Smart Fleet Management Market Research Report - Global Forecast To 2030

Smart Fleet Management Market Information By Solutions (Optimization and Tracking), By Hardware (Optimization, ADAS, Tracking, and Diagnostic), By Connectivity (Long-Range Communication, Short Range Communication, and Cloud Communication), By Transportation (Marine, Rolling Stock, and Automotive), and Region (North America, Europe, Asia-Pacific, and the Rest of the World)—Forecast till 2030

ID: MRFR/AM/3788-HCR | February 2023 | Region: Global | 111 Pages         

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Smart Fleet Management Market

Smart Fleet Management Market is grow at a significant CAGR of 15%. the market revenue will reach up to 600 Billion by forecast period 2022-2030

By Solutions Optimization Tracking
By Hardware Optimization ADAS Tracking Diagnostic
By Connectivity Long-Range Communication Short Range Communication Cloud Communication
By Transportation Marine Rolling Stock Automotive
Key Players
Companies Profiled   Harman International Industries Inc.    Robert Bosch GmbH.    Siemens AG    Denso Corporation    IBM Corporation    Continental AG    Cisco Systems Inc.    Sierra Wireless Inc.    Calamp Corp.    OTTO Marine Ltd.    Precious Shipping Co. Ltd.    Globecomm Systems
Market Driving Forces   Higher fuel efficiency in vehicles combined    High speed networks    Reduction of both Transportation cost and operating cost
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The smart fleet management market share is projected to register a CAGR of 15.00% to reach approximately USD 600 billion from 2022 to 2030.

Global Smart Fleet Management Market Research Overview (MRFR Insights)

The factor driving the smart fleet management market growth is the need to achieve higher operational efficiencies and enhance vehicular safety. In addition, integrating connected car technologies within vehicles has enabled various solutions that can help enhance fleet operations. Moreover, several government regulations and initiatives aimed at creating a more reliable and protected transportation network are favoring the development of intelligent transport systems. Government agencies have also been promoting using connected vehicle technologies to reduce energy consumption, curb carbon emissions, and avoid road congestion. The solutions can assist fleet operators in obtaining real-time information and making informed decisions that can save costs and enhance operational efficiency.

COVID-19 Impact Analysis Fleet Management Systems Industry

COVID-19 had a negative impact on the market due to commute restrictions. The market faced several challenges, such as regulatory and policy changes, supply chain execution, working capital management, and dependency on labour. However, organizations prepared strategic cost-saving plans to manage the effect of the pandemic. The demand for smartfleet management hardware and managing software has enhanced to manage and cater to the successive supply of essentials in the post-pandemic scenario.

Smart Fleet Management Market Dynamics

Smart fleet management market is anticipated to gain traction amid growing government regulations for the smart transport system over the forecast period. Several governing bodies across the globe have imposed stringent norms to curb energy consumption and theft activities and reduce road accidents. smartfleet management permits the operator to keep track of the driver's performance, route management, fuel consumption, and vehicle maintenance. This system allows the option to download the complete data of the fleet, making it easy for the operator to take cost-effective measures after analyzing the data. For example, management can closely check fuel consumption on a particular route and take cost-effective steps to lower fuel consumption.

Market Key Drivers

  • Integration of real-time fleet observing systems in vehicles

Fleet operators can track their automobiles in real-time and check if drivers are observing the suggested path or if there are diversions. For fleet management, cloud-based solutions, such as Al, IoT, and big data, are utilized to collect primary data. For instance, Techwave Consulting Inc. utilizes sensors that can be implanted into vehicles to monitor high-value goods as they link to the cloud and transfer the data in real time. 

Market Key Restraints:

  • Price concerns of fleet owners

The high cost of fleet management systems and other activities majorly affects local fleet management businesses' return on investment (ROI) as they can barely afford it. The costs incurred while providing connectivity in the vehicle may restrain the market. Providing connectivity solutions in the vehicle externally incurs additional expenses to the customer in the form of hardware, connectivity solutions, and telecom service charges. These additional costs for consumers may significantly impact the market. In addition, the cost of labor, connectivity, and other activities are anticipated to hinder the growth of local businesses.

