Today, fleet management is a multi-billion-dollar industry. The demand for vehicle monitoring has increased more than ever. Although the fleet management market has been around for years, the advent of smart technology has made it more efficient. The integration of smart fleet management solutions can help reduce costs, provide better services and minimize risks regarding vehicles.
According to Allied Market Research, the global smart fleet management market is estimated to reach $98.65 billion by 2027, growing at a CAGR of 15.8% from 2020-2027. The integration of real-time fleet monitoring systems in vehicles, rise in use of cloud-based technology in smart fleet management solutions and demand for vehicle monitoring and fuel management is the prime factor of the market growth. What’s more is, the increased development of new fleet management solutions supplemented the market growth.
Future of smart fleet management: 5G infrastructure and telematics
The advent of the 5G infrastructure is the next big thing in the smart fleet management industry. Although 5G is considered as the next update to 4G, it offers so much more. 5G is around 100 times faster than 4G and capable of handling greater bandwidths in terms of connected network accommodation. This means, 5G network would complement the connected technology, especially in the smart fleet management market. 5G would allow multiple devices to connect simultaneously and use online, making the full potential of the Internet of Things (IoT) available. With the expansion of the 5G network, the autonomous vehicle industry would witness growth as it will enable vehicles to make quick decisions and make them safer for pedestrians.
Apart from the 5G network, the growth of telematics would improve the performance of the fleet. Telematics technology can monitor several aspects, including whether drivers are wearing their seatbelts and what is the vehicle speed. The improved telematics aids fleet management monitor diagnostics level in real-time. In addition, it offers a customization dashboard and helps monitor the health of the fleet and employees 24/7.
The adoption of telematics could open new doors of opportunities for market players in the fleet management business. For instance, telematics help inform which roads are suitable for transport and how the productivity of the fleet can be improved. The telematics solutions improve the efficiency, safety and profitability of the staff and fleet.
The safety of drivers is a primary concern for their employers. Until autonomous vehicles take over the business, telematics can be used to keep drivers safe. Telematics could not only help fleet managers check their employees instantaneously, but also offer a way to measure and monitor behavior, and ultimately, manage risks.
In the future, smart fleet management would witness the widespread adoption of connecting fleet as it helps to detect, monitor and self-diagnose errors and problems that increase the operational risk of the vehicles. In addition, a connected fleet would help achieve the full potential of the vehicle.
It is observed that more than 90% of road accidents are caused due to human error. In the future, autonomous vehicles and the connected fleet would help save driver’s lives on a whole new level.