The fleet management market is slated to progress at a significant growth rate through 2032 owing to growing emphasis on improving vehicle connectivity. In addition, the increasing adoption of cloud computing services across multiple industry verticals, along with the inclusion of AI technology in fleet management solutions, is likely to boost market growth over the forecast period.
The COVID-19 pandemic had a positive impact on industry growth due to changing preference of enterprises towards effective remote fleet management systems as a result of restriction of movement and stringent lockdowns. Furthermore, the remote working trends altered driver utilization patterns of telematics tools.
Moreover, the major players in the industry have been focusing on innovating fleet management products and strategic partnerships and collaborations with private and government organizations to strengthen their market standing. For instance, in September 2022, Garmin International Inc., an American technology company, announced that its Garmin G3000 integrated flight deck was selected by the U.S. Department of Defense for Avionics Reconfiguration and Tactical Enhancement for Inventory (ARTEMIS) Program.
The fleet management market has been bifurcated based on deployment model, solution, end-use, vehicle, and region.
With respect to solution, the industry has been classified into operation management, driver management, vehicle tracking system, and others. The others segment is anticipated to capture more than 4% market share by 2032. The segment includes accident management and vehicle maintenance solutions that play a vital role in road management, which is likely to bolster segment growth.
On the basis of end-use, the fleet management market has been categorized into transportation, construction, manufacturing, utility, and others. The manufacturing segment accounted for over $1.6 billion in revenue in 2022 as a result of stringent regulations on heavy equipment in the manufacturing sector that are encouraging enterprises to use fleet management services and systems.
Meanwhile, the fleet management industry from the others end-use segment is estimated to hold more than 4.5% market share by 2032. Supply chain operations utilized in diverse industry verticals to expand fleet capacity with the addition of vehicles is fostering segment growth. For instance, in March 2021, Stewarts of Tayside Limited, a food production company in Scotland, added nine units of Volvo’s FH 500 6x2 Globetrotter XL tractor vehicles to its vehicle fleet.
In the regional context, the Europe fleet management market reached a valuation of more than $4 billion in 2022. The growing sales of commercial vehicles, extensive digitization, and the launch of automotive leasing services have proven lucrative for the market scenario in the region. According to the European Automobile Manufacturers Association, in March 2021, registration of commercial vehicles increased by 95.3% with approximately 204,046 units in Europe.