Introduction of Commercial Fleet Management Service
It is a sort of software that assists businesses in managing their corporate travel plans. The program assists businesses in reducing travel expenditures, streamlining trip booking procedures, and ensuring compliance with company rules and laws. These advancements enable firms to provide better-tailored solutions and services, contributing to the growth of the Commercial Fleet Management Service market.
For instance, the World Travel and Tourism Council estimates that the worldwide tourism and travel industry will contribute $5.8 trillion to worldwide GDP in 2021. The business travel category is growing the fastest in this market since personnel in international corporations are frequently obliged to travel across many nations for professional purposes. Lifestyle changes, an increase in tourist marketing, increased accessibility of transit facilities, and an expansion in infrastructure are all predicted to fuel the development of the commercial travel sector.
(Source:wttc.org/Portals/0/Documents/Reports/2022/EIR2022-Global%20Trends.pdf)
What are the Main Drivers Influencing the Commercial Fleet Management Service Market?
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Technological Innovation and Automating processes are Driving the Market Expansion
Enterprises are leveraging a variety of technical breakthroughs and automated solutions to improve the overall efficiency of the travel process. Smartphone apps, online reservation tools, online conferences, and artificial intelligence (AI) are among the technologies available to help with travel planning, bookings, expense disclosure, and travel-related duties.
SAP Concur, a market leader in travel management software, introduced a new product called Concur Locate and Proactive Monitoring on January 20, 2021.
(Source:www.concur.co.in/)
This technology assists businesses in locating and monitoring their staff while on business trips. It offers real-time location monitoring, trip interruption notifications, and communication capabilities to guarantee staff safety and policy compliance.
The Factors Limit the Expansion of the Commercial Fleet Management Service Market
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High Cost and Maintenance Hinder Market Growth
Some market restrictions may exist in the commercial Fleet Management Service industry. The high cost of implementing and maintaining Commercial Fleet Management Services could pose a barrier for small and medium-sized businesses. Furthermore, a lack of understanding of the advantages of Commercial Fleet Management Services could hinder market expansion, particularly in developing nations. Regarding travel for work, a substantial part of corporate organizations, around 68%, rely primarily on ad hoc travel demands and intuitive choices. However, there is rising acknowledgment among corporations, with roughly 70% indicating a willingness to employ result-oriented technology that can assist in making educated business travel decisions.
Impact Of COVID-19 on the Commercial Fleet Management Service Market
The pandemic of COVID-19 had a tremendous influence on the commercial Fleet Management Service business. The epidemic reduced corporate travel, which affected the need for Commercial Fleet Management software. However, the industry will likely expand when the world heals from the epidemic as companies resume travel. The need for touchless technologies and mobile applications that allow travelers to manage their journeys and costs from their cell phones will likely increase post-COVID. The use of videoconferencing systems is satisfying the demands of many businesses for meetings and conferences, and it is also being used as a cost-cutting tool as businesses avoid costly business trip expenditures. COVID-19 has thereby altered the competitive structure of the global business travel sector and is expected to have a long-term impact.
Competitive Landscape of Commercial Fleet Management Service Market
The Commercial Fleet Management Services market is a highly dynamic and diversified competitive environment. It includes a wide range of commercial fleet service suppliers, ranging from large multinational enterprises to smaller specialized organizations. Market participants are also undertaking various organic or inorganic strategic approaches to strengthen and expand their global footprint, with significant market developments including new Material portfolios, contractual deals, mergers and acquisitions, capital expenditure, higher investments, and strategic alliances with other organizations. Businesses are also coming up with marketing strategies such as digital marketing, social media influencing, and content marketing to increase their scope of profit earnings.
August 2022: BCD Group (BCD Travel) has announced the expansion of their agreement with FairFly, allowing them to provide the unique air price assurance (APA) service to their entire worldwide client base. BCD Travel intends to improve its APA service by integrating FairFly's superior technology and artificial intelligence.
(Source:www.bcdtravel.com/blog/bcd-extends-fairfly-partnership-to-power-air-price-assurance-for-all-clients/)
December 2022: CWT Global B.V., a worldwide media and entertainment giant, has expanded its global collaboration with Paramount Global. This increased partnership allows CWT Global to handle Paramount's expanding travel business.
(Source:www.mycwt.com/news/pr/paramount-global-expands-global-partnership-with-cwt/)
Top Companies Market Share in Commercial Fleet Management Service Industry: (In no particular order of Rank)
- TomTom N.V. U.S
- General Services Administration
- Fleetmatics Group PLC
- Telogis
- Freeway Fleet Systems
- IBM Corporation
- AT&T Inc.
