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Over recent years, fleet leasing has grown in popularity due to the convenience it grants to businesses and government agencies alike. With its ability to solve parking challenges in urban areas, access the latest technologies, and be cost-effective, the automotive leasing market has grown in value to more than $25 billion in 2023 and is estimated to register a compounded annual growth rate of 6% from 2024 to 2032, according to consulting firm Global Market Insights.

Alongside the rise in fleet leasing as an option for companies, several trends have emerged in fleet management solutions driven by technological advancements and shifting market demands.

One of the new practices gaining traction in the past months is the use of telematic systems in fleet management solutions. Telematic systems typically refer to mechanisms that combine telecommunications and information processing.

However, in fleet management, telematics can help overcome operational challenges by tracking vehicle location, monitoring vehicle performance, analyzing driver behavior, and facilitating communication through the global positioning system (GPS). This data helps fleet managers optimize routes, improve fuel efficiency, enhance safety, and streamline maintenance schedules.

Fleet management software Wialon indicated on its website that telematic systems are about to receive an upgrade with the emergence of artificial intelligence (AI). The developers suggest that generative AI will revolutionize telematics platforms and provide tailored responses to fleet owners, managers, and dispatchers about their vehicles.

Another trend to look out for in fleet management for 2024 is the strong push towards sustainability with more fleets adopting electric vehicles and hybrids. With the Biden administration and the European Union implementing regulations encouraging the purchasing of EVs and prohibiting the sale of gas vehicles in the near future, companies are gradually transitioning to green fleets in an effort to reduce greenhouse gas emissions and combat climate change.

Several big companies have already started incorporating electric vehicles into their fleets. Delivery giant Amazon partnered with Rivian to integrate 100,000 electric delivery vehicles to their fleet by 2030. Car rental company Hertz also announced in 2021 an initial order of 100,000 electric vehicles from Teslas signaling a shift to sustainable transportation solutions in the industry.

A greater focus on safety features such as collision avoidance systems, driver monitoring, and in-cab video systems has also become trendy in 2024. Fleet management companies have prioritized driver safety to help reduce the risk of accidents and improve their brand reputation.

“The benefits of using advanced safety features in fleet management are significant. By reducing the risk of accidents, companies can protect their drivers and cargo, minimize downtime and repair costs, and maintain a positive reputation for safety,” Volpis, a fleet software management developer, noted on their website.

As these trends of new telematics systems, car models, and safety features continue to revolutionize fleet management, the need to upskill technicians becomes increasingly more important. To ensure that these trends become the new norm, companies have realized that technicians must be trained to handle new technologies and EV maintenance is driven by the industry’s need to reduce repair costs and improve service quality​.

The fleet management industry has grown to be a favorable solution for businesses seeking flexibility and efficiency in managing their vehicle fleets. As fleet management evolves with trends focused on technology, sustainability, and safety, companies that embrace and invest in these developments are well-positioned to achieve operational excellence, cost-efficiency, and environmental stewardship in the years to come. — Jomarc Angelo M. Corpuz

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