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Over half of fleet managers do not believe governments will follow through with planned zero-emissions mandates, according to The Telematics Survey 2024 (TS24).
The survey showed that, despite two-thirds of global fleets currently operating PHEV, BEV or FCEV vehicles, switching to zero-emission fleets is still presenting a challenge. The frequency of emerging new technologies, high purchase cost of alternative energy vehicles and limited public charging points available were identified as the top obstacles for businesses on their way to decarbonization.
Fleet managers listed their top three expenses as unstable fuel costs, equipment/vehicle maintenance and purchasing new equipment/vehicles, and said that driver well-being and safety technology is the number one investment they are looking to make in 2024.
Taking data from more than 500 global fleet businesses, the annual report focuses on three key areas: sustainability, safety and efficiency.
Sustainability: Fleets still lack credible information sources as challenges remain
With more than half of fleets (65%) feeling environmental pressure to transition to alternative energy, many are operating a multi-energy fleet or are about to begin their transition while still experiencing a lack of awareness and readily available, trustworthy guidance.
Alain Samaha, global president and CEO of Teletrac Navman, which conducted the survey, commented, “Fleets of all sizes and scales are already planning and navigating their transition, but we know there simply isn’t enough credible information out there to help simplify what is a complex move for any business. Alternative energy is still such a new concept for many fleet operators and the process of switching can feel overwhelming.”
Ongoing cost pressures were also a barrier to EV transition for 72% of respondents, and over half (56%) do not believe the UK government will go ahead with their planned ban on fossil fuels. Similarly, 46% of respondents in the US said they were doubtful the government would go ahead with a ban, and an overwhelming majority (69%) of respondents in Australia and New Zealand expressed doubts.
Safety and well-being top business focus for 2024
Driver safety remains a top priority for fleets, with half of the businesses surveyed currently monitoring and measuring driver behavior and 30% of respondents planning to invest in driver well-being technology this year.
Over two-thirds of TS24 respondents (73%) have seen fewer accidents on the job since adopting telematics solutions, and 73% are actively rewarding drivers for better performance.
TS24 also found 71% of respondents have seen improved driver performance through driver rewards programs.
More than half of the businesses surveyed (62%) recognize the impact of the cost-of-living crisis on their drivers’ mental health, and Teletrac Navman has seen a 110% increase year-on-year in driver appreciation activities, a 54% increase in the adoption of reward programs, and a 52% increase in the promotion to senior driver.
“The last 12 months have come with their own set of challenges for fleets, and rising insurance and fuel costs have been a leading concern for operators globally,” explained Samaha. “This in turn has led to an even higher emphasis on safety, prompting operators to prioritize safe processes and behavior to manage costs effectively as well as look after staff well-being.”
Efficiency and streamlining
With the top costs for fleets listed as fuel, followed by equipment and vehicle maintenance and purchase, almost all TS24 respondents (96%) said they have made measurable savings by implementing telematics, across admin time savings, fuel savings and overall cost savings.
According to the industry-wide survey, asset visibility, meeting compliance regulations and more efficient routing and dispatching are the top three benefits operators have seen since implementing telematics solutions.
“Businesses are facing many different challenges now, with the ‘great resignation’ leading to the higher turnover of people and therefore the need for more frequent training and handovers. Furthermore, technological advancements may require deeper training, and the varying needs of different departments can result in underuse across the diverse features of platforms,” continued Samaha.
AI technology investment continues to grow, with 47% of TS24 respondents currently leveraging AI solutions.
“Businesses are slowly but surely embracing new technologies, and there is an anticipation of increased availability of advanced AI tech in the near future, enabling more sophisticated applications and vehicle and driver monitoring,” concluded Samaha.
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