The global automotive market is moving toward electrification, digitization and connectivity where all the players in the segment, from tire manufacturers, auto part makers, to freight operators, will operate from a single platform allowing for seamless operations.
This automotive revolution in the making will be brought about by the adoption of telematics-based solutions that use Big Data and Artificial Intelligence analytics to monitor vehicles in real-time, taking note of vehicle wear and tear along with driver fatigue.
The global market share for telematics solutions in commercial vehicles is predicted to be around EUR 10 billion by 2026, according to a study by Deloitte. Software solutions will form 80 percent of the share and the remaining 20 percent will comprise of hardware. In Australia, there are nearly 20,000 fleet operators with 20 plus vehicles and the number of small businesses with less than 20 is nearly 400,000.
Leasing services are facing pressure from new innovative transport companies with better performance and services with their adoption of digitization and telematics. The advent of car hailing and sharing services is eating into the corporate car leasing pie and have forced fleet management businesses to change and adapt.
To stay in the game, reputable companies providing flexible and competitive commercial vehicle rentals, leasing and finance services are adapting to the market and offering complementary mobility solutions to position themselves as industry leaders. They are also offering flexible leasing and payment plans with short-term leasing of 3-months or so as opposed to the earlier long-term options, allowing clients more flexibility and cost saving.
In a bid to expand their services, fleet managers are tying up with different payers like travel agencies, software providers and even public transport operators to come up with wider integrated auto services offered on a single platform.
New fuel efficient cars and stricter government norms are also hampering the industry. “Higher vehicle acquisition costs are resulting from government safety and fuel economy initiatives,” according to Janis Christensen, CAFM senior manager for Mercury Associates Inc.
The transition to electric and hybrid vehicles is a must with most experts predicting a 40 percent transition to such vehicles by 2024. But the high costs of such vehicles place budgetary constraints on an already pressurised market. This in turn also affects driver satisfaction and productivity.
Technology, as mentioned earlier, is disrupting the industry. Connected vehicles and autonomous cars are bound to affect the fleet, roadways, drivers and the personnel roles.
Adoption of telematics software brings in safety measures and fuel cost efficiencies with tracking of best routes, general wear and tear and replacements inventories All in all, it will bring in a general logistic and inventory streamlining and cost efficiencies
Data analytics of the the data collected through the adoption of management software has the potential to birth innovative business ideas, expansion of services and better delivery of the same.
Predictive informations through telematics and information diagnostics is the future of the transport industry and all small and big players need to be ready to adopt the same to stay in the game.