Global transport is on the cusp of substantial changes driven by constant innovation in technology, the need to deliver more, a powerful surge in customer expectations, and pricing.
In New Zealand, the industry has seen a wide range of ups and downs during the past year, all of which influenced the survival of many businesses.
As fleet companies prepare for what’s ahead, here are a few key trends worth digging into to shift from survival to growth mode.
TELEMATICS CONTINUES TO REIGN
The global vehicle telematics market is projected to grow from $72.78 billion in 2022 to $213.67 billion by 2029.
Telematics is an important tool that businesses worldwide are looking to incorporate quickly and easily.
It allows companies to tap into a wealth of information and make the right decisions instantly.
In 2023, more companies are likely to make better use of real-time data and predictive intelligence to enhance their competitive edge, assist with seamless fleet management, and see an instant return on investment.
Thanks to increased visibility across your fleet, telematics helps streamline all areas of daily operations, from fuel management to asset utilisation and reduced accidents.
Every year, the technology within our industries expands and advances.
It’s predicted that there will be a stronger focus on data security, fleet management systems, and the shift of key fleet metrics to meaningful information like timing, driver behaviour, and annual cost.
SOARING FUEL COSTS
Fuel has always been one of fleet companies’ most significant expenses, and the cost pressures will only get worse.
In 2022, for 64% of the industry in New Zealand fuel accounted for more than a quarter of their operating costs.
As customers gain more market power, making it difficult for transport companies, especially small carriers, to pass along fuel costs, it’s vital to have a clearer picture of fuel consumption.
With the help of fleet technology, transport businesses can plan more efficient routes, avoid conditions that lead to excess engine idling, and ensure that invoices are backed up accurately by GPS waypoints – no more debating the bills.
SAFETY AND COMPLIANCE CONSIDERATIONS
New Zealand had one of its highest road death tolls in more than a decade in 2022.
It’s a timely reminder that safety and regulatory compliance have become a must.
It’s more important than ever to rely on advanced features to protect your drivers and other road users.
That’s especially so when many fleet companies turn to contractors amid ongoing driver shortages, and hiring, onboarding and safety training might be conducted remotely.
Whether they’re electronic logbooks, completing checklists of vehicle maintenance, improving your drivers’ knowledge of the road rules, gaining in-depth reports on training progress and results, ensuring your drivers have enough rest to avoid fatigue, monitoring safety and regulations will always be a trend.
GREATER ADOPTION OF ELECTRIC VEHICLES
Increasingly, consumers around the world do their part to go green, and New Zealand is no exception.
Since mid-2020, imports of reducedemission passenger vehicles have grown from 8.2% to 21%. And when it comes to greener vehicles, more New Zealand fleets are testing the EV waters to cut costs.
These days, many transport businesses find it easier to shift to EVs, as the price of EVs is finally coming down, while batteries are getting better and less expensive.
A greater environmental focus on fleet management is also an opportunity to gain a competitive advantage by improving sustainability profile.
RISE OF ARTIFICIAL INTELLIGENCE (AI)
AI-powered tech is changing the transport sector, as AI can analyse and interpret data instantly and learn over time to provide insights.
AI applications are having a profound impact, leveraging big data for improved safety and machine learning (ML) for greater efficiency.
Since February 2022, Auckland Transport has been using an AIassisted technology called the Intelligent Road Analyser to gather comprehensive data on kerbside space on Auckland’s roads.
Whether it’s traffic management, reducing fatalities, asset maintenance or optimising routes, the potential uses of AI in transport are expected to grow, continuing to drive additional disruption in the way businesses operate fleets and equipment.
By 2023, AI advances could add a whopping $13 trillion to global economic output.
On a much broader scale, AI and machine learning-based platforms can help solve a variety of problems impacting the transport sector, including safety, efficiency, and sustainability.
Though it might take some time before more AI is tested on New Zealand roads, making better use of existing technology is a great way to leverage your competitive advantage and future-proof your fleets.
*Michael Barnard is a transport solutions specialist at Teletrac Navman.
