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Fleet management system

Operators in a control room in Lebanon monitoring a public transport fleet in real-time.

A fleet management system (FMS) is an integrated technology solution that combines hardware and software to allow businesses to manage, organize, and coordinate their commercial vehicles from a central hub. It is an application of the Internet of Things (IoT) and a component of fleet digitalization.[1] The number of actively managed vehicles globally is projected to exceed 180 million by 2028.[2] The installed base of active systems shows a wide regional distribution, with millions of units in Europe, North America, Latin America, and Southeast Asia.[3][4][5]

While a fleet telematics system is often a core component, an FMS integrates a wide range of data from in-vehicle hardware to manage the entire lifecycle of a fleet's assets and operations, from commercial logistics to humanitarian aid.[6] The goal of an FMS is to improve efficiency, reduce costs, enhance safety, and ensure regulatory compliance. The system combines vehicle location data with other business information, providing a wide range of management tools.[7]

Core components and functionality

A modern FMS consists of two interconnected parts: in-vehicle hardware that collects data, and a software platform that processes and displays it. The features of the system are enabled by the interaction between these two components.

Hardware (in-vehicle)

The foundation of an FMS is the hardware installed in each vehicle. This can be an aftermarket GPS tracking unit from a specialized manufacturer such as CalAmp, or a factory-installed OEM telematic control unit.[8] This device is responsible for collecting real-time location, speed, and status information for vehicle and asset tracking, a process known as track and trace. It also connects to the engine to gather diagnostic data for maintenance scheduling and to fuel management. Advanced hardware may also include a dashcam for video telematics to monitor driver safety.

Software (the management platform)

The software is the central hub where all the data from the hardware is sent. It provides tools for locating vehicles, for dispatching and route optimization, generating reports for compliance (such as hours-of-service logs), and providing dashboards to track key performance indicators (KPIs). Providers in this space offer comprehensive platforms that bundle hardware and software, such as CalAmp and Geotab, or offer hardware-agnostic software, such as Gurtam.[9][10]

See also

Fleet digitalization Telematic control unit Telematics

References

  1. ^ Smirnov, A.; Ponomarev, A.; Levashova, T. (2019). "IoT in Fleet Management". ALIOT: A Multi-Disciplinary Perspective on the Internet of Things (PDF). Springer. p. 235.
  2. ^ "Commercial Fleet Telematics Global Study" (pdf). PTOLEMUS Consulting Group. July 2024. Retrieved September 23, 2025.
  3. ^ "Berg Insight: European Fleet Management Systems to Reach 27.6 Million Units by 2028". The Fast Mode. September 17, 2024. Retrieved September 23, 2025.
  4. ^ "The installed base of fleet management systems in Latin America will reach 16.6 million units by 2029". Berg Insight. September 10, 2024. Retrieved September 23, 2025.
  5. ^ "The installed base of fleet management systems in Southeast Asia to reach 5.4 million units by 2028". Berg Insight. August 27, 2024. Retrieved September 23, 2025.
  6. ^ "Fleet Management in the Humanitarian Sector" (pdf). Fleet Forum. Retrieved September 23, 2025.
  7. ^ "The Fleet Owner's Guide To A Future-Ready Tech Stack: Tools To Boost Growth And Efficiency In Transportation". Forbes. January 13, 2025. Retrieved September 23, 2025.
  8. ^ "CalAmp expands supply chain and logistics portfolio". TruckingInfo. October 26, 2021. Retrieved September 23, 2025.
  9. ^ "Geotab, Samsara, and PowerFleet Take the Top Spots in ABI Research's Commercial Telematics Competitive Ranking". ABI Research. August 25, 2023. Retrieved September 23, 2025.
  10. ^ Global Fleet Management Market (pdf) (Report). Berg Insight. March 22, 2024. Retrieved September 23, 2025.
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