Green fleet management is going wireless. Offering simple solutions for sustainability-targeted fleets, the "green" telematics market is expected to experience a nine-fold growth increase in the next five years, according to recent industry analysis.
A report by Frost & Sullivan released in February estimates European and North American fleet green telematics markets will likely rise from $80 million in 2008 to $700 million by 2015. Measuring a compound annual growth rate of 36 percent from 2008 to 2015, the expected market expansion is due primarily to "heightened pressure on fleet companies to reduce their carbon footprints and develop greener images," said Frost & Sullivan, a global consulting and market research and technology analysis firm.
The firm's analysis noted, "Fleet companies and consumers alike are increasingly warming to the service since a fuel cost reduction of 10 percent and an equal measure of CO2 reduction are possible through green telematics services offered as a dedicated product or an add-on service."
Frost & Sullivan reported fleet operators are becoming more aware of the benefits of green telematics; however, that recognition "has yet to reach levels necessary to facilitate wider adoption." Encouraging navigation manufacturers, insurance companies, telematics vendors, and fleet companies to raise awareness about green telematics systems, the Frost & Sullivan report recommends focusing "on it being a cost-effective and fuel-efficient method to decrease emissions."
Tracking & Monitoring Data
As the technology advances, its essential importance as a fleet "greening" tool becomes more significant. Whether cell phone-based or an in-vehicle unit, telematics' greatest value is the wireless transmission of data and information.
Most relevant to company and fleet sustainability programs is information that helps analyze fuel consumption and vehicle emissions - data that tracks and monitors driver behavior and vehicle location, performance, and maintenance.
A growing variety of green telematics packages are available through fleet management companies or as standalone services. Many offer real-time data reporting directly to a fleet manager's desk computer or smart phone. The efficiencies created and cost savings realized have provided positive returns on investment for many fleets, large and small.
Telematics-provided data also is essential in creating the green fleet program benchmarks so critical to successful sustainability efforts.
Baseline data establishes a measure by which progress can be evaluated.
Companies using telematics to green their fleets include Frito-Lay, Walmart, SC Johnson, Verizon, UPS, FedEx, and such vocational fleets as utilities, plumbers, landscapers, service business, etc.
