Despite its benefits and use cases, many business owners believe that telematics is futuristic or that the business needs to be more mature to deploy a telematics solution. But the truth is telematics is being widely used in the transportation and logistics industry. It started with the advent of GPS tracking solutions and how businesses worldwide use technology at its best.
Indeed, telematics is one step ahead of GPS tracking. It surpasses GPS tracking as it integrates location data with vehicle diagnostics and real-time monitoring. Fleet companies, especially, get comprehensive insights into driver behaviour, fuel efficiency, maintenance issues, and much more.
This holistic approach enhances fleet management, reduces operational costs, and fosters efficient business operations. Simply put, telematics empowers businesses with actionable intelligence, optimised processes, and improved performance.
The global telematics market was valued at US$ 74.05 billion in 2022 and is expected to grow to US$ 237.79 billion by 2030. This states that the future of telematics is very bright and will witness more adoption.
To highlight future telematics trends, let’s review the present landscape of telematics solutions.
The Present
Currently, telematics plays a pivotal role in various industries, revolutionising how vehicles and assets are managed, monitored, and utilised. Fleet management is the most beneficial segment, as telematics enables real-time tracking of vehicle locations, speeds, and routes.
It helps fleet companies optimise dispatching, reduce fuel consumption, and enhance driver safety by monitoring behaviours like harsh braking or rapid acceleration. Additionally, insurance companies offer premium discounts to fleet companies if they have telematics installed.
Earlier, owners would use a web portal to access telematics data, but thanks to the growth of smartphones, they can now access telematics from their smartphones anytime, anywhere. Whether it is back-office management or monitoring business operations, telematics mobile apps have strongly driven the growth of telematics.
The Future
The adoption of autonomous and electric vehicles is on the rise. Many studies show that electric vehicles are the future. But what does this mean for the telematics market? Telematics will keep growing as EV car owners will require telematics to ensure safe and optimised operations.
Fleet operators are also shifting to electric fleets to leverage the benefits of electrification. Telematics can be combined with charging management systems to track and monitor charging operations. For example, fleet trucks need direct charging on a daily basis. Here, telematics integration can help fleet owners learn where electricity supply is more expensive and manage to charge, saving operational costs.
The adoption of 5G networks will further drive the growth of telematics. 5G’s super fast speed and reduced latency will foster quick data sharing for vehicle-to-vehicle and vehicle-to-infrastructure communications. Autonomous vehicles can immensely benefit from this reliable communication as they can communicate at lightning speed with traffic infrastructure to ensure efficient driving without the driver.
Easy integration with other systems will also become easy with the help of open APIs and app marketplaces. Companies will not have to spend on IT upgrades or extra services to integrate telematics–just a few clicks, and it’s done!
But one of the breakthrough advancements is video integration. Dash cams are gaining popularity and will witness increased adoption in the coming years. Video analytics helps businesses make wise decisions as it offers insights, not data. Plus, it is unbiased, making it more powerful.
This also accelerates the insurance claim process. Video telematics data eliminates all guesswork and enhances claims touchpoints. Likewise, it will benefit policyholders to understand accidents, claim triage, payments, and much more.
Currently, dash cams are equipped with cutting-edge and emerging technologies like artificial intelligence, machine learning, and IoT, making video telematics more accurate and avant-garde. In the future, we can expect more significant integration of these technologies to make telematics an all-in-one solution for transportation and logistics companies.
Nevertheless, telematics will also advance in other industries like construction and mining. Construction companies can shift from GPS tracking devices to telematics solutions to enjoy the benefits of a comprehensive solution. Delivery companies will no longer need multiple systems to manage customers and business; a telematics system will help them to tackle business challenges, bill invoices, get customer details, and admin data, and it’s the tip of the iceberg.
Government regulations and policies also encourage the adoption of telematics solutions, which can play a fundamental role in improving public transportation systems. The UK government has already put forward safety regulations for lorries and buses in 2022; telematics will play a key role here.
While telematics bring undeniable benefits, concerns about data privacy and cybersecurity will demand responsible and secure implementation. Manufacturers will need to consider these concerns and build solutions that ensure data protection and privacy.
Wrapping Up
OEMs will continue creating new products and make the telematics industry stronger. Easy data sharing with the advent of 5G will foster efficient operations, and smartphone development will make accessibility hassle-free.
