The global smart fleet management market size was valued at USD 359.16 Billion in 2019 and expected to reach USD 603.4 Billion by 2027 and poised to grow at a compound annual growth rate (CAGR) of 6.7% during the forecast period 2020 to 2027.
Need to enhance the vehicular safety and higher operational efficiency is one of the major factors to drive the growth of the market. Further, the integration of connected car technology in the vehicles has enhanced the fleet management operation. Initiatives taken by the government that aimed to create more secure and reliable transportation network plays an important role in the development of intelligent transport systems. Increasing road congestion, energy consumption, and carbon emission has significantly contributed towards the promotion of connected vehicles. Smart fleet management system helps the operator to obtain real-time information regarding fleet as well as saves cost and enhances the operational efficiency. Connected vehicles provide numerous advantages such as real-time tracking and monitoring.
However, lack of proper infrastructure for transfer of information in real time and to ensure seamless connectivity some of the prime factors that may restrict the market growth in the near future. Lack of adequate infrastructure especially in developing countries such as India and Mexico is a major challenge that hampers the growth of smart fleet management market. Moreover, rising concern for data breach and cyber-attack are the other prominent factors that equally diminish the growth prospect of the smart fleet management market.
In 2020, automotive segment captured maximum market value share in the global smart fleet management market and projected to register the fastest growth over the forecast period. Numerous advantages offered by the connected vehicles such as remote diagnostics, fuel management, remote monitoring, route optimization, vehicle idle time, and predictive maintenance contribute prominently towards the growth of the segment. These solutions enable the operators in the fleet management business to reduce business risk as well as to optimize their fleet operations. Such operational benefits along with the government support & initiatives for road and vehicle safety are likely to propel the market growth for automotive segment.
In terms of hardware, Advanced Driver Assistance System (ADAS) expected to demonstrate the fastest growth over the analysis period. Although, governments of various regions have issued mandatory laws for the adoption of vehicle safety equipment, autonomous car technology has encountered stupendous growth in the recent past and predicted to exhibit the same trend in the coming years. This serves as one of the prime factor for the growth of ADAS segment in smart fleet management market.
ADAS comprises of various components such as LiDAR, radars, sensors, and image processing units that enhances the safety and also helps to avoid collisions. They also provide adaptive features such as automated lighting, cruise control, GPS navigation, automated brakes, and compatibility with smart devices, all of which contribute towards enhancing the driving experience.
The Asia Pacific accounted for the largest market value share in the global smart fleet management market in the year 2019 and anticipated to register lucrative growth during the foreseen period. This is attributed to the increasing transportation facilities in the developing countries such as India, Japan, China, Singapore, Korea, and Malaysia. This is analyzed that with the rise in the adoption of connectivity solutions, the market for ADAS technology would grow prominently in the forthcoming period. Furthermore, increasing number of accident cases across the region also significantly boost the requirement for vehicle safety features to curtail the number of deaths due to road accidents across the Asia Pacific. As per the United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP), the region accounted for nearly 62% of the total deaths occurred due to road accidents that is one of the leading causes of disability and death in the region. In the wake of same, the government of the various countries in the Asia Pacific has mandated the implementation of vehicle safety technology to curtail the number of increasing accidents and road fatalities.
On the other hand, North America and Europe are other prominent regions that contribute significantly for the revenue share in the global smart fleet management market. Technological advancement and rising demand for electric and autonomous vehicles are some of the prime factors that drive the overall market growth in the regions. Europe being an automotive hub provides alluring opportunity to the Original Equipment Manufacturers (OEMs) in the automotive sector to incorporate advanced technologies in the vehicle that enhances the driving experience.
Key Companies & Market Share Insights
The global smart fleet management market is highly competitive as major market players are embarking various inorganic growth strategies such as merger & acquisition, collaboration, and partnership to strengthen their footprint in the global market. Further, they are aggressively investing in the product development & enhancement along with the research & development to maintain and improve its competitive edge in the market.
Some of the prominent players in the smart fleet management market include:
Segments Covered in the Report
This research study encompasses comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative intelligences, and prognoses of the market. This report presents breakdown of market into major and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report comprises market division and its revenue valuation by categorizing it depending on hardware, transportation, connectivity, and region:
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