Fleet management has become one of the most lucrative industries of the century. Its significance in the transport business continues to grow with innovations of telematics technology making it more strategic and efficient. Fleet telematics not only helps in the coordination of vehicles and personnel, but it also aims to reduce operation costs, improve performance and ensure safety on the roads.
The Connection Between Fleet Management and Telematics
Telematics has become the difference-maker in the manufacturing of automobiles due to the growth of connected services and the increased demand among fleet companies. Original Equipment Manufacturer (OEM) telematics benefits fleets by collecting vehicle data from the factory and devoid of aftermarket logistics influence from third parties. For fleet managers, these benefits include offering a timely solution for mixed fleet logistics regardless of the vehicle model; helping make plans for new vehicle purchases; and facilitating faster implementation, especially when a company has a prolonged procurement process.
Fleet Management Trends
Experts predict the global fleet market will grow from 19.9 billion in 2020 to 34 billion by 2025. This is an estimated 11.3% compound annual growth rate (CAGR) over the same period. Indeed, it is a new era in fleet management with telematics as one of the most transformational areas. There is no doubt the telematics market’s growth relates to the countless benefits the technology delivers for fleet management. Vehicle financing, maintenance, fuel management, fleet tracking and diagnosis, and health and safety management are practical applications that help companies reduce the risks directly linked to vehicle investment. Market players are also mandated to play a role in controlling carbon dioxide emissions, and telematics data come in handy.
Data Management Gets Bigger and Better
The amount of data collected by telematics devices is vast, and it is projected to grow exponentially over the next few years. More data collection translates to increased efficiency in fleet management. Some telematics applications, such as tracking and diagnostics, are explicitly designed for improving efficiency by monitoring movement, location, status, and staff behavior. Vehicle telematics helps to change the approach from diagnostic to prognostic, which leads to more safety on the road and more efficiency in fleet management. To attain the goal of bigger and better data management, however, there is a need for sophisticated data analysis techniques to ensure a more precise assessment of all data collected from various telematics devices.
Growing Concern for Data Protection/Security
Fleets struggle to address the issue of storing and guaranteeing the security of data collected by telematics devices. There are benefits offered by connectivity in terms of road safety and profitability, but more connectivity could also mean vulnerability to cybercrime. As a result, fleet managers are concerned by two key security areas: privacy and exposure to cybercriminals. To help resolve privacy issues, companies were urged to reconsider their data collection and storage methods. As per the General Data Protection Regulation (GDPR), it is in the best interest of fleet companies to ensure the process of collecting data is safe. The process of protecting telematics data must be comprehensive and proactive. It should involve exploring, locating and patching any notable vulnerabilities.
Need for Speed
The rapid development of telematics is hinged on the 5G network roll-out. Real-time data transmission between or across devices can only work best with an upgraded network for consistency and reliability. With 5G you can expect to bring about a significant boost in autonomous technologies where speed, reliability, and coverage will witness massive improvements. Consequently, there will be uninterrupted inter-vehicle communication.
Accident Prevention and Preventative Maintenance
Safety for vehicles, drivers, and cargo remain a core principle of fleet management. Where there is telematics in place, emphasis on the development of solutions geared towards both accident or road carnage prevention and predictive maintenance comes naturally.
Telematics fleet management covers several progressive services related to safety, including GPS navigation, emergency warning systems, automatic sensors, radars, automated driving assistance systems, and more. While some are solely focused on the driver’s safety others may focus on secure cargo handling, but all of them are designed for improved fleet performance.
There is a lot that vehicle diagnostics can achieve. For instance, it helps in the accurate scheduling of vehicle maintenance. By vehicle performance optimization, fleet managers are in a position to make accurate calculations with minimal downtime without compromising priority duties.
Consequently, monitoring crew behavior is incredibly useful in the long run. Understanding drivers’ actions and habits, and responding proactively to the established trends can help curb accidents. In doing so, company property is protected, as well as its reputation.
More Integration of System Applications
Efficient fleet management can only be achieved if crucial fleet telematics data and its existing management reporting systems are synchronized. Integrating several accounting systems and telematic applications is vital for obtaining better data analytics and essential operational metrics. Through integration, there is maximized fleet safety and improved fleet utilization, which continues to draw a lot of attention. For example, several fleet companies have a Bring Your Own Device (BYOD) model implemented for their systems. But as customized as these models might appear, they come with their fair share of limitations. For instance, one of the most significant limitations is the lack of app-to-app integration provision. It is a void that needs to be filled, which leaves room for growth in the system integrations’ market.
Fleet telematics has come a long way, and experts believe that growth is on the horizon. We are witnessing an open market for connectivity, video integration, insights, and a shift to business management platforms. To reach your company goals, choose a telematics partner such as Azuga with an innovative vision and the ability to grow your business.