The fleet management market is estimated to grow from $9.54 billion in 2016 to $27.9 billion by 2021 at a CAGR of 23.9 percent, according to a new study by MarketsandMarkets.
According to MarketsandMarkets, the increasing need for operational efficiency is expected to be the primary driver for the fleet management market during the forecast period. The fleet management market is growing rapidly because increasing maintenance costs, fuel consumption, regulations and accidents have mandated the need for effective and efficient fleet management solutions and services, the researcher said in a press release.
What’s more, the report found managed services are considered crucial, as they are directly related with customer experience; companies cannot afford to compromise on this factor as it helps them sustain their position in the market. The widespread integration of ICT in transportation and logistics is a major technological trend for fleet management, and the needs for increasing operational efficiency and concern for driver security are attracting various industries towards fleet solution management services, the report said.
When it comes to fleet management, the market is segmented into various industries. Manufacturing is expected to have the largest market size this year. “Various industry-specific systems, such as Warehouse Management Systems (WMS), Radio Frequency Identification (RFID), Electronic Data Interchange (EDI), sensor technologies and Global Positioning System (GPS) tracking, among others, increase the applicability of fleet management in the manufacturing sector. Moreover, government, transportation and logistic, energy and utilities, retail and construction verticals are also expected to gain traction during the forecast period,” according to the press release.
In terms of the regions with the most market share, the report found North America is expected to hold the largest share of the fleet management market in 2016 due to the technological advancements and early adoption of fleet management in the region. The market in APAC is expected to grow at the highest CAGR between 2016 and 2021. The major driving forces for this growth are increasing technological adoption and huge opportunities across industry verticals in APAC countries, especially India and China.