10 Mn Units
10 Mn Units
16.03 Mn Units
The market trend of fleet leasing is high among areas such as Europe and North America, however, purchase is the preferred model in APAC and LATAM, even though large companies in these regions are moving towards leasing. The growth of global fleet management market is driven by factors such as centralization of fleet sourcing and management, a decrease in the sale of diesel vehicles, risk and safety factors, driverless/self-driving vehicles, increase in mobility budget, a shift towards alternative fuel vehicles, and an increased focus on mobility management.
The report also includes key drivers and constraints of the global fleet management industry, followed by a regional market outlook in areas such as North America, Europe, and the APAC. It also explores various opportunities and challenges faced by key demand markets, along with Porter's five forces analysis. It also provides an outlook over key suppliers such as ALD Automotive, Arval, LeasePlan, Wheels Inc., and Orix. The report also gives an overview of industry best practices, procurement best practices, followed by a comprehensive analysis of the cost and price trends.
In a fleet management model only, the buyer owns the vehicle fleet and outsources its management to a fleet management company. Since the fleet management company (FMC) does not invest in vehicle fleets, it does not incur any capital cost or financing cost. Cost of capital/finance and maintenance together contribute to 60 percent of the supplier’s cost. Dry operating costs account for nearly 90 percent of FMCs’ fees. The maintenance management costs, administration expenses, license and permits account for nearly 80 percent of FMCs’ fees. For certain situations, the FMCs provide assistance to their buyers for their financing needs and arrange financing from a third-party financial institution/bank. In this case, the FMCs earn a 1–2 percent financing markup.
Beroe gathers intelligence through primary sources that include industry experts, researchers, and consultants, as well as current suppliers, producers and distributors. Secondary sources can include business journals, newsletters, magazines, market research data, company sources, and industry associations. Following data collation, analysis, and strategic review, the Final Research Report is published on Beroe LiVE.
Category Intelligence on Fleet Management covers the following
In 2016, global passenger car sales were close to 83 million units, and they are expected to grow at ~2.5 percent to reach ~ 85 million units in 2017. APAC will be leading the growth of automobile sales.
The KPIs in the fleet management industry are: Vehicle ordering, operational and consolidated reporting, service maintenance and repair, driver program, accident management and insurance support and cost savings. The major fleet management trends are: Centralization of fleet sourcing and management, data management and reporting, driverless/self-driving vehicles, mobility management, focus on risk and safety (vehicle and driver). Key components for contract structure in the global fleet management market are: Leasing, fuel management, maintenance, accident management, and administrative cost. Fuel, cost of capital/finance and maintenance all together contribute to 75 percent of the leasing supplier’s cost in the fleet management market.
Increase in Fleet Leasing Cost Lease price is majorly dependent on MSRP of the vehicle and residual value. Though the impact of Brexit was negligible in 2016, exchange rate of Pound is expected to remain low in 2017. As a result, MSRP is expected to go up and so does the lease price.
Increase in Fleet Management Costs
Fleet leasing is high among the companies in North America and Europe. Though purchase is the preferred model in LATAM and APAC, large companies in these regions are moving towards leasing.
Buyers having global presence, increasing sales force and benefits of outsourcing non-core functions are driving the fleet leasing industry. However, alternatives to travel, like video conferencing, and alternatives to company cars, like car sharing, are some of the constraints.
Outsourcing benefits cost control
Global presence and scalability
Video conferencing and webinars
The report provides information on major fleet management industry trends, drivers and constraints and the regional market outlook of APAC, Europe and North America and Porter’s five force analysis of the global fleet management market.It gives insight into supply trends and does a SWOT analysis of major suppliers like Arval, LeasePlan, Wheels Inc, etc. It breaks down the cost structure for different fleet management models and compares the best sourcing, pricing and contract models.
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