Fleet management is one of those crucial aspects of business that requires operational competency to manage and track daily activities easily. Efficiently managing a complex system of vehicles that keeps increasing every week requires an exponentially viable and seamless management system.
A fleet management software can digitize your fleet operations while simultaneously allowing you to automate route optimization, tracking consignments, bookkeeping, communication, etc. This article will help you get a clear idea of the fleet management software cost and the factors affecting the same.
The demand for fleet management software has increased with the expansion of international land and sea trade routes. On average, a simple fleet management software would cost around $7,000 to $ 35,000, depending on the overall software complexity, feature list, location as well as the hourly rates of developers.
Some Interesting Market Statistics to Understand the Popularity of Fleet Management Software
As per the latest reports from PRNewswire, the global fleet management market is expected to witness a market volume of $52.50 billion by 2030, registering a CAGR of 10.6% from 2021 to 2030. Fleet management app has gained a trajectory in the past when it comes to streamlining hectic business processes. Here are a few notable market statistics emphasizing the growing demand for enterprise fleet management apps.
- The overall market share of worldwide fleet maintenance software is expected to reach approximately $18.1 billion in the next ten years.
- The passenger car segment, the most significant contributor to the global fleet management software market, will witness a growth rate of 9% from 2022 to 2032.
- The United States fleet maintenance software market still occupies the most significant share worldwide and will have a projected volume share of $4.7 billion by the end of 2022.
However big or small the enterprise is, investing in fleet management software is essential to manage the business’s bottom line and the safety of the drivers and the fleet. A customized fleet management system can help you keep track of every aspect of your fleet. Furthermore, it can notify you of imminent issues and help resolve them before they become exorbitantly costly.
Simply put, a dedicated software for managing fleets can help you automate your workflows, optimize operations costs, eliminate bottlenecks, and increase overall productivity.
A Valuable Insight Into the Fleet Management Software Cost
The overall cost of developing fleet management software depends on the complexity of the software, the feature list, the technology stack used for the development process, the development team’s location, the developers’ hourly rates, team size, etc.
With so many factors affecting the overall cost of the process, the easiest way to get a precise estimate of the cost is to contact a reliable software development company specializing in fleet management software development.
Here is our unerring formula to determine the overall development cost for custom software:
On average, the cost of a simple fleet management system can vary between $7,000 to $20,000. The software in this category will include features like a simple admin and driver dashboard, fleet and fuel tracking, and route optimization.
On the other hand, the overall cost of developing a medium complex fleet software can vary between $15,000 to $25,000. The features of such software categories will be an interactive dashboard for drivers and admin, dispatch management, accident management, geofencing, etc.
The third-tier fleet management software will include every feature, from the most basic to the most complex. The development cost for such software can vary between $20,000 to $35,000. The extensive feature list will include effective real-time reports, compliance management, vehicle management and maintenance, accident protection, etc.
Summarized Version of the Fleet Management Software Development Cost:
|Software Type||Estimated Cost||Timeframe|
|Simple||$7,000 to $20,000||2 to 3 months|
|Medium Complex||$15,000 to $25,000||3 to 6 months|
|Complex||$20,000 to $35,000||Up to 9 months|
Factors Affecting the Cost of Fleet Management System Development
There are several factors of significance that affect the overall cost of developing fleet management software. Diving into the logistics that determine the development cost can help you make effective decisions based on your budget and get a guaranteed ROI.
The total cost of fleet management software is usually defined by the number of features integrated into it. A simple fleet management software with a staple feature list is bound to cost around $7,000 to $15,000. The gross price will further keep on increasing with the increasing number of features and functionalities. A custom software capable of handling every aspect of fleet management can help enterprises gain traction in the rapidly growing market.
The user interface design of the software captivates the overall essence of the brand’s individuality, while an interactive user experience design ensures seamless functioning. Since realizing the custom design requirements takes ample time and effort from the designing team, the cost of overall software can vary according to it. The more perfect and flawless design of the software, the more the overall cost.
The entire map of software development is presented with the help of a wireframe. The cost of wireframe development can be included in the total development cost if the client doesn’t have a wireframe ready beforehand. Since a suitable wireframe requires the use of tools such as Photoshop, Figma, and more, the cost of the process can vary according to the tool used. In addition to this, the multiple testing stages of the wireframe can also increase the overall charges. Usually, a wireframe for fleet management software development can cost around $500 to $1,500.
The platform of the software can further impact the overall cost. If the enterprise is looking for an on demand fleet management app development, the price can vary according to Android and iOS requirements. Moreover, if the organization wishes to choose a web app or software, the underlying operating system can affect the overall cost of development. Getting an app for both Android and iOS platforms can increase the overall impending cost. Thus, it is advisable to choose a single platform at the initial stage and shift towards expanding the platform range once the software takes off.
Coding is one of the significant factors that affect the cost of the fleet management system. The coding cost can vary as per the hourly rate of developers as well as their location. In addition to these, the total cost of fleet management software development services can be influenced by the time taken to write the code, the technology stack used, and the backend statistics.
