Fleet management is gaining momentum in the industry as fleet operators require real-time tracking, driver management, scheduling of maintenance, servicing of vehicles, vehicle health optimization, and others. These features have helped fleet operators to track lost or stolen cargo and effectively address issues related to it. Also, there have been advancements in over-the-air (OTA) security.
With the increased use of internet and recent developments in connectivity, there has been an increased demand for fleet management to ensure vehicle safety and cut down the idle time. The fleet management solution providers offer an integration of in-vehicle devices with multiple software and services to reduce the turnaround time and increase overall profitability for the operator. The fleet management works on the principle of “Being Connected.”The short range connectivity technology is used to share information regarding traffic jams, position, and best possible route and helps in avoiding collisions. There is increased demand for developing systems that will contribute toward reduction of traffic fatalities, help save fuel, and increase efficiency. The market for connectivity technologies is on the rise, and regulatory bodies in Europe and North America are planning to mandate some of these technologies. For example, in Europe, eCall has been mandated for all the new vehicles in the near future.
Smart fleet management solutions are used across various modes of transportation ranging from commercial vehicles, vessel maintenance, tracking of railcars, and others. The fleet management technology enhances transparency and enables real-time visibility of fleet movement, fuel management, vehicle maintenance, diagnostics, driver management, and real-time monitoring.Further, it enhances the safety of vehicles and offers cloud storage facilities and data analytics, which would collectively contribute to the growth of the market.Real-time monitoring is estimated to have the highest growth potential in the global fleet management market. It is projected to grow at a promising CAGR from 2017 to 2022. This growth can be attributed to the proven benefits of the system in transport safety.
Fleet Management – Major Components
The smart fleet management market can be segmented into Global Positioning System (GPS), geo-fencing, fuel sensors, advanced driver assistance systems (ADAS), and remote diagnostics. The market has a promising growth potential for several reasons, including the increasing demand for safety and security in container management and railways. In the automotive sector, fleet management helps to minimize the risks associated with labor, equipment, and vehicle maintenance cost.
Growing demand for Smart Fleet Management
Developing countries are focused on improving transportation safety and are coming up with stringent safety laws related to connectivity of fleet with the emergency service providers.Mandates such as e-call services have helped the fleet owners in getting alerts in case of emergency. Fleet operators and logistics companies can capitalize on fleet management technology as it is expected to be one of the main drivers of profitability in the near future. In Europe, the government has made it mandatory to have a lane departure warning system in all trucks by 2018.Likewise, vessel containers must be equipped with tracking system and fuel monitoring systems by 2020.The smart fleet management market is further driven by the legislations about transport safety, advancement in technology, and increased demand for large ships and vessel containers across the globe.
Increasing demand for cloud services for Smart Fleet Management Market
With increasing demand for connectivity and fleet management, smart devices and applications have become the go-to tools for fleet operators. Some of the key issues addressed by cloud management solutions for cloud deployment model include tracking assets, driver monitoring, fleet optimization, and others. Cloud enables the backup and recovery of data and applications on a secondary storage or infrastructure. Organizations are deploying different cloud models to overcome the loopholes of traditional fleet management solutions. Moreover, low maintenance requirements and cost-effectiveness of the solutions are some of the other benefits driving the growth of the cloud market. Real-time monitoring, geofencing, advanced driver assistance systems (ADAS), and diagnostic features are incorporated in railways, marine transport, and automotive due to the increase in demand for fleet safety and security in transportation of goods and passengers. According to experts, fleet management is expected to grow rapidly in the developing nations. Due to regulatory mandates, Asia-Pacific has seen a strong adoption of fleet management solutions such as the installation of Global Positioning System (GPS) in commercial vehicles.
Rising trend of Smart Fleet Management
Artificial Intelligence (AI) influences the fleet operation and management. The trucks with moving lifts and mechanical components function effectively on the move, especially in the maritime industry. Platooning uses the automation technology to allow trucks to travel in connected convoys. Another form of AI is used in the trailers and large trucks; a device is mounted behind the rear view. This device acts as the computerized command center, which captures a 360-degree video of the surroundings. The device uses custom-built AI to determine unsafe actions such as tailgating and accidents on the road and alerts the fleet operator in real-time for urgent events. These types of AI devices have opportunities in the railway as well as the maritime industry.
Major Players -Smart Fleet Management Market
The major players in the smart fleet management market are Cisco Systems, Inc. (U.S.), Verizon Communications, Inc. (U.S.), Robert Bosch (Germany), IBM Corporation (U.S.), and Precious Shipping Public Company Limited (U.S.). These players have adopted various business strategies such as new product development, expansion, and partnership to increase their share in the smart fleet management market.