The worldwide marketplace for fleet telematics systems is forecast to grow at a compound annual growth rate (CAGR) of 24.5% between now and 2022. Analyst firm Valuates projects it will be worth US$ 34.6 billion.
The growth of the fleet management market is driven by the demand for efficiency to control costs, better safety, inventory tracking and as a result of new government mandates for electronic logging. As wireless tracking becomes less expensive and easier to implement, its market penetration will increase.
Compliance with government emissions regulations and the prospect of improved insurance rates are also contributing to the explosive growth.
The study also suggests that the emergence of 4G, 5G and other wireless technologies has influenced rapid growth. The transportation and logistics industry is expected to offer lucrative opportunities for the fleet management businesses in the near future.
During the forecast period, North America will account for the largest market share, but due to the boom in e-commerce and increased demand for efficient transport logistics operations, the Asia Pacific region is expected to grow at the highest CAGR during the forecast period. The region also provides the fastest-growing smart fleet management market in the world due to increased demand for smart transportation.