Fleet Management Services Industry Procurement Intelligence, Supplier Intelligence, Supplier Ranking, Pricing & Cost Structure Intelligence, Best Practices, Engagement Model, Low & Best Cost Country, Day One Analysis Report, 2020 - 2027

Procurement Outlook

Fleet management service is a process to monitor fleet activities and make decisions from asset management, dispatch and routing, and vehicle acquisition and disposal. It helps companies ensure compliance, improve efficiency, and reduce costs. The fleet management service industry is increasingly adopting software-based solutions to manage a fleet. Fleet managers are in charge of fleet operations and have responsibilities including vehicle maintenance, overseeing fuel consumption and fuel costs, driver management, asset utilization, route planning, etc. However, incorporating a software system into fleet management improves the management of the following parameters:

• Vehicles, assets and equipment

• Maintenance and repair

• Fuel and emissions

• Drivers including driver license checks

• Workshops and scheduling – inspections, defect reporting and audits

• Parts and inventory

• Accident and risk management

• Regulatory and legal compliance

• Budget and forecasting

Demand Outlook

The global fleet management services market valued at ~USD34 billion in 2020 and it is expected to grow at a CAGR of 20% from 2020 to 2027 majorly due to growth in adoption of wireless technology, obligatory incorporation of ELD, need for operational competency in fleet management, and increase in international trades. The market is categorized into software and service segment. The software segment holds more than 70% market share in the global market and it is expected to grow at a higher rate compare to the service segment due to the adoption of cloud computing and analytics, declining hardware and IoT connectivity costs, a growing need for operational efficiency, and recent government mandates. APAC is the leading geographic segment in the global market with more than 40% market share followed by Europe and North America.

Cost Drivers

Fleet management service cost can be divided into two categories; software development cost and service cost. Software development cost is majorly dependent on the rate of software developers. As APAC countries like India and China offer 50-60% less software development rate compared to North America and Europe, many companies outsource the software development to APAC. Key cost components in service costs include fuel costs, vehicle costs, maintenance costs, etc. Furthermore, the total cost of ownership plays a crucial role in determining the cost of fleet management services.

Constraints

The global fleet management services market was negatively affected by the rise of the Covid-19 pandemic. As many countries were forced to temporarily halt large-scale industrial operations and restrict international trades, the revenue of fleet management services witnessed a steep slump globally. However, the fleet management services market has started to recover in 2021 and is expectedto continue the growth trajectory in 2022. Moreover, cost sensitivity among local players is expected to decrease, as the average selling prices of fleet management software & communication technology are expected to decline during the forecast period.

Supply Chain

LeasePlan, ALD Automotive, Arval, Orix, Wheels Inc, Freeway Fleet Systems, Mitac International Corporation are some of the key fleet management service providers. The global fleet management services Industry feature a moderately fragmented landscape as the industry leaders contribute less than 30% of the overall market share. Leading suppliers are strengthening their presence through multiple mergers and acquisitions. Grand View Research will help our client identify the best-suited suppliers by mapping their core capabilities and operational efficiency.