GVR Report cover Internet of Things Fleet Management Market Size, Share & Trends Report

Internet of Things Fleet Management Market Size, Share & Trends Analysis By Platform (Device Management, Network Management), By Solution, By Application (Commercial Vehicles, Passenger Cars), And Segment Forecasts, 2018 - 2025

  • Report ID: GVR-2-68038-329-4
  • Number of Report Pages: 134
  • Format: PDF, Horizon Databook
  • Historical Range: 2014 - 2015
  • Forecast Period: 2017 - 2025 
  • Industry: Technology

Report Overview

The global internet of things (IoT) fleet management market size was valued at USD 3,501.0 million in 2016. Growing need for optimum operational efficiencies and vehicle safety is one of the key trends stimulating market growth. In addition, increasing compatibility of smartphones, tablets, and other smart devices with vehicles has created a gateway for internet connectivity services.

U.S. IoT fleet management market

Government regulations and initiatives in the field of intelligent transportation systems have promoted the development of vehicle connectivity technologies and are thus expected to encourage widespread adoption of IoT technology over the forecast period. Additionally, growing emphasis on minimum energy consumption, lower emissions, and risk-free operations is anticipated to boost the usage of IoT fleet management. Its implementation enables access to real-time information, thus enabling operators to make improved decisions for managing costs.

Implementation of IoT technology provides numerous benefits such as monitoring and safety & security. However, for it to work seamlessly, it needs robust infrastructure. Lack of infrastructure, especially in developing economies such as India and Mexico, is one of the major challenges for market players. Moreover, concerns related to data privacy and data security can hinder the growth prospects of the market.

Lack of infrastructure and high costs of integration are major restraints in the market. Apart from infrastructure and connectivity, various devices and sensors along with IT systems are also required to collect and transfer data. Developed economies, such the U.S., the U.K., and Germany have robust IT and communication networks and therefore, is suited for IoT adoption. Developing economies, such as India, Brazil, and Mexico, which have tremendous growth potential, lack necessary infrastructure and connectivity.

Several transportation companies are increasingly showing interest in deployment of Internet of things fleet management systems as it can enhance efficiency and cost optimization. Implementation of IoT based systems is more favorable for large operators with high spending capacity. Cost of IoT technology based solutions also varies on the basis of size and complexity of project.

Platform Insights:

The device management platform was the most prominent segment in 2016. The segment is estimated to retain its dominance, exhibiting the highest CAGR during the forecast period. The platform enables remote management of devices for various operations such as rebooting, carrying out factory reset, and downloading and updating firmware. With an increase in the number of smart devices and sensors used for tracking and monitoring of vehicles, some of these devices can lead to unexpected problems such as connectivity issues or malfunctions. Thus, it is critical to diagnose the area of problem for smooth functioning of the complete system. As the device management platform enables smooth functioning of the complete system, it is poised to experience high adoption rate over the forecast period.

The network management platform is also likely to register noteworthy growth during the same period. It enables real-time visibility of network activities along with clarity over aspects such as data usage and network efficiency. As it also facilitates device control capabilities, the market for network management platform is projected to grow steadily over the forecast period.

Service Insights:

On the basis of services, the market is segmented into professional and managed services. The managed services segment is expected to expand at a faster rate than professional services. The primary factor driving the growth of the segment is the paradigm shift from traditional hosting to cloud hosting. Additionally, need for handling multiple fleet management operations over a single network has increased in recent years. The ever-changing client requirements coupled with increasing infrastructure complexity are escalating the growth of the segment.

Profession services enable enterprises to manage operational and service costs. These services also provide support to accelerate new product development, risk mitigation, and streamlining complex IoT activities. Despite observing lesser growth rate, the professional services segment will dominate the overall market during the forecast period.

Cloud Deployment Insights:

The Internet of things fleet management market has been segmented into private, public, and hybrid cloud, on the basis of deployment. Private cloud deployment offers greater data security since access to the cloud is provided to a limited number of users. It makes private cloud a preferred deployment model for large operators. The private cloud deployment is anticipated to be the largest segment during the forecast period.

The growth rate for public cloud deployment can be attributed to decreasing prices and increased reliability. Public cloud provides features such as increased scalability and utility benefits, which make it a preferred alternative for small operators. When organizations require both security and scalability, hybrid cloud deployment becomes a feasible choice as hybrid cloud offers benefits of both private and public cloud deployments. Hybrid cloud deployment is estimated to post the highest CAGR over the forecast period.

Solutions Insights:

Based on solutions, the IoT fleet management market has been segmented into vehicle tracking and monitoring, fleet analytics, fuel management, predictive maintenance, remote diagnostics, and driver tracking and monitoring. Fleet operators are more focused on reducing overall expenses. Costs associated with fuel and maintenance account for a significant share of the overall expenditure. To increase profitability, operators mostly rely upon solutions such as fuel management and predictive maintenance. It will drive the overall market in near future.

It is very essential to reduce vehicle downtime in case of vehicle failure, as it not only affects the operational efficiency of fleet operators, but also leads to higher expenses. Commercial fleets are subjected to continuous activity and extreme operating conditions. This leads to higher wear and tear, and subsequently, a failure of parts. The predictive maintenance feature initially gathers information from vehicles and then analyzes it for predicting component failure. This enables vehicles to deliver higher operational performance. Hence, the market for predictive maintenance solutions is poised to witness at the highest CAGR between 2017 and 2025.