The location of the developers or the development team is one of the vital factors affecting the overall fleet management software cost. For instance, if organizations or enterprises are hiring a development team from Asia, the cost of development might be less as compared to hiring developers from other parts of the world. The currency rates of the multiple geographical locations mainly affect the total charges of the development process.
The team size is another factor that affects the cost of the entire software development process. If you are looking to hire a freelancer or a startup that wants to build a portfolio, the total charges for the fleet management software will be less. Furthermore, if you hire a dedicated organization, the development project will be run by a group of developers, designers, tech experts, and analysts, all managed by a project developer. The latter will offer you the best of everything but at an additional cost.
From system updates to accommodating changing requirements, the overall maintenance cost of the software can sneak up on you at any time. Since maintenance of the software is one of the inescapable stages of the development process, every enterprise has to bear its cost.
The underlying technology used for developing the fleet management software can also affect its overall cost. If you need a robust system that can handle multiple processes at the same time while offering real-time data analytics and reports, the cost of the software or the app will vary per your custom requirements. Still, we have created a general tech stack that is used across organizations for developing fleet management software.
Features of a Fleet Management Software and How They Impact Total Cost
The extensive feature list of the fleet management software usually varies its overall cost. More features simply mean more expense. Here are a few notable fleet management software features that ensure smooth management of fleets across multiple locations.
Real-Time Fleet Tracking
The feature allows you to track all information regarding the fleets. For instance, it will enable you to see the fleet’s location, driving speed, route, and direction followed by the fleet, fuel consumption, traffic at the site, the temperature of the engine, etc.
GPS Vehicle Tracking
A mobile app, especially curated for fleet management, is downloaded on the GPS hardware devices, which allows you to check the functionality of the vehicles at all times. A professional telematic solution can help you trace the vehicle across a specific area, decipher its routes, starting and ending points of the journey, complete stops, and more.
Since every vehicle requires adequate maintenance for smooth operations, fleet management software with a maintenance tracker offers you timely notifications on the same. For instance, the sensor in the app can send signals to the fleet managers regarding the fuel change requirements, maintenance of the fleet’s tires, mirrors, etc.
Another vital feature of the fleet management software is the fuel management sensor. It allows the admin to get a clear look at the total fuel consumption for every fleet along the route. Furthermore, it also helps notify the authorities of engine malfunctions, unexplainable fuel consumption, etc.
Driving Behavior Analysis and Report
The software allows you to keep an eye on the driver’s behavior which further determines if he/she is fit for driving or not. Furthermore, the feature will enable you to monitor several aspects of driving, such as harsh braking, overspeeding, over idling, etc. This can help in efficient employee management at minimal costs.
Geofencing allows effective route planning for the fleets beforehand. The features will enable you to get an insight into the total area to be covered in real-time, thereby saving time and costs with efficient planning.
Fleet alarms are one of the most sought-after features of a coherent fleet management system. They can notify you immediately about issues like excessive speeding, lower fuels as well as engine malfunctions. Paying heed to these alerts helps in the cost-effective management of fleet operations.
Systematic dashboards for both admin and drivers can offer you the very best in fleet management software. From providing real-time information on every delivery and operation being carried out by the fleets to effectively creating summaries and reports, the dashboards can help save ample time and cost for enterprises.
[Also Read: How to Build a Transportation App Like Moovit?]
Some Hidden Costs Associated with the Fleet Management Software Development
There are several hidden costs associated with the development process. Understanding them while taking appropriate measures can help you reduce their overall impacts and underlying costs.
Depending on the platform chosen for the software development, the testing and quality assurance costs might sneak up. For instance, if your software requires stringent testing techniques and protocols, your overall development budget can increase.
These are the costs that pile up when the app or the software requires an update or bug fixing. In addition to these, maintaining the APIs or integrating third-party APIs can also increase the impending cost.
Another factor that can affect the cost of fleet management software is adhering to security constraints. Since the software is required to be installed for multiple devices and will collect personal data from the drivers, security protocols have to be put into place to avoid malware and theft.
Few best industry practices and tricks can help enterprises reduce the overall cost of fleet management software. For example, opting to build an MVP first can help you understand how the software can help you streamline processes. After calculating the overall benefits, you can then opt for a complete software development process. On average, the cost of MVP development can vary between $12,000 to $16,000.
How Can Solution Squares Help You Determine the Fleet Management Software Cost?
Fleet management software has the ultimate potential to positively impact your business processes while streamlining complex tasks. Building custom software that adheres to your specific requirements is a complex process, but a professional organization like Solution Squares can help you assess the actual value of your business.
Our fleet management software development services speak volumes when it comes to launching the most innovative software integrated with custom features and modern technologies. If you are looking to get a precise estimate of the fleet management software cost with a feature-by-feature breakdown, get in touch with us now!
A. A simple fleet management software can cost around $7,000 to $20,000. The overall cost of the software can vary with increased complexity, the number of features, location, and hourly rates of the development team, etc.
A. Fleet management software uses GPS technology to offer real-time data on the fleets, such as their location, speed, driver’s behavior, fuel consumption, etc.
A. The top 5 benefits that can further reduce the operational overhead associated with the business are details on engine idle time, distracted driving events, speeding events, average time spent on the site, and unscheduled maintenance.