Verizon Connect Fleet management 2025 outlook

While fleets will continue to face many of the same challenges in 2025 as in previous years, their approach to tackling these issues is evolving. The rise of emerging technologies, alongside the growth of the telematics data-sharing economy, is changing the landscape of fleet management. With these advancements, fleet managers are equipped with new tools and insights that help them optimize operations, reduce costs, and improve overall efficiency. As we look ahead to 2025, here are the key fleet management trends to watch, from GPS fleet tracking to AI-powered video telematics.

How fleet tracking technology eases the burden of high costs

Inflation has driven up fuel prices, maintenance costs, and labor expenses, putting a strain on fleet operations. Despite a slight slowdown in inflation, its effects persist as well. According to Verizon Connect’s 2025 Fleet Trends Report, 77% of fleet managers identified rising costs as their top concern. Similarly, the 2024 Analysis of Operational Costs of Trucking by the American Transportation Institute found a 6% increase in industry costs last year, showing that cost pressures remain a key issue.

The good news is that technologies like GPS fleet tracking are advancing rapidly, helping fleets reduce operational costs. GPS fleet tracking in particular has led to significant reductions: 16% in fuel costs, 22% in accident-related costs, and 16% in labor costs. These improvements offer relief amidst rising expenses, making fleet tracking a critical tool for fleet managers navigating economic challenges. Tracking vehicle movements, monitoring fuel consumption, and receiving real-time data enable managers to make data-driven decisions, impacting the bottom line and helping them stay competitive.

Managing a mixed fleet economy with fleet management platforms

The rise of electric vehicles (EVs) offers fleets benefits like reduced ownership costs, improved fuel efficiency, and sustainability. However, transitioning to EVs presents challenges, especially in terms of charging infrastructure and fleet management software upgrades. Rather than transitioning all at once, fleets can take a more gradual approach, using smart fleet management technology to identify internal combustion engine (ICE) vehicles for replacement. These tools help managers assess total cost of ownership, vehicle utilization, and sustainability goals, ensuring cost-effective fleet upgrades.

GPS fleet tracking supports the electrification strategy by providing data on vehicle usage, routes, and battery performance. According to the 2025 Fleet Trends Report, 37% of Australian fleet managers used fleet technology to assess vehicle electrification suitability. In the U.S., 28% of fleet managers used GPS tracking to identify potential EV routes, while 24% of European fleets used it to optimize EV utilization. This data-driven approach helps ensure a smoother, more efficient transition to electric fleets, optimizing battery life and route selection.

AI in video telematics and its impact on driver performance

AI-powered video telematics are revolutionizing how fleet managers coach drivers and monitor performance. While AI is known for optimizing routes based on traffic, weather, and location, it also helps improve driver behavior. Smart video systems provide real-time data and actionable insights, reducing unsafe driving behaviors and improving safety.

Recent advancements in AI-powered video telematics have made it easier to detect unsafe driving behaviors such as speeding, tailgating, texting while driving, abrupt acceleration, and erratic braking. Real-time in-cab alerts enable immediate coaching, helping drivers modify their behavior on the spot. This real-time intervention can drastically reduce accident risks and improve fleet safety outcomes.

Combining in-cab video with AI solutions allows fleet managers to create customized safety plans for each driver. These personalized plans identify areas for improvement, offer targeted coaching, and help drivers become safer and more efficient. According to the Fleet Technology Trends Report, three-quarters of fleet managers reported that in-cab video improved driver safety and reduced incidents, leading to better fleet performance. With better safety, fleets can also reduce accident-related costs, making AI-powered video telematics a valuable investment.

The trajectory of telematics data sharing

Telematics data sharing is becoming increasingly important for fleets aiming to reduce operational costs, improve safety, and lower insurance premiums. As insurance costs rise, fleets are turning to telematics data to demonstrate their commitment to safety and improve their risk profiles. By sharing data on crash rates, vehicle repairs, and injury claims, fleets provide insurers with the information needed to assess risk accurately.

Video telematics adds another layer of value by providing video evidence to counter false claims, avoid costly litigation, and protect fleets from nuclear verdicts. This can help fleets avoid unnecessary expenses, especially in an increasingly litigious environment.

As insurers recognize the value of telematics data, many are now incorporating it into their assessments, offering lower premiums to fleets with solid safety data. The Fleet Trends Report shows that fleets using GPS fleet tracking saw a 13% reduction in insurance premiums, demonstrating the value of telematics in improving risk profiles and cutting costs. This creates a win-win scenario where fleets benefit from lower premiums, and insurers gain more accurate risk assessments.

Leaning into the future

AI and EV technology have quickly transformed from concepts to practical solutions that fleets are adopting rapidly. As the global economy remains uncertain, fleets focused on improving vehicle efficiency, optimizing processes, and enhancing driver performance will be better positioned to handle market pressures. Looking ahead to 2025 and beyond, emerging technologies like AI, EVs, and telematics will continue to provide fleet managers with tools to improve efficiency, reduce costs, and enhance safety. These innovations will help fleets thrive in an increasingly competitive and challenging landscape.