A report from ResearchAndMarkets predicts the commercial vehicle fleet management system market will grow at a CAGR of 14.45% from 2018 to 2022.

Commercial vehicle fleet management system (CV FMS) is a centralized system that facilitates effective fleet management for operators. FMS consists of functions such as vehicle financing, vehicle maintenance, vehicle telematics, driver management, speed management, fuel management and health and safety management. FMS integrates hardware, software and connectivity solutions.

The growing popularity of 360 fleet management system will be a key trend driving the growth of the market. FMS enhances the efficiency of a fleet with the introduction of camera technology as a support system. With the integration of camera technology, fleet managers can monitor and interpret safety issues.

The high cost pressure on fleet operators will drive the market growth. Fleet operators are steadily adopting cost optimization strategies to adjust to rising cost pressure. With the price fluctuation of fuels and inefficiency of fleet operations, fleet managers are focusing on adopting advanced FMS to optimize fuel consumption and enhance fleet efficiency.

The report states that the high cost associated with FMS will impact market growth. FMS consists of various initial costs such as license, setup and installation fees, apart from various payments for customization, integration with current systems and license fee renewal costs. This makes it difficult for CV manufacturers to reduce their product prices and adjust with low profit margins.