The Top 8 Fleet Industry Trends for 2023

With advances in technology and a host of new regulations on the horizon, the fleet industry is in a near-constant state of evolution. 

As we enter the new year, it can feel like there’s a lot to keep up with. Below, we’ll discuss eight top trends that experts predict will dominate the fleet industry in 2023. Let’s take a look at what you should expect so you can stay ahead of the curve.

Electric Vehicles

As EVs become increasingly popular in the fleet industry, many major fleets are aiming to adopt 50-80% electric vehicles in the light duty sector within the next decade. 

This shift is driven by the environmental benefits of electric cars, as well as their higher performance and improved fuel efficiency compared to traditional gasoline-powered cars. As battery prices continue to fall, electric vehicles will become more affordable – prompting many fleets to make the switch. By embracing this new technology, companies can reduce their carbon footprint and potentially increase cost savings at the same time.

With this innovation comes uncertainty about the infrastructure required to accommodate electric vehicles. 

“A lot of people say, ‘Yeah, I’d love to transition my fleet to be all EVs, go completely green, zero-emissions,’” says Nichole Osinski, Executive Editor for Government Fleet magazine. 

“But there’s also the other side of that: ‘Okay, that’s going to be a lot of infrastructure, and that also takes money. Where do I even start? How do we track this? What are the best ways to do this as far as [whether] my idling time is okay? When’s the best time to charge my [vehicle]?”

It will be essential in the new year to consider not only the replacement of gas-powered vehicles, but how to manage, monitor and maintain EVs.

Autonomous Technology

Autonomous technology has seen rapid growth in recent years and it’s predicted to be even more widespread by 2023. Fleet owners are turning to this self-driving technology due to its cost-effectiveness and efficiency, as well as enhanced safety on the roads.

Autonomous vehicles eliminate potential human error that can lead to accidents or other issues while driving, making them a much safer option than conventional manual driving. However, while fleets are likely to see an increase in autonomous offerings in 2023, these vehicles will still require the presence of a human driver to intervene if necessary.

Autonomous vehicles are quickly becoming an essential part of the commercial vehicle industry, due to the complex technologies powering them. Radar, LIDAR, GPS, Odometry, Inertial Measurement Units, collision avoidance technology, and Computer Vision all give these vehicles a detailed understanding of the environment. The potential for autonomous cars is vast and rapidly advancing – it won’t be long before they are a common feature of commercial fleets.

Telematics Systems

Telematics systems are essential for the fleet industry, as these systems enable remote tracking of vehicle performance, safety records, and maintenance schedules. 

Through GPS tracking and other telematics solutions, fleet managers can monitor their entire fleet from a single source instead of having to visit each vehicle in person. This could take the form of rare fault codes in certain vehicles, drivers with an excessive number of undesirable driving incidents, or vehicles that are not being optimally employed.

This not only allows them to save time and money, but also ensures that their vehicles remain safe and compliant with local laws.

Data analytics is another important component for success in an ever-changing world of driver behaviour patterns. By accessing data sets related to route optimization or driver safety measures, fleet managers can make efficient decisions quickly and easily while simultaneously keeping their drivers safe. Telematics is a rapidly growing field with substantial growth potential and a long-term future.

Predictive Maintenance

Due to supply chain issues that continue to plague the industry, fleet managers have had to hold onto older vehicles longer than ever before. According to S&P Global Mobility, the average age of vehicles on the road in the US has risen steadily for five years in a row. In addition, many fleet managers are waiting until they can exchange their gas-powered vehicles for EVs.                                                             

For these reasons and more, predictive maintenance solutions are becoming a must-have for fleet operators looking to save money in the long run. By monitoring data from connected fleets, these solutions allow fleets to detect potential issues before they become costly problems. 

This allows fleet operators to trigger automated processes preemptively, ensuring that any problems are detected and resolved quickly and without wasting time or resources. Predictive maintenance has the potential to result in significant cost savings over time and has already become an increasingly popular choice among fleets of all sizes. 

