We all know the last few years were quite challenging for the fleet industry. The fleet industry of many countries was fighting against rising inflation and planning to deal with the expected recession to hit after.
On the brighter side, macroeconomic developments further triggered the adoption of digital solutions to improve fleet operations while keeping costs low. Technology has helped the fleet industry to maintain its bottom line despite the economic turmoil.
In fact, 93% of fleet managers are willing to invest in intelligent technologies like telematics innovations to enhance efficiency and save time. Moreover, 57% of fleet managers who use telematics witness improved operations and safety.
The global fleet management market was valued at more than 18 billion USD in 2022 and is expected to reach 70 billion USD by 2032. The rapid growth of the fleet industry presents new opportunities for companies to scale and diversify their business.
Fleet Management Trends for 2024
Fleet businesses should stay ahead of the curve to adapt to the changing business landscape and boost profitability. As 2024 is around the corner, new trends will dominate the fleet industry, focusing on innovation and sustainability in fleet operations.
To help you get the most out of 2024, here are top fleet management trends to keep an eye on.
Growth of Electric Vehicles (EVs)
Sustainability is one of the significant trends shaping the fleet management industry. While the private sector has already shifted to electric vehicles, the fleet industry will significantly shift to EVs in 2024. Having said that, the number of EVs used for fleet management will increase.
Government regulations across countries will push vehicle manufacturers to change their line of operations from traditional petrol or diesel vehicles to EVs. Additionally, the government is ramping up financial incentives to address challenges associated with electric fleets–increasing the number of charging stations and building reliable charging infrastructure.
Increased Integration of 5G and IoT
While 5G and IoT are not new technologies, we will witness more use in fleet management in 2024. 5G’s super high speed and lower latency will empower real-time communication and enhance the efficiency of telematics and fleet management software. It enables faster data transfer and helps fleet managers to seamlessly monitor fleets remotely.
Likewise, the integration of IoT in fleet operations will continue growing. It will help managers plan, track, and manage fleet operations more effectively. The use of IoT and 5G-enabled software will help fleet companies foster accurate decision-making across the business.
Use of AI for Predictive Fleet Maintenance
Telematics-empowered predictive maintenance tracks the overall health of the vehicles and schedules maintenance and service. But 2024 will see more integration of AI (Artificial Intelligence) algorithms to make proactive maintenance more accurate. Artificial intelligence in fleet management quickly processes vast amounts of data and identifies patterns for optimal vehicle performance.
In an ever evolving and growing fleet business landscape, breakdowns hamper overall operations and result in heavy repair expenses. Artificial intelligence for maintenance helps fleet companies accurately anticipate repairs without disturbing the maintenance budget and ensures better operational continuity.
Advanced Driver Monitoring and Safety
Advanced driver-assistance systems (ADAS) are helping fleet companies maintain safety and retain drivers. As we enter 2024, artificial intelligence and machine learning will introduce advanced features to assess driver behaviour and maintain the highest safety standards.
AI algorithms in dash cameras use data from cameras and sensors to detect potential hazards like driver fatigue or distracted driving. In 2024, AI will take centre stage in dash cameras and telematics to mitigate on-road risks and secure the well-being of drivers.
Customization of Vehicle Use
Mobility-as-a-Service (MaaS) was one of the significant predictions for the 2023 fleet industry. Fleet organisations worldwide have embraced MaaS, and we can expect the growth of MaaS in 2024, too. Besides, fleet companies will also shift to modular vehicle platforms and connected vehicles to gain flexibility around vehicle use.
It helps fleet businesses to accommodate and allocate resources to fluctuating demands. Additionally, they can meet specific customer expectations without a complete overhaul. Customization of vehicle use also includes using vehicles for multiple purposes, not just business-related. For example, fleet companies can employ vehicles for ride-sharing services when vehicles are not in use.
Access to multiple and innovative vehicle use options helps the fleet industry optimise the utilisation of resources and keeps costs under control. And as the trend of shared mobility service is gaining utmost significance, flexibility in the fleet industry is much needed.
Emphasis on Data Security
Security concerns around telematics in the fleet industry are rising, with hacking and inadequate encryption being the most pressing issues. Studies show around 600,000 unprotected trackers with default passwords are in use globally, making it very easy for hackers to exploit them.
Indeed, fleet companies using telematics have sensitive organisational data, making telematics and GPS trackers vulnerable to data security risks. Hence, we can expect companies fostering strong cybersecurity practices for fleets to mitigate data breaches and keep data protected. It will also involve imparting necessary training and upskilling to employees and IT professionals to ensure they’re skilled enough for effective data analytics in fleet management.
Wrapping Up
Again, 2024 will be more about keeping costs as low as possible and enhancing productivity. Video telematics and cloud-based fleet solutions will continue to be the centre stage to help fleet businesses achieve their goals. Telematics and GPS trackers will be treated more like a necessity than a must-have to bolster green fleet initiatives.
While the growth of EVs is expected, small-scale fleet companies might struggle to embrace electrification due to the considerable investment. However, modular vehicle platforms and custom vehicle use options can help them grow and maintain their brand reputation. Not to forget that technological solutions can help them to manage operations smoothly and cost-effectively.
Considering these fleet management trends can help fleet companies safeguard their business with market fluctuations, achieve an edge, and run profitable and productive operations. Moreover, to successfully adopt these trends in 2024 and gain an edge, fleet companies should focus both on technological investment as well as development of modern fleet management strategies.
