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The global fleet management software market size stood at USD 14.59 billion in 2019 and is projected to reach USD 50.09 billion by 2027, exhibiting a CAGR of 16.8% during the forecast period.
This is expected to have significant fleet Management software market growth owing to the growing focus on boosting the fleet’s efficiency and operational effectiveness. The solutions offering real-time tracking, maintenance, smart transportation, among others has accelerated the growth of this market. For instance, the chemical factory can track the location of all its fleets using real-time GPS insights. With the geofencing solution of fleet software, the factory can locate vehicle whereabouts, such as departure, destination, route, operation hours among others. This ensures the safety of the fleet and fleet operators and chemical materials left for the delivery. The adoption of software has resulted in lowering fuel consumption, other expenses, and improved security, which is likely to increase the demand for fleet management system.
Coronavirus and the global response to the emergency have significantly changed the day-to-day activities. While several industries have opted for work from home policies, however, industries such as transportation, utility, field services, energy, logistics, and retail among others are operating to the full potential to supply the essential services and products. Due to emergency and supply chain disruption, the transportation and logistics industries are facing extreme challenges. This has resulted in overtime working requirements for fleet owners, drivers, dispatchers, organizers, and others. Additionally, FMCG, retail, agriculture pharmaceuticals, and other essential services provider are not being able to dispatch the stored products owing to the less number of transporters. To manage and cater to continuous supply it is essential to have a proper track of available products, transporter, maintain proper functioning of the fleet, providing drivers requirements, safety, and more. This is likely to create umpteen opportunities for fleet management software. The software market is expected to witness rapid growth in the coming years.
Fleet management companies can offer solutions that can benefit the customer and the service provider during the pandemic situation. During the lockdown period, the software can be used for preventive maintenance work, observing driver behavior can help schedule tentative time for delivery, among others. Another benefit of the software during a pandemic is ensuring the hygiene practices of the driver with regular interval sanitization of vehicles. Thus, it is expected that during the lockdown period the growth of the market is steady, and post lockdown it is likely to increase rapidly.
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Rising Demand for Connected Cars to Boost Software Adoption
The demand for connected cars is growing rapidly in the fleet management software market. The manufacturing industries are very keen on investing in connected car technology. The connected car shares enormous data over the internet such as driving speed, road condition, traffic data, and more. The software accesses this data for applications such as fuel management, operation management, driver behavior management, vehicle maintenance among others. This is increasing the demand for the fleet software in the connected car market. Also, the connected car data allows the software to analyze the condition and environment of driving. For instance, the software helps to monitor the performance of the cars. It also provides real-time dynamic data on vehicle operation based on the driver's behavior. The software analysis real-time data such as acceleration frequency, engine idle time, and speed to monitor fuel consumption.
Additionally, the connected car uses the software to analyze and reduce downtime possibilities of connected vehicles. With predictive maintenance and wireless technology, it can predict real-time downtime errors, way before they even occur. Thus, fleet management is likely to gain traction.
Integration of Artificial Intelligence to Drive the Market
The artificial intelligence is gradually being integrated with the technologies to boost the industrial applications. The rising adoption of AI is offering better customer experience across the industries. Fleet management has integrated the AI to boost its efficiency and to offer instant insights. This is boosting its adoption in industries such as transportation, logistics, manufacturing, construction, among others.
The AI has vast applications in the software market among which is detecting and interpreting information generated by the fleet manager, vehicles, drivers, and other business systems. Along with supervising the operational process; AI can offer fleet fault detection to the drivers and organizations. AI capabilities can offer key insights about the condition of the vehicle. This information can be integrated with the software to execute the next step. For instance, artificial intelligence can be integrated to collect data for predictive analytics. AI can offer data such as road conditions, traffic, weather, environmental hazards, to predict and analyze the chances of incoming risk. This information provides the fleet manager with better routes, schedules, maintenance, and dispatch arrangements. Thus, it is likely to create immense demand for the market of fleet management software.
Thus, artificial intelligence is expected to drive the fleet management software market.
Regulatory Measures and Compliances to Aid Growth
The government regulatory on fleet management is reshaping industries such as logistics, manufacturing, oil & gas, transportation, and others. The companies have implemented policies provided by the government across the countries to run their businesses. These regulations and compliances are boosting the demand for the market of fleet management software. For instance, Electronic Logging Devices (ELD) mandate initiated by the Federal Motor Carrier Safety Administration has been made compulsory for the industries working in the fleet process. According to the ELD, to keep the record of driver and fleet services, it is compulsory to use electronic logging devices instead of paper-based logbooks. This is likely to enhance the growth of the software market in the coming years. Also, to ensure the safety of the driver, anti-coercion rule and speed limit policy has been implemented.
