Market Trends of North America Fleet Management Solutions Industry
This section covers the major market trends shaping the North America Fleet Management Solutions Market according to our research experts:
Transportation Sector Will Experience Significant Growth
- The growing number of smart transportation projects under the smart city concept is expected to boost the demand for fleet management solutions over the forecast period. The goal of smart transportation projects is to reduce the reliance on private cars, make public transport more attractive, and incentivize city residents and visitors to switch from private to public transport to address the escalating traffic problems. For instance, smart transport systems can limit private cars to certain routes and reserve priority lanes or even entire roads for other modes of transport.
- Increasing the adoption of commercial vehicles by various businesses in the United States and Canada to enhance their transportation offerings is expected to boost the market in North America. For instance, in 2019, the United States secured the first rank and registered a sale of 12,764,999 commercial vehicles; moreover, Canada was third on the list with 1,479,252 commercial vehicles.
- Moreover, the United States increasing efforts to expand the production of most competitive industries and products through exports in order to achieve the scale of economies and strengthen its economic growth is expected to fuel the market. For instance, according to the report, in 2019, the total value of United States trade goods amounted to USD 4.14 trillion which reflects the growing demand for fleet management solutions to track route progress, receive automatic updates, improve client experience and reduce call volume by sharing arrival times and delays.
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United States Will Experience Significant Growth and Drive the Market
- An increasing number of fleet accidents in the United States are forcing companies to adopt fleet management solutions as these are the most expensive injury claims for any businesses. For instance, according to the Federal Motor Carrier Safety Administration (FMCSA) report, an estimated 37,133 people died in 34,247 fatal accidents in 2017 and 5,005 people died in 4,455 crashes involving large trucks or buses, fatalities increased 8% from 2016, and fatal crashes also increased by 8%.
- Therefore, most of the companies are using accident management tools that provide real-time insights of the vehicles and traffic to prevent accidents and improve driver safety. These solutions use GPS tools, mobile technology, and the Internet of Things (IoT) and make real-time fleet tracking and enterprise fleet management simpler and easier.
- Further, the expansion of the retail sector in the United States due to the growing popularity of online shopping is expected to drive the market as more vehicles will be employed by companies. For instance, Amazon’s new fulfillment center in Oak Creek is expected to open in 2020. It is estimated by the city official to employ in an additional 175 trucks on a daily basis for loading and unloading of goods.
- However, most of the fleet management systems, like automated guidance systems, heavily rely on electronic components like transducers, and the recent disruption of electronic supply chains due to the COVID-19 pandemic could reflect on the growth rates being hindered for a substantial market period.
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