Fleet management is undergoing a significant transformation in recent years, mainly driven by various technological advances that have been incorporated into day-to-day business, regulatory changes and growing environmental awareness. As we approach 2025, fleet management companies are faced with the need to adapt to this increasingly competitive environment.
In this article we will explore what we at Fagor Electrónica believe to be the main trends that will define fleet management in the coming years and how we must prepare ourselves to take advantage of these opportunities.
- 1. Electrification of fleets
The adoption of electric vehicles (EVs) in commercial fleets is a growing trend, not only in the professional sector. With environmental regulations from the European Union becoming increasingly stringent, EVs are being seen as a viable alternative for freight transport, especially for urban and short-range routes. By 2025, it is likely that many companies will have started to electrify their fleets, taking advantage of tax incentives and the lower operating costs of EVs, and we may see a higher penetration of EVs in fleets, whose management must also be differentiated from internal combustion vehicles.
- 2. Autonomous driving
Autonomous vehicles are evolving rapidly, however much of a pipe dream this may be for a significant part of the population. While it is unlikely that we will see fully autonomous fleets by 2025, the adoption of driver assistance systems, such as semi-autonomous driving and advanced driver assistance systems (ADAS), is expected to increase. These systems can improve safety, optimise routes and reduce operating costs by minimising accident risk and vehicle wear and tear, with the understanding that there are different levels of autonomous driving.
- 3. Advanced use of data and predictive analytics
Fleet management will benefit even more from data analytics and predictive analytics, especially as changes are taking place in data collection and storage. By collecting and analysing large amounts of data from sensors, telemetry and navigation systems, companies will be able to predict behaviours and trends much more accurately. This will make it possible to anticipate vehicle maintenance, optimise routes, reduce fuel consumption and improve overall fleet efficiency at a higher quality rate.
- 4. Improved telemetry and connectivity
Telemetry technology will continue to evolve, enabling more detailed tracking and monitoring of individual vehicles in real time. Fleets will be more connected than ever before, allowing managers to receive instant information on location, vehicle status, driver behaviour and route conditions, freight data, freight movements and more. Improved connectivity will also facilitate fleet integration with other business systems, providing a more complete view of operations, all in real time.
- 5. Optimising the last mile
The last mile is one of the most costly and complex segments of the supply chain. By 2025, transportation companies will focus on improving efficiency in last mile delivery through technology. This includes the implementation of dynamic routing, coordination with urban warehouses and the use of small electric vehicles or electric bicycles for deliveries in congested urban areas, which will also be subject to environmental regulations such as Low Emission Zones (LEZs).
- 6. Security and cyber security
One of the main concerns in 2025 focuses on security and cyber security. With the increasing digitisation and connectivity of fleets, cyber security will become a priority. Connected fleets are vulnerable to cyber attacks, so implementing more robust security measures will be a major trend, especially to protect both data and operations. In addition, more investment in vehicle security technologies, such as cameras, sensors and alert systems, is expected.
- 7. Cloud-based management systems
Cloud-based fleet management systems will become the industry standard, allowing companies to access their data from anywhere, at any time, in a well-structured format and with high levels of security. These systems will offer fleet management companies flexibility, scalability and real-time updating of their data, facilitating much more informed decision making, including the implementation of automated decisions in some operations, increasing the quality of service offered.
- 8. Sustainability and energy efficiency
We could not forget sustainability in 2025, as environmental concerns will continue to drive sustainable practices in fleet management. In addition to electrification, companies will look for ways to reduce their carbon footprint by implementing efficient driving practices, reducing kilometres driven and optimising charging or even implementing synthetic fuels in the case of internal combustion vehicles. Sustainability will not only be a social responsibility but also a competitive advantage that companies cannot afford to miss out on, as customers and regulators will demand greener operations.
- 9. Predictive and automated maintenance
Predictive maintenance, enabled by artificial intelligence (AI) and the Internet of Things (IoT), will allow companies to anticipate problems before they occur. Systems will be able to analyse vehicle data in real time to predict when failures are likely to occur, proactively scheduling maintenance. This will minimise downtime and extend the life of vehicles.
- 10. Alternative fuel technologies
In addition to electrification, the adoption of other alternative fuel technologies, such as compressed natural gas (CNG), liquefied petroleum gas (LPG) and biofuels, is expected to increase. These alternatives can offer a reduction in emissions and operating costs, especially for heavy-duty vehicles and long-haul routes, in a ‘transition’ time such as 2025 between internal combustion and electric vehicles.
In short, fleet management in 2025 will be marked by the adoption of advanced technologies, sustainability and greater operational efficiency. Companies that are able to adapt to these trends will be better positioned to meet future challenges and take advantage of emerging opportunities in their sectors.
