8 trends in fleet management solutions you just cannot miss
Source: Prasanth Aby Thomas, Consultant Editor
With the number of commercial vehicles on the rise across the globe, fleet management solutions are becoming more and more necessary. Talking to asmag.com recently, Gurtam
, a software developer and service provider in real-time GPS monitoring, vehicle telematics, and fleet management solutions, shared some of the major current market trends and what can be expected in the future.
1. Healthy growth to 2022 as it has been for the past few years
Berg Insight forecasts the number of assets connected to fleet management solutions to reach 16.4 million in the U.S. and 15.6 million in Europe by 2022. In Latin America, they expect 5.5 million connected units for the same period. In all cases, it is a two-fold growth against 2017. The same applies to penetration rates, roughly.
Gurtam’s own growth figures confirm the analyst reports. Speaking of its platform Wialon, the company said that the connection dynamics show that it is growing faster than the market on average. In the summer of 2017, it had 1.2 million units connected to Wialon. A year later it was 1.7 million. Now, the number of connected assets on Wialon is almost 2.1 million units, meaning half a million new connections per year.
2. Four-fold revenue increase forecast
Similar statistics apply to revenue as well. Within the last year in the U.S., none of the telematics service providers working with Gurtam have seen any decrease in sales. Most of its channel partners even reported about 10 to 50 percent increase in income even though the prices for hardware and services in the region are dropping, according to First Analysis.
The market potential is high, according to Gurtam. McKinsey&Company reports telematics penetration rates are at 20 percent even in the US, which leaves 80 percent to the go-getting service providers.
3. Better opportunities for service providers in the fleets of up to 5 vehicles
According to Sergei Leuchanka, MD of Gurtam in the Americas, half of the global market opportunity is in this category.
“They are hard to reach cost-effectively, but there is a good share of small family-owned businesses among our partners,” Leuchanka said. “It’s easier to find the common ground with owners of small fleets who are not eager to deal with corporations. Gurtam’s partners are moving in this direction by offering a maximum flexible platform capable of satisfying the needs of hundreds of small fleets.”
4. Mobility as a Service becoming popular
Going by reports such as those from Berg Insight, by 2030, about 400 million people will be engaged in this industry with 1 out of 10 cars sold being shared. Gurtam sees it in their partners’ businesses, who develop solutions for car-scooter-bike-sharing based on its platform.
These are both for corporate and individual passenger transportation. Green initiatives aimed at more effective vehicle utilization policies support this. Everything moves to vehicles being used, not owned for advanced carpool availability and reduced mobility costs.
5. Telematics no more a separate service
Telematics has now become a part of a single all-encompassing fleet management environment
. Being the core, telematics system is integrated with ERP, BI, FMS, inventory, and other systems.
This means that to process data and get actionable insights, information needs to be collected from personnel, vehicles, infrastructure – even if this includes production sites located throughout the country or internationally.
6. Cloud services
Cloud services based on recurring service fees have also become a greater focus for enterprise fleets on the Russian market now, and the domestic fleet management solution providers are increasingly pushing for a transition towards SaaS-based models.
7. Seamless connection between ALL types of 'things'
This obviously is the trend
. Following it, Gurtam also developed and launched its platform for fast communication between any number and types of telematics devices with any types of software.
Here, the key is to find the optimum route to linking vehicles and enterprise IT systems, along with features such as analytics to data transmission.
8. Higher standards and the growth of connected fleets in Asia-Pacific
According to Gurtam, there is a fast-paced growth of connected assets in countries like India, Indonesia, Sri Lanka, and the Philippines and this is determined by two trends.
Telecom service providers are becoming strong telematics integrators in the region. While last year they were offering basic tracking and vehicle recovery, now they’ve added a whole range of satellite monitoring services. Given their huge existing customer bases in B2B and B2C, telecom companies can boost the spread of fleet management nationally.