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

  • Report forecasts major growth in smart parking
    September 24, 2013
    According to new analysis by Frost & Sullivan, Future of Vehicle Parking Management Systems in North America and Europe, growth opportunities are expected to attract new start-ups in the parking industry, providing real-time parking applications. The industry is expected to witness investments and funding from venture capitalist (VC) firms, ranging from US$200-$250 million in the next three to five years. This is made evident through the emergence of companies, such as Streetline (US and Europe), ParkatmyHo
    Read More
  • Full electric vehicle shipments to exceed 2 million by 2020
    October 11, 2013
    According to ABI Research, the number of full electric vehicles (EV) shipping yearly will increase from 150,000 in 2013 to 2.36 million in 2020, representing a CAGR of 48 per cent. Asia-Pacific will exhibit the strongest growth, driven by mounting pollution issues in its many megacities; however, true mass-market uptake will only start happening in the next decade.
    Read More
  • Singapore plans changes to transit system
    June 13, 2018
    Singapore has the third-highest population density in the world and the numbers are continuing to grow. The government knows that transit is vital: David Crawford investigates the city state’s Smart Nation strategy. Transport is the most important of the five domains identified as the pillars of Singapore's far-reaching Smart Nation strategy, launched in November 2014 by prime minister Lee Hsien Loong with the aim of reaching fulfilment by 2024. Roads account for 12% of the island republic's 719km2 land ar
    Read More
  • Technavio names top 5 vendors in the global smart highway construction market 2017-2021
    May 26, 2017
    Technology research company Technavio has announced the top five leading vendors in their recent global smart highway construction market 2017-2021 report. This market research report also lists 14 other prominent vendors that are expected to impact the market during the forecast period. According to the report, the smart highway construction market will grow at an exponential rate and post a CAGR of almost 94 per cent by 2021. The vendors in this market can expect significant market growth in the coming ye
    Read More

Highlighted Content