Use of telematics in fleets to exceed 30 per cent by 2019

The integration of telematics into fleet software is expected to be adopted by more than 30 per cent of service fleets across the globe, according to Allied Business Intelligence (ABI) Research.

Released on February 20, the Commercial Telematics in Service and Utilities Fleets: 2014 First Quarter Report found service companies are looking to preserve already-thin profit margins by deploying more sophisticated telematics solutions and fleet management software.

"Key solutions deployed by service companies are typically fleet management solutions, with driver behaviour as an important add-on coupled with a mobile workforce management solution," ABI Research Principal Analyst Gareth Owen explained.

"These are available in varying levels of complexity and are becoming increasingly sophisticated with most telematics service providers offering these solutions in partnerships with specialist software companies."

Other solutions included in telematics software include vehicle diagnostics and service maintenance solutions.

The ABI report revealed service companies and fleet managers have embraced telematics at an increasing rate in an effort to combat the rising costs associated with complex regulations and compliance demands in addition to rising fuel consumption costs and access to only limited resources.

An increased demand for fleet management solutions has also risen due to the growing trend of mobile workers. Companies are often required to provide accurate logs to demonstrate these staff are not being forced to engage in risky working practices in order to meet performance targets.

ABI Research expects the number of service vehicles equipped with telematics-based fleet software will increase to around 25 million vehicles globally by the end of 2019 - representing an adoption rate exceeding 30 per cent.

Mr Owen claims many companies currently rely on manual scheduling and management reporting, which create a significant dependency of paper records and results in a limited "potential for strategic business improvement".

"A state-of-the-art mobile workforce management system can monitor all workers in real-time and help a company manage its operations dynamically, ensuring compliance with rules and regulations as well as providing managers with important metrics on every worker and vehicle," he said.