In the European Union (EU), fleet management faces significant market changes and regulatory influences. Operators are navigating increased regulatory scrutiny, a strong push for sustainability, and the growing adoption of electric vehicles (EVs). Organisations with fleet operations are particularly focused on ensuring the safety of their drivers while reducing carbon emissions, all within the framework of an evolving transportation landscape. Additionally, the ongoing challenges of optimizing fleet efficiency, reducing fuel costs, and improving productivity continue to demand attention.
Video telematics, with its blend of real-time data collection, video evidence, and advanced analytics, provides fleet managers with a powerful tool to address these issues.The European telematics market share is predicted to grow from its current 24.4% to more than 30% by 2027, due in large part to government regulations driving adoption of fleet management technology.
While much of the conversation centers on safety and sustainability, it’s important to note that the impact of video telematics extends to the bottom line as well. By improving driver behaviour, optimising route planning, and reducing fuel consumption, the cost-saving potential naturally leads to increased profitability. In this article, we will unpack the top challenges EU fleet managers face and explore how video telematics data can be leveraged to not only meet these obstacles but turn them into opportunities for long-term success.
1. Navigating Multinational Regulations
Managing fleets across multiple countries is no easy task. Fleet managers operating across shared borders face a wide array of regulations, including those related to driving hours, emissions standards, road safety, and data privacy. Video telematics can help by providing:
- Real-time monitoring: With video telematics, fleet managers can monitor driving behaviour, encouraging compliance with driving hours and rest periods, which are regulated across the EU.
- Automated reporting: Video telematics can generate reports that automatically capture critical data points (e.g., driver hours, vehicle emissions), making it easier to comply with EU regulations such as the EU Mobility Package, which includes regulations around driver working hours and road safety.
- Cross-border tracking: Video telematics helps manage fleets across borders with geofencing, route planning, and real-time tracking, ensuring compliance with varying national laws, such as those governing speed limits, tolls, or emissions standards like the Euro 6 for vehicles. Starting July 2026, all cross-border commercial vehicles over 2.5 tons must be equipped with the Version 2 smart tachograph (Gen2V2).
According to a report by Transport & Environment, the EU is targeting a 55% reduction in carbon emissions by 2030, with stricter emissions rules coming into force. Video telematics can indirectly help fleets reduce emissions and help encourage compliance with these new standards.
2. Optimising Fuel Efficiencies Amid High Costs
With rising fuel costs persisting as a significant component of fleet operating expenses, video telematics provides valuable data to help improve fuel efficiency and reduce costs:
- Optimized routing: Telematics systems can analyze historical data and suggest the most fuel-efficient routes. This can reduce fuel consumption, especially in congested urban areas or long-haul routes where idle times and detours add up.
- Improved driver behaviours: Video telematics can track driver behaviours like harsh braking, acceleration, and idling, which directly impact fuel consumption. Coaching workflows help drivers develop more fuel-efficient driving habits, which can help lower fuel costs.
- Vehicle insights: Video telematics systems can help provide insights on the vehicle’s fitness for the road. Preventive maintenance alerts can help ensure that vehicles run at optimal efficiency.
Regulatory committees in the EU are focusing on reducing transport-related CO2 emissions, driving the need for more efficient fuel consumption. A 2023 study by the European Environment Agency (EEA) highlighted that the transport sector is one of the largest sources of greenhouse gas emissions in Europe, making fuel efficiency a key focus for fleet managers.
3. Sustainability goals
Although they represent fewer than 8% of vehicles on the road, trucks and buses are responsible for more than 35% of direct CO2 emissions from road transport. This disproportionate impact requires fleet managers to meet ambitious sustainability goals to reduce emissions.
Video telematics helps in this area by:
- Integrating electric vehicles: EVs represent a significant and widespread effort to reduce overall emissions. Many telematics systems are adapting to monitor electric vehicle performance, making greener alternatives more accessible and encouraging the adoption of EVs into fleets.
- Monitoring carbon footprint: With real-time vehicle tracking, video telematics can provide data on CO2 emissions, helping managers track the environmental impact of their fleets.
