Fleet management key for logistics success, says report
December 3, 2015
Fleet management systems are key to success in the logistics sector, according to a report from Research & Markets.
The growing need among fleet operators to increase operational productivity is a major driver that is expected to boost the global fleet management systems market's growth in the next five years.
But the report says fleet operators suffer major cash crunches due to the uncertain global economic scenario. To mitigate the effects of this macroeconomic downturn, they are employing strategies so as to limit costs and increase productivity.
The report forecasts the market to grow at a CAGR of 26.23 per cent over the period 2014 to 2019.
The market can be divided into three segments based on the type of technology – commercial telematics hardware, software components and connectivity technologies. The major end-users of fleet management systems are specialist logistics companies in the taxi fleet operator and truck fleet operator sectors.
The growing popularity of green fleet management systems is an emerging trend in the market. Stringent regulations in western countries are ensuring the impact of the business on the environment is as low as possible and organisations are also conscious of their own public image as environmentally friendly companies.
Further, the report states that the high set-up costs incurred by fleet operators when incorporating fleet management systems is a major challenge.