These regulations and policies are being implemented to ensure the safety of the driver, to maintain fleet efficiency, to reduce road accidents. The solutions are capable to cater to all these regulations. With the software, the maintenance of the fleet can be kept in the checklist to reduce the downtime or mishaps. Also, the software can observe and track driver behavior. This is providing an opportunity for the organization to effectively control the unsafe driving, high speed, or other such behavior.
Thus, regulation and compliance are likely to drive the market.
Rising Risk of Security in Software to Negatively Impact the Market
Today, the demand for fleet management systems for operation management, performance management, and more is increasing rapidly. The fleet technology is offering solutions to enhance efficiency, safety, and reduce the external impact on the fleet. However, the same technology is increasing the risk of unauthorized access to the vehicle system. This can lead to the exposure of data such as driver's data, vehicle functionality information, location, among others. This can create safety and privacy issues for the driver and the industries. Thus, rising available data from the technology can lead to the threats of cybersecurity. To overcome such a situation and provide secured connections companies are investing in IT and security systems.
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Rising Demand for Fuel Management and Driver Safety to drive Performance Management Solution
Based on the study, the component segment is categorized into solutions and services. The solution segment is further bifurcated into operation management, vehicle maintenance and diagnostics, performance management, fleet analytics, and reporting, and others. The operation management solution is further segmented into fleet tracking & geofencing and routing & scheduling, and performance management solution is segmented into driver management and fuel management.
The industries heavily depend on the operational performance of the fleet to ensure the proper supply chain management. This is boosting the demand for the performance management solution. The performance management solution provides real-time insights along with the historical data to keep a check on the efficiency of the fleet and its equipment. The solution offers predictive maintenance technologies to reduce the chances of engine downtime. For instance, the built-in sensors provide operational data about the components such as hydraulics, tires, engine, and others. This provides time to take the next action such as oil change, part replacements, and other reparation to avoid costly downtime.
Additionally, with the rising policies and compliance of environmental and safety regulations, the demand for performance management solution is rising. Owing to the vast application of the solution, performance management is expected to gain rapid growth for the forecasted period.
The Commercial Fleet is likely to Gain Maximum Market Revenue Share for the Forecasted Period
Based on fleet type, the market is segmented into commercial fleet and passenger cars. Industries such as manufacturing, logistics, transportation, chemicals among others are highly dependent on the supply chain of raw material and on-time delivery of its products. To maintain the proper exchange of material scheduling and tracking, maintaining fleet timings is essential. To cater to such requirement industries are highly adopting the solutions, which is capable of keep track of the fleet location. Also, the rising fuel cost and driver shortage are booting the adoption of software. Thus, the commercial fleet is witnessing an increasing adoption of the software.
Similarly, the rising demand for connected cars and electric vehicles offers huge opportunities for the software market. The software can enhance the self-driving capabilities while improving road safety with integrated technology such as collision avoidance. Also, carpooling and car-sharing policies are boosting the adoption of software in the passenger car segment.
The Cloud-Based Software is likely to Gain Traction Owing to its Real-Time Tracking Offerings
The deployment segment is categorized into the cloud and on-premises. Digital solutions such as cloud computing are offering organizations productivity by enabling real-time insights. The cloud-based connectivity has offered effective ways for managing the 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. Cloud-based software is expected to offer reduced cost, more storage space, and reduced time consumption. Along with this, the cloud-based solutions offer wide-area coverage, quick access to the fleet insights which helps to boost productivity and enhance the effectiveness of the industries. This is likely to boost the demand for the cloud-based software market.
Rising Applications of Fleet management software is likely to Boost its Implementation in the Logistics Industry
The industry segment is categorized into manufacturing, logistics, transportation, oil and gas, chemical, and others. The adoption of software is likely to gain traction in the logistics industry. It allows the logistic companies to manage and coordinate fleet by improving efficiency, reducing operational cost, and helps in following government regulations. The logistics industry is entirely based on the flow of goods from one place to another, and any fault in this flow can lead to the disruption of work. Also, if the delivery does not compete on time can lead to unsatisfied client and hamper the contract. This is increasing its demand in the logistics industry. Additionally, the boom in the e-commerce industry has increased the demand for the efficient functioning of the logistics industry.