- Navico
- Grupo Autofin de Monterrey
- Grab
- Scope Technologies
- Troncalnet
- FAMSA
- Ola Cabs
- I.D. Systems
- MiTAC International Corporation
- Cisco Systems
- Trimble Transportation & Logistics
- Uber Technologies
- Didi Chuxing
- DC Velocity
- Fleet Robo
- European GNSS Agency (GSA)
- Confidential Data
- Access The Paid Version
- Data Hidden
Commercial Fleet Management Service Market Analysis
Global Commercial Fleet Management Service Market Report 2024 Edition talks about crucial market insights with the help of segments and sub-segments analysis. In this section, we reveal an in-depth analysis of the key factors influencing Commercial Fleet Management Service Industry growth. Commercial Fleet Management Service market has been segmented with the help of its Component, Industry Communication Technology, and others. Commercial Fleet Management Service market analysis helps to understand key industry segments, and their global, regional, and country-level insights. Furthermore, this analysis also provides information pertaining to segments that are going to be most lucrative in the near future and their expected growth rate and future market opportunities. The report also provides detailed insights into factors responsible for the positive or negative growth of each industry segment.
By Component, the Services Segment Dominating the Commercial Fleet Management Service Market
According to the Commercial Fleet Management Service market estimate, the Professional Services sector is predicted to develop quickly, with a CAGR of 9.8% over the forecast period. Food and housing were likewise the most dominant sector, accounting for most of the market share. The increasing prevalence of hotel booking companies such as Airbnb and Oravel Stays is boosting the Professional Services category's development.
The availability of managed services software, which has aided in enhancing the effectiveness of various organizations by delivering current data in order to make effective judgments, is one of the most important factors that will drive market expansion in the approaching years.
Solutions
- Operation Management
- Vehicle Maintenance and Diagnostics
- Performance Management
- Fleet analytics and reporting
- Others
Services
- Professional Services
- Consulting & Advisory
- Integration & Implementation
- Managed Services
By Industry, the transportation segment Dominating the Global Commercial Fleet Management Service Market for Industry
According to the industry, the transportation category was the dominant sector and is also expected to be the fastest-growing section due to the global expansion of corporate operations.
In contrast, the government sector is expected to develop significantly throughout the predicted period. Government agencies are important users of travel services. Government personnel may travel domestically or internationally, with expenditures paid for by the governing body or repaid by the employees.
- Construction
- Transportation
- Government
- Logistics
- Retail
- Automotive
- Oil and Gas
- Others
Commercial Fleet Management Service Communication Technology Segment Analysis
Cellular network infrastructure is quickly expanding in the commercial fleet management community. They help to track driver behavior, save money on fuel and maintenance, and enhance customer service. When AI-enabled dash cams and asset trackers are integrated, you obtain extra benefits that can safeguard drivers, machinery, brands, and profitability.
However, most wireless algorithms and protocols don't need location information in their functioning, GNSS technology is not frequently used in wireless systems for information positioning. Even though it is quite beneficial to many people applications such as offering mobile Internet access.
- Cellular system
- GNSS
Commercial Fleet Management Service Deployment Type Segment Analysis
On-premises solutions are less versatile, adaptable, and cost-effective than cloud-based travel management software. Second, increased demand for integrated travel and cost management solutions propels the industry forward. Companies may use integrated solutions to improve their travel and expense management operations, lowering administrative expenses and increasing efficiency.
The rising popularity of on-premises deployment is because of the benefits it provides in terms of rapidity, scalability, and administration. The use of on-premises deployment guarantees that the platform operates consistently across varied settings, avoiding compatibility difficulties and simplifying scaling operations.
- On-Premises
- Cloud
The North American Commercial Fleet Management Service market dominate the Share of Global Market
According to Cognitive Market Research, North America dominated the market in 2022 and accounted for a share of more than 40% of the worldwide revenue due to several variables. Because of the presence of key companies such as SAP Concur, Oracle, and Expedia in the area, North America is likely to take over the Commercial Fleet Management Service industry. Cloud-based solutions, which provide better scalability and adaptability than on-premises systems, are widely used in the region. The region is also highly digitalized, making it easier for firms to use Commercial Fleet Management Services.
The United States Commercial Fleet Management Service Market anticipated to Grow and expand at the Fastest Growth Rate in North America
The United States now dominates the market, and this dominance is projected to remain shortly. The region's robust economy, significant use of technology, including booking engines and mobile devices, established travel facilities, and density of business centers and corporate offices all contribute to the region's increasing need for Professional Travel. USA's market is predicted to expand significantly throughout the forecast period. The region's high adoption of sophisticated technologies, as well as the existence of significant players, are projected to provide sufficient development prospects for the market.
The Main Causes for Europe to have the Fastest Growth in Commercial Fleet Management Services Over the Coming Years
Due to strong compliance and duty of care laws, Europe is also likely to see substantial development in the Commercial Fleet Management Service market. The European Union has enacted several requirements to guarantee the security and well-being of staff members when on business travel, which has resulted in greater use of Commercial Fleet Management Services. The region's growing emphasis on sustainability and minimizing carbon footprint is also pushing the usage of Commercial Fleet Management Service.