Market Key Opportunities:

  • Increase in the use of cloud-based technology for smart fleet management solutions

With the increase in demand for connectivity and fleet management solutions, smart devices and applications have become the go-to tools for fleet operators. Tracking assets, driver monitoring, fleet optimization, and other related issues are addressed by cloud management solutions. Furthermore, the cloud enables the backup and recovery of data and applications on secondary storage or infrastructure. In addition, many organizations are deploying different cloud models to overcome the drawbacks of traditional fleet management solutions. For instance, from tracking Softweb's cloud-based solution powered by big data analytics, Al, IoT, and other emerging technologies, fleet management-based solutions analyze fleets' information, including fuel analytics, route planning, and driving patterns, to improve productivity and save fuel.

Smart Fleet Management Market Segmentation

Solutions Insights

The smart fleet management market segmentation, based on solutions, is optimization and tracking. The fleet management systems market growth was prominently high under the tracking category in 2021 due to the growing demand for tracking software in the automotive industry. However, optimization is the fastest growing in the coming years due to the growing demand for route optimization algorithms in the automotive industry.

Hardware Insights

The smart fleet management market segmentation, based on hardware, is optimization, ADAS, tracking, and diagnostic. In 2021, diagnostics accounted for the largest market share of the smartfleet system market. Diagnostic helps detect errors way before they cause severe issues in the engine bay, saving you from expensive repairs. However, the ADAS category registered the highest growth rate during the forecast period as it offers adaptive features such as cruise control, automated lighting, automated brakes, GPS navigation, and integration with smart devices to deliver alerts.

Connectivity Insights

Based on connectivity, the market is divided into long-range communication, short-range communication, and cloud communication. The short-range communication category dominated the market for smartfleet management in 2021 as it allows vehicle-to-vehicle and vehicle-to-infrastructure communication, which can be used to share a myriad of information about traffic, position, routing, mapping, and navigation, among others. However, the cloud communication category witnessed significant growth over the forecast period as it offers enhanced security features that safeguard business-critical data collected from various sources.

Transportation Insights

By transportation, the market has been segmented into marine, rolling stock, and automotive. In 2021, the automotive category held a prominent market share. Connected vehicle technologies can allow remote monitoring and management of various operations such as fuel management, vehicle idle time, route optimization, and predictive maintenance. However, the rolling stock is the fastest-growing category due to continued government regulations and vehicular and road safety initiatives.

Global Smart Fleet Management Market Share, by Region, 2021 (%)

Smart Fleet Management Market Share, by Region, 2021

Smart Fleet Management Market Overview by Region

By region, the smart fleet management market has been divided into North America, Europe, Asia-Pacific, and the Rest of the World. Asia-Pacific accounted for the most extensive market share. North America will exhibit the highest CAGR during the forecast period.

Asia-Pacific Analysis

Asia-Pacific dominated the market share in 2021 due to the increasing competition, the increasing penetration of smart devices and connected machines, and the growing investments in smart cities. High economic growth in emerging nations, such as China, India, and Vietnam, has enhanced the number of related solutions that consist of sensors and RFID tags, resulting in an impulsive outburst of huge amounts of data. TMS is a prominent feature in this region's growing transportation and logistics sector.

North America Analysis

North America accounted for the second-largest market share in the market owing to the large-scale deployment of real-time tracking solutions across industries for seamless business operation. Increasing adoption of vehicle tracking systems adoption from automobile companies, such as General Motors, Ford, and Fiat-Chrysler, in the US. Also, the region is the early adopter of digital technologies, which is a factor contributing to the growth of the market in this region.

