Moving in a A New Direction
The way we move around the world is changing. After decades of being the default mode of travel for modern society the role of the car is being re-examined. The key drivers for this are sustainability, safety and efficiency. Governments, businesses and private individuals are realising that a vehicle in every driveway just isn’t sustainable, especially when the typical car spends 90% of its lifetime parked. In the place of private vehicles come shared systems. This is a trend already visible in the public transport sphere. The more reliable and accessible shared transport is, the less people need their own full time solution. For example, Greater London has an average of 0.8 cars per household thanks to 402km of rails connecting the city underground. In Greater Manchester, however, there are 1.3 cars per household, due to only 93km of urban rail.
The New Fleet
While the public looks to shared mobility to get where they need to go, businesses are increasingly choosing to create their own systems in order to optimise efficiency, maintain control and incentivise employees. Today, nearly two out of three new cars are sold to the corporate channel. The majority are registered as part of corporate car pools or corporate fleets, also known as “true fleet”. As businesses increase their investment in fleets, there is also a shift towards increased flexibility, with more companies buying full-service leasing contracts instead of vehicles to reduce their fixed assets and offset risk.
Opportunities in Growth
The global fleet management market is expected to reach $34,629 million by 2022, from $7,755 million in 2015, growing at a rate of 24.5% from 2016 to 2022. This boom is especially strong in Europe, where tax structures incentivise the provision of company cars as benefits in kind, making it the largest market for fleet management globally and also the most advanced. Meanwhile, the UK fleet sector has seen a 42% increase in volumes over the past decade. However, while fleets remain an essential business asset, the makeup and management of those fleets is evolving rapidly.
Future-proof your FleetGet the inside view on how the market is evolving, the impact of technology and how auto finance firms can adapt in our new guide: The Data-Driven Journey: How Technology is Transforming Fleet Management.
In this guide you'll learn:
- How new vehicle technology is affecting fleet strategies
- Why data is now an essential part of customer relationships
- How to increase efficiency and effectiveness in your fleet management workflow