After operating as a niche feature for decades, telematics is merging into the automotive mainstream. Car telematics has the capability to ameliorate road safety, align insurance premiums with actual need through usage-based insurance (UBI), enhance driving behavior and propel car-insurance-industry profitability. Inevitably, telematics has the potentiality to provide added benefits to corporations, individuals and governments beyond road-safety improvements and insurance. Instances incorporate driving style enhancements to bolster fuel economy, real-time tracking, location-based services such as stolen-vehicle recovery, vehicle-finder services, fuel and routing optimization and vehicle-maintenance alerts.

The comfort of technology become apparent at the niche levels, too. For instance, most of the users refer lower insurance premiums, anti-theft and enhanced driving behavior as the principal pros of telematics. At the time when all markets feature voluntary car telematics systems, governments’ regulators in many countries seek to mandate the technology in specific circumstances. For example, the European Union wants e-assistance systems with respect to accidents. Mandatory for all new European Union vehicles as of March 2018, the eCall system should expedite emergency response times by fifty percent in rural areas and forty percent in cities—at the same time lessening the fatalities number by minimum four percent. Mexico vies mandatory radio-frequency-identification (RFID) tags to impel vehicle-anti theft systems, while Russia mandated a system akin to EU for new cars by the end of 2017. Countries including Germany, China, Singapore and South Africa have voluntary systems which offer UBI incentives.

As automotive industry veers towards digitalization, vehicles are at center-stage when it comes to huge technological disruptions. Innovations in telematics market have offered sophisticated features in the modern day vehicles.

Car owners have plethora of alternatives when it comes to outfitting their vehicles for telematics services ranging from professionally installed systems to do-it-yourself add-on devices. Number of market players have started to provide customers telematics solutions and devices. For example, a few insurance companies furl telematics devices with motor-insurance policies, while car manufacturers may provide customized services and built-in telematics devices to sift their offerings from rest of the manufacturers.

Need for Interoperability standards Rise

In order to assure interoperability across multiple platforms which are anticipated to furnish telematics access, insurers and technology and services providers should adhere to standards. These incorporate major electronic and mechanical features and data standards. The electronic systems need to encounter protection and power-management standards along with back-up battery performance needs.

As the industry introduces variety of new devices, telematics persist to get worldwide momentum. On account of regulation-driven surge in device adoption, the sector has come to a tipping point.

Black box Offers Superior Performance

The black box, professionally installed in the vehicle cabin, consists of added sensors such as accelerometers for exact measurements. The sophisticated black box features including a Bluetooth module for connectivity, an embedded microprocessor, a multi-constellation high performance GNSS, eSIM, a quad band GSM/GPRS module with integrated antenna and a six-axis accelerometer and gyroscope makes it the most worthy and capable telematics device. Black box has the highest rating on driving score, road safety, e-assistance, usage-based insurance, robustness against tampering and usability in hot and hostile conditions.

The confluence of available investment capital, business‘s scale and competitive dynamics paves way to capital intensive technologies. Automakers can take a cue from fleet companies to reconfigure telematics technology as a solution.

Telematics is rapidly reshaping the way fleet managers operate their commercial vehicles. Fleet management services envisage a lucrative market which seek to embrace IoT technologies. Through collection of telematics information along with GPS tracking, providers can offer cloud-based management services which can be accessed by mobile devices or desktop computers. Though GPS tracking is not new, sophisticated telematics offer abundance of data not available till now.

After years of development, telematics has gained traction and almost all of the world’s top car manufacturers have come up with mass market services in major regions. The gist behind the embracement of OEM telematics are both regulatory and commercial. Safety regulations aimed at making emergency calls with vehicle location compulsory in every newly manufactured vehicles have been embraced in Russia and the EU. In Brazil, the government instructed car manufacturers to install security tracking devices on all vehicles sold through CONTRAN 245 mandate.

BMW and GM are the prime adopters of embedded telematics, thereby providing the technology as a high standard feature on all models. For more than a decade, General Motors has been the supreme adopter of telematics, resultantly making telematics an integral part of its value proposition in North America and the China. Some of the other leading brands providing embedded telematics on a wide scale are Toyota, Volvo, Hyundai, Renault and PSA Peugeot Citroen.

Electronic Vehicles Reap Dividend from Telematics

Electronic vehicles can reap benefit from telematics as the latter can identify when an EV is finished charging in real time. A few of the businesses such as Geotab offer charging stations for its employees and customers so that they can capitalize on telematics for their electronic vehicles. Governments and businesses have been using telematics to decide the way of transitioning their fleets to electronic vehicles. With a view of driver safety and dispatching, many leverage telematics to track their conventional vehicles.

 

Author's Bio: 

Arslan Khan working on the client site as a Sr. Research Manager@ MRH. Our aim is to provide the best industry and market forecast reports to the seeker. Currently, Fact.MR is a one stop destination for all industry reports analysis.