It wouldn’t surprise you to know that the global fleet management market in 2020 was valued at $19.47 billion, and it’s expected to reach $52.50 billion in 2030. The logistic/supply chain industry employs millions and has a greater influence on the economy of all nations.
The pandemic has sure reduced the speed at which the market was growing, but it will fall back on track soon. The overall production activities of these market players have decreased, especially in the automobile and transportation sector, which came to a halt.
This market involves the management of commercial automobile operations at a huge scale. You can define it as the process used by fleet managers to supervise fleet operations and make vital decisions on dispatch & routing, asset management, and vehicle acquisition.
Companies that depend on transportation utilize fleet management to manage expenses, increase profit, control fuel usage, and comply. Management of the fleet doesn’t end here, and it involves driver management, automobile financing, vehicle telematics related to aircraft, commercial vehicles, and railways.
What factors increase or decrease the growth rate of this market?
There are a few factors that highly influence the market, they are:
- Increasing concerns about fleet safety
- New government policies, vehicle maintenance, and tracking
- Availability of wireless tech at an affordable cost
The global market is categorized based on the vehicle type, location/region, industry, communication technology, component, etc. These segments are further classified into different categories such as:
Analysis of market across:
- North America
- LAMEA-Latin America, Middle East & Africa
- Transportation & logistics
- Cellular system
- Global navigation satellite system (GNSS)
- Light commercial vehicle
- Heavy commercial vehicle
If you analyze the situation in the UK, several conglomerates have started accelerating the electrification of fleets to overcome and develop creative solutions based on asset utilization, asset finance, and asset efficiency. It will help minimize risk and create collaborative demand in the fleet management market.
How did Covid-19 impact the market?
The crisis has made uncertainty a common thing in the market. It slows down supply chains, hinders the growth of businesses, increases panic among the customer segments.
When the governments across the globe announced a lockdown for months, this industry was struggling. It affected production and sales. Now, the global business outlook has changed.
The overall activities of market players have declined due to the lack of a proper workforce and the virus outbreak. But, the hope is strong, and like every other industry, this one will also come back to its full power and growth.
The inclination of big players towards the adoption of commercial vehicles in all industries created an opportunity for this market. And the arrival of IoT and satellite-based services are the new developments in the fleet management market.
Online data accessibility started the changes in this industry, and everything can be monitored and controlled from a point.
Many solution devices offer analytical data that provide fleet managers with a broader and more detailed picture of activity in the field. 5G tech has impacted fleet operations, as it offers accurate tracking, routing, and diagnosis of vehicles.
Due to the growing industry, the fleet manager became a profession that is in demand—and because of these reasons, the fleet manager is a profession that has become a favorite of millennials.
The industry is growing and is expected to grow at a steady rate of CAGR (Compound Annual Growth Rate) of 10.6% from 2021 to 2030. Hence, having a career in this industry is very promising.