Fleet Management Solution Market - Vehicle Management Solutions Segment to Exhibit Strong Growth
Acquisitions and collaborations are also preferred growth strategy
adopted by companies to enhance revenue growth and add to their
product portfolios and consumer base. A recent instance is the
collaboration between TomTom Telematics BV and German Broadcast
organization ARD. The collaboration allowed TomTom Telematics BV to
benefit from ARD’s verbal Radio Traffic Alerts, which are already
used by 22 Radio broadcast stations.
Transparency Market Research estimates that the global fleet
management solution market will exhibit an exponential 22.6% CAGR
from 2017 to 2025, rising from a valuation of US$12.57 bn in 2015 to
US$91.94 bn in 2025.
Vehicle
Management Solutions Segment to Exhibit Strong Growth
On the basis of type, the segment of operations management solutions
is expected to hold the dominant share in the global fleet management
solution market over the forecast period. The segment of vehicle
management solutions, however, is expected to emerge as the most
promising segment, expected to expand at a CAGR of 24.7% from 2017 to
2025. Growth of the vehicle management solutions will be primarily
attributable to the increased demand for energy efficient and green
fleets.
In terms of geography, the market across North America is expected to
be the leading revenue contributor to the global fleet management
solution market over the report’s forecast period, with the U.S.
providing most of the revenue. The presence of key industry players
along with support from the original equipment manufacturers is
expected to drive the market for fleet management solutions in the
region.
Rising
Demand for Fleet Management Analytics to Remain Key to Growth
The global market for fleet management solutions is market is
expected to significantly benefit from the rising adoption of fleet
management analytics across industries that spend a sizeable chunk of
their operational costs on transportation. Efficient analytical tools
in fleet management solutions allow companies to monitor and find
ways of reducing costs incurred during activities such as driver
management, vehicle management, and operations management. Moreover,
efficient analytical data providing companies the ways of reducing
fuel consumed by work vehicles help them effectively comply with
government regulations regarding fuel consumption. These factors are
expected to remain the core drivers of the global fleet management
solution market.
The market is also expected to benefit from the increasing shift of
fleet management companies towards smaller fleets is also anticipated
to lead to the increased demand for fleet management solutions in the
next few years. Fleet management companies are preferring smaller
vehicles in an attempt to benefit from lower total cost of ownership
(TCO) as compared to heavy vehicles and the better fuel efficiency of
smaller vehicles.
Fluctuating
Fuel Costs and Intense Cost-based Competition to Hinder Growth
Although the market for fleet management solutions has vast growth
opportunities in the near future, its development is expected to get
arrested to an extent due to factors such as the demand for
lower-cost solutions and the fluctuating fuel prices on the global
front. The demand for reducing the already-reduced costs of fleet
management solutions is, especially, projected to lead a major blow
on the profit margins of companies operating in the market.
Nevertheless, the market is expected to benefit from factors such as
technological advancements in the automotive industry and projected
introduction of several new varieties of autonomous cars and
connected vehicles in the near future. Such advanced technologies are
anticipated to fuel the global demand for effective fleet management
solutions.
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