Fifth Quadrant is preparing to release its 2024 Corporate Fleet Insights Report and has shared a preview of the themes shaping corporate fleet management in Australia.
This year’s report, again run in partnership with the Australasian Fleet Managers Association (AfMA), offers a view of corporate fleets’ current state, highlighting key trends, challenges, and opportunities for fleet operators and service providers.
The corporate fleet market (20+ vehicle fleets) comprises approximately 23,000 businesses operating 2.4 million vehicles. The growth rate for larger fleets, with 250+ cars, is expected to taper off, reflecting increased pressure on fleet managers to maximise asset utilisation. In contrast, smaller fleets, with 20-49 vehicles, anticipate growth, likely driven by underlying business expansion.
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, prioritise vehicle and driver safety, reduce their environmental footprint, and improve service delivery to end customers.
Many fleets implement 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.
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.
However, Challenges remain, especially for smaller fleets that need help translating data insights into actionable strategies. While larger fleets are better served on the interpretation side, they face data quality and integration issues, 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 advanced analytics’s value to fleet management, from optimising operations to improving safety and compliance.
Alongside these significant technological changes, the transition to electric and hybrid vehicles is also gaining momentum, with a noticeable increase in adoption among larger fleets. Over two in five corporate fleets already have hybrids, while one in five are now operating EVs. However, infrastructure, vehicle availability, and cost hinder widespread adoption. Despite this, many fleets are laying the groundwork for electrification by identifying charging infrastructure needs, engaging with stakeholders, and training drivers.
Global vehicle supply shortages have significantly impacted corporate fleets, particularly larger ones, with 46% saying they have been substantially affected. 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.
The 2024 Corporate Fleet Insights Report provides invaluable insights into Australia’s evolving fleet management landscape. As fleet operators navigate regulatory compliance, technology adoption, safety, and electrification, they face challenges and opportunities.
This report is a critical resource for providers looking to tailor their offerings to meet corporate fleets’ unique needs and expectations.
For more information and to discuss purchasing the Corporate Fleet Insights report, https://www.fifthquadrant.com.au/contact
