Fleet Management Market 2023 - Key Opportunities and Challenges

Report analyses detailed information about the major factors, such as drivers, restraints, opportunities, and challenges, influencing the growth of the Fleet Management Market

(EMAILWIRE.COM, October 22, 2019 ) The global fleet management market size is expected to grow from USD 15.9 billion in 2018 to USD 31.5 billion by 2023, at a Compound Annual Growth Rate (CAGR) of 14.7% as per a report by MarketsandMarkets.

How driver safety and productivity affecting vehicle uptime to pose a major challenge?

Driver safety and productivity are the two vital aspects on which fleet efficiency largely depends. The driving pattern affects engine performance, with driver productivity directly affecting the overall cost and fleet efficiency. Driver safety, if compromised, can lead to accidents and to associated repair and downtime costs. Lowering the accident rates is likely to automatically lower insurance costs, which can help fleet owners qualify for better insurance rates. Driver retention and lack of drivers are the constant challenges for fleet owners. Moreover, drivers are less aware about safety procedures, and they may be exploited by excess driving hours and lower incentives. It leads to high driver attrition rates. Companies are introducing driver training sessions to reduce the number of accidents. Third-party providers are also devising safety training modules and programs. Additionally, the government HOS mandate has resulted in increased driver satisfaction, which is expected to lower attrition rates.

Why introduction of autonomous fleets to provide multiple partnership opportunities?

The investments in autonomous vehicles have witnessed a huge upsurge over the past 3 years where many vehicle manufacturers are partnering with technology vendors to gain the early mover advantage. Even though it is too soon to anticipate the presence of autonomous fleets, major companies such as Tesla, Intel, and Google are investing heavily to unleash driverless vehicles. Elon Musk, CEO Tesla, even announced the possibility of a full self-driving car by the end of 2019. Several companies have increased their investments to gain a competitive edge in this stream. For example, Uber acquired Otto, a developer of self-driving technology kits and LIDAR sensors that can be fitted in trucks, which aligns with Uber’s strategy as Uber does not position itself as a vehicle manufacturer. In addition, Uber also partnered with Volvo to provide up to 24,000 self-driving cars to Uber during the period of 2019–2021. Forecast to a multi-billion dollar opportunity, autonomous fleets are inviting automakers, ride-hailing firms, and technology providers to collaborate in order to gain maximum share in the self-driving technology.

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