Fleet Management Market set to grow by USD 57.27 billion from 2022-2027- Technavio
NEW YORK, Nov. 27, 2023 /PRNewswire/ — The increasing use of cold chain transportation is driving the growth of the fleet management market. This growth is driven by the adoption of connected devices and automation in cold storage globally. Factors like the rise of organized retail stores in developing countries, trade liberalization, government efforts to reduce food waste, and the expansion of multinational retail chains also contribute to this growth. Additionally, the growing demand for monitoring components within the cold chain, advancements in technology ensuring cargo integrity and efficiency, and improvements in real-time shipping information systems are further boosting the fleet management market’s expansion.
The fleet management market size is estimated to grow by USD 57.27 billion from 2022 to 2027, according to Technavio. The fleet management market is experiencing a significant trend driven by Mobility-as-a-Service (MaaS), which aims to create new revenue streams. The increased demand for transportation infrastructure and services due to an increase in passenger and freight traffic, especially internet-based platforms catering to various transportation modes like road and rail, has become prominent. Additionally, the rapid growth of smart cities and urbanization is further boosting this market expansion. Consequently, Mobility as a Service (MaaS) platforms for shared mobility are being developed to address these challenges. Service providers within the global fleet management market are prioritizing innovation and quality to meet the diverse needs of customers. The growing preference for MaaS is expected to have a positive impact on the expansion of the fleet management market.
Technavio has segmented the market based on service (subscription, hardware, and others), vehicle type (commercial fleets and passenger cars), and geography (North America, Europe, APAC, South America, and Middle East and Africa).
- The subscription segment in the fleet management market has shown significant growth from USD 22,633.99 million in 2017 to the present. Technological advancements, particularly in data collection through GPS and onboard systems, have improved reliability and affordability in vehicle management. The evolution of cloud computing, driven by improved networks and data storage capabilities, has led to the rise of software as a service (SaaS) solutions, driving the demand for subscription-based fleet management services.
Geography Overview
By geography, the global fleet management market is segmented into North America, Europe, APAC, South America, and Middle East and Africa. The report provides actionable insights and estimates the contribution of all regions to the growth of the global fleet management market.
- APAC is projected to contribute 32% to the overall growth between 2022 to 2027. In North America, the fleet management market is on the rise, driven by the presence of automotive OEMs such as Daimler providing fleet management services. The market is further boosted by the increasing demand for commercial vehicles and electric/hybrid vehicles, resulting in the establishment of new manufacturing facilities in the region. Additionally, stringent regulations mandating the incorporation of GPS trackers in vehicles contribute to market expansion, emphasizing vehicle safety and the adoption of advanced systems.
Insights on the market contribution of various segments including country and region wise, historic (2017 to 2021) and forecast market size (2023 to 2027) – Download a Sample Report
Major challenges hindering the market growth
- On-premise fleet management software faces market challenge due to high deployment costs, encompassing licensing, installation, maintenance, hardware, customization, and training expenses.
- Despite offering enhanced security and customization, on-premise solutions necessitate skilled IT staff for management and dedicated personnel for operation.
- Regular upgrades to align with market trends and integrate advanced technologies escalate implementation and maintenance costs, alongside the availability of open-source alternatives, complicating growth prospects during the forecast period.
What are the key data covered in this Fleet Management Market report?
- CAGR of the market during the forecast period
- Detailed information on factors that will drive the growth of the Fleet Management Market between 2023 and 2027
- Precise estimation of the size of the Fleet Management Market size and its contribution to the market in focus on the parent market
- Accurate predictions about upcoming trends and changes in consumer behavior
- A thorough analysis of the market’s competitive landscape and detailed information about vendors
- Comprehensive analysis of factors that will challenge the growth of Fleet Management Market vendors
Contact
Technavio Research
Jesse Maida, Media & Marketing Executive
US: +1 844 364 1100
UK: +44 203 893 3200
Email: media@technavio.com
Website: www.technavio.com
