Fuel Management Systems (FMS) Market
Fuel Management Systems (FMS) Market (Process - Measuring, Monitoring, and Reporting; Application - Fuel Consumption, Efficiency Level, Fleet Management, and Viscosity Control; End-User - Road Transportation, Rail Transportation, Marine, and Aircraft) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2016 - 2025
Press Release :
Global Fuel Management Systems (FMS) Market: Snapshot
There are many factors serving to drive the global fuel management systems market. The need to check fuel pilferage and bring transparency in fuel consumption are some of them. This is because fuel accounts for most of the operating cost in transportation.
An effective fuel management system (FMS) helps to tackle challenges posed by higher or fluctuating prices of oil used as fuel and also difficulties cropping from stringent regulations pertaining to environment by effective management of fuel. It does so by monitoring, controlling, and reporting fuel consumption. This unique perceived benefit has driven up the demand for fuel management system (FMS).
A report by Transparency Market Research projects the global market for 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.
Railways Primarily Drive Demand in Market
Depending upon end-use, the market can be divided into railway, road, marine, and aircraft. Of them, the segment of marine transportation accounts for most of the demand in the market. Railways are least polluting mode of transport and it is one of the biggest reasons for growth in this sector. Besides, emergence of technologically advanced fuel management systems for locomotives is also providing a boost to the market.
The different types of processing deployed in the market are measuring, monitoring, and controlling, among others. Measuring, for example, includes bunker delivery note (BDN) which is the amount of fuel bunkered, tank sounding, which is a system for measurement of the amount of fuel inside the tank, and fuel flow meters, which measures fuel supplied to engines, generators, and boilers. Controlling FMS systems are specific, automated devices/equipment installed in the fleet, which maintain desired specifications at all times of their operations. Controlling helps tackle the rising cost of fuel, as it reports and controls the fuel consumption and increases the operational efficiency.
Based on application, the global fuel management system (FMS) market can be segmented into fuel consumption, efficiency level, fleet management, viscosity control, and others.
Asia Pacific Outpaces Other Regions’ Growth due to Urbanization and Industrialization
From a geographical standpoint, Asia Pacific dominates the global fuel management systems (FMS) market with maximum share. The region is also expected to outpace all others in terms of growth rate by registering a CAGR of 4.6% in the forecast period and thereby grow its dominant share to 41.8% by 2025. This is because of the rapid industrialization and urbanization leading to considerable investment in navigation automation, fuel management systems, dynamic positioning of vessels, ballast water management, fuel consumption meters, and density and viscosity meters.
Europe trails Asia Pacific in terms of market share in the global fuel management systems (FMS) market. Since most countries in Europe are connected well with railways and roadways, demand for new fuel management systems and upgrade of existing systems is expected to be high. The market in North America is a mature one and is predicted to see lacklustre growth as the region mostly complies with the new regulations and standards for environment protection. Two important developments benefitting the market in the region is cross fleet standardization for bigger units that carry commodities, cargo, and oil and gas products and fuel theft detection, which is rampant in the region.
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. are to name a few key players in the global fuel management systems (FMS) market.
Technological Advancements and the Rising Demand for Optimized Fuel Usage to Propel the Growth Prospects of the Fuel Management System (FMS) Market
The fuel management system (FMS) market is extrapolated to observe a good growth trajectory across the assessment period of 2016-2025 on the back of the rising fuel prices and the growing menace of the fluctuating prices of oil. The heightening use of fuel management systems to reduce fuel loss may bring tremendous growth opportunities during the forecast period.
- Fuel management systems are used for monitoring and controlling fuel consumption. They help in measuring and tracking fuel inventories accurately. This system assists in tracking the data of fuel usage through an automatic tank monitoring system. The systems also help in optimizing fuel usage. All these benefits bring profitable growth opportunities for the fuel management system (FMS) market.
- The use of the latest technologies such as the Internet-of-Things (IoT) and artificial intelligence (AI) in fuel management systems will help in increasing the demand, eventually boosting the growth prospects. The ongoing research and development activities are helping in developing advanced fuel management systems that provide more convenience to the end-users. All these aspects ultimately help in propelling the growth rate of the fuel management system (FMS) market.
- Strategic collaborations play a major role in the growth of the fuel management system (FMS) market. The players are involved in mergers, acquisitions, joint ventures, and partnerships. These activities help in cementing the foothold of the players in the fuel management system (FMS) market.
- The COVID-19 pandemic has caused disruptions in many businesses and sectors. The fuel management system (FMS) market is no stranger to this loss. The imposition of strict lockdowns on the back of the rising prevalence of the virus led to the shutting down of manufacturing units and production facilities. All these factors negatively affected the growth of the fuel management system (FMS) market. Nevertheless, the relaxations in the lockdown restrictions will prove to be a relief for the players in the fuel management system (FMS) market.
Global Fuel Management Systems (FMS) Market: Overview
Fuel cost accounts for a major portion of the transportation operating cost. Higher prices/fluctuating prices of fuel oil and strict environmental norms have led to the need for 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. Railways and waterways are essentially inexpensive modes of goods/cargo/passenger movement. 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.
Regional, national, and international trades flourish with the increase in advancements in the transportation industry. Enforcement of emission control areas (ECAs) is anticipated to augment the demand for middle distillate oils (MDOs and MGOs). Stringent regulations and mandates levied on the shipping industry for curbing operation cost and emission control have led to more technological developments and advancement in building efficient fuel management systems to control the overall costs. Technologies in fleet management and fuel consumption (monitoring, control, and reporting) are largely available along with viscosity control of the fuel.
Global Fuel Management Systems (FMS) Market: Research Methodology
Primary research represented the bulk of research efforts, supplemented by extensive secondary research. We reviewed key players’ product literature, annual reports, press releases, and relevant documents for competitive analysis and market understanding. This has proven to be the most reliable, effective, and successful approach for obtaining precise market data, capturing industry participants’ insights, and recognizing business opportunities
Secondary research sources which were typically referred to, but are not limited to, include: company websites, annual reports, financial reports, internal and external proprietary databases as well as relevant patent and regulatory database, national government documents, market reports, news articles, press releases, industry magazines, webcasts specific to companies operating in the market, and regulatory databases such as Factiva and Bloomberg, national government documents, statistical databases, and webcasts specific to companies operating in the Fuel Management Systems (FMS) market.
We conduct primary interviews on an ongoing basis with mining industry participants and commentators to validate data and analysis. Primary and secondary research were conducted to understand and arrive at trends, which were employed to carry out forecasts for the Fuel Management Systems (FMS) market. These help validate and strengthen secondary research findings. These also help develop the analysis, team’s expertise and market understanding.
Global Fuel Management Systems (FMS) Market: Competitive Landcsape
Key major players operating in the Fuel Management Systems (FMS) market include 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.
Global Fuel Management Systems (FMS) Market has been segmented as follows: