Fleet Management Market Trends

Growth Drivers

• Immense Significance of Fleet Safety – It was observed that the occupants of more than 51 goods vehicles got killed on the road annually between 2012 and 2021 in Great Britain. The crashes of fleet vehicles have grave consequences when they are at-fault accidents. The consequences of such accidents include high rates for insurance, expenses on overtime while covering for missing drivers, and high medical costs and employee downtime. Fleet management should ensure safe fleet movement to a great extent. Safety management using measures including in-vehicle computer system is a significant part of fleet management solutions. These solutions would also minimize the need for over speeding and abrupt braking, thereby reducing the probability of wear and tear in the vehicles used in transportation. The reduced incidences of wear and tear should also create a situation suitable for the reduction of fleet size and money savings.

• Rapid Rise in the Use of Wireless Technology by Automotive - Wireless technologies are capable of improving driver performance considerably. They also play an important role in fleet management. On-board devices and sensors connected to different parts of the vehicles help collect actionable and real-time data from these components. Wireless technology goes beyond data collection and helps improve diagnostics and strategies for preventive maintenance. An instance is how 5G is used in fleet management. 5G improves alerts on real-time conditions of the road. The instant alerts on disruptions and traffic help fleet managers re-navigate their fleet and share the information with the whole fleet without delay. It is estimated that the share of cars with an active connection to 5G worldwide should increase from 16% in 2020 to about 95% in 2028.

• Growth of International Trade After the Pandemic - It was observed that during the first quarter of 2021, the recovery of international trade from the crisis of COVID-19 reached a record high. The year-over-year increase was by 11%, while the quarter-over-quarter recovery increased by 5%. The growth of international trade increases the use of commercial vehicles, and this is expected to lead to market growth.

• Changing Mobility Needs with Growing Urbanization - It was estimated that about 58% of the world's population resided in urban areas in 2022. The strain on overall mobility worsens with the growth of the population in urban centers. The mobility needs of people continue to evolve, and this is expected to create opportunities for market growth.

Challenges

• Lack of an Uninterrupted Internet Connection in Some Parts of the World - Fleet management requires continuous connectivity to the network and data. However, this becomes a major challenge in underdeveloped and developing countries with a partial or very serious lack of connectivity. It is estimated that about 91% of people in low and middle-income countries lack access to a decent internet connection. The consequences of poor connectivity, such as poor routing and disruptions in the availability of fleet information, could hamper the market growth to a great extent.
• Occasional Inaccuracy in Geocoding Features
• Hindrance to GPS connectivity as a result of atmospheric interferences