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  • IoT Fleet Management Market Analysis | 2022-2028

    IoT Fleet Management Market Analysis | 2022-2028

    IoT Fleet Management Market Analysis | 2022-2028
    Report code - SR2342 Delivery - 2 Weeks
    IoT Fleet Management Market Size, Share, Trend, Forecast, Competitive Analysis, and Growth See more...

    Market Insights

    The Global IoT Fleet Management Market is expected to grow from USD 5.83 billion in 2021 to USD 14.18 billion by 2028 at a CAGR of 13.5% during the forecast period.

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    What is IoT fleet management?

    The IoT Fleet Management Market refers to the utilization of Internet of Things (IoT) technologies to monitor and manage fleets of vehicles, such as trucks, cars, and other mobile assets. It involves real-time tracking, data collection, and analysis to optimize fleet operations, enhance vehicle performance, and improve overall efficiency, safety, and cost-effectiveness.

    IoT in fleet management gathers vehicle diagnostic data such as speed, harsh acceleration, and slouch to measure and improve the fleet's performance. Fleet management supervises vehicles for safety, performance, and efficiency. The IoT applied in fleet monitoring helps to improve savings, manageability, and visibility in passenger-load and cargo vehicles through advanced telematics solutions that provide access to near-real-time data and analytics. IoT in fleet management lets fleet operators automate different processes and trip planning.

    IoT in fleet management not only helps in protecting the vehicles but also allows visibility and improves overall fleet operational ability. Fleet operators help to lower ownership costs, fleet maintenance, fuel consumption, and analyze production. Fleet management solutions make the best use of telecommunication and informatics, which is an IoT application meant for vehicles.

    Market Dynamics

    Factors such as technological developments in the transportation and logistics sector and increased use of cloud-based technology for smart fleet management are anticipated to fuel the growth of the global loT fleet management market over the forecast period. However, the high cost of fleet management systems and lack of uninterrupted and consistent internet connectivity are expected to restrain the growth of the market over the forecast period.

    Furthermore, improved driver and vehicle safety, and strengthening the communication network are anticipated to offer new growth opportunities for the loT fleet management market in the near future.

    IoT Fleet Management Market Report Overview

    Market Size in 2028

    US$ 14.18 billion

    Market Size in 2021

    US$ 5.83 billion

    Market Growth (2022-2028)

    13.5% CAGR

    Base Year of Study

    2021

    Trend Period

    2016-2020

    Forecast Period

    2022-2028

     

    Technological developments across the transportation & logistics sector

    The transportation & logistics segment holds a significant share of the complete supply chain, and it physically connects enterprises to its supply chain partners, such as suppliers and consumers, resulting in increased customer satisfaction and profit margin. The increasing adoption of technology in the transportation and logistics sector has provided unparalleled opportunities for sustainability, operational efficiencies, new business models, and better customer experiences. For instance, as per the World Economic Forum, digitalization in the logistics business can unlock a USD 1.5 trillion opportunity by 2025.

    Modern technologies, such as loT, big data, and Al, and their predictive capabilities lead to the creation of smarter and more efficient logistics operations. Advanced technologies such as Al and ML, have enabled predictive operations, back-office automation, intelligent transportation assets, and new customer engagement models. These technologies majorly aim to digitize the complete end-to-end logistics operation of order management, contracting, delivering, and payment.

    Therefore, innovative digital services from smart warehouses to autonomous last-mile delivery services have broadened the application of transportation management systems, which in turn helps in increasing business performance by enabling faster activity and decreasing the costs of a variety of business processes and thereby providing a strong foundation for fleet and logistics management which in turn expected to propel the growth of the loT fleet management market.

    The growing use of cloud-based technologies

    Smart devices and applications have increasingly been seen as the go-to tools for fleet operators with increased demand for connectivity and better fleet management solutions. Driver monitoring, tracking assets, fleet optimization, and other related problems are addressed through cloud-based solutions. Moreover, the cloud enables the backup and recovery of data on secondary storage or infrastructure.

    Additionally, many organizations are employing various cloud models to overcome the weaknesses of traditional fleet management solutions. For instance, apart from tracking, smart fleet management solutions also analyze information about the fleet, such as route planning, driving patterns, and fuel analytics to enhance productivity and save fuel. Furthermore, Al and machine learning capabilities allow autonomous dispatching and routing and enable fleet managers to predict vehicle health and driving patterns based on the vehicle's utilization, resulting in lower maintenance requirements and cost-effectiveness. These factors significantly contribute to the growth of the market.

    High cost of fleet management systems

    The high price of fleet management systems and other smart solutions affects the return on investment (RoI) of local fleet management companies as they can hardly afford it. According to the study, the installation cost for a fleet management system can range from USD 100 to USD 200 for advanced-tier systems. The additional costs incurred for providing connectivity in the vehicle may act as a restraining factor for the loT fleet management market.

    Giving connectivity solutions in the vehicle externally adds expenses to the users in the form of hardware, and telecom services. These additional costs incurred may significantly impact the loT fleet management market. Additionally, the cost of labor and other business operations is anticipated to restrain the growth of local businesses, which affects the opportunities for the loT fleet management market.

