- Materials & Industrial Technology
Fleet Management Industry Predictions for 2020 and Beyond
On the Path of Growth
Given that fleet management involves taking care of the entire life-cycle of every vehicle on a commercial fleet, from financing at the purchasing stage to maintenance, tracking, driver and vehicle performance and more, fleet management aims to offer commercial fleet businesses greater operational efficiency and better economy. One of the main drivers of the growth of this industry is this need for enhanced efficiency on all fronts. In addition, experts believe that environmental concerns, increasing demand for commercial fleets in regions such as Latin American, Africa and the Middle East, and the integration in vehicles of Internet of Things technology will lead to the increasing adoption of fleet management solutions. According to forecasts released by MarketsandMarkets, the global fleet management market is expected to grow from US$8.03 billion to a whopping US$22.35 billion by 2020. This represents a CAGR of 22.7% during 2015-2020. “On geographical grounds, North America is estimated to be the largest market for fleet management market due to technological advancement and early adoption of IoT. Asia-Pacific depicts a strong opportunity for the adoption of fleet management…,” the MarketsandMarkets study revealed.
Where Does Fleet Management Software Stand?
Within the larger industry, there is increasing demand for fleet management software, which integrates hardware and software into the management of vehicles to ensure better fuel and cost efficiency, with safety tracking and monitoring of vehicles. The core objective of such software is to ensure optimal fleet productivity, while reducing the wastage of resources and repair costs, enhancing safety and maintenance of vehicles and decreasing time wastage on idling and non-value added time and activities of drivers. Given that such software can be integrated in all types of vehicles, from light to medium and heavy, it offers operators of commercial fleets a smart option to enhance efficiency, says leading fleet management software provider, Fleet Commander. In fact, a report published on Research and Markets says that the global fleet management software market is expected to witness a CAGR of 21.20% during 2015-2020. “The trends in the technology indicate the need to incorporate on-demand real-time information, tracking activity through reports, alerts for emergencies and others. Such a system ensures greater efficiency, more compliance with governmental regulations of emissions and better safety,” the report stated.
The Role Software Solutions will Play
Fleet management software offers control over a wide range of functions, including telematics, maintenance, vehicular financing, fuel, speed and driver management, health and safety. Although till now it had been on-premise software that has been popular, trends are now leaning more towards cloud-based solutions. According to an industry report by Mordor Intelligence, fleet management software plays an important role in helping businesses save costs and resources, while ensuring that the entire commercial fleet is complaint with existing regulations and standards. “Therefore, fleet management solutions are increasingly becoming an indispensable part of fleet operations. The overall effectiveness of a business can be greatly enhanced by eliminating services that offer marginal value,” the report explained. In fact, with the rising need of operational streamlining, businesses will need better access to connectivity solutions, which in turn will drive the growth of the fleet management software market. Going forward, rather than the size of the fleet, it will be awareness of the need for enhanced management that will drive growth.
Fleet Productivity Tools & Trends
As more and more businesses adopt fleet management technology, changes are also expected in fleet productivity tools to not only reduce costs but to also increase productivity. According to the 2025 forecasts for fleet management tools, published by Automotive Fleet, the top trends for such tools expected over the next decade or so include mobile applications that will be better integrated in fleet operations, integrated technology that can free vehicles from policy-related constraints., Big Data integration, cloud computing and its impact on fleet decision making, increased speed related to interactions with drivers, “touchless” fleet management, mushrooming of driver apps, proactive vehicle communication, digital wallets instead of fuel cards, driver behavior modification and management tools, impact of data analytics on actionable fleet events, online tools to analyze “what-if” situations in real time, and much more.