Smart Fleet Management Market Analysis Report By Transportation, By Hardware, By Connectivity And Segment Forecasts From 2018 To 2025

Industry Insights

The smart fleet management market size across the globe was valued at USD 291.1 billion in the year 2016. It is expected to witness growth with a 7.7% CAGR over the forecasted years, 2017 to 2025. The surging need for attaining more operational efficiency coupled with the rising awareness about vehicle and passenger safety is expected to drive the market growth.

Several rules and regulations are being imposed by statutory governing organizations for developing a secured and reliable transportation network. Thus, they have started focusing on developing intelligent systems for transport. Also, many government agencies have started promoting the usage of technologies like connected vehicles for reducing carbon emission, energy consumption, and traffic congestions. Moreover, such technologies also help the fleet owners to get real-time data and information updates which can be used for reducing operational costs and to improve efficiency.

The technology of connected vehicles offers several benefits like monitoring, providing security, and tracking. But, the implementation of such technologies requires a robust and seamless network infrastructure. Developing countries like Mexico and India were lacking in the network infrastructure, several players in this market were facing challenges that were hindering the market growth. But, as the concerns regarding hacking, cyber-attacks, and data leakage are prevailing, the need for the development of the network infrastructure is foreseen which is expected to drive the market demand in the upcoming years.

Transportation Insights

In 2016, the automotive segment dominated the global market. It is also projected to witness the highest growth rate from 2017 to 2025. This can be associated with the implementation of technology of connected vehicles that enhance remote monitoring and other operations like remote diagnostics, fuel management, predictive maintenance, and route optimization. Such solutions help in optimization and reducing the business risks for the fleet owners. Also, many governmental initiatives and regulations being imposed for vehicle safety are anticipated to boost the smart fleet management market growth in the upcoming years.

Hardware Insights

The hardware segment of ADAS (Advanced Driver Assistance Systems) is anticipated to register the fastest growth from 2017 to 2025. This growth can be associated with the adaptation of several vehicle technologies that are autonomous in nature. Also, the regulatory mandates being imposed by the governments for ensuring vehicle safety are projected to surge the demand for fleet management technologies during the forecasted years.

This segment includes many components like radars, sensors, image processing units, and LiDAR that are being installed in automobiles for ensuring their safety and reduce the chances of collisions. Also, advanced features like automated lighting, cruise control, GPS navigation, integration along with smart devices, and automated brakes are being developed to alert the driver and enhance his driving experience.

A majority of the fleet operators have started investing in these solutions owing to its feature of optimization by managing and tracking the available data. The segment of remote diagnostics is also expected to show growth in the upcoming years due to its ability for analyzing data of vehicles and predicting component failure for reducing downtime. This can help the fleet owners to save costs thereby influencing the demand for smart fleet management technologies in the upcoming years.

Connectivity Insights

The connectivity segment of short-range communication is anticipated to hold the largest share across the global market. It is anticipated to continue its dominance over the forecasted period. This can be associated with its feature of allowing communication between vehicles and infrastructure that is being used for sharing useful information about routing, position, traffic, navigation, and mapping. This information or data can be used for enhancing the safety of the vehicle by avoiding collisions and boosting the safeguard measures to be undertaken. Moreover, several governing authorities are imposing the usage of such technologies in vehicle manufacturing which is expected to drive market growth. 

Cloud connectivity is majorly used by fleet operators that are small or medium in size owing to its less or no infrastructure investment. This type of connectivity offers ease of usage and scalability as desired by the operators coupled with the low ownership cost for optimization of the operations. Also, they help in safeguarding the collected data thereby driving the market growth.

Regional Insights

North America held the largest share in the global smart fleet management market. This can be associated with the availability of seamless connectivity coupled with the increasing influence of wireless connectivity across these developed regions. On the other hand, the Asia Pacific region is expected to grow at a significant growth rate during the forecasted years, 2017 to 2025. This can be attributed to the increasing premium fleets demand coupled with the stringent regulation policies across countries like China and India.

Smart Fleet Management Market Share Insights

This market includes key players like Continental AG; Siemens AG; Cisco Systems, Inc.; IBM Corporation; Zonar Systems, Inc., and Tech Mahindra. These players are constantly engaged in product engagement and innovation for gaining a competitive advantage over other players.

They have started implementing several marketing strategies like collaborations with other stakeholders and launching several new products to enhance customer engagement. Such companies are also heavily investing in R&Ds for pursuing technological development in ADAS, autonomous vehicles, sensors, and IoT devices. They are also gaining acquisitions and mergers for expanding their product reach across the globe. For example, Zonar Systems, Inc. has been acquired by Continental AG for expanding its business across the U.S. and for launching mobility services.

Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends from 2014 to 2025 in each of the sub-segments. For the purpose of this study, Million Insights has segmented the global smart fleet management market report based on transportation, hardware, connectivity, and region:

• Transportation Outlook (Revenue, USD Billion, 2014 - 2025)
    • Automotive
    • Rolling Stock
    • Marine

• Hardware Outlook (Revenue, USD Billion, 2014 - 2025)
    • Tracking
    • Remote Diagnostics
    • ADAS
    • Optimization

• Connectivity Outlook (Revenue, USD Billion, 2014 - 2025)
    • Short Range Communication
    • Long Range Communication
    • Cloud

• Regional Outlook (Revenue, USD Billion, 2014 - 2025)
    • North America
        • U.S.
        • Canada
    • Europe
        • U.K.
        • Germany
    • the Asia Pacific
        • China
        • India
        • Japan
    • Rest of World (RoW)
        • Brazil
        • Mexico
        • Others