Fuel Management System Market: Overview
The market size for fuel management systems was USD 718.3 million in 2021, and it is projected to grow at a CAGR of 10.0 percent during the forecast period. Due to the significant increase in global energy consumption and volatility in fuel prices, this sector has seen rapid growth thanks to the introduction of cost-effective and technologically advanced fuel management systems. Additionally, fuel management systems are increasingly being adopted in emerging markets, overall energy consumption is rising, and transportation infrastructure is rapidly evolving, which will further boost the growth of the fuel management system market. It is expected that the market's growth will be boosted by the increasing use of fuel management systems in the mining, construction, and defense industries, as well as their multiple benefits, including increased productivity, reduced thefts, improved operational efficiency, and the ability to automate tasks so that errors are reduced.
Since gasoline prices have increased globally over the last few years, possible damages and losses have been observed in terms of theft and other malpractice. In order to combat gasoline theft, standard processes and effective solutions, such as anti-siphoning smart devices and fuel monitoring software, must be implemented. There is a need for automatic fuel monitoring systems, so various companies have developed them to fill the gap. For instance, In February 2020, Aeris partnered with Omnicomm to provide fuel monitoring systems in India. The partnership targets fuel theft in various industries, such as construction and locomotives. Platform releases are vital for companies in the food and pharmaceutical industries that are constantly striving to avoid inconsistencies. Fuel Me offers various roadside assistance services through a cloud-based fuel purchase and roadside assistance app, including the complete fuel procurement process. As a result of these advances, safety, visibility, and sustainability are improved, fueling the market for fuel management systems.
In April 2022, with fuel, you can monitor the fuel level in your fleet and receive alerts when fuel is running low. This lets you view real-time information through mobile and web apps with detailed reports. The distribution of fuel from production plants to gas stations has long been challenging. Maintaining proper pressure and ensuring safety is imperative for transportation. Therefore, there has always been a greater need for reliable fuel distribution systems.
Fuel Management System Market: COVID-19 Impact
In the four months following the spread of COVID-19 beyond Asia, the global fuel market has been shaken; oil prices have shot up, demand has grown, and supply has weakened due to risks. Travel restrictions and lockdowns have limited jet fuel usage. The industrial fuel sector experienced heavy losses as workers and employees recommended staying home. Fuel-based production decreased sharply. IEA estimates that oil consumption will decline per day in the first quarter. The expected per-barrel value curve of fuel has flattened, making it difficult for oil traders to sell their stock. As a consequence of the Coronavirus spreading in the U.S. and Europe, the demand for fuel has been reduced, which has impacted the oil market's growth.
Fuel Management System Market: Drivers
Fuel Theft on a Rise to Drive Market Growth
Almost every industry faces the problem of fuel theft. With the worldwide increase in gas prices, possible losses and damages have been observed in terms of theft and other malpractice. Consequently, companies have developed automatic fuel monitoring systems to address the gap between standard processes and effective solutions, such as anti-siphoning smart devices and fuel monitoring software. Aeris and Omnicomm partnered in February 2020 to provide fuel monitoring systems in India. The strategic partnership targets fuel theft in various industries, such as construction and locomotives. Food and pharmaceutical firms, for example, work relentlessly to avoid inconsistencies, so these platform releases are crucial. Similarly, Fuel Me launched a cloud-based fuel purchase and roadside assistance app for commercial transportation and construction industries by providing a range of roadside assistance services, including fuel procurement. In turn, these advances promote the growth of the fuel management system market by improving safety, visibility, and sustainability.
Fuel Demand is Growing Exponentially, Driving Market Growth
A fuel management system is needed to monitor the environment's hazardous effects due to the increase in global energy consumption, especially in the transportation and industrial sectors. It is also expected that developing nations such as China and India will increase their expenditures on new technologies, nudging the demand for advanced fuel management systems upwards. The rising fuel consumption due to the increase in the transportation of goods and equipment, the growing need to curb inflation, and stringent regulations for environmental protection are positively affecting the North American fuel management systems market size. Additionally, increased fleet management services and cross-fleet standardization will enhance the product installation for larger units carrying commodities, oil & gas products, and cargo. The demand for cost-effective solutions to control and monitor fuel consumption is accelerating in the fuel management system market. These systems have managed fuel efficiency effectively. The fuel management system market is expected to grow rapidly because of these factors.
