Local and regional hubs for distribution and “Same-Day Delivery” services mean higher demand for commercial vehicles and their utilization.
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Cox Automotive revealed its 2024 Fleet & Commercial Vehicle Market Trends for report at the American Trucking Association’s Technology & Maintenance Council Meeting in New Orleans.
Automotive Fleet asked Cox for commentary tailored to trends in the light- and medium-duty space. Here are the top themes:
U.S. Economic Growth Supportive of Commercial Vehicle Market
- U.S. economy is expected to grow in 2024.
- Stability in the labor market + easing inflation.
- Business investment will drive demand.
According to Cox Automotive research, many fleet operators’ reasoning for focusing on service and maintenance and improving operational efficiency centers around the state of the economy. This is true for fleet operators across light, medium, and heavy-duty vehicle classes.
Miles Traveled to Grow
- Commercial VMT should increase slightly YoY.
- Will grow at a higher rate than personal vehicle-miles-traveled.
- Support and demand for fleet maintenance, repair, and service.
- Labor challenges could impact growth rates in this market.
According to Cox Automotive research, a majority of fleet operators’ key focus areas for 2024 are related to service and maintenance. They are trying to extend vehicle life and avoid more costly repairs or are looking for efficiencies to save money or boost profit potential.
Commercial Vehicle BEV and Hydrogen Developments to Increase
According to Cox Automotive research, fleets see EVs as the future. A third of fleets surveyed will consider an electric vehicle during their next acquisition cycle.
Focus on Technology
- Tech tools and software will continue to improve.
- Vehicle technologies should continue to see growth.
- Broader technological advances such as AI will also find their way into fleet management.
According to Cox Automotive research, many fleet operators who are currently using telematics in their operations cite access to data and key vehicle performance metrics as key benefits.
Fleet operators feel telematics helps them make smarter business decisions, save time and money on maintenance needs, and overall run a more efficient fleet operation.
E-commerce Plays Vital Role in Commercial Vehicle Demand
- Household consumption will continue to shift online across a diverse set of categories.
- E-commerce trend should remain strong as more options of goods become available.
- Local/regional hubs for distribution and “Same-Day Delivery” services mean higher demand for commercial vehicles and their utilization.
- There will be an increase in the need for commercial vehicles such as vans to ensure consumer demand for quicker shipped goods is met effectively.
