Fleet management has developed into a multi-billion-euro industry in recent years. More importantly, the fleet management business is growing and gaining significant strategic importance in the world of mobility.
Even though the fleet industry has been around for a very long time, but new technology has made it way more efficient. Fleet management software can help companies coordinate their vehicles to reduce costs, provide better services, and reduce risks associated with a vehicle.
In this article, we will look at 5 trends that will have the most impact on each and every aspect of the smart fleet management industry in 2020. But before doing this, let’s take a look at the latest growth and forecast in fleet tracking.
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Fleet Management Market Trends
According to Marketsandmarkets, the global fleet management market size is expected to grow from USD 19.9 billion in 2020 to USD 34.0 billion by 2025, at a Compound Annual Growth Rate (CAGR) of 11.3% during the forecast period.
Moreover, the growth of fleet tracking software can be attributed to the cost benefits versus Software-as-a-Service (SaaS) and cloud-based deployments of fleet management solutions.
Let’s see reasons why a fleet tracking system grows so fast these days:
- Increasing government regulations
- The need for optimization of fleet operating expenses
- Decreasing hardware and software costs
- The growing need for operational efficiency among fleet owners
The Future Of Fleet Management
As well as technological change, you can see the growing importance of cars, ride-sharing, and self-driving vehicles. New modes of transport are evolving, and new concepts of mobility are maturing.
With the exception of many cities, Uber is one of the world’s largest ride-hailing providers. In other words, Uber challenges homegrown competitors who have leveraged their better knowledge of local market dynamics to build successful businesses.
Especially in the ride-hailing business, self-driving cars could drastically decrease costs. Besides, to guarantee a seamless operation of fleet management services, ride-hailing companies offer cashless payments directly via their smartphone.
In the end, the winners in this race will be fleet management companies who provide seamless customer experience at a limited cost.
Top 5 Fleet Management Trends 2020
The increasing demand for fleet management has significantly fueled the growth and profitability of fleet management companies in recent years. And 2020 will be no different. As more players that entering this market, it’s becoming more important to stay informed of the latest fleet trends.
Now, we will take an in-depth view of trends for fleet management 2020!
1. Evolution of 5G network
What is 5G technology? The 5G network is not a simple upgrade from 4G. It can be 100 times faster and is capable of greater bandwidths in terms of connected network accommodations. As stated by Eben Albertyn, Chief Technology Officer at VodafoneZiggo said:
The speed of technological developments that bring about countless new, smart opportunities enriching our lives is unprecedented.
What’s more interesting in the 5G network? According to McKinsey, 5G allows many more devices to connect at once, it allows many more smart connected devices to come online, showing the full potential of the Internet of Things (IoT).
With the expansion of the 5G network, it enables self-driving cars to make “split-second” decisions, making them safer. These cars can also connect to street lights, other cars, and even respond to any traffic issues.
Especially, these two car fleet management is estimated to bring a $170-$280 billion global GDP boost to the mobility sector by 2030.
2. Growth Of Telematics & GPS Tracking
How does telematics technology work? Are they wearing their seat belts? What is the driver’s speed? Did they hit the gas and brake hard?
Telematics helps fleet managers determine diagnostics levels in real-time. From a customizable dashboard, fleet operators can see where their drivers are in real-time, the health of their vehicles, and make sure their employees are driving safely.
And fleet maintenance trends in 2020 will gradually integrate voice capabilities, more robust data analytics, and Artificial Intelligence (AI). In other words, this tool helps fleet owners communicate seamlessly with other stakeholders, like managers, employees, and customers.
Wondering whether your company should be utilizing a fleet tracking solution? Here are 4 benefits of telematics:
- Productivity – Which roads are they using? What is the most efficient way to get from A to B? How productive are your vehicles today? Telematics solutions can help businesses track and improve their efficiency, profitability, and safety of their fleet and staff.
- Safety – Keeping drivers safe not only protects them, but it also helps keep the public safe. It is important that fleet managers are able to check their employees as quickly as possible. So, telematics also allows insurers to measure driver behavior and manage risk.
- Management – While tracking maintenance with a spreadsheet, telematics solutions are more efficient and effective. This allows fleet managers to influence driver behaviors, minimize damage, reduce operational costs.
- Decreasing costs – Telematics can significantly reduce costs such as fuel consumption, and extend the maintenance intervals of heavy-wear parts like brakes and tires.
3. Mobility-as-a-service (MaaS)
Market researchers claim that MaaS is indeed a massive opportunity with high growth potential. The Mobility as a Service (MaaS) market will register a 33.8% CAGR in terms of revenue. In addition, the global market size will reach $ 136280 million by 2025, from $ 42500 million in 2019.
For the user, MaaS provides access to mobility, with a single payment channel instead of multiple ticketing and payment operations. Particularly, to meet customers’ need, fleet management trend in MaaS facilitates a diverse menu of transport options including public transport, taxi, car rental, and sharing options.
As discussed from the Nijmegen School of Management at Radboud University, MaaS entrepreneurs, operators, and other stakeholders
“Must overcome several uncertainties and complexities before reaching scalabilities such as the willingness of transport service operators to cooperate with platform operators, the feasibility of MaaS business models, equitable access to mobility services, universal ticketing challenges and data privacy risks.”
Emerging drivers of MaaS demand include:
- On-demand transport needs (to complement traditional public transport services)
- Needs to reduce the complexity of end-to-end journeys
- Opportunities for public transit agencies to deliver more inclusive transport services and reduce transport poverty
- Enabling digital technologies (consistent with modern lifestyles and adoption of app-based services and ticketing)
- A Millennial generation embracing the sharing economy
4. Automation vehicles
Perhaps the most interesting fleet management trend is the growing capabilities in autonomous vehicle (AV) technology. Nowadays, the technology of vehicle automation is no longer limited to the R&D drawing boards.
Thanks to cutting-edge localization technology like GPS tracking Wi-Fi, and 5G, more and more fleet vehicles will start getting connected to each other on the virtual cloud through data sharing and constant communication.
In the future, a connected fleet will be able to detect, identify and self-diagnose any problems that inhibit the operational efficiency of a fleet vehicle from reaching its full potential.
In fact, there are more than 90% of accidents today are caused by driving errors. Needless to say, this fleet technology trend might ready to save drivers’ lives in unprecedented ways.
5. Data security
In truck fleet management, managers collect data points, analyze trends and make well-informed decisions. This allows them an insight into things like the best routes to take, what time to take those routes, predictive maintenance analysis, driver behavior, climatic conditions, etc.
Therefore, it is important to protect the data, as any flaw or a breach in the system can lead to safety issues. Better data security will help boost the confidence of fleet vehicle operators to take better decisions to boost the operational efficiency of the fleet business.
There’s no denying that the fleet management industry is developing every year. Although these fleet management trends have existed for a while, they will be embraced by a larger number of GPS trackers and their clients as well.
Hence, identifying and following the trends of the fleet industry can help you stay ahead of the curve with state of the telematics and tracking technology. Make sure to keep up with the emerging trends in fleet management!
At Track360, we choose the best-suited technology for your business and make it succeed. Contact us to see how we can help your company to not just adapt to a rapidly changing fleet industry, but to thrive in a changing motoring environment – pivoting off technological change to outpace competitors.