To put it in simple terms, the fleet management market is about to experience a large boom.
The entire industry is expected to grow tremendously in the next five years, with a recent study projecting the fleet management market to be worth $30.45 billion by 2018. This signifies a $10.91 billion increase from 2013 at a compound annual growth rate of 22.8 percent per year.
The study was conducted by MarketsandMarkets, which based its findings on the analysis of major market drivers, restraints and prospects in North America, Asia, Europe, Africa and the Middle East.
The rising total number of vehicles around the world, coupled with the large increase in emerging economies, has produced a positive impact on the fleet industry. The Asia-Pacific market is anticipated to experience the highest growth rate among the various regional fleet management markets.
Another boost for the industry will be government undertakings such as mandated GPS tracking software in all new vehicles sold and operated in specific regions. Along with government regulations, organizations from retail industries, public transportation, service sectors and logistics are expected to bring in new and expand existing opportunities for the entire fleet management market.
Need for Fleet Management Solutions
The purpose of fleet management is to simplify and improve all aspects of fleet operations. Technology advances like GPS-based telematics are providing intelligent fleet management solutions that make business more efficient by improving vehicle functionality, fuel economy, safety, maintenance, navigational control and even driver performance.
With the competitive landscape amongst transportation service providers, heightening emission control laws and the rising cost of fuel, fleet management has become an indispensable element for the business side of fleet companies.