Market Overview for Fleet Management
The ability to operate and handle multi-brand vehicles across various automotive segments is poised to be a highly profitable market. According to the market database, the increased purchasing power of the population the populous is anticipated to be one of the main factors that drive the profitability associated with the fleet management market. One of the main factors that are expected to cause a shift in trends is the increase in sharing of automotive as opposed to ownership. A change in purchasing pattern is observed amongst the younger population, i.e. the number of youngsters purchasing cars is poised to reduce.
The increased number of initiatives that support environmental sustainability is one of the key detrimental factors associated with the same. Moreover, the increased usage of applications like Ola and Uber is also anticipated to drive the market growth dynamics. An increased shift in new car sales towards corporate channels is one of the key trends within this market that has caused a shift in the consumer base associated with automotive. Corporate will start viewing the company fleet as not just cost but as a potential revenue model. They can be used to leverage services such as corporate car sharing.
What is the fleet management process?
The market database suggests that the fleet management process covers financing, purchase, remarketing as well as reselling of vehicles. It is inclusive of everything in between which includes compliance with tracking of the vehicle, fleet maintenance, as well as driver performance. The role of a fleet manager does not solely entail the location of suitable vehicles (in terms of fleet, capacity, etc) but also negotiating the right price and finances associated with the purchase. Elements of leasing and purchasing from a corporate perspective play a detrimental role within this same. Business intelligence tools suggest that a manager is also expected to negotiate appropriate deals which ensure timely maintenance and adept utilization of the vehicle’s life cycle. A maintenance plan is also to be developed as a part of the fleet management process to ensure minimal downtime and accidents.
The market database suggests that several fleet management technologies also make use of dedicated telematics devices that can be used to track location using a GPS tracker. They are also used to monitor the condition of each vehicle by checking the RPM, engine fault codes, and fuel consumption. According to market research tools, driver retention, fuel consumption, and vehicle re-marketing are noted to be other elements of fleet management systems.
Market Dynamics and Change in industry paradigm for fleet management
Business Intelligence tools state that a trend toward self-driving vehicles is also expected to cause a shift in patterns within the market. The blurring importance of brand perception in addition to the decreasing relevance of a car as a social status symbol is also anticipated to plummet the demand for automotive within this market. The growth in urbanization is one of the key factors that has caused the market to slow down in terms of car ownership. High cost and parking space hassles are seen to be some of the most common market restraints for the demand for automotive.
Several OEMs are actively purchasing multi-brand fleet management technologies. Historically, it was noted that the business of fleet management for wholly or partially dominated by large banks. Several OEMs are now trying to expand their businesses in fleet management or re-enter the market. Ford Fleet Marketplace is a mono-brand fleet management technology that has been crafted by the company. Ford Fleet Marketplace combines their knowledge and expertise of both leasings as well as fleet management knowledge of ALD automotive. Product, digital services as well as automotive industry experts have been presented to the customer on a single platform thus providing an effective time-intensive solution. The company provides bespoke fleet solutions as well as support.
Trends like Robo-Taxis and their impact on present market conditions
Market research tools state that autonomous vehicles like robo-taxis are stated as a reality that can potentially transform the future of the automotive sector. Multi-modal integrated mobility and its growing demand are anticipated to be one of the key factors that drive change within the fleet management vertical. The key to monetizing the mobility ecosystem will be for these firms to seize control of client access and data (mobility, payments, etc.). A key duty of trucking businesses is to maintain fleet safety. By using an ELD, dashcam system, or other methods, they must make sure that their drivers adhere to the rules and drive safely.