A recently released report from ABI Research has projected that Global Fleet Management System Revenues will exceed $27 Billion by the year 2018; roughly three times the current yearly revenue for the industry. You might be wondering what could be responsible for such an astronomical shift. There are a variety of reasons, but the simple explanation is that fleet management tools are growing into very powerful and valuable resources for every company size. Telematics are huge part of this.
Telematics can mean a lot of things, but in the automotive world, it primarily refers to the transfer of information from vehicles to software or a online portal that makes sense of it all. This can be done in real time with GPS tracking, on a fixed interval with cell connectivity, or with a passive system that downloads information in range of an antenna. There are a multitude of approaches, but the intent is the same - gathering valuable data that helps you see your fleet from all angles.
The difference comes from what you can do with this gathered information. When applied appropriately, the numbers and figures that are generated by vehicles (driver behavior, fuel efficiency, idle time, diagnostic information, routes, etc.) can give you the decision making prowess that saves money. In many cases, the ability to track vehicles can also protect your company from massive amounts of liability.
As technology is becoming cheaper and more accessible, the money spent on implementing fleet telematics and software is showing a more economical payback. What companies spend on asset tracking is chump change compared to costs for fuel, unexpected maintenance and legal fees. The results garnered from using this information can certainly be invaluable, and that is magnified over the size of a fleet.
At Fleetio, we integrate directly with a passive tracking device that collects data from vehicles (through the OBD-2 port) and downloads directly into our fleet management software. We have already seen evidence of customers reducing costs by cutting down on unnecessary idling and poor driver behavior. This also automates the fleet management process, thus making their job easier.
Why is the fleet management system industry going to grow significantly? Because their products are going to help save a lot of time and money.