The fleet management solutions market was valued at USD 6.15 billion in 2019, and is expected to reach a value of USD 18.49 billion by 2025, at a CAGR of 20.07%. Recently, businesses are increasingly adopting transportation to enhance their offerings. Thus, commercial fleets have witnessed a considerable rise over the past few years.
According to the data from the Automotive Fleet, in the United States, sales of vehicles to commercial fleets, from eight major manufactures, increased by 2.1%, to 69,145, in May 2018, as compared to the previous year.
The fleet management market has been greatly affected by rising operational costs, rooting from the increased demand for utility vehicles, rising expenditure on maintenance, and steady growth in compliance costs.
Fleet management solutions are being widely used by large- and medium-scale fleet owners for streamlining operations. The rate of adoption among small fleet owners has been slow, owing to factors, like lack of awareness, limited operation scale, smaller budgets, limited compliance norms, high capital requirements, and rise in operational costs.
According to AT&T, the annual accident rate for commercial fleets is about 20%. Fleet accidents have the most expensive injury claims for businesses, with an average cost of about USD 70,000 per accident. This has emphasized the need to manage the commercial fleet.
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Scope of the Report
Fleet vehicle management can include a range of functions, such as vehicle financing, vehicle maintenance, vehicle telematics, such as tracking and diagnostics, driver management, speed management, fuel management, and health and safety management.
Key Market Trends
Driver Management Segment Expected to Hold Significant Share
The driver management systems in fleet management solutions include applications, such as driver registration, insurance risk management, and analysis. The prime motive of driver management systems is to study the driver behavior and make necessary changes to driving styles, which will reduce fuel consumption and improve the vehicle’s maintenance.
These systems promote better driving behavior and continuously send feedback indicating the driving style, with alerts. Organizations are adopting this solution, as it provides them fuel savings, lowers maintenance costs, and makes them feel secure about the management of the vehicle and customers.
According to a recent safety report by Volvo Trucks, more than 90% of the accidents were caused due to human factors. The survey indicates that more than 13% of the accidents caused fatalities to heavy goods vehicle occupants.
In North America alone, there has been a severe increase in the number of warehouses form third-party logistics players, like DHL, XPO, Ryder, and Geodis. It is estimated that during 2016 to 2017, DHL increased its warehouse count in North America by 60%, XPO Logistics by 18%, and NFI Logistics by 11%.
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