A ‘Research And Markets’ study predicts that from 2019 to 2022, the market for commercial vehicle fleet management systems will expand at a CAGR of 15.45 percent.
Commercial Fleet Management System for Vehicles (CV FMS) is a centralized system that provides operators with efficient fleet management. FMS includes tasks such as vehicle funding, vehicle maintenance, vehicle telematics, driver management, speed management, fuel management, and health and safety management. FMS integrates solutions for hardware, software, and connectivity.
A study by C.J. Driscoll & Associates
C.J. Driscoll & Associates, a market research and consulting service provider for telematics, has published the 2016-17 U.S. Study of the market for mobile resource management systems. This research concludes that around 8 million GPS / wireless networks are used today to handle fleet vehicles, trailers, building materials, and mobile employees. This market will expand to more than 14 million units by 2019, and annual hardware and service revenues will increase to nearly $4.7 billion.
The research found robust development in the local service and shipping fleet market, where business telematics solutions are growing at a pace of 15-20 percent per year. However, owing to the lately issued legislation requiring the use of Electronic Logging Devices (ELDs) by interstate trucking fleets to monitor driver hours of service, the growth rate of the trucking sector is expected to exceed the local fleet market.
“While the largest GPS fleet management companies are becoming increasingly dominant, this has not discouraged new players from entering the market, some with considerable success,” according to C.J. Driscoll. “Overseas suppliers also continue to be drawn to the U.S. market due to its size and rate of growth.”
The reliability of the study
According to the business, the 323-page research offers detailed data on each main MRM market segment, including vehicle-installed GPS fleet management solutions for local service and distribution fleets and long haul trucking fleets. Together with the evolving market for handling mobile employees with GPS-equipped smartphones and tablets, the driver behavior management systems market is also examined. Besides, the research includes markets such as fleet trailers and heavy equipment for tracking mobile assets.
The research evaluates the present market penetration of the annual subscriber and income development of MRM devices and services and initiatives through 2019. More than 140 suppliers of MRM systems and services are supplied with detailed profiles, including target markets, chief characteristics, installed base, and pricing.
The multiplying trend of FMS
The primary trend driving market growth will be the increasing popularity of the 360 fleet management system. By introducing camera technology as a support scheme, FMS enhances the effectiveness of a fleet. Fleet managers can monitor and interpret security issues with camera technology integration.
Market growth will be driven by the high price pressure on fleet operators. Fleet operators are continuously implementing cost optimization approaches to adapt to increased cost pressure. Fleet executives focus on implementing sophisticated FMS to optimize fuel consumption and improve fleet effectiveness with the cost fluctuation of fuels and inefficiency of fleet activities.
The study says that market growth will be affected by the elevated price associated with FMS. FMS comprises of multiple original expenses such as licensing, installation and installation charges, apart from numerous customization payments, integration with present schemes and renewal expenses for licensing costs. This makes lowering their product prices and adjusting with low-profit margins hard for CV producers.
Study shows growing use of GPS fleet management systems
Nineteen businesses, including significant cellular operators, GPS fleet management solution providers, driver behavior management system, and other leading telematics providers to the fleet market, partly financed the 2018-19 Survey of Fleet Operator Interest in MRM Systems and Services. A telephone survey of over 600 U.S. fleet operators is based on this extensive research. Survey respondents came from significant categories of fleets including service, local and over-the-road and trucking, personal distribution, utilities, construction, oil & gas, transportation of individuals, and fleets of government.
The research examines fleet operators’ interest in particular telematics characteristics and capacities such as driver performance surveillance, integration of fuel cards, route optimization, forward collision warning, remote vehicle diagnostics. It compares present use and intended deployment of an MRM solution among fleets varying in size from five vehicles to over 10,000 vehicles.
The following are among the study’s key observations:
- In the foreseeable future, more than one-third of participating fleets that do not presently use a GPS fleet management scheme expect to implement a system.
- Seventy-nine percent of participating fleets using a GPS fleet management system believe it is essential or somewhat essential to help their business operate their fleet effectively.
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