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What are the 5-6 high-level buckets of services (for example: vehicle management, fleet maintenance, telematics, etc.) provided by fleet management providers that are most in demand by small, medium and enterprise-level businesses? What is the total addressable market in % and $ for each "bucket"? Also, for the "high-level buckets of services" please dive deeper into what is included in those high-level buckets.
EXECUTIVE SUMMARY
Many SMEs fleet operators rely on the services of fleet management providers to carry out their day-to-day operations. Telematics services segment has, a triangulated, market share of $180,102,250 in dollar value, equivalent to 1.31% of the total fleet management market size. Other services, apart from telematics services, that are highly demanded by fleet operators from fleet management providers are; driver safety services, fleet maintenance services, vehicle management services, and duty of care services.
FINDINGS
Below, I have identified 5-high-level buckets of services provided by fleet management providers that are a most in-demand by SMEs. In addition to this, I have provided a brief description of what is included in each bucket. I would mention however, that finding the TAM for each bucket in terms of market share and dollar value could neither be triangulated in any way(with an exception of telematics services) nor appear precompiled online. I was able to triangulate the TAM of telematics services in this market using the financial data of one of the key players (TomTom) in this Industry. Among the key players highlighted, only TomTom’s financial gave me a basis to triangulate. The estimated revenue of TomTom telematics services segment is €155 million (an equivalent of $180,102,250). With regard to Research and Markets, the fleet management market is valued at USD 13.78 billion in 2017 and is expected to increase at a CAGR of 15.8% to USD 28.66 billion by 2022. Therefore, the market size of telematics services in dollar value is $180,102,250 while in terms of market share, approximately ($180,102,250*100/13,780,000,000) =1.31%
Telematics Services
According to Automotive Fleet, telematics services are one of the high-level bucket of service that fleet managers are demanding for. It points out that telematics services is driving the fleet management market “with base functionality such as mapping and driving behavior becoming commonplace throughout the industry” among fleet operators. This is to mean that vehicle tracking solutions and driver behavior monitoring services are in high demand. According to Kim Clark, product leader of telematics for Element Fleet Management, “many fleet operators view telematics as a path toward increasing vehicle connectivity.”
RCR Wireless news reports that commercial fleet operators are looking towards increased safety and cost savings as important for fleet management services. These include Driver safety services, Fleet maintenance services (predictive maintenance), and Vehicle management services (Fuel Management.)
DRIVER SAFETY SERVICES
Other sources point to fleet and driver safety features/services as an "emphasis" among fleet owners. The solutions provided here include collision avoidance technologies, and organized driver education programs by fleet management providers.
FLEET MAINTENANCE
RCR Wireless news also points to fleet maintenance as a major driver of the industry. The services here include predictive maintenance services since most fleet owners “knows performing vehicle maintenance on time, every time, keeps vehicles on the road and running efficiently, saving both time and money.” This predictive maintenance includes regular and scheduled maintenance.
VEHICLE MANAGEMENT
With the prices of oil predicted to increase, SME’s are at the rear-end aiming to save on costs. This makes vehicle management services offered by fleet management providers- fuel management- very attractive to fleet managers. Fuel management services provide insight into "fuel usage through fuel card."
DUTY OF CARE SERVICES
Although this article is from 2014, it also predicts the future. According to GE Capital Fleet Services, fleet managers are looking for fleet management services that allows for license checking and duty of care capabilities. “They want to find out more about the causes and costs of accidents in order to reduce the possibility of injury, disruption and cost.”
In conclusion, the 5-high-level buckets of services provided by fleet management providers that are a most in-demand by SMEs are Telematics services, driver safety services, fleet maintenance services, vehicle management services, and duty of care services. The market size for telematics services is approximately $180,102,250 in dollar value and 1.31% in terms of market share.