According to a recent news release from PR Newswire, fleet management will become a $22 billion market over the next five years.
That’s up from $8 billion in 2015, a figured based on new market research into fleet management solutions published by Markets and Markets.
Whether you’re a fleet manager or a CFO, understanding the factors that are affecting this impressive growth in your industry will let you make sound business decisions and steady the course you’re currently on or change the course of your company’s path so you can reap some of the benefits of the industry’s growth. Here is a look at some of the factors contributing to this predicted surge in growth.
Factors that affect (or deter) growth for a fleet management company.
There are a number of factors that can lead companies to need fleet management services:
• Increasing fuel costs
• Increasing maintenance costs
• Safety concerns and regulations
• Natural and environmental disasters or challenges
• Decreasing hardware functionality
• The increased need for operational efficiency
With proper operations management in place, driver loyalty and morale high, routine vehicle maintenance on schedule, and fuel management services in place, profits and customer service satisfaction can soar. Further, downtime from staff absenteeism or high-turnover rates is significantly reduced and/or eliminated; downtime due to inappropriate vehicles is avoided, and downtime due to lack of efficient fuel management is never a factor.
New and Ever-Increasing Markets for Fleet Management
There is an ever-increasing demand for commercial vehicles and lots of potential business opportunities for fleet management companies around the globe, although it’s the North American market that is leading the surge forward. In fact, North America is estimated to be the world’s largest market for fleet management companies who demonstrate technological advancement and the adoption of the lot.
A Highly-Competitive Fleet Management Market
Although the fleet management market remains ever-competitive with the ongoing presence of so many large and well-known vendors, as with any industry – there is always room for first-class, top-notch, well-organized, and service-centric smaller to medium size companies. The fleet management company is no exception. As long as you can deliver what you promise, when you promise, it doesn’t matter how big (or not so big) your current fleet is.
Diverse Services Provided by Fleet Management Companies
From professional services and system integration, to deployment services and managed services, the size and scope of specific services fleet management companies offer and provide is as diverse as the companies themselves. While it’s often convenient and efficient for the customer to offer as many different services as possible, to grow exponentially while still maintaining the ability to provide exceptional service often requires focusing on a handful of services done well vs. a whole menu of things done poorly.
Clients of Fleet Management Services
There are lots of industries that seek the services of top-notch, world-class, organized, and highly-efficient fleet management companies, from manufacturing companies and government agencies to retail companies and construction businesses.
Fleet Management is Fuel Management
For fleet managers, keeping an eye on the cost of fuel is just one part of the job. Why not get assistance from a company that’s focused solely on getting you the best value when you fuel your fleet.
Sokolis has helped our clients save nearly $500 million on fuel in the past 12 years. We can help you negotiate when it’s time to buy, perform an audit on your fuel programs, and collect, analyze and report on data collected from multiple vendors.
Sokolis can also help by evaluating your company to see if mobile fueling is right for you. Mobile fueling can save time, giving your drivers more time to make deliveries. And because many companies need to adhere to hours-of-service regulations, it’s important that drivers can make the most of the time they have available.
Fleet management is a growing market. We can help you grow along with it.
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