From acquisition to disposal, fleet management is a collection of processes that enables businesses to view and handle all details about their vehicles and other assets. Vehicle leasing and financing, vehicle servicing, licensing and enforcement, supply chain management, accident management and subrogation, vehicle telematics (tracking and diagnostics), driver management, speed management, fuel management, health and safety management, and vehicle remarketing are all examples of fleet (vehicle) management and qualify as key parts of the fleet management market.
As technology has progressed, more companies have turned to fleet management software to gain a better understanding of vehicle and asset use, increase maintenance planning, and lower the total cost of ownership.
Over the past ten years, fleet management has undergone a complete transformation as companies realize the effect that a well-run fleet can have on their bottom line. Fleet management teams are also responsible for a broad variety of operations, including driver management, safety management, operational performance, and environmental compliance, in addition to procuring and maintaining vehicles. icompario.com provides free comparison for all businesses across a variety of services to help save money. Including Fuel Cards, Telematics, and Insurance.
From $7,755 million in 2015 to $34,629 million in 2022, the Fleet Management Market is projected to expand at a CAGR of 24.5 percent from 2016 to 2022. Enterprises may use fleet management to monitor and maintain their vehicles in a cost-effective, timely, and open manner.
The introduction of wireless technology, the need for electronic tracking device (ELD) integration, as well as the need for operational competency in fleet management, and the rise in foreign trades are all major factors driving the fleet management market forward.
Due to these advantages such as easy access and accountability, the effect of wireless technology adoption in fleet management is expected to be strong in the near future, thereby only indicating a positive sight and further growth and expansion of the fleet market.
Imports of goods and services from other countries are on the rise. According to UN Comtrade data, about 38 million heavy commercial vehicles and 180 million light commercial vehicles were traded globally in 2014, with Asia-Pacific being the most dominant area.
Furthermore, according to a study published by The Boeing Company, air traffic and aircraft fleets are projected to expand at a significant rate in the coming years, thereby giving a further boost to the fleet market.
On account of the Global Navigation Satellite System (GNSS) the fleet management market has seen a substantial increase in the past few years. This is only expected to amplify given a study of the past data patterns.
Asia-Pacific has the fastest growth rate, with a forecast annual growth rate of 11%, bringing the total number of devices to 4.2 billion by 2022- 2023. Rapid urbanization in emerging economies, easy access to and advantages of GNSS, and government measures to improve satellite navigation systems are all the driving factors for the market to swell.
While there are ample reasons to substantiate the growth of the fleet management market, global developments like the Covid-19 pandemic and its subsequent impact on economies due to the implementation of nationwide lockdowns have hampered the growth and disrupted the cycle.
Due to this transportation of emergency deliveries is likely to comparatively slow down and eventually will cause inertia to the growth of the fleet management market. To add to that, COVID-19’s effect on long-haul travel demand has resulted in a major drop in widebody aircraft production.
Unless long-haul routes recover sooner than anticipated, we expect widebody demand to fall by as much as 40% below pre-COVID levels over the forecast period, thereby curbing the growth of the fleet management market for the near future.
