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

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.