Improved Operational Costs of Trucking
In their 2022 report “An Analysis of the Operational Costs of Trucking,” The American Transportation Research Institute (ATRI) stated that average costs per mile for trucking have been on the rise. These rising costs could likely harm the industry. Interestingly, with robust fleet management solutions on the rise, 2023 could actually see a decrease in trucking costs.
The ATRI found that an increase in drivers’ salaries, maintenance costs, and most influentially, fuel prices were the main contributors to recent spikes in operational costs in trucking. They also ascertained that smaller fleets (100 vehicles or less) ended up being more expensive to manage than large and medium fleets.
So why would 2023 see improved operational costs? The top fleet management solutions will optimize everything from the number of vehicles in a fleet to choosing the best routes to get the best mileage and reduce fuel costs. Investment in fleet management solutions and software will see a reduction in operational costs for trucking, in the upcoming year and beyond.
Vehicle-as-a-Platform
Digital elements in vehicles may have once been considered luxurious add-ons and even gimmicks. However, in 2023, the quality of vehicles is likely to be measured by what digital services they offer. It’s time to start viewing vehicles as platforms for a multitude of digital products and services.
From a design and manufacturing point of view, vehicles are increasingly being looked at as digital entities. The modern architecture of a vehicle will allow for the integration of a plethora of digital services that may range from multimedia entertainment, navigation aid, traffic updates, and self-driving options.
Viewing vehicles as development platforms inherently means that they are no limitations. Like a computer, phone, and other connected digital devices, vehicle software and services can be integrated, activated, and updated from a centralized console. This upcoming year will likely see vehicle-as-a-platform turn into a more common business model, perhaps even the norm.
Internet of Vehicles (IoV)
A million lines of code power the Hubble Space Telescope. 10 million lines power an F-35 fighter jet. 50 million lines power all of Facebook. Scroll, scroll, and scroll further down the list to find the modern car, which requires more than 100 million lines of code. That’s the complexity of internet-of-vehicles or IoV. And IoV is all set to become one of 2023’s top trends.
McKinsey, in their 2021 report “The Internet of Things: Catching up to an accelerating opportunity“, states that, by 2030, Internet-of-Things could bring a value of up to $12.6 trillion globally. In the same report, they mention “vehicles” as being the sector that will see high economic value from the IoT phenomenon. IoV could see $620 billion in total value by 2030.
IoV is a trend that will influence both manufacturers and consumers. The consumers of IoV will include everyone from the average citizen to widescale industrial companies. The benefits of IoV transportation include sustainability, safety, and industrial success. They also future-proof companies by being able to stay one step ahead of ever-evolving consumer expectations.
