The IoT Fleet Management Market is projected to grow at a CAGR of 21.26% during the forecast period, to reach USD 8.28 billion by 2021. The key factors driving the market are the requirement of high operational efficiency, integration of smart devices with vehicles, and upcoming regulations on fleet safety and security. However, key restraints such as lack of IoT infrastructure in developing countries, cost sensitivity of small fleet companies, and driver privacy concerns could affect the growth of this market.
IoT Fleet Management Market Dynamics:
– Need for optimum operational efficiencies
– Rising trends towards smartphone integration with vehicles
– Implementation of ELD mandate and other anticipated government regulations
– Cost sensitivity of small and medium sized fleet owners
– Lack of IoT infrastructure in emerging countries
– Platooning connected trucks
– Cloud and fog computing analytics
– New prospects for data driven services and telecommunication service providers
– Data security and safety issues
– Concerns about driver privacy
The hybrid model is witnessing a potential growth opportunity in the market. The growth of the hybrid model can be attributed to benefits such as higher flexibility of data management and adequate data implementation privilege at lower costs. It enables data backup and recovery on cloud infrastructure. The shifting trend of subscription-based solutions is also emerging at a modest pace. These require uninterrupted cloud server with easy accessibility. The combined scalability and flexibility of virtual cloud server will accelerate the growth of the hybrid model market.
Major Market Developments in IoT Fleet Management Market:
– In January 2017, Cisco Systems, Inc. launched its Cisco Jasper IoT services in collaboration with Asia-Pacific Telecom, China in the Taiwan market. This expansion will help the company to increase its market presence in the Asia-Pacific region.
– In September 2016, TomTom International introduced ‘TomTom Pro 2020’, a driver terminal solution that offers monitoring and controlling of the entire fleet system. This product includes features such as driver ID, digital logbook, working time log, and driver performance improvement module.
– In August 2016, Verizon Communications, Inc. acquired Fleetmatics Group PLC (U.S.), a global provider of fleet management solutions. The acquisition, worth USD 2.4 billion, became a part of Verizon Telematics business. This acquisition would help the company to extend its offerings in network and fleet solutions. It also provides an opportunity to serve the existing customer base of Fleetmatics with approximately 826,000 subscribers.
IoT Fleet Management Market Target Audience:
– Fleet management solution providers
– Software developers and providers
– Telecommunication service providers
– Fleet operators
– Transportation authorities
– Mass transit authorities
– Legal and regulatory authorities
Commercial vehicles are estimated to be the largest segment in the IoT fleet management market, in terms of installed fleet solutions. The growth of this segment can be attributed to increasing trend of smartphone integration with vehicles, driver behavior monitoring, fuel efficiency, and fleet analytics. Also, testing of some innovative technologies such as automated trucks/platooning is currently at a nascent stage and will strongly influence the market in the near future. Companies such as Daimler AG, Volvo Trucks, and Scania AB have already started working on this technology. Hence, the increasing focus of fleet companies to reduce operational cost has resulted in increased demand for IoT-enabled fleet solutions in commercial vehicles.
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The Americas region is expected to dominate the IoT fleet management market during the forecast period. The market in this region is growing due to increasing technological advancements, regulatory compliances, and noticeable government initiatives. For instance, the U.S. General Services Administration (GSA) states the rules and regulations for public sector fleet vehicles that are being offered to the federal government. Also, in 2015, the U.S. Department of Transportation introduced a strategic plan for implementing the Intelligent Transportation System (ITS) over a period of next five years. Under this plan, R&D activities have been carried out to improve the country’s transportation infrastructure. Furthermore, increasing awareness of the benefits of telematics in countries such as Brazil and Mexico would also fuel the IoT fleet management market in the Americas region. This would lead to higher usage of IoT for faster data communication between the vehicle and backend server to achieve enhanced analytics and decision making.
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