    Segments Analysis

    By Deployment Model Type

    The hybrid cloud deployment model is expected to be the fastest-increasing market segment over the forecast period. This is because of its benefits such as higher flexibility, data implementation options, and easy accessibility at lower costs. The hybrid model decreases the cloud risk by employing cloud bursting and disaster recovery frameworks. Furthermore, the “Fog computing” concept is in the nascent stage and is likely to have a positive impact on the market in the upcoming years. Fleet companies, which are moving in the direction of the hybrid model because of cost-effectiveness and on-time delivery features, are likely to further propel the growth of the hybrid deployment model market segment.

    The device management platform is expected to dominate the market. It is estimated to hold the largest share and grow with the highest CAGR during the forecast period. It enables remote access, device authentication, monitoring, troubleshooting, and security against hacking and malware attacks. OpenID Connect 1.0 and OAuth 2.0 are the authorization models that improve the device authentication that works with IoT servers. Moreover, the growing use of personalized devices such as smartphones and tablets will accelerate the growth of the device management platform segment in the IoT fleet management market.

    By Service Type

    The managed services segment is expected to witness the highest CAGR from 2021 to 2028. The factors that drive the growth of this segment are its model to cater to continuously changing client needs, the growing complexity of infrastructure, and the demand for decreased maintenance costs. The introduction of IoT brought a paradigm shift in the fleet management business by managing multiple operations through a single network.

    Regional Analysis

    The North American region is expected to dominate the market. The growth of the regional market can be attributed to the high adoption rate of technologically advanced products, strong network infrastructure (5G connectivity), and rigorous regulatory compliances. The increasing number of passenger cars, heavy trucks, and public buses in the region would require faster data communication for better analytics and decision-making.

    Therefore, IoT will help fleet businesses cope with stringent government regulations related to carbon emissions and fleet safety, which in turn would boost the growth of IoT fleet management in this region.

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    Key Players

    The major players operating in the global IoT fleet management market are:

    • AT&T Inc. (U.S.)
    • Cisco Systems Inc. (U.S.)
    • Verizon Communications Inc. (U.S.)
    • TomTom International BV (Netherlands)
    • Trimble Inc. (U.S.)
    • IBM Corporation (U.S.)
    • Omnitracs (U.S.)
    • Sierra Wireless (Canada)
    • Intel Corporation (U.S.)
    • Telefónica S.A. (Spain)

    Research Methodology

    This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 15 detailed primary interviews with the market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

    Report Features

    This report provides market intelligence in the most comprehensive way. The report structure has been kept such that it offers maximum business value. It provides critical insights into the market dynamics and will enable strategic decision-making for the existing market players as well as those willing to enter the market.

    What Deliverables Will You Get in this Report?

    Key questions this report answers

    Relevant contents in the report

    How big is the sales opportunity?

    In-depth Analysis of the IoT Fleet Management Market 

    How lucrative is the future?

    Market forecast and trend data and emerging trends

    Which regions offer the best sales opportunities?

    Global, regional, and country-level historical data and forecasts

    Which are the most attractive market segments?

    Market segment analysis and Forecast

    Which are the top players and their market positioning?

    Competitive landscape analysis, Market share analysis

    How complex is the business environment?

    Porter’s five forces analysis, PEST analysis, Life cycle analysis

    What are the factors affecting the market?

    Drivers & challenges

    Will I get the information on my specific requirement?

    10% free customization

    Customization Options

    With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

    Company Profiling

    • Detailed profiling of additional market players (up to three players)
    • SWOT analysis of key players (up to three players)

    Competitive Benchmarking

    • Benchmarking of key players on the following parameters: product portfolio, geographical reach, regional presence, and strategic alliances

    Custom Research: Stratview Research offers custom research services across the sectors. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com

    Recent Developments

    • In December 2022, Qualcomm unveiled the Lowest Power IoT-Optimized LTE Modem with integrated positioning support for better connectivity, location tracking, and computation features both on the device and at the edge.
    • In July 2022, NXP collaborated with Foxconn, the world’s largest electronics manufacturer, and a leading technology solution provider, on next-generation smart connected vehicle platforms.
    • In February 2022, TomTom and Webfleet Solutions collaborated on an integrated mobile solution for professional drivers and fleet managers.

    Frequently Asked Questions (FAQs)

    The IoT fleet management market is expected to grow at a CAGR of 13.5% during 2022-2028.

    The IoT fleet management market is likely to reach USD 14.18 billion by 2028.

    Factors such as technological developments in the transportation and logistics sector and increased use of cloud-based technology for smart fleet management are anticipated to fuel the growth of the global loT fleet management market over the forecast period.

    The North American region is expected to dominate the market. The growth of the regional market can be attributed to the high adoption rate of technologically advanced products, strong network infrastructure (5G connectivity), and rigorous regulatory compliances.

    The major players operating in the market are AT&T Inc. (U.S.), Cisco Systems Inc. (U.S.), Verizon Communications Inc. (U.S.), TomTom International BV (Netherlands), Trimble Inc. (U.S.), IBM Corporation (U.S.), Omnitracs (U.S.), Sierra Wireless (Canada), Intel Corporation (U.S.), and Telefnica S.A. (Spain).

    The market is studied from 2016 - 2028.