- Sustainable practices through safer driving: Telematics can guide fleet operators to enforce eco-driving practices (e.g., minimizing idle times, avoiding excessive speed) that reduce fuel consumption and emissions, directly contributing to sustainability goals. Lytx® clients decreased their vehicle idling time and fuel waste by 12% in 2023. Per vehicle, this equated to an 8.3% drop in unnecessary idling time.*
The European Green Deal aims to make Europe the first climate-neutral continent by 2050, making it crucial for fleet managers to start reducing emissions and adopt sustainable practices. The EU’s Clean Vehicles Directive also encourages the purchase of low-emission vehicles for public and private fleets. Additionally, by 2025, heavy-duty vehicles must achieve a 15% reduction in CO2 emissions, increasing to 30% by 2030 compared to the baseline (2019-2020). These targets require cross-border fleet managers to adopt new vehicle technologies to remain compliant.
4. Driver Safety & Retention
Safe driving means fewer collisions. Drivers that are safe on the job tend to stay on the job longer, helping companies avoid the cost associated with hiring and the loss of institutional knowledge. Video telematics plays a crucial role in improving safety and boosting driver retention by leveraging:
- Fatigue and distraction alerts: Distracted driving remains a leading cause of traffic collisions in Europe and is a factor in an estimated 25-30% of crashes. With in-cab technology, drivers can self-correct and managers can better track and address distractions. This also contributes to EU's Vision Zero goal, which seeks to eliminate road fatalities by 2050.
- Road condition and traffic monitoring: Road-facing dash cams can monitor driver behaviour and road conditions. Immediate feedback and self-coaching can help drivers develop safe driving habits, leading to fewer accidents.
- Driver alerts for unsafe behaviours: Telematics can send real-time alerts for unsafe driving behaviours like speeding or harsh braking. This not only improves safety but also reduces the likelihood of incidents, which is essential for reducing insurance premiums.
According to Geotab’s 2024 State of Commercial Transportation report, the use of technology features such as monitoring for speeding, harsh braking and cornering, and real-time driver feedback through video telematics, helped achieve a 40% reduction in collision rates. Based on this difference in collision rates, an estimated 3,500 collisions—and the associated driver injuries—could have been prevented in 2023 if more vehicles had adopted these safety features.
5. Preventing Cargo Theft or Damage
Cargo theft and damage are persistent concerns for fleet managers. The European Parliament research estimates that cargo crimes cost European businesses in the region of €8.2bn per year.
In 2023, transport theft cases in the European Union increased by 35.46%. compared to 2022, according to The Association for the Protection of Technological Assets.
Video telematics can help reduce these risks with:
- Real-time surveillance: In the event of a theft or vandalism, in-vehicle cameras can provide live video feeds of incidents, making it easier for fleet managers to notify authorities and prevent further losses.
- Geofencing: Telematics systems can establish geofences around secure areas (e.g., warehouses, transit hubs) and send immediate alerts if a vehicle deviates from its scheduled route or enters an unauthorized area, helping prevent theft.
According to the EUROPOL's European Organised Crime Threat Assessment (OCTA), cargo theft remains a significant issue, particularly in high-traffic areas. Video telematics acts as a deterrent and a means of investigating such crimes.
6. The Cost of Innovation
Innovation in fleet management needs to be balanced with cost control, and video telematics can provide insights to optimize both:
- Data-driven decisions: Video telematics enables fleet managers to make informed decisions based on facts, not guesswork. This reduces unnecessary expenditures and helps allocate resources more efficiently.
- Cost-benefit: By analyzing the data gathered from telematics systems, fleet managers can conduct cost-benefit analyses to determine where investment in technology will lead to savings, whether through fuel efficiency, reduced accidents, or lower insurance premiums.
With increasing pressure on EU operating fleets to innovate (especially with EVs and AI integration), telematics data provides actionable insights that help reduce costs, making investments more feasible.
Video telematics helps fleet operations managers mitigate significant challenges by offering real-time data, enhancing operational efficiency, improving safety, and supporting regulatory compliance. In Europe, the installed base of active video telematics systems was estimated at 1.4 million units in 2023. This number is forecasted to grow to 3.1 million video telematics systems in Europe by 2028.*
In the EU, with increasing emphasis on sustainability and regulatory compliance, these technologies offer a powerful tool to streamline operations and drive down costs, all while improving the safety and well-being of drivers and cargo.
See how Lytx Solutions help fleets work toward more efficient operations:
https://www.lytx.com/en-gb/infographic/small-changes-can-yield-big-efficiency-wins
1. *Lytx 2023 State of the Data
2. *https://iotbusinessnews.com/2024/04/17/04844-the-installed-base-of-video-telematics-systems-in-north-america-and-europe-to-reach-15-million-units-by-2028/