Application Insights

Based on applications, theInternet of things fleet management market has been divided into commercial vehicles and passenger cars. A well-connected commercial vehicle can be helpful in tracking and monitoring vehicle location, status of the cargo, and driver behavior & performance. This will ensure enhanced point-to-point safety and security of vehicles and cargo being transported. The commercial vehicles segment dominated the market. It will continue to demonstrate this trend over the forecasted period.

Global IoT fleet management market

The passenger cars segment will rise with higher growth rate than commercial vehicles. This growth can be attributed to increasing smartphone integration with passenger cars. It will not only enhance customer experience but also create new revenue opportunities for automakers, smartphone providers, and IoT systems providers. Adoption of IoT in vehicles will further fuel the automation.  

Regional Insights

Geographically, the market has been segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa. North America and Europe hold largest cumulative market share in 2016 and will continue to tread along a healthy growth track. However, APAC, MEA, and Latin America will observe be more promising regions.

North America will witness significant growth in market over the forecast period. Increasing sales of commercial vehicles in the region are contributing to the growth of the regional market. Strong presence of fleet management providers such as Fleetmatics, Trimble, Zonar Systems, Omnitracs, Telogis, and Verizon Networkfleet will further propel the market in the region.

The European Commission has been working with its several member states and countries to increase IoT adoption. Countries such as the U.K. and Ireland are among the leading adopters of fleet management solutions. Regulatory policies, such as keeping it mandatory for OEMs to incorporate the e-call technology in all vehicles sold from April 2018, are significantly influencing the market in the region. Seventeen prominent fleet management solution providers formed 1-Fleet Alliance in the region, which led to the massive collaboration of more than 400,000 active fleet management units. This alliance will further work to develop innovative solutions and promote benefits for economies of scales.

Asia Pacific is likely to be the fastest growing region during the forecast period. Increasing penetration of smart devices, coupled with growth in vehicle sales, will drive the regional market. The region is highly price-sensitive; however, has huge growth opportunities. The MEA region has observed significant IT investments, which reached USD 213 billion in 2016. Government investments for various IoT initiatives has been increased in the region in recent past. Operators in the region are more focused on vehicle security and vehicles are equipped with track & trace systems and have certain complementary features, such as panic buttons and remote immobilizers.

Key Companies & Market Share Insights   

Prominent players operating in the market include AT&T; Cisco Systems, Inc.; Verizon; Trimble Inc.; IBM; Telefónica; Intel Corporation; Sierra Wireless; Omnitracs; and Tomtom International BV.

Players in the market are primarily focusing on collaborating with various stakeholders within value chain. Companies have also increased their R&D spending in order to develop innovative solutions and to gain strategic advantage over competitors. Apart from new product development and building partnerships, dominant market players have adopted mergers & acquisitions as the key strategy to gain traction in the market. For instance, in 2016, Verizon Communications Inc. acquired Fleetmatics Group PLC for USD 2.4 billion. Fleetmatics is an American public cloud and fleet tracking provider. The acquisition is expected to strengthen Verizon Communication’s IoT fleet management and telematics business.

Internet of Things (IoT) Fleet Management Market Report Scope

Report Attribute


Market size value in 2020

USD 5.3 billion

Revenue forecast in 2025

USD 16.8 billion

Growth Rate

CAGR of 20.5% from 2017 to 2025

Base year for estimation


Historical data

2014 - 2015

Forecast period

2017 - 2025

Quantitative units

Revenue in USD million/billion and CAGR from 2017 to 2025

Report coverage

Revenue forecast, company ranking, competitive landscape, growth factors, and trends

Segments covered

Platform, service, cloud deployment, solution, application, region

Regional scope

North America; Europe; Asia Pacific; Latin America; Middle East & Africa

Country scope

U.S.; Canada; U.K.; Germany; China; India; Japan; Mexico

Key companies profiled

AT&T; Cisco Systems, Inc.; Verizon; Trimble Inc.; IBM; Telefónica; Intel Corporation; Sierra Wireless; Omnitracs; Tomtom International BV

Customization scope

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Segments Covered in the Report

This report forecasts revenue growth at global, regional, and country levels and provides an analysis of the industry trends in each of the sub-segments from 2016 to 2025. For this study, Grand View Research has segmented the global Internet of things (IoT) fleet management market report on the basis of platform, service, cloud deployment, solution, application, and region:

  • Platform Outlook (Revenue, USD Million, 2014 - 2025)

    • Device Management

    • Application Enablement

    • Network Management 

  • Service Outlook (Revenue, USD Million, 2014 - 2025)

    • Professional

    • Managed

  • Cloud Deployment Outlook (Revenue, USD Million, 2014 - 2025)

    • Private

    • Public

    • Hybrid

  • Solution Outlook (Revenue, USD Million, 2014 - 2025)

    • Driver Tracking & Monitoring

    • Fleet Analytics

    • Fuel Management

    • Predictive Maintenance

    • Remote Diagnostics

    • Vehicle Tracking & Monitoring    

  • Application Outlook (Revenue, USD Million, 2014 - 2025)

    • Commercial Vehicles

    • Passenger Cars

  • Regional Outlook (Revenue, USD Million, 2014 - 2025)

    • North America

      • U.S.

      • Canada

    • Europe

      • U.K.

      • Germany

    • Asia Pacific

      • China

      • India

      • Japan

    • Latin America

      • Mexico

    • Middle East & Africa (MEA) 

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