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Data for today’s episode is provided by Mercator Advisory Group’s Report: On the Road to Recovery: U.S. Fleet Card Market Sizing and Forecast, 2020-2025
U.S. Fleet Cards are On the Road to Recovery:
- Truck transportation employment suffered a steep decline in 2020, with 87,800 jobs lost from March to April 2020.
- Total fleet card spend was $77.6 billion in 2020, down from $88.2 billion in 2019.
- In 2021, fleet card spend is expected to rebound to $89.9 billion.
- Mercator Advisory Group expects the total fleet industry to resume 2% overall growth from 2021-2025.
- Open and closed loop fleet cards encompass 4% of U.S. commercial card spend share.
- Closed-loop cards, which comprise 80% of the total fuel card market, will continue to dominate the fleet market through 2025.
About Report
Mercator Advisory Group released a report covering the fleet card market, titled On the Road to Recovery: U.S. Fleet Card Market Sizing and Forecast, 2020-2025. The research explains the current market and forecast, discusses closed- and open-loop card networks, card spend, and network volume, and explores the effects of the COVID-19 pandemic on the industry.
This research also explores current fleet tracking & telematics technology and how companies are using these advancements to reduce costs and increase safety. We then transition into the future of fleet and current state of federal and statewide climate and sustainability initiatives. Many of these innovative programs will affect the future of fleet in terms of updated fuel efficiency standards and increasing shifts towards fleet electrification.
“Sustainability initiatives may have fleets examining alternative vehicles and electrification,” comments Ben Danner, Analyst at Mercator Advisory Group, and the author of the research report. “Fleet card companies must begin to invest in the future of fleet and this means taking a serious look at advances in payments technologies and continued market awareness.”