The impact of directive (EU) 2022/362 (road charging harmonisation) on Telematics Service Providers and Fleet Management Software providers in the EU

The European Union’s Directive (EU) 2022/362 represents a significant evolution in the legislative landscape impacting commercial transport and logistics. Its harmonisation of road charging systems under the "polluter pays" principle introduces new dimensions of operational complexity, directly affecting telematics service providers (TSPs) and fleet management software (FMS) providers. This article explores how the directive, mandated into national law by 25 March 2024, will reshape telematics and fleet management strategies in the EU.

Directive (EU) 2022/362: Core Provisions and Implications

Directive (EU) 2022/362 aims to standardise road charging mechanisms, incentivising reduced environmental impact through:

• Extended Scope of Charging All heavy-duty and light-duty vehicles will now be subject to consistent tolls and usage-based charges.
• CO2 Emission-Based Charges Toll charges directly linked to vehicle emissions levels, thereby rewarding fleets operating cleaner vehicles.
• External-Cost Charges Charges addressing air and noise pollution will adopt new reference standards, affecting vehicle operational costs.
• Congestion Charges Location, time, and vehicle-specific charges will dynamically adjust based on real-time traffic congestion.
• Transparency in Revenue Utilisation Directive mandates revenue transparency, ensuring funds are reinvested into sustainable transport initiatives.

These provisions underscore a fundamental shift towards environmental accountability, thus increasing reliance on telematics and connected vehicle data.

Financial and Operational Impact on Fleet Operators

Fleet operators face multifaceted implications due to the directive. On the one hand, they face increased costs for high-emission fleets. So operators utilising Euro 4 diesel trucks will incur significantly higher toll charges compared to Euro 6 or battery electric vehicles (BEVs). Consequently, fleet renewal and investments into BEVs become strategically essential. Furthrmore, route optimisation and dynamic route-planning - incorporating real-time congestion and toll data - will be vital for operational cost-efficiency.

Strategic Shifts Required by Fleet Operators

Fleet operators must accelerate fleet renewal strategies, incorporating BEVs or alternative fuel vehicles to mitigate rising operational costs. Cost-benefit analyses, facilitated by commercial fleet telematics, will guide strategic fleet composition and optimal phase-out timelines.

In addition to this, telematics systems must be selected that accommodate the regulatory changes by offering critical real-time data in areas such as the real-time monitoring and reporting on emissions to ensure compliance with varying CO2 charges and dynamic route planning - based on live toll and congestion charges - to reduce expenses significantly.

The Impact on Telematics Service Providers and Fleet Management Software Providers

The directive significantly reshapes the competitive environment for TSPs and FMS providers, creating both challenges and substantial opportunities, for example, real-time connectivity and robust data analytics are now effectively mandatory. Providers capable of tracking vehicle emissions, real-time toll variations, and supporting route optimisation will secure substantial market share. Furthermore, fleet operators are being forced indirectly to rely on FMS in order to meet directive compliance, by optimising routes, managing environmental impacts, and pro-actively looking for operational cost reductions.

Emerging Opportunities for Telematics Providers

Providers must rapidly expand analytics capabilities, creating platforms that integrate seamlessly with existing vehicle and fleet management software to offer clear insights into Total Cost of Ownership (TCO) and comparative performance of low-emission vehicles.

Furthermore, Telematics providers can expand into advisory roles, supporting fleet operators in their transition to environmentally compliant vehicle types and helping navigate complex regulatory landscapes efficiently.

Long-Term Strategic Developments will likely include integration with OEMs, and competition between aftermarket telematics players will intensify, driving advanced integrated telematics systems as standard equipment.

The expansion of connected vehicle data ecosystems will also occur. This increased reliance on connected vehicle data and intelligent mobility systems will facilitate broader integration of services/functions like Electronic Toll Collection (ETC) and Electronic Logging Devices (ELD), and along with it enhanced regulatory compliance and operational efficiency.

The Directive as a Transformative Moment

Directive (EU) 2022/362 represents a critical turning point for the telematics and fleet management sectors. Its implementation necessitates robust data analytics capabilities from TSPs and FMS providers. Fleet operators leveraging telematics and advanced fleet management software solutions will not only achieve compliance but significantly enhance their operational efficiency and competitiveness. But ultimately, the integration of advanced telematics systems and connected vehicle technologies will define success in the future landscape of European road transport.