Description

Frost & Sullivan estimates that the demand for fleet drivers in Japan will increase by 130,000 over the next 10 years and that by 2027, approximately 960,000 drivers will be needed to cater to the Japanese logistics market. However, a labor shortage of 25% is expected because of a declining birthrate, an aging population, and fewer younger people entering the industry.

These challenges are spurring innovation among fleet management companies, original equipment manufacturers, and telematics providers to enhance the working environment, increase productivity, and find deeper operational efficiencies. Japanese truck builders are adding telematics and vehicle monitoring services to their lines to improve driver productivity and logistics through monitoring and route optimization; system providers are deploying on-premises and cloud-based fleet management systems that can be integrated into logistics service providers’ wider enterprise resource planning systems.

The driving forces in the fleet management industry are rapid urbanization, high-tech software and wireless technology that allow for more effective communication, favorable government policies regarding fleet tracking and maintenance, and concerns about fleet and driver safety and operational sustainability.

The COVID-19 pandemic likely will motivate transport providers to explore solutions that will help them transform their operations and minimize service interruptions to their clients. Mobile and cloud solutions are gaining traction in the Japanese market, in line with the global industry demands for the collection, analysis, and visualization of data to gain insights into how supply chain operations can be improved.

The Frost Radar™ reveals the market positioning of companies in an industry using their Growth and Innovation scores as highlighted in the Frost Radar™ methodology. The document presents competitive profiles on each of the companies in the Frost Radar™ based on their strengths, opportunities, and a small discussion on their positioning. Frost & Sullivan analyzes hundreds of companies in the industry and benchmarks them across 10 criteria on the Frost Radar™, where the leading companies in the industry are then positioned. Industry leaders on both the Growth and Innovation indices are recognized as best practice recipients.