Reduce Energy, Maintenance, and Operational Costs for Vehicle Fleets with the Internet of Vehicles
The Internet of Vehicles, often abbreviated IoV, is a network of vehicles that can collect and analyze data to make driving safer and more efficient, while also streamlining fleet management. IoV solutions can be used to detect roadblocks, heavy traffic, and busy intersections and roundabouts, and adjust routes in real time. They also employ sensors installed on vehicles that actively monitor the surrounding traffic. By combining all these data inputs, IoV provides commercial fleet operators with enhanced visibility of the situation on the ground so that they can make the best scheduling and dispatching decisions. By embracing IoV, fleet managers can achieve lower fuel and operational costs, and research has shown that companies that implement AI-powered fleet tracking tools report fewer safety incidents as well.
Globally, there are already over 200 million connected cars on the road, and it is predicted that by 2023 over 70 percent of light-duty vehicles will be connected to the internet. As the number of IoV-ready vehicles continues to grow, the network effect will exponentially increase the efficiency and safety benefits to each user. But even now, adopters of IoV for their fleets are already seeing clear advantages. For instance, one survey showed that 32% of fleet operators who adopted GPS tracking saw a full return on investment in less than 6 months. In other words, IoV pays for itself in just half a year, and the returns on that investment will continue to increase as IoV solutions proliferate.
How does the Internet of Vehicles deliver these benefits? One of the most powerful technologies is Cellular Vehicle-to-Everything, or C-V2X. Study results show that C-V2X can boost traffic safety and improve mobility by reducing unnecessary stops at intersections. This is great news for fleet operators, because less time stuck at red lights translates directly into fewer labor hours and lower fuel costs. C-V2X is also extremely effective at reducing the risk of crashes and their associated injuries and costs. In situations with dense traffic, having a mere 5% of vehicles connected to a C-V2X network can lower the risk of secondary crashes by 10% or more. In fact, a U.S. NHTSA study estimated that vehicle-to-vehicle communication could reduce traffic incidents in the United States by 439,000 crashes per year.
The Internet of Vehicles also boosts the bottom line by keeping managers abreast of the condition and performance of their fleets and drivers. Every year, the average long-haul truck spends 1,800 hours idling, and it is estimated that over 800 million gallons of diesel fuel are wasted by idling trucks in the United States alone. Fortunately, making big cuts to this waste is easy. In 2020, fleet operators who implemented IoV technology were able to cut fuel costs by an average of 8%. Furthermore, by taking the next step and employing AI route optimization, innovative fleet managers have reported savings in fuel costs of up to 30%. And these benefits don’t only apply to diesel trucks – research has also indicated that similar benefits can be seen in battery-powered vehicles in the form of increased efficiency and reduced outlays on electricity.
What about smaller vehicles such as delivery motorcycles? Although they don’t guzzle gas like their bigger brothers, delivery bikes and scooters still have fuel and maintenance costs that add up. That’s why, regardless of whether they’re powered by gas or electricity, scooters and motorbikes can also reap the benefits of IoV technology. One company in California that produces IoV-connected bikes and scooters reported 50% faster response times to breakdowns and mechanical issues, and a 25% drop in total requests for support. By reducing the need for repairs and improving the speed at which support is delivered, this company has been able to keep more bikes on the road and ensure that the labor hours they pay for are more productive.
As the data above shows, there’s never been a better time to invest in IoV technology. Public entities around the world have already realized this, and it’s been forecast that this year, local and national governments globally will spend over 150 billion dollars on smart-city initiatives. And in China, which is often ahead of the curve in AI, nine in ten drivers are already using connected-car features to streamline their daily commutes.
Connected cars are safer, more economically sound, and friendlier towards the environment. They help drivers navigate busy cities and avoid traffic jams. And by communicating with each other, connected cars can even alleviate traffic congestion on a city-wide scale. Moreover, connected-car technology facilitates better diagnostics, maintenance, and fleet management. By embracing the Internet of Vehicles today, you’ll be tapping into an investment that recoups its upfront cost very quickly and continues to pay dividends over the long term. As it turns out, when it comes to fleet management, there are few choices smarter than smart cars.