"Smart Strategies, Giving Speed to your Growth Trajectory"
The fleet management software market size was valued at USD 20.58 billion in 2022 and is projected to grow from USD 23.67 billion in 2023 to USD 79.82 billion by 2030, exhibiting a CAGR of 19% during the forecast period. North America dominated the global market with a share of 39.31% in 2022.
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., for instance, 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. With the company’s solution, the end-use industries can find out a vehicle’s whereabouts, such as departure, destination, route, and operation hours. Various passenger and commercial vehicle manufacturers are implementing this software to boost their product sales.
Furthermore, several companies in the market are adopting advanced technologies to gain real-time traction for their vehicles. For instance,
Delivery of Essential Products Amid COVID-19 Pandemic Drove Market Growth
The COVID-19 pandemic had a significant impact on industrial activities. While several industries, such as transportation, utility, field services, logistics, and others opted for work-from-home policies, these sectors are operating in full swing to cater to the demand for essential services. Due to this crisis and the resultant supply chain disruptions, the transportation and logistics industries faced extreme challenges. Key players operating in the market recorded a significant decline in their revenues during this period. This also 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 sectors offering essential services could not dispatch the stored products owing to lack of transporters. The demand for fleet management software increased to manage and cater to the rising demand for essentials. Amid the pandemic, fleet managers were keen on efficiently managing product delivery, fleet maintenance, transportation, driver’s safety & needs, and more. The software is expected to gain notable traction in the long term to create a proper supply chain network.
During the post-pandemic period, 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 found it quite beneficial to use GPS-based fleet tracking software. Thus, the software will witness strong demand across commercial and passenger vehicle tracking systems in the long term.
Request a Free sample to learn more about this report.
Growing Adoption of Mobility-as-a-Service to Bolster Product Demand
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 vehicles. The fleet management software may help users gain insights about drop-offs, pick-ups, payment activities, and vehicle telematics. For instance,
Also, key players in the ride-sharing space, such as Lyft, Uber, Ola, and DiDi, are expected to take advantage of autonomous fleet management systems in the future. Thus, the implementation of mobility-as-a-service is expected to drive the market growth.
Integration of Advanced Technologies with Fleet Management to Surge Product Demand
The market players have started taking advantage of digitalization by offering enhanced vehicle-to-infrastructure connectivity and driver-vehicle communications. Diverse technologies, such as machine learning, artificial intelligence, cloud, GPS, and big data analytics have considerably improved the software’s functionality. The key players in the market are developing an advanced software solution to manage fleets and get real-time insights into the vehicles’ operations. For instance,
Similarly, the market players are combining telematics and GPS technologies with the fleet management software to offer a real-time track of current and forecast data. For instance, WebillionMS is a fleet tracking software that uses GPS and IoT-enabled telematics. It enables companies to track, optimize, and analyze operations for their fleets, irrespective of its variant and size.
Thus, emerging 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 signals 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 software, such as GPS, become weak and inefficient. This can create havoc if a driver travels to a new place and requires continuous assistance from the service provider.
Besides, an employee may find it difficult to get acquainted with new software. It might take a considerable amount of time to understand and learn about the 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 the market.
Operation Management Segment to Dominate as it Guarantees Effective Supply Chain Management
By type, the market is categorized into operation management, vehicle maintenance and diagnostics, performance management, fleet analytics & reporting, and others. The operation management is further segmented into fleet tracking & geo-fencing and routing & scheduling, and the performance management solution is divided into driver management & fuel management.
The operation management segment is expected to hold a dominant market share. Many industries focus heavily on the proper operational management of their fleets to ensure effective supply chain management. This is expected to drive the market growth.
The performance management segment is set 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 components, such as hydraulics, tires, engine, and others.
Commercial Fleet Owners to Increase the Software Use due to High Dependence on Supply Chains
Based on fleet type, the market is divided into commercial and passenger cars.
The commercial segment is likely to record significant growth during the forecast period. Industries, such as manufacturing, logistics, transportation, and others, depend highly on supply chain networks and on-time delivery. Maintaining fleet timings is essential to ensure the proper exchange of material scheduling and tracking. Industries are adopting these solutions on a large scale in commercial fleets to cater to such requirements.
Similarly, the rising demand for passenger cars, such as connected and electric vehicles offers huge opportunities for the market to grow. The software can enhance self-driving capabilities, while improving road safety with innovative technology such as collision avoidance.
On-premises Segment to Dominate due to its Beneficial Features
By deployment, the market is categorized into cloud and on-premises.
The on-premises segment captured the maximum market share owing to the model’s ability to make an upfront investment, minimize monthly expenses, and offer in-house data storage & security control, among others.
The cloud segment is expected to show the highest CAGR in the future owing to its hassle-free and cost-efficient integration capabilities. Cloud-based connectivity has offered effective ways of 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,
To know how our report can help streamline your business, Speak to Analyst
Manufacturing Segment to Dominate due to Minimized Production Delays
By industry, the market is categorized into manufacturing, logistics, transportation, oil & gas, chemical, and others.
The manufacturing segment is set to lead the market owing to the sector’s high dependency on timely delivery of materials and components to minimize production delays.
The adoption of this software is likely to gain momentum in the logistics industry owing to fleet managers' growing preference for real-time tracking solutions. As the industry is entirely based on the transportation of goods, any disturbance in this flow can disrupt work. This factor is increasing the software’s demand in the logistics industry.
Similarly, transporting oil, gas, and chemicals requires efficiency, timely distribution, and safety. This software manages and coordinates with the fleet by improving efficiency, reducing operational costs, and helping fleet operators follow government regulations. This is likely to create market opportunities for the market.
North America Fleet Management Software Market Size, 2022 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Geographically, the market is fragmented into five major regions, such as North America, Europe, Asia Pacific, the Middle East & Africa, and South America. They are further categorized into countries.
