Fleet Management

Fleet Management Market Analysis and Global Outlook

MARKET OVERVIEW

Global Vehicle Sales: ~80 million units (2022)

Automotive sales is expected to reach ~84 million units in 2023, an increase by 2.5 percent.

• Global light vehicle sales are expected to grow by 2–3 percent in 2023 to reach ~84 million units. Recovery of passenger car sales in 2023, owing to ease in supply chain. However, the economic recession is expected to restrict forecasted new vehicles in 2023.

KEY TRENDS

• Centralization of fleet sourcing and management

• Data management and reporting

• Driverless/self-driving vehicles

• Mobility management

• Focus on risk and safety (vehicle and driver)

Fleet Management Global Market Maturity  

• 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.

Fleet Management Global Drivers and Constraints

• Increased interest for automation of fleet management, high maturity of the leasing industry, benefits of outsourcing non-core functions, and road safety are driving the fleet leasing industry. However, alternatives to travel, like video conferencing, and alternate mobility solutions, like ride sharing and car sharing, are some of the constraints.

Drivers

• Outsourcing benefits cost control: The buyers outsource the car leasing and fleet management services to reduce the administrative overhead and to achieve cost benefits.

• Global presence and scalability: Buyers with global presence and higher mobility of their employees prefer outsourcing fleet management services to manage the increasing fleet size.

• Change in consumer behavior: The pandemic has changed the consumer behavior; employees prefer private vehicles for commute to maintain social distancing.

Constraints

• Video conferencing and webinars: Increased adoption of video conferencing to conduct online meetings and sales presentations has reduced direct interaction and need for travel.

• Economic constraints: The pandemic has impacted the cash flow of most organizations, resulting in reduced demand for fleet vehicles.

• Alternate strategies: Mobility solutions, like ride hailing, car sharing, etc., have started gaining prominence. Currently, these are used as secondary transportation model.

Supply Trends and Insights : Fleet Management

Global/regional supplier

Increase in M&As and partnerships

• Global suppliers are expanding their reach and enhancing their service capabilities through M&A

• E.g., Daimler Financial Services acquired Athlon Car Lease, Volkswagen Financial Services acquired Fleet Logistics

• Many suppliers are entering into alliances with other suppliers (e.g., Element and Arval entered into a global alliance; Wheels and ALD entered a partnership)

• ALD Automotive has acquired LeasePlan for of €4.9billion and the deal is expected to complete by end of 2022 to form a new entity “New ALD”

• This acquisition makes ALD Automotive to be the largest FLMC with 3.5 million vehicles under management

• Athene holdings is the lead investor in Wheels Inc, LeasePlan and Donlen merger, a new entity will be formed to manage the combined fleets

Comprehensive fleet management services

• Most of the leasing suppliers are providing comprehensive solutions for their buyers.

• Many suppliers are entering into alliances with fuel card companies, telematics providers, etc., to provide comprehensive solutions

Alternatives to company cars

• Suppliers are adding mobility solutions (e.g., car sharing, long-term and short-term rental, e-mobility solutions) to their portfolio of services.

Tier-2/local supplier

• Entering new markets: Tier-2 companies are building the capability to provide a wide range of services to the emerging markets, such as the Middle East and APAC

• Partnership with global suppliers: Tier-2 suppliers are entering into partnerships with global suppliers to expand their reach

Engagement trends

• Most adopted model globally: Regional sourcing strategy

• Why: There exists no leasing company which has direct capabilities throughout the globe. To achieve better implementation and better negotiation on price, a regional strategy is adopted

• Pricing strategy: Fixed fee + management fee + service component fee/vehicle is widely adopted

Why You Should Buy This Report

The report provides information on major fleet management industry trends, drivers and constraints, the regional market outlook of APAC, Europe and North America, and Porter’s five force analysis of the global fleet management market share in each region. It provides insight into the supply trends and presents a SWOT analysis of major suppliers such as Arval, LeasePlan, and Wheels Inc, to name a few. Further, the fleet management market report breaks down the cost structure for different fleet management models and compares the best sourcing, pricing and contract models.