AI Leads the Future of the Fleet Management Evolution

In recent years, fleet managers have found themselves at a crossroads, weighing the relative importance of artificial intelligence (AI) and electric vehicles (EVs) in shaping the future of their industry. 

While both technologies are considered crucial, recent data suggests AI has emerged as the frontrunner in perceived importance among fleet managers.

A study conducted by Webfleet in May 2024 revealed that 32% of fleet managers believe AI and machine learning will significantly impact fleet operations in the coming years. It narrowly surpasses the 30% who cited EVs as the primary game-changer.

 The slight preference for AI is attributed to its potential to optimise logistics, reduce costs and enhance safety across fleet operations.

The adoption of both technologies is well under way in the industry. Currently, 23% of fleet managers are utilising AI in their operations, with 35% planning to implement it within the next five years. 

Concurrently, the EV revolution is gaining momentum, with 85% of fleet managers anticipating changes in their vehicle mix over the same period.

Jan-Maarten de Vries, President of Fleet Management Solutions at Bridgestone Mobility Solutions, emphasises the importance of this shift, stating: "The move towards digital solutions, including AI, is a clear indication of where the future of fleet management is heading."

The industry anticipates AI will significantly enhance predictive maintenance, helping reduce vehicle downtime and operational costs.

On the EV front, fleet managers predict a substantial increase in the proportion of electric and hybrid vehicles in their fleets by the decade's end. This surge highlights the industry's push towards sustainability and reduced emissions.

Despite the promising outlook, challenges remain. Data security is a primary concern, with many fleet managers worried about AI's impact on data breaches. Additionally, the transition to electric fleets requires significant investment in charging infrastructure and companies must navigate evolving emissions and data privacy regulations.

Despite the challenges, the future of fleet management remains promising and bright.

According to Technavio, the global fleet management market is projected to reach US$75.5bn by 2028, growing at an annual rate of almost 20% from 2023 to 2028. 

The need for efficiency, sustainability and the integration of advanced technologies drives this trajectory.

The transformative role of fleet management

Henrik Holland is Global Head of Mobility at Prologis, a position he has held since 2021. His career path leading to this role is marked by significant experience in the energy and mobility sectors.

Before joining Prologis, Henrik served as Chief Operating Officer at Shell Greenlots, where he was responsible for overseeing operations, project engineering, delivery and end-to-end customer support. His tenure at Shell included leading the Electric Mobility Corporate Development efforts for Shell New Energies, culminating in the acquisition of Greenlots.

Henrik's innovative spirit was evident in the founding of Shell's Connected Energy group. In this role, he led business development and product strategy, successfully building a pipeline of over 100 MW of customer-sited distributed energy projects. His 18-year career at Shell encompassed various commercial and operational roles, contributing to his extensive energy solutions and mobility expertise.

Throughout his career, Henrik has maintained a passionate commitment to renewable energy and the energy transition. This dedication aligns well with his current role at Prologis, a global leader in logistics real estate.

Prologis boasts an impressive portfolio, managing in excess of 1.2 billion square feet (115 million square metres) across around 20 countries. The company oversees more than 1,100 buildings in Europe alone, totalling 245 million square feet (nearly 23 million square metres).

In his role, Henrik leads Prologis' strategic initiatives in the rapidly-evolving mobility industry, focusing on EV charging solutions. 

By design, the solutions cater to the needs of Prologis' diverse customer base, including industries such as e-commerce, transportation, third-party logistics and retail. They include implementing EV charging infrastructure at various locations, including depots, workplaces and charging hubs.

Henrik emphasises the versatility of their EV solutions, stating: "We can implement our EV solutions at Prologis locations and non-Prologis sites." 

This approach demonstrates Prologis' commitment to expanding its impact beyond its own property portfolio and contributing to the broader adoption of EV infrastructure.

AI's fleet management evolution

Henrik outlines: "AI plays a transformative role in fleet management by optimising routes, predicting vehicle maintenance needs, reducing downtime and enhancing real-time decision-making." 

He predicts that AI's impact will grow significantly over the next five years, particularly in driver behaviour analysis and operational efficiency.

"AI's ability to analyse driver behaviour, fuel consumption, travel times and route efficiency provides valuable insights that improve operational efficiency and reduce costs,” continues Henrik. “Moreover, it will advance predictive maintenance, making logistics operations more scalable."

Henrik also highlights the practical applications of AI in Prologis' operations: "Our fleet management software already leverages AI to provide our customers with tools to improve decision-making and reduce costs while enhancing operational efficiencies."

Hydrogen-Powered Fleets in Logistics Prologis is also exploring hydrogen as a sustainable solution for long-haul logistics. 

Henrik explains: "We’re actively exploring clean energy alternatives, including hydrogen, to meet our net-zero and our customers' sustainability targets, whether for use in hydrogen-powered trucks or through our OnDemand generation solutions, including linear generation."

Smart city integration with logistics networks

Henrik goes on to emphasise the importance of smart city technologies in logistics.

"The rapid pace of urbanisation is making smart city technologies necessary,” he adds. 

Henrik notes that integrating these technologies with logistics networks can "reduce urban congestion and improve supply chain resilience in densely populated areas”.

He highlights: “When it comes to EVs, this integration can reduce energy costs and the environmental footprint by optimising charging times."

Transformative fleet management trends

Henrik predicts: "The continuing rise of big data, particularly through telematics and AI, will be one of the key differentiators in fleet management over the next decade." 

He anticipates increased adoption of renewable energy sources, stating: "We anticipate increased adoption of renewable energy sources like hydrogen, biofuels and solar."

Prologis is focusing on fleet electrification and infrastructure development. 

Henrik notes: "We focus on fleet electrification and developing large-scale EV charging infrastructure to meet the growing demand for zero-emission vehicles." 

He adds: “As we scale up these efforts across thousands of facilities we own – and those we don't – our network's value will grow exponentially."

Aligning fleet management with emerging technologies and sustainability regulations

Prologis is adapting its strategies to align with emerging technologies and sustainability regulations. 

Henrik explains: "Prologis Mobility is adapting its fleet management strategies by continuing to integrate AI and data analytics into its systems to optimise routes, enhance predictive maintenance and improve fuel efficiency."

What’s more, the company is investing in renewable energy sources for charging infrastructure, including onsite solar and battery energy storage systems.

However, plenty of challenges remain. Henrik notes: "Access to low-cost, clean energy where and when fleets need it will continue to be a significant challenge." 

He suggests that continued investment in various technologies is necessary to address this challenge effectively.

The future of fleet management lies in the convergence of technologies, particularly AI and EVs. Industry experts suggest that these technologies are not mutually exclusive but complementary, with AI playing a crucial role in optimising EV fleet operations. 

The synergy extends to various aspects of fleet management, including optimising charging schedules and improving overall energy efficiency.

Fleet managers are increasingly recognising that integrating these technologies is the most effective approach to enhancing overall fleet performance and sustainability. By leveraging AI with EV fleets, companies can achieve greater operational efficiencies and meet sustainability goals more effectively.

Beverley Wise, Webfleet UKI Regional Director for Bridgestone Mobility Solutions, emphasises the importance of incorporating AI into EV fleet management. 

She states: “The adoption of AI in fleet management is set to become much more than just a technological upgrade. It will prove a strategic necessity as the business world enters a new data-driven era. 

“Our study has shown that many fleets recognise AI's transformative benefits, from cost reduction to improved safety. As the industry sets its sights on greater efficiency and sustainability, embracing AI will be crucial for those that hope to remain competitive."

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