According to a study by Transparency Market Research (TMR), the IoT fleet management market is in nascent stage with plenty of opportunities for technological advancements and revenue opportunities. The demand in the global IoT fleet management market will grow at a highly impressive CAGR of 20.0% from $3B in 2016 to $16B by 2025. The U.S., remains the most lucrative region for the IoT fleet management market players. A number of original equipment manufacturers (OEMs), such as Daimler Trucks North America and Volvo Trucks, are already offering telematics solutions, both independently and in partnership with local fleet solution providers. The government regulatory for electronic logging devices in the U.S. makes fleet management solutions a necessary tool for the vendors of the transportation sector who deal with commercial trucks.
As far as market segmentations is concerned, the TMR report rates private cloud as most in-demand cloud type, whereas application-wise, the IoT fleet management market gains maximum demand from the tracking and monitoring of commercial vehicles, which itself is the most profitable fleet type segment.
Smartphone Integrated Real-Time Data Driving Demand
Ubiquity of smartphones has had a defining effect on the global IoT fleet management market, as an increasing number of transportation companies are integrating their tracking and monitoring, routing, fuel management, and remote diagnostic processes with it. The advent of the Internet of Things has made it possible for the automobiles to seamlessly connect to smart phones, and provide emergency roadside assistance as well as real time traffic alerts. The IoT is made up of several smart devices such as sensors, mobile devices and cameras, all of which make use of wireless technology to communicate with each other. Incorporating IoT with fleet management helps in managing fuel and labor costs, improving fleet maintenance procedures, maximizing dispatching and scheduling, increasing response times, and enhancing customer satisfaction.
The growing need for optimum operational efficiencies, implementation of Federal Motor Carrier Safety Administration Electronic Logging Device (FMCSA ELD) mandate, and other anticipated government regulations are some of the other key factors driving the global IoT fleet management market. The U.S., the most profitable country-wide market for IoT fleet management, is projected to increment the demand consistently throughout the forecast period, gaining traction from factors such as increasing sales of fleet vehicles, high adoption rate of advanced technological products, and regulatory developments by the government.
Data Security and Cost of Implementation Hindering Growth in Emerging Economies
Key Segments of the Global IoT Fleet Management Market Applications
— Routing Management
— Tracking and Monitoring
— Fuel Management
— Remote Diagnostics