According to a new report by MarketsandMarkets, the fleet management market size is expected to grow from $13.78 billion in 2017 to $28.66 billion by 2022, marking a CAGR of 15.8%.

In the report, MarketsandMarkets noted that the major drive of the market is the growing need for operational efficiency, resulting in the increased demand for fleet management, adoption of cloud computing in fleet, thereby streamlining the fleet management operations, and declining hardware and connectivity costs, leading to increased deployment of fleet management solutions.

The operations management solution is expected to have the largest market share during the forecast period, owing to much needed functionalities, such as location tracking, which enables real-time tracking of vehicle location, geo-fencing capabilities that ensure vehicles do not deviate from the planned route, route optimization, which helps in optimizing the fuel usage, and navigation, which assists drivers in safe driving and covering the planned route

The managed services segment is expected to grow at the fastest rate during the forecast period, owing to the increased adoption of outsourced managed services. Integrated facility management, consultancy and round-the-clock help desk are some of the upcoming managed services required by fleet operators. Moreover, it has become difficult for companies to focus on core business processes and support various other functions, which in turn, increases the significance of managed services. These services offer technical skills that are required to maintain and update the software in the fleet management ecosystem.

As per the geographic analysis, North America is estimated to hold the largest market share during the forecast period. This is due to the early adoption of fleet management technologies. Since North America is made up of mainly developed economies, such as the U.S. and Canada, the region is significantly advanced in terms of technology and its application deployments. Moreover, government regulations, policies and mandates for the different applications of fleet management are expected to drive the market growth in North America.