The job needs and car leasing (JNCL) market, though still in its nascent stage, is witnessing an immense amount of growth and demand – especially from emerging economies like India and China. This has a lot to do with the trend towards lowering carbon emissions, adoption of vehicles that run on alternative fuels, and increased demand for advanced security systems and highly trained drivers to ensure the security of traveling employees. According to analysts at Technavio, the global market for JNCL services is poised to grow at a whopping CAGR of 22% by 2020.
Key drivers of the JNCL market
Increased demand for route optimization
In order to save time and fuel, most buyers are looking for ways in which trip routes can be optimized. This is why they prefer suppliers who provide real-time information on traffic (avoidance of traffic jams), and intelligence on route-specific restrictions regarding the width and height of large vehicles. With advancement in technology, it has become easier to optimize route planning in an effective manner.
Growth of business activities in emerging economies
The emerging economies are experiencing significant growth in business activities across various verticals. This has in turn boosted the demand for JNCL services. Due to the growing need for more cars, there has been an increase in the number of mergers and acquisitions (M&A) in this region, resulting in enhanced operational and service capabilities.
Centralization of fleet sourcing and management
Another major driver of the JNCL market is the tendency of large organizations towards centralization of fleet sourcing and management activities. The goal of centralization is to create consistency throughout the entire system, along with improved optimization of service rates. This in turn reduces management complexities and helps in improving the core business process of the entire organization. Cost-cutting and increased focus on other areas of strategy building is also achieved by switching to JNCL services.
Increased use of data analytics
Use of data analytics has become a routine process in all major organizations. Fleet analytics are used to identify and understand the hidden patterns in fleet data in order to obtain a clear picture of the status of vehicle selection, maintenance, and safety programs. Thus, JNCL services help in enhancing the decision-making capabilities of an organization through the use of analytics.
In spite of having several powerful market drivers that have resulted in exceptional growth, the JNCL services market has several challenges it will have to overcome in order to reach a wider audience. These include adherence to organization budgets, overcoming non-availability of fueling and refueling infrastructure, and achieving environment sustainability.
It is predicted that, with the increased amount of research and large investments being made in the JNCL market, the inherent challenges of the industry can be addressed successfully.
Who are the leading vendors in the JNCL services market? Find out:
View the 2016 Global Job Needs and Car Leasing Market Report
