Commercial Vehicle Fleet Management

Commercial Vehicle Fleet Management

The global commercial vehicle fleet management market has witnessed substantial growth in terms of revenue, driven primarily by the software sectors. In 2022, the market was valued at USD 8.78 billion, and it is projected to reach USD *** billion by the year 2028, representing a remarkable compound annual growth rate (CAGR) of 19.0% during the forecast period.

A fleet management solution (FMS), whether in the form of standalone software or a cloud-based platform, facilitates centralized coordination and improvement of fleet-related operations. FMS enables fleet managers to oversee and optimize their primary administrative responsibilities, organize supply chain and inventory records, and automate end-to-end fleet management processes. Key functions of an FMS include streamlining control of fleet-related activities within a single integrated system, organizing supply chain logistics, and digitizing equipment stocktaking. Through a unified approach, fleet management solutions enable executives to efficiently manage their most critical duties, standardize supply procedures, and digitally transform fleet administration workflows from initial planning through final execution.

The global commercial vehicle fleet management market categorized by solution, for the respective periods: real time location tracking, fuel management, asset management, driver management, maintenance management, and others. In terms of solution, the real time location tracking segment dominated the market studied in 2022, holding a substantial share of ***%. Furthermore, the driver management segment is anticipated to exhibit the highest compound annual growth rate (CAGR) of ***% during the forecast period from 2023 to 2028. Real-time location monitoring via GPS allows for tracking a vehicle's status, enabling fleet managers to receive alerts on abnormal driver behavior and ensure safety and efficiency. GPS trackers also provide detailed diagnostic information. Navigation systems and location intelligence can offer safer routes to protect drivers from hazardous road conditions, optimizing routes by utilizing geospatial and weather data.

Commercial fleet management uses hardware like remote dashboards, control devices, and sensors to track location, activate systems, and ensure security. This hardware allows remote control of commercial fleet vehicles, real-time location monitoring, and error tracking. Software was the primary revenue contributor, accounting for ***% of the sales value share in 2022. Fleet management software firms must offer advanced services to improve their business. Leading companies like Verizon, TomTom, Zebra Technologies, and AT&T provide such services.

The commercial vehicle fleet management market can be categorized into two deployment modes, namely cloud and on-premises. The segment pertaining to cloud deployment mode has witnessed a substantial revenue of $*** billion in 2022. Cloud-based software is cost-effective and offers analytical solutions for fleet monitoring. IoT integration has driven market growth, enhancing data collection and communication. Cloud-based software is integrated into vehicles for real-time information. Asia-Pacific and North America use cloud-based software for quality tracking, driving effectiveness through vendor-provided solutions. This software enhances efficiency and emphasizes intelligent transportation, driving revenue growth.

In terms of geography, the North America emerged as the dominant player, capturing a significant share of ***% in the market studied in 2022. The valuation of the North America amounted to USD *** billion in 2022 and is projected to reach USD *** billion by 2028. Conversely, the Asia-Pacific region is anticipated to exhibit a higher compound annual growth rate (CAGR) of ***% during the forecasted period from 2023 to 2028. Corporate fleets drive North America's commercial fleet market. The growing demand to reduce the overall cost of corporate fleets is a significant factor driving the North American fleet management market. Fleet vehicle companies are increasingly outsourcing the management of their fleets to minimize the operational costs of their fleet vehicles. The region's fleet market is driven by electronic logging device mandates and rising commercial fleets. Notably, OEMs have introduced fleet telematics in their vehicles.

Advanced, reliable, and affordable technologies collect and disseminate vehicle data and video footage cost-effectively. GPS positioning and advanced onboard systems provide real-time information for driver and vehicle management. Cloud computing, enabled by network, computing, and data storage advancements, drives demand for subscription-based fleet and mobile asset management solutions players.

Prominent vendors shaping competitive dynamics include AT&T Inc., Verizon Communications Inc., Zebra Technologies Corp., Trimble Inc., PowerFleet, Inc., MiX Telematics Limited, Teletrac Navman US Ltd., TomTom N.V., Cisco Systems, Inc., Geotab Inc., Gurtam Inc., Wheels Inc., Queclink Wireless Solutions Co., Ltd., Inseego Corp., IBM Corporation, Omnitracs, LLC, MiTAC Holdings Corporation, CalAmp Corp., Samsara Inc., among other players.