From the vehicle itself, to the cargo inside, and the driver who delivers it, there are limitless applications for IoT in transportation. Some are already realized, but most have yet to be dreamed up as products of the fleet management transformation we're witnessing today.
There are many factors to consider before implementing your Fleet Management strategy. In this blog, I will discuss the fleet management market, the demands for infrastructure, government regulations, IoT security and more.
First, a little context.
The global IoT fleet management market size has been valued at $3,501.0 million in 2016. It is divided into commercial and passenger vehicle segments, where commercial vehicles are by far the most transformative segment with regards to IoT revenue. But it isn't just about connectivity with our phones, tablets, and other smart devices. Vehicle safety and operational efficiencies like remote diagnostics and vehicle tracking and monitoring are major drivers of this market's growth.
Fleet managers have their eyes on the many facets of the IoT/Fleet Management revolution:
Demands of Infrastructure
Matured infrastructure and stable, widespread connectivity are IoT requirements. That comes at an extremely high cost, meaning we're primarily seeing big players that are willing and able to fork over the capital to implement IoT on a large scale.
It's a Catch 22, really: Because of the operational efficiencies gained, at-scale is the best way to implement IoT in something like fleet management (go big or go home, as they say). But this puts the whole system at higher risk for being a breach target, and, if things go really poorly, a huge risk to business.
More on that in a bit.
IoT Doesn’t Come Cheap
IoT applied to high-value consumer products like vehicles must be done reliably, safely, and with the best user experience possible.
Intelligence in our cars, tractors, and trucks is changing the face of fleet management for the better. Most businesses guiding the shift are not prepared to take on such implementations by themselves. They should seek managed service experts in the IoT space to technically and physically deploy devices, court carrier deals, manage and track each device, monitor for data breaches, and handle customers.
Government Regulation and Initiatives Around Intelligent Transportation Systems
Ready or not, IoT is in every fleet's future.
The European Commission made it mandatory beginning in April 2018 for OEMs to build e-call technology in all vehicles sold. Domestically, the Federal Motor Carrier Safety Administration’s (FMCSA) declared the electronic logging device (ELD) Mandate, requiring commercial drivers to employ an ELD to keep a Record of Duty Status (RODS).
Fuel management reduces cost over time. For commercial fleets, there's money to be saved around shorter vehicle downtimes. This is where intelligent features such as predictive maintenance come in (this is the highest predicted CAGR between 2017 and 2025).
And finally …
While IoT devices increase the physical safety of the passengers and cargo inside and around the vehicle, it simultaneously opens them up to a different kind of danger: A data security breach.
Security is perhaps the least discussed aspect of IoT and fleet management, and that, my friends, is crazy. A breach can be devastating to a person's or a business's digital, financial, or physical well-being. And the threat of breach is real. Look at the Google "IoT data breach" and you'll see this demonstrated time and again.
The fleet management market was among the first to adopt IoT and roll with it (see what I did there?). Wireless Analytics can partner with you and your team to provide the right strategy and solution that fits your needs to bring your Fleet Management product to market, or help you identify which Fleet Management solution would be the best fit based upon your business’s needs. Contact us today to get started!