According to the predictions made by MarketsandMarkets, the global fleet management market is expected to grow from $8.03 billion in 2015 to $22.35 billion in 2020. Owing to its early adoption of the Internet of Things (IoT), the US is expected to be the largest fleet management market in the world.
During this forecast period, the primary driver for this massive market growth is the increasing need for operational efficiency. In the face of rising fleet maintenance costs, fuel costs, and legal implications of accidents, fleet management companies are turning to solutions ensuring the efficiency of fleet operations.
Plus, with the rise of so many high-tech vendors ready to address these needs, the future of fleet management seems fast-paced and highly dynamic. Let’s see what changes are expected in 2020:
Innovations in Current Telematics and Tracking Measures
While GPS tracking and telematics aren’t new to fleet management, more technology is expected to enter the system in 2020. The modern trucking industry is looking forward to adopt sophisticated tracking methods and information logging techniques. To cater to these expanding needs, manufacturers are continuously looking for ways to improve their services. They’re employing more advanced technology to allow easy information sharing between fleet managers and employees.
The tracking and telematics technologies are expected to become more reliable and accurate in the vehicles in 2020. It will not only allow managers to pinpoint real-time fleet locations but also ensure more efficient maintenance scheduling.
MaaS has brought about incredible transformations in personal commute in the form of ride-sharing services like those offered by Uber and Lyft. Surprisingly though, the trend is expected to impact the fleet industry too. While most fleet companies still own their own light to heavy-duty trucks, future-oriented players have started migrating to the ride-sharing model.
As a perfect example, fleet managers in the Netherlands pool their resources to determine the different ways in which employee needs can be met. Once the employee needs are identified, they choose a truck that perfectly suits them. The trend is expected to pick up pace in 2020 as more and more companies uncover the cost-related and flexibility benefits.
Even though the ride-sharing model has its own complications, it certainly has the potential to allow for more economically-driven choices and high levels of service customizations for fleet companies.
No one is oblivious to the upcoming trend of autonomous vehicles. They’re currently in their testing phase and expected to be commercially marketed in 2020. Fleet managers shouldn’t ignore this trend, thinking that it has nothing to do with fleet management. Once artificial intelligence comes into vehicle play, passenger and product data management and analysis will become easier than ever.
With autonomous vehicles in their fleet range, fleet managers will no longer have to worry about vehicle maintenance. These vehicles are capable of predicting and managing their health on their own. Vehicles may even be able to automatically schedule appointments with mechanics and ride themselves to programmed locations.
On top of that, connected autonomous vehicles will be able to obtain traffic data in real-time and use it to define more efficient routes. With the automation of even the most complicated tasks, the role of a fleet manager is expected to become a lot more productive.
Implementation of the Internet-of-Things
When discussing innovation, the concept of IoT can’t be ignored. Yes, following the smart homes buzz, the internet-of-things has started penetrating the automobile industry as well. This technology gives rise to the connected car that utilizes the internet and wireless data sharing to revolutionalize your traveling experience. A connected car is capable to obtain real-time traffic data and communicate with other vehicles as well as traffic infrastructure to allow you to select more efficient routes and reduce the chances of accidents.
Evaluating it for application in fleet management, the data pertaining to location, vehicle status, etc makes it a highly efficient solution, boosting the productivity efficiency of vehicles. When you combine these benefits with those of autonomous vehicles and improved tracking and telematics structures, fleet management becomes an entirely new game.
The trend of autonomous, connected vehicles together with the ride-sharing model is taking us into a highly data-driven world. As more and more people and companies switch to these options, imagine the amount of traveling passenger and product data that will be created for fleet managers. Besides, we already have the telematics technology that stores all vehicle-related information from the engine status to the location of the vehicle.
It isn’t far when fleet managers will have every piece of information on their fingertips. They’ll have real-time access to vehicle-related statistics, including the driver info, their location, and speeds.
Because of the enormous quantities and accuracy, all that data will become extremely valuable for hackers. Remember the recent massive data breach involving Uber? You can’t just continue reaping the benefits of technology without considering the security implications.
When selecting vehicles and making other critical decisions, fleet managers will be increasingly concerned about securing the company’s data to avoid the negative publicity and legal repercussions associated with data hacking.
2020 is certainly expected to be an exciting year for fleet management professionals, who might be seeing a number of transformations in the way fleet are managed. More accurate tracking, real-time vehicle information access, automation of functional tasks and highly customizable solutions are just a few benefits that are expected.
However, while these trends are expected to make lives easier for fleet managers and other fleet professionals, the creation and heavy reliance on data will raise cybersecurity concerns for fleet companies. If you get involved in some data breach, you will not only lose considerable business but may also be required to pay heavy sums to pay for legal damages.
Hence, fleet managers are recommended to consider all technological implications when making important decisions and choices.