Thus, with the rising innovative fleet solutions the logistics industry is expected to adopt the software.
North America Fleet Management Software Market Size, 2019 (USD Billion)
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Global market scope is classified across five regions namely North America, Europe, Asia Pacific, Middle East, and Africa, and Latin America.
According to our study, North America is likely to gain maximum market revenue share globally. The rising adoption of the software has led to an increased exchange of goods and raw material. Industries such as manufacturing, logistics, and transportation are witnessing significant growth in the region, which is boosting the demand. Canada is likely to gain rapid growth in the forecasted period, owing to its rising adoption of telematics solutions in the trucking industry.
Europe accounts for the second-largest fleet management software market share in the market. Europe fleet management market is witnessing increasing corporate car registration as compared to personal cars. It is owing to the rising trend of providing corporate cars for the employees in the organization. This is likely to boost the adoption of the market. In Europe, the banking sector is highly investing in the market considering the rising demand for vehicle leasing in the region. For instance, BNP Paribas, Societe Generale among others has backed fleet management provider companies owing to high-profit margin interest.
Asia Pacific is expected to witness rapid growth for the forecast period. Industries such as manufacturing, chemical, retail, e-commerce, logistics, and others are highly adopting the software for smooth operational process. The dominant industries of china such as retail, e-commerce, and manufacturing highly depend on the proper functioning of fleet management. Also, the country's stringent emission and fuel policies are boosting the adoption of the solution. India is likely to witness rapid growth owing to the government initiatives in digitalization and start-up India. Many start-up companies LocoNov, AerisCommunications among others are collaborating with global players to provide fleet solutions in India. Increasing oil prices and less educated drivers on-road is boosting the demand for the solutions in India.
The Middle East and Africa are likely to gain significant demand. Similarly, Latin America is expected to create vast opportunities for the market companies. Latin America is witnessing a high rate of fatalities in road accidents owing to poor infrastructure and low safety measures. This is likely to increase the demand for proper management of fleet on road. Thus, to ensure the safety of the fleet and driver the demand for fleet management solutions in Latin America is likely to grow.
Geotab Inc. is entering collaborations and partnership to expand its fleet management solutions and tools
Geotab Inc. is focusing on the expansion of its solution by investing in the new research and development of the software. The company is launching an advanced solution by collaborating with different companies from different sectors such as Ford, Elesco, Vodafone, and others. The company through its collaboration and partnership aims to provide better fleet management with its advanced tracking, accurate GPS, better support to the drivers. Owing to this the company launched the GO9 fleet solution. With this launch, the company will be able to target the new and wide range of vehicles including connected cars, electric vehicles, and more. The company is entering a strategic partnership with the car manufacturers to offer advanced fleet management solutions. Thus, with the new launches and collaboration, the company is expanding its product portfolio.
January2020 –GeotabInc. launched UNIFY, in partnership with Software-as-a-service provider for transportation, Eleos Technologies in CA. The collaboration offers the UNIFY platform for providing customized open fleet management systems, workflow patterns of a driver, and FMCSA-compliant ELD for better solutions and insights. The platform will also provide to craft mobile apps for fleet drivers.
October 2019 – Geotab Inc. launched the MyGeotab platform and integrated solutions for Ford vehicles. This platform will allow the fleet management system to gain insights and offer a portal with tools for processing data. The Ford and Geotal offer management of fleet through a single portal and customized fleet solution with the application such as hardware add-ons, mobile apps, and software add-ins.
An Infographic Representation of Fleet Management Software Market
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The 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 trends and analyzes technologies that are being deployed at a rapid pace at the global level. The research report examines various paradigm shifts associated with the transformation of software. It further highlights some of the growth-stimulating factors and restraints, competitive landscape, helping the reader to gain in-depth knowledge about the market.
Value (USD billion)
By Fleet Type
Fortune Business Insights says that the market was valued at USD 14.59 billion in 2019.
Fortune Business Insights says that the market is expected to reach USD 50.09 billion in 2027.
Growth of 16.8% CAGR will be observed in the market during the forecast period (2019-2027)
Within the industry segment, the logistics industry is expected to grow rapidly during the forecast period.
The Artificial Intelligence Integration is likely to drive the market is expected to primarily drive the market growth
Verizon Connect, Geotab Inc., Trimble Inc., GPS Insight, Omnitracs, LLC among others are the top companies in the market.
The performance management solution segment is expected to grow exponentially at the highest CAGR.
The revenue of the market in North America in 2019 was USD 5.13 billion.
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