Smart Fleet Management Market Trends

Drivers

Development in Telematics

• Telematics technology and interconnected devices for use in fleet management have been the key drivers of this market. By using GPS, sensors, and a range of advanced technologies, fleet movers can increase fuel economy, improve car efficiency and driver safety. This has led to innovating fleet management solutions that offer real-time data analysis and forecasts maintenance needs.

Growing Sales of Autonomous and Electric Vehicles

• The market driver for the smart fleet management market is growing demand for autonomous vehicles and electric vehicles. As countries worldwide are working toward decreasing carbon emissions and becoming more environmentally conscious, the demand for vehicle autonomy and electricity has increased. With improvement in smart charging solutions growth in sales of electric vehicle fleets is expected to increase further during the forecast period thus boosting the demand for smart fleet management.

Restraints

High Cost Associated with Smart Fleet Management

• The high cost of fleet management systems and related activities considerably impacts the ROI of local fleet management companies as they can hardly afford it. The additional costs associated with providing vehicle connectivity act as a restraint in the smart fleet management market. Providing the connectivity solution in a vehicle externally imposes additional costs on consumers in the form of hardware, connectivity solutions, and telecom service charges.

Lack of Infrastructure and Safety Regulations

• The lack of suitable infrastructure for real time information exchange and seamless connections will pose major constraints on market prospects during the forecast period especially in developing economies such as India, Brazil and Mexico. In addition, poor regulations with regards to data privacy are also expected to pose significant challenges.