Increasing Significance of Human Resources, Telematics Use Discrepancy Spotted in Latest Arval Indicator
The Arval Mobility Observatory's annual Barometer provides a comprehensive overview of the current state and future prospects of the fleet and mobility ecosystem. This year's edition, surveying more than 8,000 fleet decision makers across 30 countries, offers valuable insights into the shifting trends shaping the industry.
One of the most significant findings is the projected growth in fleet size, primarily driven by business development. As many as 75% of companies worldwide already offer at least one mobility solution, with the trend now being spearheaded by mid-sized companies.
Mobility solutions are increasingly being used for HR-related needs such as attracting and retaining talent. Talent retention is becoming more important in the fleet industry, with HR considerations growing in importance.
The current global trend in telematics data usage by fleets involves increasingly integrated, real-time monitoring of vehicle location, performance, fuel consumption, driver behavior, and compliance metrics to optimize fleet efficiency, safety, and cost management. Fleets are leveraging telematics not only for operational insights but also for regulatory compliance, predictive maintenance, and risk reduction.
Over the next three years, the automotive telematics market is projected to grow significantly, with revenues expected to rise from about USD 10 billion in 2025 to nearly USD 17 billion by 2032, reflecting a CAGR of 7.6%. Key drivers include wider adoption by logistics, transportation, and commercial fleets, the rise of electric and autonomous vehicles, increasing integration of telematics with IoT, AI, and machine learning, expansion of cloud computing and over-the-air (OTA) updates, and growing demand for real-time compliance tracking.
Emerging fleet management solutions also emphasize cost reduction, operational efficiency, driver safety, and sustainability, supported by telematics data that enables better route optimization, fuel management, maintenance alerts, and driver behavior monitoring. This trend toward holistic, data-driven fleet management with integrated telematics seems set to deepen, fueled by technological innovation and tightening regulations worldwide.
Another key trend is the increasing adoption of electric vehicles (EVs) by fleets. Europe is firmly ahead of the global figures in fleet electrification, with 77% of companies implementing or considering alternative fuel technologies over the next three years. As of now, 20% of companies surveyed have at least one BEV in their fleet, with an additional 16% considering adopting one or more full-electrics over the next three years. However, a slowdown in the increase of EV adoption from 2023 to 2024 is related to high EV prices and the perceived lack of charging infrastructure.
In response, the demand for charging at the office or at employees' homes is increasing as more companies investigate adopting EVs. Company subsidies for home charging installations are on the rise, from 16% in 2023 to 20% in 2024.
Full-service leasing is also gaining popularity as a means to de-risk fleet operations and free up capital for core activities. As many as 36% of companies consider introducing or increasing full-service leasing in the next three years.
Despite the focus on new technologies, second-hand vehicles continue to play a role in many fleets, with 43% of companies globally having some second-hand vehicles in their fleet.
In conclusion, the global fleet industry is undergoing a transformation, with a shift towards integrated, AI-powered, compliance-integrated platforms, and a growing emphasis on electrification. The market growth in telematics and EV adoption is expected to continue through at least 2028, driven by technological innovation and regulatory requirements.
- Commercial vehicle fleets are showcasing an inclination towards light commercial vehicles (LCV) and fleet electrification, with 75% of companies incorporating mobility solutions, primarily mid-sized businesses.
- Telematics, a significant aspect in fleet management, is witnessing increased real-time monitoring, used not only for operational insights but also for regulatory compliance, predictive maintenance, and risk reduction.
- From 2025 to 2032, the automotive telematics market is predicted to grow significantly, leveraging factors such as the rise of electric and autonomous vehicles, the integration of telematics with IoT, AI, and machine learning.-Europe leads the way in fleet electrification, with 77% of companies implementing or considering alternative fuel technologies. As a response, companies are increasingly prioritizing charging at the office or employees' homes to accommodate electric vehicles (EV) adoption.
