Smart Fleet Management Market

Market Overview

The global smart fleet management market size was valued at USD 51,730 million in 2021. It is expected to reach USD 201,353 million by 2030, growing at a CAGR of 16.3% during the forecast period (2022–2030).

Smart fleet management takes care of tracking and maintaining vehicles in a quick, easy, and cost-effective way. It also takes care of financing, driver management, and other things. It additionally aids fleet owners in certain aspects, such as lowering risks related to dynamics like staff costs, operations, and other things. When several industries utilize smart fleet management, they can save money on fuel and overall costs, make their fleet safer, and improve fleet operations with real-time tracking and monitoring. Incorporating real-time fleet monitoring systems into vehicles, increased use of cloud-based technology for smart fleet management solutions, and better vehicle monitoring and fuel management are the primary factors driving the global smart fleet management market.

The market is growing due to IoT and information, communications, & technology (ICT) are becoming more common in transportation, logistics, and automobiles. Furthermore, the market grew significantly because of certain factors like continuous tracking of driver behavior, vehicle tracking, real-time visibility, and driver management. The market is also growing because of the rise of 4G, 5G, and other wireless technologies that make communication easier, the growth of the market for replacing vehicles, and the increase in international trade.

Market Dynamics

Global Smart Fleet Management Market Drivers

Vehicles with Integrated Real-Time Fleet Monitoring Systems

The real-time tracking of vehicles permits fleet operators to supervise if drivers are taking the recommended route or if there are detours. Primary data for this type of fleet management is accumulated through cloud-based systems like AI, IoT, and big data. For example, Techwave Consulting Inc. employs embedded car sensors to track expensive products as they link to the cloud and broadcast real-time data.

Tracking vehicles and drivers, managing assets, maintaining two-way communication, managing driver safety & time, rescheduling the delivery assignment, and other tasks are additional activities that are essential in smart fleet management. The availability of cutting-edge products and the benefits of smart fleet management services, like cost savings, wide-area coverage, and quick access and response, enable vendors to work more productively and efficiently. This phenomenon elevates the demand for these services.

Growing Utilization of Cloud-based Technology for Smart Fleet Management Systems

Smart devices and software have replaced conventional tools because the requirement of fleet operators for connectivity and fleet management solutions has increased. Cloud management solutions deal with several factors like tracking assets, observing drivers, optimizing fleets, and other related problems. Likewise, the cloud allows it to back up and recover data and applications on a secondary storage system or infrastructure.

In addition, many businesses are implementing various cloud models to get around the limitations of conventional fleet management platforms. For instance, smart fleet management-based solutions analyze fleet data, such as route planning, fuel analytics, and driving patterns, to improve productivity and conserve fuel, in addition to tracking Softweb's cloud-based solution powered by big data analytics, AI, IoT, and other emerging technologies.

Furthermore, artificial learning (AI) and machine learning (ML) capabilities enable autonomous dispatching and routing, give fleet managers the ability to forecast vehicle health and driving behaviors based on vehicle use, and lower maintenance and cost-effectiveness. Each of these elements has a significant impact on market growth.

Global Smart Fleet Management Market Restraints

Concerns of Fleet Owners Regarding the Cost

The high cost of fleet management systems and other related operations significantly impacts the return on investment (ROI) of local fleet management enterprises because they can hardly afford it. The additional expenses necessary to provide connectivity in the vehicle could serve as a limitation on the market for smart fleet management.

Customers pay additional costs for hardware, connectivity options, and telecom service fees when connectivity solutions are provided for vehicles externally. The market for smart fleet management may be significantly impacted by these additional costs imposed on the customer. The expansion of local enterprises is also expected to be hampered by the cost of labor, connectivity, and other factors, which impacts the business potential for smart fleet management.

Concerns Associated with Cyber Security

Smart fleet management is comparatively a new technology. Events like unlawful access to various vehicle connectivity solutions or hacking of the in-car connectivity system may limit the growth of the smart fleet management industry. The primary security problem is that the hacker can access the vehicle's computer system and the data it gathers and saves. As a result, the growth of the market is hampered by cyber security issues related to smart fleet management.

Regional Analysis

The Predominance of Asia-Pacific Over Others

Region-wise, the global smart fleet management market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

Asia-Pacific holds the most considerable market share and is expected to grow at a CAGR of 17.91% during the forecast period. This is attributable to the rise in population and the need for massive fleet management, fast urbanization, a robust rail infrastructure, significant international trade, and supportive government initiatives in developing nations like India, China, and Indonesia. The expansion of the Asia-Pacific smart fleet management market is also driven by the rising demand for smart transportation, driver and vehicle safety concerns, and the implementation of strict government laws for vehicle upkeep and tracking.

Europe holds the second-largest market share and is expected to reach a market value of USD 44,866 million by 2030, growing at a CAGR of 14.64%. Population rise and increased telematics & GNSS implementation in fleet management services are anticipated to boost market expansion. Leading manufacturers are also introducing brand-new autonomous, connected vehicles for a better driving experience. Due to these circumstances, there is a considerable market need in Europe for smart fleet management services. Market participants from the European fleet management market are also signing long-term contracts and resolving to hold long-term business chances.

