Some of the prominent participants in the global fuel management systems (FMS) market are Omnitracs, LLC, E-Drive Technology, The Veeder-Root Company, ESI Total Fuel Management, SCI Distribution, LLC, Fluid Management Technology Pty Ltd., SmartFlow Technologies, Emerson, Guduza System Technologies, Fleetmatics Group PLC, Telenav, Inc., TomTom International BV, and Trimble Inc.
A report by Transparency Market Research finds that the market will expand at a tepid pace in the years to come. The report forecasts the market to register a lackluster 4.3% CAGR during the period between 2017 and 2025 to become worth US$9.95 bn by 2025 from US$6.85 bn in 2016.
Depending upon application, the global fuel management systems market can be segmented into fuel consumption, efficiency level, fleet management, viscosity control, etc. Depending upon geography, again, the global fuel management systems market (FMS) can be divided into North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa.
Asia Pacific currently leads the market on the back of soaring energy consumption in nations of South Korea, India, Indonesia, and China which are seeing rapid industrialization and urbanization. This has led to the proliferation of trucks, railway locomotives, and buses, which in turn has driven up demand in the market. Railways are least polluting mode of transport and it is one of the biggest reasons for growth in this sector and technological advancements like the advanced fuel management systems for locomotives.
Need for Effective Usage of Fuel Drives Market
At the forefront of driving growth in the global fuel management systems market is the urgency to check fuel pilferage and bring transparency in fuel consumption. This is because fuel accounts for most of the operating cost in transportation. “Higher or fluctuating prices of fuel oil and stringent regulations pertaining to environment have necessitated efficient management of fuel. Thus, monitoring, controlling, and reporting of fuel consumption is of key importance along with the management of fleet in order to control the total operating cost of a vessel,” explains the lead analyst of the TMR report.
Railways and waterways are relatively inexpensive modes for transport of goods, cargo, and passenger. Operational cost is about 45% less as compared to roadways and about 70% less than air transportation. By waterways, a large bulk can be transported in one go. Demand for merchant vessels is thus high for movement and transportation of goods, cargo, and oil and gas. All these coupled with the increasing regional, national, and international trades is fuelling the global fuel management systems (FMS) market.
Emergence of Technologically Advanced Solutions Drive Demand
A noticeable trend in the market is the push towards online fuel management and emergence of technologically advanced solutions that have benefitted demand. “Digitalization is expected to be a big driver of change in the commercial vehicle fleet market. Telematics systems in commercial vehicles will become standard in the global markets. IT and software solutions will closely integrate transporters into the systems of the industry value chain.
Connected devices allow dynamic route optimization and ensure better capacity utilization. Systems for monitoring an individual’s driving style and wear on components save fuel, protect materials, and increases transportation fleet’s useful life,” adds the lead analyst of the report.