Increased adoption of mobile technologies by fleet management companies is driving up demand for their services globally.
Consequently the global Internet of Things (IoT) fleet management market is expected hit over $15 million in value by 2025, from just over $3 million last year.
A recent report by Transparency Market Research shows that demand for this market is expected to grow by 20 per cent every year between 2017 and 2025, boosted largely by increased popularity of smartphones and the need to optimise processes.
The proliferation of mobile devices and the advent of IoT has enabled firms to integrate, track and monitor fuel management and remote diagnostic processes.
The IoT is basically a network comprised of several smart devices including sensors mobile devices and cameras that use wireless technology to gather and share electronic information.
The report further notes that incorporating IoT in fleet management helps to manage labour costs, improve fleet maintenance procedures, increases response times and enhances customer satisfaction.
North America remains the most lucrative region for IoT fleet management market players with a number of original equipment manufacturers such as Daimler and Volvo trucks are already offering telecommunication and informatics (telematics) solutions.
Telematics solutions help facilitate data transmission in real time, and made easier by the advancements in mobile technology and the increased penetration of smartphones.
"Mobile technology has evolved tremendously in ways which benefit businesses and their fleet. With smartphones or tablets, companies can employ active fleet monitoring without the need to buy additional equipment. This helps them to make significant savings and meaningful decisions on their businesses," said Safetrac Ltd general manager Ruth Kang'ong'oi.
According to the Future of IoT in Enterprise 2017 report, while many global transport businesses expect IoT to revolutionise the industry, many organisations lack the skills and data-sharing processes required to generate maximum value from data generated by IoT solutions.