2024 in Fleet Management: A Reflection
2024 brought significant transformations for both fleets and their supply chain partners, inspiring new innovations, strategies, and collaborative efforts right across the industry.
As fleet accident management specialists, sopp+sopp work closely with some of the UK’s best-known fleets and commercial insurers, with commitment to streamlining incident processes, and delivering tech-driven, efficiency-focused claims management strategies.
In this article, we look back on the key developments that shaped the fleet market in 2024, exploring the trends that defined a pivotal year for the industry, and the strategies fleets used to adapt
Reflecting on 2024 in Fleet
“2024 saw fleets apply more focus to digital transformation, sustainability, and cost control amidst rising repair costs and EV adoption challenges.
Technological advancements, like AI and claims automation, streamlined operations, while regulatory compliance, fraud prevention, and ESG remained critical.
Collaboration between fleets, insurers, and repair networks was key to addressing financial pressures and ensuring efficiency, as the industry adapted to evolving demands and a greener future.”
- Chris Beeby, Business Development Director, sopp+sopp
Repair capacity rebound brought preferable performance
After facing almost three years of high demand, and limited capacity to accommodate, the vehicle repair industry is beginning to witness a resurgence in previously overstretched regions.
Strategic growth amongst repair groups, coupled with a gradual fall in claims volumes, have provided more availability for fleets and commercial insurers, leading to improved repair lead times and turnaround.
In fact, market average repair cycle times reduced by a remarkable 21 days between January and December 2024, from 55 days to 34 days, showing the tangible effects of this resurgence in capacity.
According to Trend Tracker, repair demand has now fallen to its lowest levels since 2021, standing at an estimated 1.67 million repair estimates in 2024, compared to 1.78 million in 2023*.
This means that fleets could continue to witness preferable repair performance in the coming months, as claims volumes remain lower, and repair groups continue to expand and consolidate.
*Trend Tracker, The UK Motor Claims and Body Repair Report, 2024-2025
Parts challenges prompted higher uptake of ‘green’ components
Sourcing replacement vehicle parts has become a key sticking point in recent years - for fleets, repairers, and consumers alike. A combination of production challenges for manufacturers, coupled with global supply chain pressures, have made it much harder to source new parts quickly, consistently, and at an agreeable cost.
The ABP Club’s 2024 ‘State of the Industry’ report revealed that more than 20% of repair jobs were affected by parts shortages in the past 12 months, up from 15% in 2023.
Consequently, more repairers have increased their uptake of green & recycled components, with 80% of bodyshops stating they had fitted them in the past year, compared to 57% just five years ago.
The leading reasons behind their use were delays on OE parts (raised by 80% of repairers surveyed), new parts being unavailable (69%) and to avoid a total loss at the request of the customer (58%).
However, some repairers still face obstacles which complicate their uptake of these alternative parts channels. 53% of repairers reported inconsistent parts quality as the reason behind this, while 37% attributed their restricted uptake to driver/policyholder resistance.
Michael Hill, Green Parts Director at SYNETIQ, adds insight:
“As one of the first salvage companies to sign up to the VRA Green Parts Standard, we’ve seen a growth in green parts sales in the repairer industry over the years, despite the reduction in repair volumes from bodyshops.
We’ve seen a positive shift in customer attitude influenced by environmental awareness and a conscious preference for a sustainable repair solution.
Green parts reduce the demand for new resourses, lower carbon emissions and limit waste. In most cases, we’ve found repairers understand that recycled parts offer identical quality and there are no disadvantages in having these parts fitted.”
(ABP Club: State of the Industry Report, 2024)
The zero-emissions transition remained a key challenge
Transitioning to electric & zero-emission vehicles remained a key challenge for fleets this year, with many seeking to leverage more industry data, and supplier partnerships to inform their strategies.
Two in five fleets (39%) surveyed in the 2024 Arval Mobility Observatory reported the net zero transition to be their biggest challenge for the next three years, followed closely by emissions zone adaptations.
