Smart fleet management is an amalgamation of various advancing technologies that can help businesses track, optimize, and transform their fleets. The Global Smart Fleet Management Market is set to reach a towering figure of $305.58 billion by 2027, at a compound annual growth rate of 11.37% from 2022.
These fleets can include automobiles, industrial vehicles, trains, planes, and ships. Fleet management solutions are used to track these vehicles, monitor their performance, diagnose and remediate problems, and ensure that operations are configured to run smoothly and efficiently, without any unnecessary wastage of budgets and other resources.
The fleet management solutions market has always been an interesting space because of its tendency to embrace new technologies as well as the sheer influence its success can have on the world.
Here are some of the key trends that will shape the fleet management solutions market in the upcoming year.
Self-driving automobile technology has been making significant progress in the last few years. Although the degree of vehicle autonomy varies, we’re going to see a markable increase in the number of autonomous vehicles on the road. Numerous leading companies expect 2023 to be the year when driverless cars become mainstream.
The logistics of autonomous vehicles come with their own set of challenges. For instance, the emissions of computing-adjacent activity that autonomous vehicles require aren’t sustainable for our environment. Experts are working on finding solutions to these problems. Once mitigated, the rise in autonomous vehicles will require robust fleet management solutions.
The destigmatization and resource-optimization of self-driving vehicles will eventually see increased adoption. Beyond everyday consumers, industrial and military autonomous vehicles are sure to enhance operations for their respective users. Between now and 2030, the autonomous vehicle market is expected to grow at an annual growth rate of a staggering 53.6%.
As mentioned above, the success of autonomous fleets is dependent on innovations regarding sustainability. This applies to both the computing side of things as well as the actual vehicle architecture itself. Businesses that are planning to adopt or update their smart fleets need to explore the potential of fleet electrification in 2023.
Electrifying vehicle architecture essentially means replacing traditional internal combustion engines. The benefits are multifold. The first and most obvious advantage of fleet electrification is carbon footprint reduction (a top priority for many businesses today). Additional benefits include reduced maintenance costs, safety, and the potential of centralized management.
Fleet electrification will never look the same for two different companies. Every company will electrify its fleet based on specific needs, applications, and budgets. Therefore, top players in the fleet management solutions sector will be needed to guide businesses into their fleet electrification journey with care, consideration, and alliance with overall business logic.
Data is the most valuable currency in our world. Data provides its wielders the power of empowerment. Having high-quality data allows businesses (and fleet management solutions providers) to make confident decisions and strides into the future. The easy availability of large volumes of diverse and accurate fleet data is a game-changer.
Step into the shoes of a fleet manager. Anywhere in the world, any business. Imagine that you have access to your business’s fleet data in real time. That kind of data availability offers major centralized control and power. A fleet manager would be able to assess a fleet’s health status, employee performance, vehicle locations, and inventory very quickly.
But data availability is just one part of the work. The challenge for businesses and their fleet managers lies in leveraging that data to advance their profit margins. Data analytics hasn’t always been a top priority for businesses. 2023 is likely to be when the full potential of data is seen. New innovative data analytics tools are likely to be utilized for smart fleet management.
In their 2022 report “An Analysis of the Operational Costs of Trucking,” The American Transportation Research Institute (ATRI) stated that average costs per mile for trucking have been on the rise. These rising costs could likely harm the industry. Interestingly, with robust fleet management solutions on the rise, 2023 could actually see a decrease in trucking costs.
The ATRI found that an increase in drivers’ salaries, maintenance costs, and most influentially, fuel prices were the main contributors to recent spikes in operational costs in trucking. They also ascertained that smaller fleets (100 vehicles or less) ended up being more expensive to manage than large and medium fleets.
So why would 2023 see improved operational costs? The top fleet management solutions will optimize everything from the number of vehicles in a fleet to choosing the best routes to get the best mileage and reduce fuel costs. Investment in fleet management solutions and software will see a reduction in operational costs for trucking, in the upcoming year and beyond.
Digital elements in vehicles may have once been considered luxurious add-ons and even gimmicks. However, in 2023, the quality of vehicles is likely to be measured by what digital services they offer. It’s time to start viewing vehicles as platforms for a multitude of digital products and services.
From a design and manufacturing point of view, vehicles are increasingly being looked at as digital entities. The modern architecture of a vehicle will allow for the integration of a plethora of digital services that may range from multimedia entertainment, navigation aid, traffic updates, and self-driving options.
Viewing vehicles as development platforms inherently means that they are no limitations. Like a computer, phone, and other connected digital devices, vehicle software and services can be integrated, activated, and updated from a centralized console. This upcoming year will likely see vehicle-as-a-platform turn into a more common business model, perhaps even the norm.
A million lines of code power the Hubble Space Telescope. 10 million lines power an F-35 fighter jet. 50 million lines power all of Facebook. Scroll, scroll, and scroll further down the list to find the modern car, which requires more than 100 million lines of code. That’s the complexity of internet-of-vehicles or IoV. And IoV is all set to become one of 2023’s top trends.
McKinsey, in their 2021 report “The Internet of Things: Catching up to an accelerating opportunity“, states that, by 2030, Internet-of-Things could bring a value of up to $12.6 trillion globally. In the same report, they mention “vehicles” as being the sector that will see high economic value from the IoT phenomenon. IoV could see $620 billion in total value by 2030.
IoV is a trend that will influence both manufacturers and consumers. The consumers of IoV will include everyone from the average citizen to widescale industrial companies. The benefits of IoV transportation include sustainability, safety, and industrial success. They also future-proof companies by being able to stay one step ahead of ever-evolving consumer expectations.
As mentioned earlier, fleet management looks different for every company. There isn’t a one-size-fits-all approach to fleet management. It’s for that reason that the best solution for most companies is to hire the services of an expert in fleet management solutions. To fully understand the importance of expert support, consider the following case study.
We at rinf.tech worked with a client who’s a leading truck transportation and instant delivery company. The client needed a software solution to increase customer satisfaction and retention as well as optimize their courier operations. It was the perfect challenge for Rinf Tech. Our custom-built software solution offered an Uberization of Routes Planning and Delivery ETAs.
The fleet management solution that our rinf.tech team innovated helped our client to keep their customers updated on delivery times and also choose time slots of their convenience. This solution optimized operations so significantly that the client’s couriers were able to handle more activities on a given day.
The way we manage and operate fleets of vehicles is changing, thanks to emerging technologies that are transforming how we collect and use data. By harnessing the power of sensors, telematics and AI, fleet management solutions are becoming more sophisticated and effective at helping organizations optimize performance, reduce costs and improve safety.
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