Last year we reported on how corporate fleets (defined as having 20 or more vehicles) were at a relatively early stage of adopting telematics with, only 15% of fleet managers using the technology. A further 10% said that they were not using a telematics system but indicated they had plans to do so in the next 12 months. Has this intent to implement become a reality?
Our latest research shows that the pace of adoption has materialised as we predicted. 26% of organisations with twenty or more vehicles in their fleet are now using the technology. In keeping with our previous research, it is the larger fleets that are leading the way.
The take up of vehicle telematics is highest among services businesses, in particular those in the telecommunications and media industries. Somewhat surprisingly there is less take up in the distribution sector which is made up of retail and wholesale businesses, suggesting potential growth opportunities for telematics suppliers.
Vehicle Telematics Market Research: How Are Businesses Using The Technology?
More fleets are fitting telematics in their vehicles and the benefits they are looking for include:
- Increased vehicle utilisation and business capacity
- Job allocation and routing
- Timesheet reporting
- Accurate fuel monitoring
- Maintenance management
- Driver behaviour and idling
Ultimately, it’s about reducing costs and increasing bottom line profits for the business. Vehicle telematics systems can facilitate everything from a “nearest vehicle” search to “in the moment” information on the current status of that car or van and whether it’s being used inappropriately.
Organisations can use this real time information to make decisions which help their operations run more smoothly and improve levels of customer service while ultimately enhancing overall productivity. These are key business benefits.
Our research shows the use of this technology in corporate fleets is becoming more sophisticated and that in addition to tracking the target vehicle, nearly a half of those using telematics systems are monitoring driver behaviour as well.
Analysing driver behaviour data, can help reduce fuel consumption, extend equipment life and reduce carbon emissions as a direct result of addressing poor driving habits. For some, that may sound like we are entering the world of Big Brother, but driver behaviour is a significant cost and this technology can help fleet managers address the issue.
As organisations move through the vehicle telematics maturity curve, there will come a point where the fleet will reach a ‘plateau’ in terms of safety and cost management and systems will primarily be used to highlight exceptions. When this point is reached and systems are optimised, the focus is likely to shift towards data mining and predictive analytics.
The Telematics Maturity Curve
ACA research is conducting ongoing research about how corporate fleets and road freight transport operators are adopting and implementing this technology. In addition, we are helping to extract value and insight from the data that is being collected so that organisations can make better business decisions. If telematics insights are of interest to you, you can register to purchase our latest telematics insight report by clicking the button below.