Fleets can expect predictive maintenance to remain a staple for 2023, as it continues to prove its worth in offsetting the rise of maintenance costs.

Cloud-Based Solutions

With integrated fleet management ranking as a major priority in 2023, the way fleets operate is being revolutionized by cloud-based technologies. Over the past few years, there has been an increasing demand for these solutions. Fleet managers can now take advantage of cloud-based data collection, which allows for rapid and secure scalability through remote access control mechanisms.

By implementing cloud-based solutions into their system architecture, organizations can improve operational efficiency on a granular level by providing data around vehicle health, performance and ROI, while keeping costs low.

By utilizing an appropriate provider of fleet management tracking and analytics, you can gain access to vital insights about your logistics operations. The problem of data silos can be eliminated as all of the relevant information is consolidated in a single location, making it easily accessible. Detailed reports generated from multiple points along the supply chain provide executives and fleet managers with the ability to make decisions quickly and confidently.

The Internet of Things (IoT)

The utilization of the Internet of Things (IoT) to provide fleet managers, logistics operators, and drivers with the tools to make informed decisions rapidly will remain a prevalent trend in 2023.

The prevalence of IoT devices is driving change in fleet management systems, allowing operators to make use of analytics tools and AI-powered systems to monitor their assets in real-time—locally and globally. Unifying all aspects of an organization’s operations into a single platform provides increased opportunities for insightful decision making. 

Fleet managers benefit from this growth as they are equipped with an array of tools that enable them to take control over their operations with enhanced transparency and accuracy thanks to vehicle intelligence, cloud platforms, and network connectivity that create a direct link between drivers and fleet managers.

Data Analysis Tools

Data analysis tools have increased in importance for fleet managers who want to gain insight into their operations and optimize efficiency across their entire business. 

By utilizing data analysis tools such as predictive analytics, AI and machine learning algorithms, fleet managers can identify patterns in their data that could reveal opportunities for improved fuel efficiency or reduced costs. This gives them an edge over competitors who don’t utilize these tools when managing their fleets. 

Supply Chain Challenges

There are several reasons causing delays in the movement of freight across the globe, including rising shipping costs, inflated prices for shipping containers, and shortages of labor. As supply chain issues were initially triggered by COVID-19, we anticipate that they will persist and normalcy has yet to be achieved in this area.

Supply chain issues have had a major impact on smaller fleets trying to remain competitive with larger organizations. By only supplying assets that have been previously purchased in high volume, small fleets face an uphill battle when competing over contracts, with economics ultimately deciding who succeeds on the road.

For fleets to stay operational and cost-effective, they must strategically plan for their vehicle’s life cycle, or face a rise in maintenance costs—a reality that is compounded by challenges in securing spare parts from the supply chain. 

In today’s market environment where uncertainty abounds, smart asset management has become essential for any business hoping to remain competitive.

Asset Tracking

Non-powered assets can be a big drain on fleet operations if not managed properly. With an uncertain economy, it is more important than ever for fleets to have complete visibility into where their assets are located and how they are being used. 

According to EquipmentWorld.com, asset tracking technology saw the highest number of new users, leaping from 23% last year to 29% this year. From this increase, 96% of new users found it beneficial. Participants reported improvement in the following areas:

• Asset utilization
• Improved efficiency and productivity for drivers and employees
• Asset security
• Increased efficiency and productivity for employees

Asset tracking has numerous benefits and allows fleet managers to accurately invoice customers and to reduce unnecessary costs by monitoring utilization and determining asset health. By understanding the full value of their non-powered assets, fleets can gain insight into how best to optimize their operations in order to maximize efficiency and cost savings.

Conclusion

The fleet industry is undergoing a period of change this year, as technological advances, regulations, and trends all contribute to the competitive landscape. By staying current on emerging technologies—such as electric vehicles, autonomous technology, telematics systems, and data analysis tools—businesses can ensure they remain profitable and are adaptive to ever-evolving market conditions.

We are here to guide you through the tumultuous terrain of 2023, helping you make the most of the opportunities presented by industry evolution. Contact us to schedule a free consultation.