Author: Ben Selwyn | Posted On: 17 Jun 2024
As we prepare to release the 2024 edition of our Corporate Fleet Insights Report, we are excited to share a sneak preview of the high-level themes that are shaping the landscape of corporate fleet management in Australia. This year’s report, again run in partnership with the Australasian Fleet Managers Association (AfMA), offers a comprehensive view of the current state of corporate fleets, highlighting key trends, challenges, and opportunities for fleet operators and service providers.
market size
The Corporate fleet market, (20+ vehicle fleets), comprises approximately 23,000 businesses operating 2.4 million vehicles. Looking ahead, the growth rate for larger fleets, with 250+ vehicles, is expected to taper off, reflecting increased pressure on fleet managers to maximise asset utilisation. In contrast, more smaller fleets, with 20-49 vehicles, anticipate growth, likely driven by underlying business expansion.
safety and compliance
In 2024, regulatory compliance has emerged as a top priority for fleet managers, reflecting a heightened focus on Chain of Responsibility (CoR) and other regulatory requirements. While business efficiency and cost reduction remain critical, there is a noticeably larger focus on ensuring compliance and enhancing safety standards. Larger fleets, in particular, are prioritising vehicle and driver safety, reducing their environmental footprint, and improving service delivery to end customers.
This sees many fleets implementing vehicle safety checks, driver training programmes, and advanced monitoring systems. Larger fleets are particularly proactive in adopting safety technologies and training initiatives to mitigate risks and ensure the well-being of their drivers. ANCAP safety ratings also play an important role in vehicle selection, providing a clear framework that helps fleets adhere to strict safety standards and policies.
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Technology and Data Usage
The adoption of data analytics and Business Intelligence (BI) tools is also increasing among fleet managers, driven by the need to manage costs, safety, and risk more effectively. Larger fleets are leading the way in leveraging these technologies, using them extensively for cost management, safety, and risk management, along with vehicle performance analysis. Challenges do however remain, especially for smaller fleets that struggle to translate data insights into actionable strategies. While larger fleets are better served on the interpretation side, they face issues around data quality and integration, highlighting the need for better tools and skilled technical personnel.
Looking ahead, fleet managers are committed to increasing their investment in data analytics over the next 12 months, with 72% of larger fleets expecting to enhance their data capabilities. This trend underscores the growing recognition of the value that advanced analytics can bring to fleet management, from optimising operations to improving safety and compliance.
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fleet electrification
Alongside these significant technological changes, the transition to electric and hybrid vehicles is also gaining momentum, with a noticeable increase in the adoption of these technologies among larger fleets. More than two in five corporate fleets already have hybrids, while one in five are now operating EVs. However, challenges such as infrastructure, vehicle availability, and cost continue to hinder widespread adoption. Despite this, many fleets are laying the groundwork for electrification by identifying charging infrastructure needs, engaging with stakeholders, and training drivers.
impact of global vehicle shortages
Global vehicle supply shortages have significantly impacted corporate fleets, particularly larger ones, with 46% saying they have been impacted a great deal. Many fleets are extending the life of existing vehicles, increasing maintenance investments, and adopting strategic order planning to navigate these challenges. The shortages have prompted fleets to explore alternative vehicle makes and models and even consider second-hand purchases to meet their needs.
conclusion
The 2024 Corporate Fleet Insights Report provides invaluable insights into the evolving landscape of fleet management in Australia. As fleet operators navigate regulatory compliance, technology adoption, safety, and electrification, they face both challenges and opportunities.
This report serves as a critical resource for providers looking to tailor their offerings to meet the unique needs and expectations of corporate fleets. Stay tuned for the full report release later this month, offering detailed analysis and actionable recommendations for all stakeholders in the fleet management sector.
For more information and to discuss purchasing the Corporate Fleet Insights report, please contact us
Posted in Auto & Mobility, B2B, QN, TL, Transport & Industrial, Uncategorized