Fleet Telematics Market Size, Industry Trends Report | 2031

Report Description

Fleet Telematics Market Outlook 2031:

The global fleet telematics market size was valued at USD 12.19 Billion in 2022 and is projected to reach USD 60.58 Billion by 2031, expanding at a CAGR of 19.5% during the forecast period 2023 - 2031. The growth of the market is attributed to the increasing global trade volume and rapid expansion of industries, especially the transport and logistic industry due to globalization.

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Fleet telematics is a high-end technology that offers information about the movements and operations of commercial vehicles. It enables a manager to monitor the movement of trucks or cars using GPS technology and other vehicle diagnostic tools such as on-board diagnostics (OBD) to gain insights about the position of dispatch.

The technology is widely used by industries to track the movement of assets or product dispatch and evaluate whether the products are delivered to the targeted place on time. Fleet telematics is a key component of the entire fleet management system of a company and it offers several advantages that allow fleet managers to implement effective and better fleet performance and solutions of the fleet operation.

As the technology shows real-time information about the vehicle operations, a fleet manager can easily coordinate with drivers and provide directions to deliver the products to the targeted spot safely in a short period of time. This helps in the reduction of the overall operation cost during the product transport by commercial vehicles.
 
The COVID-19 pandemic outbreak had a negative impact on the global fleet telematics market owing to the prolonged shutdown of industries worldwide and movement restrictions, imposed by emergency lockdowns. The transport and logistics industry had been severely affected by the sharp decline in global trade and sudden disruption in the supply chain, which hampered the overall manufacturing capacity, products sale, and delivery services.

Fleet Telematics Market Trends, Drivers, Restraints, and Opportunities

• Rapid expansion of industries and increasing cross-border trade due to globalization are expected to drive the market in the coming years.
• Increasing integration of advanced technology for the robust transport system and effective delivery services of industrial products are key factors boosting the market.
• Favorable government regulations for import and export items fuel the massive expansion of global trade. This is projected to fuel the market further in the coming years. 
• Growing demand for robust logistics components, tools, and services to ensure the safe operation of the entire transport operations presents another key driver of the market.  
• High cost of software installation and frequent upgrades of the software to enable better operation management are major challenges to the market.
• Wide advancements in fleet management software and solutions are creating immense opportunities for the market.

Scope of the Fleet Telematics Market Report

The report on the global fleet telematics market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Fleet TelematicscMarket Segment Insights

Services segment to account for a major market share

Based on components, the global fleet telematics market is bifurcated into solutions and services. The solutions segment is further segmented into smartphone, embedded, and portable while the services segment is further divided into managed services and professional services.

The services segment is expected to account for a major market share during the forecast period due to the rising demand for professional services and the increasingly wide availability of advanced service facilities for the fleet management system. 

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Needs for a good transport system boosts the commercial vehicle segment

In terms of fleet types, the market is segregated into light commercial vehicle, medium & heavy commercial vehicle, commercial fleet, passenger cars, electric vehicles, and internal combustion engine.

The commercial fleet segment is projected to register a healthy growth rate during the forecast period owing to increasing demand for commercial vehicles for good transportation from one place to another, especially for land-based transport. The massive flow of delivery services and rising expansion of e-commerce platforms are likely to push the segment further in the coming years.

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Cloud-based segment to register a considerable CAGR

On the basis of deployment types, the global fleet telematics market is bifurcated into on-premises and cloud-based. The cloud-based segment is projected to register a considerable CAGR during the forecast period owing to the increasing adoption of cloud platforms for easy data storage and accessibility related to fleet operation. Moreover, the availability of a cost-effective cloud platform is a key driver of the segment. 

North America to dominate the market

In terms of regions, the market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America accounted for a major market share, representing more than 65% share of the global market revenue in 2021, and is expected to dominate the market during the projected period.

The regional market growth is attributed to the wide acceptance of novel technologies in the transport system, increasing expansion of the logistic industry, and the well-establishment manufacturing infrastructure of industries in the region.

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