Global Fuel Management Systems Market to Reach $654.6 Million by 2024

Fuel management systems are utilized for the maintenance, monitoring and control of fuel consumption in industries using various modes of transportation, such as road, rail, air and water, for business purposes. The use of fuel management systems is mainly aimed at reducing consumption of fuel and to improve efficiency of operations. Fuel management systems primarily find use for any vehicle that makes use of fuel to operate. Fuel management systems make use of a variety of technologies and methods for keeping track of fuel inventories, purchases made, and fuel dispensed. Computerized systems are used for storing such data, which can be used for generating reports and for further analysis. The systems also help in controlling errors in fluid dispensing from fuel tank into vehicles which provides important information about any leaks. The systems find use in industries that use transportation via road, rai, air and water for business purposes. The numerous benefits offered by fuel management systems, including monitoring fuel usage and dispensing to reduce loss and theft, improved efficiency of operations, increase in overall productivity, and reduced risk of errors due to automation of tasks, continue to fuel adoption of the systems in various end-use industries. Fuel management is also offered online over web portals that offer detailed information on fuel data, allowing control over consumption besides enabling tax accounting and cost analysis for fuel purchases.

Amid the COVID-19 crisis, the global market for Fuel Management System is projected to reach US$654.6 Million by 2024, registering a compounded annual growth rate (CAGR) of 5.8% over the analysis period. The United States represents the largest regional market for Fuel Management System, accounting for an estimated 40.3% share of the global total. The market is projected to reach US$273.9 Million by 2025. China is expected to spearhead growth and emerge as the fastest growing regional market with a CAGR of 8.4% over the analysis period.

Rapidly growing need for energy management, and growing use of fossil fuel-based vehicles, fluctuating fuel prices and the growing need to reduce wastage of oil & gas resources are driving focus onto efficient monitoring and control of fuel consumption as well as effective inventory management, which is leading to high demand for solutions such as fuel management systems. The significant developments in transportation infrastructure space and the escalating demand from logistics, mining and construction sectors are fueling growth in the fuel management systems market. The market is also expected to benefit from the growth of automobile industry worldwide and the continuous increase in the number of fuel stations in operation. Also, with oil reserves depleting at an alarming rate across the world and strict environmental norms being introduced to reduce fuel consumption, the need for effective fuel management systems continues to grow.

A significant factor driving demand for fuel management systems is the growing need to cut down fuel losses, which is a major issue in industries such as transportation, oil & gas, and mining where fleet form critical part of overall operations. Since fuel represents a significant proportion of operating costs in the transportation sector the need to prevent fuel pilferage is extremely importance, thus driving adoption of fuel management systems. With fuel accounting for around 40% of overall operating costs of fleets, fuel losses can cause significant financial losses. On an average, around 3-4% of fuel budget of a company is accounted for by fuel loss or theft. With prices of oil reaching new highs in recent times and continue to remain highly volatile, there is high risk of fuel theft. The growing need to curb fuel losses/theft is driving focus onto fuel management systems, which can be used for monitoring fuel consumption levels at all times and hence reduce losses/theft. Fuel management systems also play a role in reducing errors that are possible during manual fueling. Since human errors such as dispensing of wrong fuel into tanks can cause significant damage and result in equipment downtime and associated losses, companies are opting for fuel management systems to reduce such errors. The vehicle IDs used by fuel management systems help in automatic identification of the type of fuel that needs to be filled into various vehicles.

The fuel management systems market is also benefiting from the increasing adoption of cloud-based solutions. With cloud computing becoming an increasingly viable option for data management and data storage, its role in fuel management is also growing. The advantage of accessing fuel management data from any location across the world is driving the adoption of cloud-based fuel management solutions globally. The development and launch of advanced technology-based products is expected to favor market growth. The FMS market is also witnessing a shift towards online fuel management. The commercial vehicular fleet is being increasingly digitized, with use of telematics systems becoming a standard in commercial vehicles in several countries. This coupled with the use of IT and software solutions enable transport operators to be integrated into the overall industry value chain. In particular, the use of connected devices has the ability to optimize routines and facilities in improved capacity utilization. Consequently, the use of FMS systems to monitor vehicles and drivers has an important part to play in conserving fuel, improving operational efficiency, and enhancing life of fleet.