How Quickly is the Fleet Management System Market Growing Around the World?

On December 29, 2020 By Team CalAtlantic

The fleet management systems’ market continues to grow worldwide amidst the pandemic, and it does not show any sign of slowing down. The advantages they bring to logistics, oil and gas, transportation, and other similar companies are just too valuable to let go. Fleet management systems can boost any fleet’s efficiency and operational effectiveness. Hence, companies are quick to equip their fleets with the technology to reap the benefits.

The market’s growth can be attributed to the solutions the systems bring, such as real-time tracking, easier maintenance, fuel consumption monitoring, etc. According to Berg Insight, an IoT market research firm from Sweden, there were 11 million active fleet management systems equipped in commercial vehicles in North America in the 4th quarter of 2019. By their estimates, this number could reach 22.2 million by 2024, at a compound annual growth rate (CAGR) of 15%. In Latin America, there were 3.8 million active fleet management systems in Q4-2019. This number also expected to increase with a 12.6% CAGR and hit 6.8 million units in 2024.

The European market for fleet management systems is also growing at an unprecedented rate. Berg Insight reported that there were 10.6 million active fleet management systems deployed in commercial vehicle fleets in Europe by the end of 2019. Similar to the Americas, this number is projected to grow at 13.4% CAGR and reach 19.9 million units by 2024. The competition is also tough. The top 26 providers all have more than 100,000 active units.

Although it is a lot smaller compared to the American and European markets, the Australian and New Zealand markets are still booming with more than 1 million active units by Q4-2019. At 13.5% CAGR, this number is expected to reach 1.8 million by 2024. There is a wide variety of vendors in the region, including smaller local ones and international market leaders. The top 15 providers make up 70% of the active units.

The increasing demand for connected cars is also affecting the growth of the fleet management systems market, and manufacturers are actively investing in catering to it. The data produced by connected cars can be accessed by fleet management software and be used to optimize fuel usage, observe driver behavior, manage operations, and schedule maintenance. For example, the system can monitor vehicle performance in real-time, such as acceleration frequency, engine idle time, and speed, so a fleet manager would know if a vehicle is being misused.

Artificial Intelligence (A.I.) is also being integrated with the current fleet management technologies to further boost their applications in transportation, logistics, construction, and manufacturing industries. A.I. integration improved customer experience and efficiency. It can offer instantaneous insights based on the information collected from the fleet managers, drivers, vehicles, and the road to help with better decision making. For example, the A.I. can analyze and calculate risks based on road condition, traffic, weather, and vehicle condition so a fleet manager can adjust the route of the fleet when needed. A.I. will continue to increase the demand for fleet management systems.

The benefits you can get from fleet management systems are indispensable. These systems offer cost-effective solutions to the principal concerns of a fleet. Any business that relies on the transportation of goods or people will significantly increase its productivity with these.

CalAtlantic provides fleet management solutions using the latest software and technology. If you want to improve your fleet’s performance, let us equip them with fleet management systems. We will help keep your drivers, goods, and vehicles safe and in top condition! Stay ahead of your competition and contact CalAtlantic today!

(Source: IoT Business News.)

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