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

  • ADAS ‘fastest growing sector’ in automotive field
    July 7, 2015
    According to the latest research by RnR Market Research, Advanced Driver Assistance Systems (ADAS) has been one of the fastest-growing sectors in automotive field and is expected to register a CAGR of 32 per cent during 2014-2019. Currently, developed countries in Europe and America have had nearly eight per cent of new vehicles equipped with ADAS, in contrast to about two per cent in emerging markets. It is predicted that over 25 per cent of new vehicles will carry ADAS by 2019 globally. The Global a
    Read More
  • ITS market expected to reach $33.75 billion by 2020
    May 15, 2015
    According to a new market research report by MarketsandMarkets, Intelligent Transportation Systems - Analysis and Forecast to 2014 – 2020, the intelligent transport systems (ITS) market is expected to grow at a CAGR of 11.30 per cent from 2014 to 2020 and reach US$33.75 billion in 2020. The report describes the market trends, drivers and challenges of ITS market and forecasts the ITS market from 2013 to 2020, based on the various systems of ITS, applications, and geography. This report covers geographies
    Read More
  • Connected car market ‘to grow almost 500 per cent by 2018’
    July 30, 2014
    The market for connected cars is growing rapidly, with an expected compound annual growth rate (CAGR) of 41.2 per cent between 2013 and 2018 and mobile network operators (MNOs) are jumping on the opportunity for new revenue streams and enhancement of customer loyalty that comes with this growth, according to the latest report from research firm Heavy Reading Insider, a research service from Heavy Reading. MNOs Hold the Keys to Success for Connected Cars examines the connected car market, analysing how mo
    Read More
  • Connected-car security market expected to reach US$759 million in seven years
    September 30, 2016
    With nearly 112 million vehicles now connected around the world, the global market for automotive cybersecurity is expected to grow exponentially – to US$759 million in 2023, according to a new report, Automotive Cyber-security and Connected Car, from IHS Automotive, part of business information provider IHS Markit. Connected cars are defined as those that have a connection to the internet, through telematics, an onboard modem or a paired device in the vehicle, such as a mobile phone or other device. One
    Read More

Highlighted Content