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

  • 39 million micro-hybrids by 2017
    March 14, 2012
    Micro-hybrids will grow nearly eight-fold to 39 million vehicles in 2017 and create a $6.9 billion market for energy storage devices as the fuel-saving alternative technology finds ready adoption, driven by stricter emission standards.
    Read More
  • Norway continues to lead global electric vehicle market
    September 23, 2016
    Norway continues to lead the global market for electric vehicles, according to the most recent plug-in electric vehicle (PEV) index from IHS Automotive, part of business information provider IHS Markit. Plug-in electric vehicles are defined as either a pure Battery Electric Vehicle (BEV) or a Plug-In Hybrid Vehicle (PHEV). Based on analysis of new vehicle registrations during the first quarter 2016, one out of every three vehicles registered in Norway during the quarter was a plug-in electric vehicle, r
    Read More
  • Nearly half of vehicles produced annually by 2017 will have fleet management systems
    March 22, 2012
    Vehicle OEMs have traditionally focused on their core competency of vehicle usage and vehicle analysis, rather than transport operation. This has placed them at a disadvantage to independent aftermarket telematics vendors, whose core competence is in transport operation. OEMs have typically limited client contact after selling the vehicle. But this is expected to change once OEMs gradually start offering fleet management systems (FMS) as a standard in their models.
    Read More
  • Growth in traffic volumes to drive European toll roads and airports in 2016, says report
    May 3, 2016
    In the wake of low inflation and competitive pressure constraining tariffs, Moody's Investors Service expects that European toll roads and airports will benefit from healthy growth in traffic volumes in 2016, albeit lower than in 2015. Traffic volume growth remains critical to the credit quality and financial performance of toll road operators and airports.
    Read More

Highlighted Content