Due to the rising demand for more effective fleet management, technological developments, and growing driver and vehicle safety concerns, the North American smart fleet management market is anticipated to expand rapidly over the forecast period. Important industry participants are implementing various techniques to increase their market position. They are also working together and forming partnerships with domestic players to get a competitive edge and open up long-term commercial opportunities.

Segmental Analysis

The global smart fleet management market is segmented by modes of transportation, connectivity, operation, application, and region.

By Modes of Transportation Analysis

Based on modes of transportation, the global smart fleet market is segmented into Roadways, Railways, Marine, and Airways.

The Roadways segment holds the largest market share and is estimated to grow at a CAGR of 17.32% during the forecast period. As preferences of fleet managers have changed and digital technologies have become more widely adopted in the automotive industry, road transportation has seen a significant technological transformation in recent years. The government has included many technologies to increase passenger safety. These technology solutions, systems, and services used in this mode of transportation include incident detection, access management, and speed limit enforcement. In addition, a profitable opportunity is being created for the smart fleet management market by the government initiative to assist infrastructure improvement for the benefit of vehicles.

One of the most important modes of transportation and travel worldwide is the Railways. Using wheeled vehicles that travel along tracks, railroads enable the transport of people and goods. Due to their large carrying capacity for domestic and commercial activities, railway lines are typically connected with heavy industries worldwide. Global demand is growing for security services for railway infrastructure. Cellphone and global navigation satellite system (GNSS) technologies control railway fleets globally. Recent years have seen a change in rail operations toward advanced automation technology to meet output requirements and save money, speed up deployment, promote efficiency, and lessen disruptions from deployment. It is anticipated that rail fleet management will follow this trend toward automated advanced technologies for rail operations.

By Connectivity Analysis

Based on connectivity, the global smart fleet market is bifurcated into Short-Range and Long-Range.

The Short-Range segment holds the largest market share and is anticipated to grow at a CAGR of 15.36% during the forecast period. Cameras, ultrasonic sensors, and short-range RADAR are examples of short-range connection devices. The global transportation ecosystem is rapidly changing due to the swift adoption of the Internet of Things (IoT). Businesses like Siemens' Fleet Management Services assist OEMs in tracking their installed base globally. By fixing errors more quickly, reducing production downtimes, and enhancing machine performance locally, they can raise the quality and efficiency of their service. Parking lots, toll gates, smart traffic lights, and toll booths are connected infrastructure.

By Operation Analysis

Based on operation, the global smart fleet market is categorized into Private and Commercial.

The Commercial segment dominates the market and is expected to grow at a CAGR of 16.71% during the forecast period. This segment is related to fleet operators that are associated with handling fleets for a third party or contract carriers to fulfill the demands of the supply chain. Business owners are attracted by uncertain good demands and changing supply chain requirements. This further results in business owners adopting commercial fleet management, leading to market growth.

By Application Analysis

Based on application, the global smart fleet market is classified into Tracking, ADAS, Optimization, Fuel Cards, and Automatic Vehicle Identification.

The ADAS holds the largest market share and is estimated to grow at a CAGR of 16.62% during the forecast period. The advanced driver assistance system (ADAS) is made to help drivers while driving. Several cutting-edge driver aid systems are available for particular tasks like lane departure warnings, collision avoidance, and more. Data from the ADAS system is gathered by smart fleet management to track in-vehicle performance and manage the surrounding traffic environment, which includes other cars, pedestrians, objects, traffic signals, lane markings, and speed limit signs. The vehicle camera also examines the surroundings and looks for any dangers. ADAS is essential to fleet management because it provides the highest level of operational efficiency while ensuring the safety of the driver and the asset. These factors elevate the market growth.

Fleet Optimization improves every fleet area to maximize operational effectiveness using data-driven insights. Customers can build, store, and manage routes using the route optimization feature, including stops/halts and time. The information needed to assign routes to vehicles and receive real-time alerts for route deviations with arrival and departure notifications for all schedules is gathered via IoT-based solutions. The global smart fleet management market is anticipated to benefit from recent technical improvements in software that enable users to establish and manage reminders and service histories based on the odometer, get emails, and receive in-app notifications for updating vehicle documentation.

Due to the high costs connected with fuel, an efficient fleet operation like Fuel Cards is one of the most important considerations for all fleet owners. Fleet managers have been calling for smarter fleet systems in recent years to save money on fuel, boost productivity, and lower the number of deadly accidents on the road. Owners of fleets are more concerned than ever about limiting unnecessary spending through effective fleet management since fleet expenses have grown more rapidly.

Recent Developments

• June 2022- Cisco System Inc launched AppDynamics Cloud to provide extraordinary digital experiences.
• June 2022- Siemens launched Siemens Xcelerator, an open digital business platform to accelerate digital transformation.
• May 2022- Continental AG launched new sensors to safeguard the battery of electrified vehicles.
• May 2022- In partnership with Honeywell, Denso Corporation developed an e-motor for Lilium’s all-electric jet.