Socar (KRX: 403550), a South Korean mobility company, has announced plans to launch a demonstration project for an IoT-based Fleet Management System (FMS) solution.
The project involves about 300 vehicles in South Korea and the global market, belonging to Hyundai Glovis, Lotte Global Logistics, and VCNC (Tada).
The FMS is an integrated management system that tracks motorized and non-motorized goods such as commercial vehicles, special vehicles, aircraft, and ships. The system aims to reduce costs and improve the safety of corporate and business vehicles.
Socar plans to offer customized FMS technologies and services to its affiliated companies through various demonstration projects.
The demonstration project will feature Socar’s FMS technology and solutions from three industry representatives who own many domestic and foreign mobile assets.
Data such as the location, condition, driving habits, and temperature of the vehicles will be collected in real time to verify cost reduction, safe operation, management, and operational efficiency.
Lotte Global Logistics plans to improve work efficiency and delivery quality, focusing on vehicles used for parcel delivery. VCNC (Tada) intends to review the impact of enhancing cab drivers’ driving habits, reducing accident rates, and efficiently managing directly operated vehicles.
Hyundai Glovis plans to conduct overseas demonstration projects to find ways to efficiently operate and manage electric trucks, which are the future of the logistics industry.
Socar’s CEO, Jake Park, stated that introducing FMS has increased operational and management efficiency, such as cost reduction and safety improvement through overseas cases.
The company plans to quickly occupy the FMS market and create a future mobility environment.
Socar has collected extensive data on vehicle operations over the past 12 years and used data to achieve practical operational improvement effects.
In particular, the company continuously implements measures to promote safe driving by analyzing and modeling the factors influencing drivers’ habits in traffic accidents.
Socar plans to take the lead in the growth and development of the domestic FMS market based on mobility-related technology, data, and operational know-how and to advance into the overseas FMS market based on its performance.
According to market research firm Market & Markets, the global fleet management system (FMS) market is estimated to reach $20.6 billion (approximately KRW 27 trillion) in 2021.
It is expected to grow at a compound annual growth rate of 10.5% during the forecast period (2022-2026), reaching $33.9 billion (approximately KRW 44.44 trillion) by 2026.
