Albany, NY -- (SBWIRE) -- 10/23/2017 -- Despite the presence of a large number of companies, the competitive landscape of the global fleet management market witnessed the dominance of few leading players, with the top five companies collectively accounting for a massive 80% of the overall market in 2016, states Transparency Market Research in a recent report. These leading vendors, namely Wheels, Inc., TomTom Telematics BV., Element Fleet Management Corp., Emkay, Inc., and Magellan Navigation, Inc. resort to growth strategies such as product innovation, technological developments in their offerings, and offering tailored solutions to strengthen their market positions.
Acquisitions and collaborations are also preferred growth strategy adopted by companies to enhance revenue growth and add to their product portfolios and consumer base. A recent instance is the collaboration between TomTom Telematics BV and German Broadcast organization ARD. The collaboration allowed TomTom Telematics BV to benefit from ARD's verbal Radio Traffic Alerts, which are already used by 22 Radio broadcast stations.
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Transparency Market Research estimates that the global fleet management solution market will exhibit an exponential 22.6% CAGR from 2017 to 2025, rising from a valuation of US$12.57 bn in 2015 to US$91.94 bn in 2025.
Vehicle Management Solutions Segment to Exhibit Strong Growth
On the basis of type, the segment of operations management solutions is expected to hold the dominant share in the global fleet management solution market over the forecast period. The segment of vehicle management solutions, however, is expected to emerge as the most promising segment, expected to expand at a CAGR of 24.7% from 2017 to 2025. Growth of the vehicle management solutions will be primarily attributable to the increased demand for energy efficient and green fleets.
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In terms of geography, the market across North America is expected to be the leading revenue contributor to the global fleet management solution market over the report's forecast period, with the U.S. providing most of the revenue. The presence of key industry players along with support from the original equipment manufacturers is expected to drive the market for fleet management solutions in the region.
Rising Demand for Fleet Management Analytics to Remain Key to Growth
The global market for fleet management solutions is market is expected to significantly benefit from the rising adoption of fleet management analytics across industries that spend a sizeable chunk of their operational costs on transportation. Efficient analytical tools in fleet management solutions allow companies to monitor and find ways of reducing costs incurred during activities such as driver management, vehicle management, and operations management. Moreover, efficient analytical data providing companies the ways of reducing fuel consumed by work vehicles help them effectively comply with government regulations regarding fuel consumption. These factors are expected to remain the core drivers of the global fleet management solution market.
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The market is also expected to benefit from the increasing shift of fleet management companies towards smaller fleets is also anticipated to lead to the increased demand for fleet management solutions in the next few years. Fleet management companies are preferring smaller vehicles in an attempt to benefit from lower total cost of ownership (TCO) as compared to heavy vehicles and the better fuel efficiency of smaller vehicles.
Fluctuating Fuel Costs and Intense Cost-based Competition to Hinder Growth
Although the market for fleet management solutions has vast growth opportunities in the near future, its development is expected to get arrested to an extent due to factors such as the demand for lower-cost solutions and the fluctuating fuel prices on the global front. The demand for reducing the already-reduced costs of fleet management solutions is, especially, projected to lead a major blow on the profit margins of companies operating in the market.
Nevertheless, the market is expected to benefit from factors such as technological advancements in the automotive industry and projected introduction of several new varieties of autonomous cars and connected vehicles in the near future. Such advanced technologies are anticipated to fuel the global demand for effective fleet management solutions.