How is IoT Revolutionizing Fleet Management

Author: Nishanth PK
December 30, 2022
How is IoT Revolutionizing Fleet Management


Fleet management is something that has a history going back to the late 1950s. And ever since then, the way it was managed and the responsibilities of the fleet managers have changed drastically…especially with the rise of digital transformation.

Using emerging technologies like IoT and AI, fleet management has risen to a whole new level to manage, track, and monitor the entire fleet operation.

According to a research conducted by Zion Market Research, the estimated market revenue growth of IoT fleet management is estimated to be around $15,500 million by 2024.

But how did digital transformation, or IoT in specific, revolutionise the entire fleet management operation?

Let’s discuss this in detail.

What is the role of IoT in Fleet Management?

Fleet management, in general, has to do everything with what’s needed to keep the fleet running efficiently, working on time and keeping within budget.

And by integrating digital technologies like IoT into the mix, fleet owners/managers will be able to get real-time data on what’s happening with their fleet, the behaviour of their drivers, cargo management and more.

How? IoT-enabled sensors have in-built processor capabilities to provide a network connection between the vehicle, the cloud and the fleet manager/owner.

Benefits of having IoT in Fleet Management

Cost reduction

By acquiring data, the fleet managers/owners will be able to preemptively repair, fix, or replace parts of the vehicle before a journey to avoid any unprecedented problems on the road.

Accessing the location and GPS, these Integrated IoT sensors can find the best route to take, helping you save time, fuel, and money. Also, by ensuring minimal waste, a business can save a considerable amount of revenue and capital.

Enhanced security

IoT sensors for fleet management allow complete visibility in and around the vehicle. This way, as a fleet manager/owner, you can ensure the cargo is being safely handled and loaded. And also, you get to know the whereabouts of the driver and the vehicle all the time.

The sensors will notify everything in detail, especially when something goes out of the normal. For example, an unexpected breakdown or theft attempt. In the event of either of the mentioned examples, these sensors will contact the nearest towing company or call the authorities respectively.

Increased sustainability

With the benefit of IoT-based predictive maintenance for fleet management, you can efficiently manage fuel usage, undertake necessary maintenance, select the shortest and fastest route, and more, keeping the vehicle in good condition at all times.

A vehicle in good condition means longevity or durability.

Improved manageability

We have already talked about how easy it has become for managers/owners to take control of their fleet operations. With IoT-enabled sensors in place, one can monitor their drivers, fleet, location, vehicle health, and so on.

Additionally, the managers will also be able to monitor and track the commuter count, and maintain surveillance and ticketing.

So, how is IoT revolutionizing Fleet Management?

1. Environmental-friendly operations

It’s no secret that our climate is changing at a rapid rate. And moreover, one of the main reasons for this is the carbon footprint of vehicles. And with IoT integrated into the fleet operation, you will be able to reduce the same.

Cool, right?

How? With IoT, you can

  • Avoid unnecessary idling by selecting the optimal route

  • Reduce fuel consumption

  • Keep the engine and everything clean and crisp, and manage the amount of carbon dioxide emitted.

2. Preventive maintenance

This is again something we talked about earlier in this blog.

By getting real-time data, you can pinpoint and identify the health of your vehicle and work accordingly to repair/fix or maybe replace parts before starting a journey.

With preventative maintenance, you will get an idea of

  • Whether the battery needed charging

  • The coolant level in the engine

  • Whether the vehicle needs an oil change or not

  • And many more.

The baseline is that you will be able to ensure that your vehicle is working at an optimal condition and therefore avoid plausible breakdowns or accidents.

Also, take a look at the difference between predictive maintenance and preventive maintenance.

3. Engine performance

The engine, as you know, is the most crucial part of the vehicle. So it is only logical to keep it in good shape. And we have already discussed how preventive maintenance helps identify the parts to be maintained.

So, by using remote engine monitoring and diagnostics, which is an integral part of IoT-enables sensors, you will have to track down the critical engine parameters.

Analyze these parameters and use the diagnostic feature to understand the real problem behind the vehicle [engine]. Once found, you will be able to rectify the risen problems and improve the fleet performance.

4. Improved fuel efficiency

What do you think is the main reason for the fuel efficiency?

Have an idea?

It’s actually the driving behavior. The unnecessary idling, acceleration, and deceleration can severely affect fuel consumption and, thereby, fuel efficiency.

So, what can you do here? You will have access to data on the driving behaviors of all your drivers, and you can talk with them and work together forward to improve their driving behavior.

Moreover, this unnecessary acceleration and deceleration can result in wear-and-tear of your vehicle parts like tires, braking shoes, clutchplate, and so on. This indirectly will affect the overall cost and performance of your fleet operation too.

5. Automation

I know we talked about preventive maintenance and how it can avoid plausible breakdowns or accidents. But you also have to consider the fact an accident or breakdown can still occur, and it doesn’t have to be the problem of your vehicle or driver.

That being said, in the event of a breakdown, IoT sensors in fleet management will generate and send automated messages to the nearest towing company, and correspondingly send another message to the manager/owner to take the necessary further steps.

Also, in the event of harsh weather conditions or heavy traffic, these sensors will assess the condition, plan and re-route the vehicles, and avoid possible downtime during the journey.

Other common use cases of IoT Fleet Management

  • Asset and cargo management

  • Passenger counting, ticketing and seating

  • Risk management

  • Waste reduction

  • Road asset management

  • Work zone analytics


What we have discussed here is just the tip of an iceberg.

The digital era has just started and there is still room for innovation. And if you haven’t given thought of implementing such methods in place for your fleet operations, then it’s high time you start.

IoT in fleet management can surely help facilitate running fleet operations. And if you are looking for a technical partner to help you with the technical side, we are always ready.

Get in touch with our technical team for a free consultation and discuss your idea.