LONDON--(BUSINESS WIRE)--The latest market research report by Technavio on the global automotive OEM fleet management services market predicts a CAGR of close to 4% during the period 2018-2022.
The report segments the global automotive OEM fleet management services market by vehicle type, including passenger vehicles and commercial vehicles and by geography, including the Americas, EMEA, and APAC. It provides a detailed illustration of the major factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.
Here are some key findings of the global automotive OEM fleet management services market, according to Technavio automotive researchers:
- Reduction of operational cost: a major market driver
- Increasing usage of telematics systems: emerging market trend
- EMEA dominated the global automotive OEM fleet management services market with 45% share in 2017
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Reduction of operational cost: a major market driver
Third-party fleet management service providers used to dominate the global fleet management market. These service providers are tied-up with banks, insurance companies, navigation system solution providers, and breakdown-assistance providers. The addition of a third-party fleet management provider in the (fleet management) value chain increases the operational costs. Cutting down a link in this value chain is the ideal way to reduce the operational cost. The development of in-house fleet management facilities by major automotive OEMs facilitates the provision of fleet services without the interference of third-party service providers.
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Increasing usage of telematics systems: emerging market trend
Vehicles that ensure maximum safety and comfort are highly in demand. This has led to the advent of telematics systems. Telematics systems aid in vehicle tracking, monitoring of driving behaviors, and in providing information on vehicle conditions by incorporating remote diagnostics. Such systems are highly being adopted in passenger cars. The expanding market for self-drive cars, car-pooling, and car sharing has led to an increase in demand for telematics systems.
Lately, vehicle tracking has been a necessary feature in commercial vehicle segment as well. With the help of a GPS receiver and an electronic GSM device installed in vehicles, such tracking systems facilitate the provision of real-time tracking of data. They provide information such as start time, shut-down time, idling time, vehicle location, and velocity to the fleet owners.
According to a senior analyst at Technavio for research on automotive services, “Telematics used in vehicles help in increasing the productivity of fleet owners, reducing labor costs, controlling fuel costs, improving customer service, increasing fleet safety and security, reducing the operational costs, and reducing unauthorized vehicle usage. Therefore, the adoption of telematics systems positively impacts the growth of the global automotive OEM fleet management services market.”
Global market opportunities
In terms of regional dominance, EMEA led the global automotive OEM fleet management services market, followed by the Americas and APAC in 2017. EMEA is expected to maintain its dominance throughout the forecast period. The increased road connectivity in the region is the key factor contributing towards the growth of the market. APAC is the fastest growing market, registering a growth of nearly 2% by 2022.
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