What is Telematics?
Let’s start with understanding the term. Telematics is basically a combination of telecommunication and informatics that deals with long-distance transmission of information. Telematics systems are widely used for and other technologies to track their movement on a map.
Also known as fleet tracking, it is one of the most sought-after solutions for managing commercial vehicles, important assets, etc. Open platform telematics solutions enable integration with any hardware or software, and mobile apps for higher productivity and efficiency.
How does Telematics work?
A wireless telematics device is installed in the vehicles, which collects and transmits the required data about vehicles such as vehicle condition, speed, location, fuel consumption, faults or damage in spare parts, breakdown, etc. Some big manufacturers in the automotive industry install the GPS and telematics equipment directly in their vehicles while manufacturing while others partner with telematics manufacturers.
The basic components of any telematic system are a GPS receiver, an I/O interface, a SIM card, an accelerometer, and other sensors as per specific requirements. The details about the vehicle are transmitted via satellite/cellular network. Thus telematics ensures key aspects of businesses involving vehicles such as productivity, safety, fleet optimization, sustainability, etc are in place.
Telematics Trends in 2024
The Telematics market size is USD 48.10 billion as of 2024 and growing at a CAGR of 10.05% with the Asia Pacific region being the fastest-growing market. The emerging trends in fleet telematics are:
- Advanced App Integrations
Modern telematics systems can be integrated with any apps that improve the overall functionality of fleet management. Many apps offer in-depth location analysis and route planning options, real-time data analytics that give detailed insights about the vehicles.
- Improved Driver Safety
Telematics solutions include tools that ensure driver safety by providing safety precautions, accident prevention measures, tech support for optimal driving, analyzing driver behavior, and so on. With all this information, it becomes easy to help drivers safely reach their destination.
- EVs And More Sustainable Routing Solutions
It’s 2024 and people are moving towards sustainable alternatives to conventional fuel vehicles. The introduction of EVs has created a massive transition towards green mobility. In the upcoming years, the usage of EVs and sustainable routing with the help of telematics which reduces fuel consumption and emissions will be trending.
- Data Security
While telematics is all about collecting lots of data, there comes a challenge of securing that data against any kind of privacy breach. Choose a robust telematics solution that implements cybersecurity measures to keep your data intact.
Telematics Challenges 2024
As the telematics industry is booming, a lot of challenges come along. To tackle these challenges, fleet managers should consider automating a few processes and start tracking the metrics. For example, if they are thinking about purchasing new tracking software, they should look at whether the pricing and features help them achieve their goals with a long-term vision. A few major challenges in fleet telematics include:
- Remote monitoring of a fleet that consists of vehicles traveling across states and countries makes it difficult to track all the operations.
- Increasing operational costs include the cost of labor, fuel, repair/accidents, and other maintenance costs.
- Optimum vehicle usage can be achieved by GPS tracking and analyzing vehicle data.
- Lack of quality drivers, and
- Poor customer service
New features and improvements are coming up in the fleet management system every day to overcome these hurdles and work efficiently.
The Future
In the data-driven world today, the expectations of customers are growing too. Telematics systems can assist you in meeting their standards in case of mobility. New apps are emerging every day which unlock the potential of new opportunities by integrating modern features with existing fleet management paving the way for exciting future enhancements.