North America is set to dominate the global fleet management software market share, owing to the large-scale deployment of real-time tracking solutions across industries to conduct seamless business operations. The adoption of vehicle tracking systems has also increased among automobile companies in the U.S., such as General Motors, Ford, and Fiat-Chrysler. Also, the region is known to be among the early adopters of innovative technologies, which will contribute to the growth of the market in this region.
Europe holds a significant market share as Germany is the world's largest automotive hub. Commercial vehicle fleets play an important role in the European economy. Automotive and heavy manufacturing are some of the most important 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 the software’s demand in the region.
Asia Pacific is likely to be the fastest-growing region during the forecast period owing to the expanding radio cab industry and increasing demand 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 record rapid growth due 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.
Fleet management software is expected to gain significant demand in the Middle East & Africa region due to the growing adoption of this product by industries such as oil & gas, chemical, and others.
Similarly, South America is expected to create vast opportunities for the key players. This region is growing at a moderate pace owing to the introduction of fleet management software solutions by leading automotive manufacturers. For instance,
Prominent Players to Collaborate with Vehicle Manufacturers to Cement their Market Positions
The key market players are focused on expanding their product portfolios by investing in advanced research and software development processes. These companies are collaborating with innovative technology developers to provide better fleet management with advanced tracking, accurate GPS, and better support to the drivers. Also, these players are entering strategic partnerships, mergers, and acquisitions with different car manufacturers to offer advanced fleet management solutions.
An Infographic Representation of Fleet Management Software Market
To get information on various segments, share your queries with us
The report highlights leading regions across the world to offer a better understanding of the market. The report also provides insights into the latest market trends and analyzes technologies that are being deployed at a rapid pace at a global level. It further highlights the growth-stimulating factors and restraints, helping the reader gain in-depth knowledge about the market.
CAGR of 19% from 2023 to 2030
Value (USD billion)
By Type, Fleet Type, Deployment, Industry, and Geography
By Fleet Type
The market is projected to reach USD 79.82 billion by 2030.
In 2022, the market value stood at USD 20.58 billion.
The market is expected to record a CAGR of 19% over the forecast period.
The operation management segment by type is likely to lead the market.
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 largest market share.
The logistics segment is expected to register a significant CAGR.
“This report is really well done and we really appreciate it! Again, I may have questions as we dig in deeper. Thanks again for some really good work.”- U.S.-based biotechnology company focussing on treatment of chronic pain.
“Kudos to your team. Thank you very much for your support and agility to answer our questions.”- Europe-based provider of solutions to automate data centre operations.
“We appreciate you and your team taking out time to share the report and data file with us, and we are grateful for the flexibility provided to modify the document as per request. This does help us in our business decision making. We would be pleased to work with you again, and hope to continue our business relationship long into the future.”- India-based manufacturer of industrial and specialty intermediates with a strong global presence.
“I want to first congratulate you on the great work done on the Medical Platforms project. Thank you so much for all your efforts.”- One of the largest cosmetics company in the world.
“Thank you very much. I really appreciate the work your team has done. I feel very comfortable recommending your services to some of the other startups that I’m working with, and will likely establish a good long partnership with you.”- U.S. based startup operating in the cultivated meat market.
“We received the below report on the U.S. market from you. We were very satisfied with the report.”- Global hearing aids manufacturer.
“I just finished my first pass-through of the report. Great work! Thank you!”- U.S. based solar racking solutions provider.
“Thanks again for the great work on our last partnership. We are ramping up a new project to understand the imaging and imaging service and distribution market in the U.S.”- World’s leading advisory firm.
“We feel positive about the results. Based on the presented results, we will do strategic review of this new information and might commission a detailed study on some of the modules included in the report after end of the year. Overall we are very satisfied and please pass on the praise to the team. Thank you for the co-operation!”- Germany based machine construction company.
“Thank you very much for the very good report. I have another requirement on cutting tools, paper crafts and decorative items.”- Japanese manufacturing company of stationery products.
“We are happy with the professionalism of your in-house research team as well as the quality of your research reports. Looking forward to work together on similar projects”- One of the Leading Food Companies in Germany
“We appreciate the teamwork and efficiency for such an exhaustive and comprehensive report. The data offered to us was exactly what we were looking for. Thank you!”- Intuitive Surgical
“I recommend Fortune Business Insights for their honesty and flexibility. Not only that they were very responsive and dealt with all my questions very quickly but they also responded honestly and flexibly to the detailed requests from us in preparing the research report. We value them as a research company worthy of building long-term relationships.”- Major Food Company in Japan
“Well done Fortune Business Insights! The report covered all the points and was very detailed. Looking forward to work together in the future”- Ziering Medical
“It has been a delightful experience working with you guys. Thank you Fortune Business Insights for your efforts and prompt response”- Major Manufacturer of Precision Machine Parts in India
“I had a great experience working with Fortune Business Insights. The report was very accurate and as per my requirements. Very satisfied with the overall report as it has helped me to build strategies for my business”- Hewlett-Packard
“This is regarding the recent report I bought from Fortune Business insights. Remarkable job and great efforts by your research team. I would also like to thank the back end team for offering a continuous support and stitching together a report that is so comprehensive and exhaustive”- Global Management Consulting Firm
“Please pass on our sincere thanks to the whole team at Fortune Business Insights. This is a very good piece of work and will be very helpful to us going forward. We know where we will be getting business intelligence from in the future.”- UK-based Start-up in the Medical Devices Sector
“Thank you for sending the market report and data. It looks quite comprehensive and the data is exactly what I was looking for. I appreciate the timeliness and responsiveness of you and your team.”- One of the Largest Companies in the Defence Industry