Global Fleet Management Market and its Trends
In this day and age, transportation has become an essential part of human life. From the daily commute to moving cargo and logistics, different aspects of transportation are involved in our lives. Fleet businesses have become indispensable for every country as they contribute a huge chunk of revenue in the economy. The dire need of these businesses has resulted in the emergence of fleet management.
Nowadays, Fleet Management is one of the booming industries globally. The increase in fleet companies has resulted in the growing demand for management solutions. Let us look at the various aspects of fleet management market.
Fleet management market size is currently 20.6 billion $ in 2021, which is projected to reach 33.9 billion $ by 2026. The CAGR (Compound Annual Growth Rate) for 2021-2026 is estimated to be 10.5%. Many role players in the industry result in a diverse market. A high growth rate is recorded for the cloud computing and analytics tools that help companies run operations conveniently.
In addition to the giant service providers, startups contribute significantly to the industry. The fleet management industry is adopting the latest technologies to provide convenience to clients. With the increasing hype of environmental issues, green initiatives are trending in the industry.
Impact of COVID-19 on the Market:
Like all other businesses, fleet companies were also affected by COVID-19. Demands from different clients declined causing reduction in the business activity. Some fleet companies leased their extra vehicles while others sold them to compensate for the losses. Due to the overwhelming economic impact of COVID-19, many companies are going for cost-saving plans to sustain their businesses.
Due to the COVID-19, vehicle sales dropped significantly across the globe. The car manufacturers were also affected by the decline in the demand for commercial vehicles. The leasing companies are not impacted as badly as some of the others. However, as the pandemic continues, the leasing payments will become overdue because businesses will not be able to meet their expenses.
More Focus on Operational Efficiency:
The basic objective of every business is achieving maximum outcomes at minimum expense. The same is the case with the fleet companies. Fleet companies are taking all the measures to increase their return on investment. For that purpose, the owners are focusing more on improving operational efficiency.
The GPS tracking software plays a pivotal role in enhancing productivity through innovative features. For example, real-time monitoring and reporting result in better driver performance. Similarly, route optimization allows a faster commute, and more trips can be completed in a day.
Rise of Mobility-as-a-service (MaaS):
The concept of MaaS has been around for quite some time now, but it is becoming more prevalent nowadays. From contemporary ride-hailing solutions like UBER to multi-faceted transportation services, MaaS is everywhere. The demand for transportation has grown with the increase in urbanization. Due to this reason, more MaaS solutions are introduced in the market.
The rise of the MaaS will have an enormous impact on the fleet industry. It will change the thinking pattern of fleet owners around the globe. The focus of the companies would be on outsourcing vehicles rather than purchasing them. With the usage of more leased vehicles, new services will be offered by the fleet management service providers. Moreover, it will generate a huge revenue stream for the businesses enabling them to manage their affairs efficiently.
Increasing Dependency on Data:
Data is a pivotal factor in fleet management. Everything is composed of data from the vehicle and driver details to the routes and trip information. It is the basis of a manager’s decision-making process. With the help of data analytics, the probability of errors can be removed from the planning mechanism. The dependency on data has resulted in the change of priorities for business owners.
Due to the introduction of new features in fleet management solutions, the volume of data has increased immensely. The management of data has also become a priority of businesses as they know its importance. Everything has become a necessity, from securing data from cyber threats to compiling it in an organized manner.
Bigger Market Share for Passenger Cars in Future:
Passenger cars can carry up to six persons, excluding the driver. There are various categories of passenger cars, including mini cars, midsize cars, premium cars, executive cars, luxury cars, etc. Due to the growing popularity of MaaS, more businesses are turning to passenger cars. For example, ride-hailing and cab-sharing solutions rely on midsize cars to cater to their operational requirements.
With the rapid on-boarding of passenger cars, many other associated services will also emerge. For example, licensing and compliance, supply chain management, fuel management, etc. These services will result in a large number of employment opportunities for professionals resulting in expanding the scope of the fleet industry.
What Future Holds for Fleet Management Industry?
Fleet management has become one of the booming industries around the globe. It has witnessed an evolution in the last few years and holds great potential for the future. Let us forecast the possible scenarios of the fleet management industry.
Safety Will Be The Biggest Priority:
Due to the disastrous impact of accidents and other emergencies on fleet operations, the future will witness a greater emphasis on safety. The features like alarm systems, real-time notification, driver behavior monitoring will become more effective with further innovations.
Growing Need for Remote Fleet Management:
With the fast-paced environment of fleet business, managers need a mechanism to remain updated on the go. The mobile monitoring apps are already pretty popular as they keep managers informed about the latest fleet developments. Remote fleet management will become a necessity in the future as the managers will be able to control operations all the time.
Reliance on Electric Vehicles:
Due to global warming and other environmental issues, fleet companies are shifting towards electric vehicles globally. In addition to that, their operational cost is also lesser compared to conventional fuel-powered vehicles. With more manufacturers emerging, the future of the fleet industry seems to be dependent on Electric vehicles.
The Fleet Management industry has been thriving for quite a while now. It even withstood the impact of COVID-19 without suffering any major dent. With the lockdowns being lifted around the globe and business operations resuming, the future of the fleet management industry is looking pretty bright.
This was posted in Bdaily's Members' News section by Flotilla IoT .