Fuel Management System Market: Restraints
Expenses Associated with Installation and Maintenance as well as Cyber Threats to Hamper Market Growth
Some challenging factors are restricting the market growth for fuel management systems. These factors include the high costs and complexity involved in installing them and the lack of advanced infrastructure for establishing large monitoring bases. Fuel management controllers cannot be integrated with cloud-based servers and systems due to cyber threats and data theft. Moreover, a lack of competence in handling car telematics software is expected to hamper the market. As technology advances and innovative solutions become increasingly prevalent in the future, the fuel management system market is forecast to grow profitably. Fuel management systems track and control how much fuel is consumed. They aid in the proper measurement and tracking of fuel stocks. The market will face challenges due to the complexity of installation and vulnerability to cyber-attacks.
Fuel Management System Market: Segment Overview
Fuel Storage Monitoring to Dominate Market due to its Various Advantages
Due to its advantages, such as stopping fuel theft and harmonizing fuel consumption, the fuel storage monitoring segment holds a large market share. UST monitoring systems leak detection systems that monitor the fuel level in underground or aboveground storage tanks to determine if there is a leak over time. Additionally, it will provide information about fuel levels, volumes, and temperatures, as well as water levels and volumes, as well as alarms for high and low fuel levels. A lot of UST monitoring systems can monitor double-walled tanks and pipelines, as well as pressurized pipes and remote communication. Various terms are used to describe UST monitoring systems, such as fuel management systems, automatic tank gauges, and leak detection systems.
With Increased Adoption of Transportation and Logistics, Transportation and Logistics Category Dominated Market
It is expected that the market will see robust growth over the forecast period as fuel management systems become increasingly popular in logistics and transportation applications. As investments in the logistics and transportation sectors continue to increase, fuel management systems have become more common due to the increase in efficiency, security, productivity, and cost reduction. Due to the depletion of oil reserves worldwide, fuel management systems are developed to maximize fuel utilization and minimize fuel waste. Due to the high level of technology used in these systems, even if there are some technological improvements, only a few changes need to be made, rather than replacing the entire fuel management system, further stimulating the market's growth.
Fuel Management System Market: Regional Landscape
North America to Dominate Market due to High Adoption of Fuel Management System
Over the forecast period, it is anticipated that the North American market will account for the largest revenue share. Fuel management systems in the US are contributing to the global market growth in the region. With a highly competitive logistics and transportation industry, government regulations for optimizing fuel use and emission standards, businesses across these regions are under huge pressure due to rising fuel costs & fossil fuel regulations and the high adoption of fuel management systems. Furthermore, the growing market for fleet management services, growth in the transportation sector, increasing demand from the US and Canada, increasing defense and military equipment, companies in the region focusing on operational effectiveness, reduction in overall fleet costs, companies in Mexico, Canada, and US outsourcing the management of cars to external providers, and public-private partnerships for allocating funding for research and development are also contributing to the market growth.
The Asia Pacific market is anticipated to experience stable revenue growth throughout the forecast period. There will be significant growth in the Asia Pacific region as the Asian economies, particularly India and China, are investing heavily in technologies that improve operational efficiency, including fuel management systems. In order to transport goods and equipment efficiently and effectively, we need a transportation system that consumes fuel efficiently and effectively. As industrialization & urbanization rise, as well as investments in fuel consumption meters and navigation automation, the Asia Pacific fuel management systems market, is expected to grow. Furthermore, China's fuel management systems market size is expected to be driven by rising demand for monitoring and controlling systems to restrict unauthorized access to fuel.
Global Fuel Management System Market: Competitive Landscape
In April 2022, with fuel, you can monitor the fuel level in your fleet and receive alerts when fuel is running low. This lets you view real-time information through mobile and web apps with detailed reports. Moreover, in April 2022, In announcing the launch of its newly designed and professional GPS fuel monitoring system, UniGuard, a supplier of GPS tracking systems, announced its latest product.
Few of the players in the fuel management system market include Gilbarco Veeder-Root (US), Dover (US), Franklin Fueling Systems (US), PIUSI (Italy), Triscan Group (UK), HID Global (US), Multiforce Systems (US), Road Track (Mexico), Banlaw (Australia), and Fluid Management Technology (Australia).
Global Fuel Management System Market is Segmented as Below:
Key Elements Included In The Study: Global Fuel Management System Market
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