Despite this apprehensive outlook, fleet EV adoption soared ahead of the private market last year, with 86% of total UK EV registrations being attributed to commercial buyers in H1, according to data from the Department of Transport.
In fact, an astonishing one in four commercial vehicles registered in 2024 was battery-electric. This contrasted vastly with the private market, in which just one in 10 buyers chose an EV over an ICE vehicle last year, according to data from the SMMT.
This acceleration in commercial adoption was likely encouraged by a rise in fleet-focused OEM discounts, tax incentives, and greater availability of EV-specific risk data to guide operators’ strategies. EV repair costs also dropped by 5.6% in 2024, making these vehicles an increasingly lower-risk option for fleets to adopt - evidenced in findings from Activate Group & Gecko Risk.
Fleet repair costs up 34% on average since 2022
The average cost of fleet repairs continued to rise in 2024, up an estimated 9.3% year on year, and a notable 34% since 2022.
Labour and paint costs saw the biggest increase, projected to be up 8.5% and 10.5% respectively year on year.
Parts basket costs, on the other hand, fell by more than 6% compared to 2023’s figures - even as parts costs themselves continue to rise with inflation. This may be owed in part to increased uptake of green components, and employment of repair-over-replace methodology, leading to fewer new OE parts required per repair.
Perhaps most significant is the rise in third-party repair costs, tracked at 55% higher in 2024 than they were in 2020. This has inspired more fleets to evaluate their third-party intervention strategies, and incorporate new ways to reduce both cost and reputational impact.
Operators are also taking a more robust approach to loss recovery, particularly for non-fault incidents, helping them to offset repair outlay by reclaiming key incident-related expenses - like hire costs, lost revenue, or damaged equipment.
(Repair Market data, compiled by Activate Group)
Manufacturer-approved repair methods remain a sticking point
One of the key challenges currently faced by fleets and repairers is the need to navigate manufacturer-specific technologies, repair methods, and vehicle requirements.
This is particularly key when it comes to newer models, and EVs, for which technical data on repair methods, particularly for onboard technologies, is increasingly difficult for repairers to access.
This has led to many vehicles requiring manufacturer input before they can be repaired post-incident, raising repair complexity, and ultimately cost & turnaround for fleet operators.
Mark Neat, Operations Manager at Activate Accident Repair, comments:
“With vehicles and their technology becoming more complex, repairers are facing significant challenges accessing manufacturer-approved repair methods, particularly for onboard systems and software. This naturally increases repair costs and extends turnaround times, making it harder to deliver efficient, cost-effective service - damaging insurability ratings for affected models.
Without greater transparency and sharing of methodology from manufacturers, these challenges are unlikely to ease in the near future. Until then, repairers will need to focus on leveraging partnerships with suppliers and work providers to stay ahead of new developments, and adopting strategies to manage costs and maintain capability.”
How have fleets adapted to these shifting priorities?
The past 12 months have seen fleets and their suppliers adopt new strategies and solutions, while revisiting existing ones, to adapt to the shifting industry landscape, and overcome key operational obstacles:
1 - Reviewing & diversifying repair partnerships
With the ‘rebound’ in repair capacity experienced in 2024, many fleets have leveraged the opportunity to both streamline and future-proof their repair strategies - now availability isn’t their primary concern.
This has included a renewed focus on capability & cost control within fleets’ preferred networks, ensuring their partners are equipped to repair the latest generation of vehicles quickly, sustainably, and cost-effectively.
Key to this approach has been reviewing repairers’ technological readiness, ensuring they not only have the right facilities to repair emerging vehicle technologies, but can also provide high-quality repair data to inform fleets’ strategies.
We’ve also witnessed increased appetite to explore alternative solutions like mobile, roadside, and same-day repairs - which enable fleets to minimise vehicle off-road (VOR) times, and ancillary claims costs.
2 - Strengthening third-party claims management
The rising cost and complexity of vehicle repairs, as well as inflating vehicle hire premiums, have made at-fault incidents a significant financial pressure for fleets.
