IoT fleet management market to grow by more than 20 per cent by 2021

A new report by MarketsandMarkets estimates that the Internet of Things (IoT) fleet management market will grow fromUS$3.16 billion in 2016 to US$8.28 billion by 2021, at a CAGR of 21.26 per cent. According to the report, the key factors driving the growth of the IoT fleet management market are increased demand for optimised business operations, real-time fleet monitoring and a growing number of government mandates for fleet safety. Routing management accounted for the largest share of the IoT fleet managem
April 24, 2017 Read time: 3 mins
A new report by 6418 MarketsandMarkets estimates that the Internet of Things (IoT) fleet management market will grow fromUS$3.16 billion in 2016 to US$8.28 billion by 2021, at a CAGR of 21.26 per cent.


According to the report, the key factors driving the growth of the IoT fleet management market are increased demand for optimised business operations, real-time fleet monitoring and a growing number of government mandates for fleet safety.

Routing management accounted for the largest share of the IoT fleet management market. The growth of this segment can be attributed to rising global road freight traffic and constant R&D activities to develop innovative products. According to the road freight transport statistics of 1690 European Commission (EC), European countries’ road freight transport increased by 2.2 per cent in 2015, as compared to 2014 and was the highest in the last five years. Also, the continuous R&D activities by fleet solution providers to develop advanced products helps fleet companies to provide the shortest and less crowded route to fleet vehicles to avoid unnecessary overtime costs.

The managed services segment is expected to dominate the IoT Fleet management market from 2016 to 2021. Managed services not only offer flexibility but also allow efficient multiple function handling and therefore reduce overall operational cost. These also help to provide the desired operation as per the client's specific needs, resulting in enhanced customer satisfaction. Further, these services allow work allocation as per the expertise and centralisation of various applications within the data centre. The increasing role of IoT in fleet management along with the integration of IoT is resulting in the increased usage of these services. The difficulty for companies to focus on other support functions other than their core business processes has also increased the significance of managed services.

The Americas region is expected to hold the largest share in the IoT fleet management market. The growth of the market in this region can be attributed to increasing sales of fleet vehicles, high adoption rate of advanced technological products, and regulatory developments by the government. The increasing number of fleet vehicles propels the demand for IoT fleet management solutions.

In addition, some original equipment manufacturers in this region, such as 5874 Volvo Trucks and 2069 Daimler Trucks North America have begun offering telematics solutions either independently or in partnership with fleet solution providers. In addition, in 2015, Daimler Trucks successfully completed the testing of truck platooning concept, while US government regulations for electronic logging devices makes fleet management solutions a necessary tool for commercial trucks.

Location Based Systems

For more information on companies in this article

Related Content

  • Commercial vehicle telematics market ‘to reach US$11.2 billion in 2014’
    January 20, 2014
    A new report from business information specialist Visiongain has assessed that the value of the global commercial vehicle telematics market will reach US$11.2 billion in 2014. Growth in this market is mainly driven by three factors. Firstly, increasing fuel prices accompanied by strong price competition in logistics create downward pressure on the profit margins of transportation companies and fleet operators and drive them to adopt telematics to sustain profitability and gain competitive advantage. S
    Read More
  • Growing world market for night vision and driver monitoring systems
    August 15, 2014
    MarketsandMarkets’ latest report, Night Vision System (NVS) and Driver Monitoring System (DMS) Market for Passenger Cars - by Geography - Trends and Forecasts 2014-2019 classifies and defines the automotive night vision and driver monitoring systems market in terms of volume and value. The report highlights potential growth opportunities in the coming years as well as covers review of the - market drivers, restraints, growth indicators, challenges, legislation trends, market dynamics, competitive landscape,
    Read More
  • Australian ITS market 2015-2020
    July 23, 2015
    The latest research report from Research and Markets indicated that the total Australian intelligent transportation systems (ITS) market is expected to reach US$1,130.2 million by 2020, at a CAGR of 14.41 per cent between 2015 and 2020. According to the report, Australia Intelligent Transport System (ITS) Market by Application, System (ATMS, ATIS, ITS-enabled Transportation Pricing Systems, APTS and CVO), and Territory (New South Wales, Victoria, Queensland, Western Australia, Rest of Australia) - Foreca
    Read More
  • Electric vehicle charging stations market
    April 7, 2016
    The growing need to reduce carbon emissions is pushing electric vehicle (EV) charging stations market along with increasing use of EVs, government subsidies and incentives according to a new research report from Reports and Reports. It forecasts the market to reach US$12.61 billion by 2022, at a CAGR of 29.8 per cent from 2016 to 2022. The growth of electric vehicle charging stations market is attributed to significant incentives offered by the Chinese government for EV buyers and tightening emission reg
    Read More

Highlighted Content