Smartfleet Management Market Competitive Landscape

The market includes tier-1, tier-2, and local players. The tier-1 and tier-2 players have reach with diverse product portfolios. Companies such as Harman International Industries Inc., Robert Bosch GmbH., Siemens AG, Denso Corporation, and IBM Corporation dominate the market due to product differentiation, strategic developments, financial stability, and diversified regional presence. The players are concentrating on supporting research and development. Furthermore, they embrace strategic growth initiatives, such as development, joint ventures, product introduction, and partnerships, to strengthen their market position and capture an extensive customer base. For instance, in January 2022, LILEE Systems, a provider of autonomous driving and transportation safety solutions, launched advanced fleet management software and autonomous vehicle at CES 2022 in the US.

Prominent players in the smart fleet management market research include Continental AG, Cisco Systems Inc., Sierra Wireless Inc., Calamp Corp., OTTO Marine Ltd., Precious Shipping Co. Ltd., and Globecomm Systems, among others.

Scope of the Smart Fleet Management Market Report

Outlook by Solutions

  • Optimization

  • Tracking

Outlook by Hardware

  • Optimization

  • ADAS

  • Tracking

  • Diagnostic

Outlook by Connectivity

  • Long-Range Communication

  • Short Range Communication

  • Cloud Communication

Outlook by Transportation

  • Marine

  • Rolling Stock

  • Automotive

Regional Outlook

  • North America

    • US

    • Canada

    • Mexico

  • Europe

    • UK

    • Germany

    • France

    • Italy

    • Spain

    • Rest of Europe

  • Asia-Pacific

    • China

    • India

    • Japan

    • Australia and New Zealand

    • Rest of Asia-Pacific

  • Rest of the World

    • South America

    • Middle East

    • Africa

Objectives of the Study

The objectives of the study are summarized in 5 stages. They are as mentioned below:

Smart Fleet Management Market Forecast & Size:

To identify and estimate the market size for the smart fleet management market report segmented by solutions, hardware, connectivity, and transportation by value (in US dollars). Also, to understand the consumption/ demand created by consumers in smart fleet management market forecast between 2022 and 2030

Market Landscape and Trends:

To identify and infer the drivers, opportunities, restraints, and challenges in the smart fleet management market growth

Market Influencing Factors:

To find out the factors which are impacting smart fleet management market size among consumers

Impact of COVID-19:

To identify and understand the several factors involved in the market affected by the pandemic

Company Profiling:

To provide a detailed insight into the key companies operating in the market. The profiling will include the financial health of the company in the past 2-3 years with segmental and regional revenue breakup, recent developments, product offerings, SWOT analysis, and key strategies.

Intended Audience

  • Smart fleet management operators

  • Automotive electronics systems manufacturers

  • Investment firms

  • Rolling stock manufacturers

Report Scope:

Report Attribute/Metric Details
  Market Size   2030: USD 600 Billion
  CAGR   15.00% CAGR (2022-2030)
  Base Year   2021
  Forecast Period   2022-2030
  Historical Data   2019 & 2020
  Forecast Units   Value (USD Million)
  Report Coverage   Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
  Segments Covered   Solutions, Hardware, Connectivity, and Transportation
  Geographies Covered   North America, Europe, Asia-Pacific, and the Rest of the World (RoW)
  Key Vendors   Harman International Industries Inc., Robert Bosch GmbH., Siemens AG, Denso Corporation, and IBM Corporation
  Key Market Opportunities   Increase in the use of cloud-based technology for smart fleet management solutions
  Key Market Drivers   Integration of real-time fleet monitoring systems in vehicles

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Frequently Asked Questions (FAQ) :

The market forecast period is 2022 - 2030

The market is expected to register a CAGR of ~15.00% over the next 10 years, according to the market research.

North America is expected to register the highest CAGR during 2022 - 2030

Asia-Pacific held the largest share in 2021

The market size is expected to be USD 600 Billion by 2030.

Harman International Industries Inc., Robert Bosch GmbH., Siemens AG, Denso Corporation, and IBM Corporation are the major companies operating in the market.