The past 12 months have therefore seen fleets apply more focus to strengthening third-party management processes - ensuring at-fault incidents are dealt with quickly, efficiently, and with a focus on reputational protection.
This has included leveraging advanced incident reporting technology, such as self-serve driver apps, and in-cab cameras and telematics to increase the speed and accuracy of third-party capture and intervention.
Operators have also worked closely with management partners to establish robust and standardised workflows for managing third-party claims, ensuring the foundations are in place to secure financially and reputationally preferable claims outcomes.
3 - Increased focus on repair-over-replace, and green parts
As parts sourcing continued to challenge fleets and repairers in 2024, more operators were keen to leverage the advantages of alternative repair methodology, and green parts channels.
Aside from the immediate efficiency benefit, using recycled parts, and repairing rather than replacing components, also supports fleets in achieving their long-term ESG objectives - reading waste, and contributing to a more circular economy.
Achieving this increased adoption has meant close collaboration between operators, repairers, and vehicle salvage professionals to achieve consistent quality and availability of green components, and ensure repair-over-replace practices are employed appropriately.
With parts challenges only projected to continue in the near future, it’s likely these practices will become even more desirable, and therefore commonplace throughout fleets’ repair networks.
4 - Leveraging more data to inform predictive vehicle strategies
Increased vehicle connectivity, and advancing claims technologies, are providing fleets with a wealth of data from across the vehicle management, claims, and repair ecosystems.
2024 witnessed operators increasingly leverage these insights to inform more predictive, efficiency-focused strategies in everything from risk management to repair & maintenance.
From plotting trends in incident causation, to predicting maintenance needs on a per-vehicle basis, fleets are becoming increasingly proactive in their use of data to drive down costs, improve driver safety, and even anticipate future market challenges.
This data is also proving pivotal in fleets’ adaptations to electric vehicles, helping them more accurately predict the costs and operational implications of transitioning to newer, more advanced stock.
5 - Enhancing loss recovery protocols for non-fault incidents
Non-fault incidents present a unique challenge for fleets, due to the array of costs surrounding commercial vehicle repair, off-road time, and potential damage to equipment & cargo. These costs can be challenging for fleets to log, quantify, and reclaim from at-fault parties - which often means operators end up footing the bill for these ancillary expenses themselves.
However, the past 12 months have witnessed more fleets seeking to strengthen their approach to recovering non-fault claims outlay, spurred on by rising repair complexity and operating costs.
Recovering these often substantial uninsured losses enables fleets to offset rising costs in other areas - like repair, maintenance, and at-fault third-party claims - helping them maintain resilience in an increasingly dynamic market.
Supplier relationships have been pivotal in the success of these strategies, applying stringent processes to report and identify non-fault incidents swiftly, capture at-fault parties, and secure full and timely recovery of all eligible claims costs.
In Summary: 2024 in Fleet Management
2024 proved to be a transformative year for fleets and their supply chain partners, marked by shifting priorities, rising costs, and an ever-evolving vehicle parc.
Rising repair costs, supply chain disruptions, and the ongoing transition to zero-emission vehicles placed mounting pressure on operators to adapt quickly. Despite these hurdles, a notable rebound in repair capacity brought some relief, with falling claims volumes and expanding repair networks leading to improved performance.
Parts sourcing remained a persistent challenge, with over 20% of repairs affected by shortages, driving greater adoption of green and recycled components, alongside repair-over-replace practices.
Meanwhile, commercial EV adoption surged, with fleet buyers accounting for 86% of total EV registrations in H1, supported by tax incentives, OEM discounts, and improving EV repair capabilities. Fleets adapted by diversifying repair partnerships and enhancing supply chain resilience to meet the demands of an increasingly high-tech vehicle parc.
Strengthened loss recovery protocols and a renewed focus on third-party claims handling also helped manage financial pressures, highlighting the industry’s ability to innovate and navigate an evolving operational landscape.