deployment of real-time tracking solutions across industries for seamless business operation. Increasing adoption of vehicle tracking systems adoption from automobile companies, such as General Motors, Ford, and Fiat-Chrysler, in the U.S. Also, the region is the early adopter of digital technologies, which is a factor contributing to the growth of the market in this region.
Europe holds a significant market share owing to Germany being the largest automotive hub in the world. Commercial vehicle fleets play an important role in the European economy. Automotive and heavy manufacturing is one of the strategic industries in Europe, where approximately 18.5 million cars, trucks, buses, and vans, are manufactured per year according to the European Automobile Manufacturers Association. This is expected to drive software demand in the region.
Asia Pacific is likely to be the fastest-growing region during the forecast period owing to the growing radio cab industry and increasing preference for mobility services in this region. The presence of a large number of manufacturing facilities in China, Japan, and India is further expected to enhance the global fleet management software market growth in Asia Pacific. India is likely to gain rapid growth owing to the country's stringent emission and fuel policies. Many start-up companies, such as LocoNov and AerisCommunications, are collaborating with global players to provide fleet solutions in India.
The Middle East & Africa is likely to gain significant demand owing to growing adoption by industries, such as oil & gas, chemical, and others. Similarly, Latin America is expected to create vast opportunities for market companies.
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Latin America is growing at a moderate pace owing to increase penetration of fleet management software solutions by the leading automotive providers. For instance,
Prominent Players’ Strategic Collaboration with Vehicle Manufacturers to Expand Business
The key market players are focused on product expansion by investing in the advanced research and software development. The companies are collaborating with technology providers to provide better fleet management with advanced tracking, accurate GPS, and better support to the drivers. Also, these players are entering into strategic partnerships, mergers and acquisitions with different car manufacturers to offer advanced fleet management solutions.
An Infographic Representation of Fleet Management Software Market
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The global fleet management software market report highlights leading regions across the world to offer a better understanding of the user. Furthermore, the report provides insights into the latest industry and market trends and analyzes technologies deployed at a rapid pace at the global level. It further highlights some of the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
Value (USD billion)
Component, Fleet Type, Deployment, Industry, and Geography
By Fleet Type
The market is projected to reach USD 67.38 billion by 2029.
In 2021, the market stood at USD 18.20 billion.
The market is expected to grow at a CAGR of 18.3% over the forecast period.
The operation management solution segment is likely to lead the market.
The incorporation of connecting technologies is the key factor driving the market growth.
Verizon Connect, Geotab Inc., Trimble Inc., GPS Insight, Omnitracs, LLC, MiXTelematics International Ltd, Fleet Complete, and FleetCor Technologies, Inc are the top players in the market.
North America is expected to hold the highest market share.
The logistics segment is expected to grow at a significant CAGR.
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