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Telematics encompasses two words Telecommunication and Informatics. It includes a broad range of working areas from GPS systems to navigation systems, wireless data communication, remote unlocking and fleet tracking, among other things.
Most of the telematics technology is being used in making smart vehicle nowadays for monitoring location, the behavior of vehicle or fleet of vehicle, remote control access, integrated hands-free cell phone, Advanced Driving Assistance Systems (ADAS) and many more.
OEM provides integrated sensors and capabilities which can deliver a high degree of data related to vehicle operation. Smartphones can be easily connected to vehicle communication equipment which can enhance the driving experience with support like failure warnings and voice alerts in case of emergency, among other features.
OEMs are being adopted across the globe, mostly in the U.S., Europe and Russia, for its features like automatic emergency calls and vehicle location identification.
Aftermarket telematics services have increased drastically in the last couple of years with significantly adding connectivity and services to the vehicles. It has opened a new business for mobile operators which are using Internet-of-Things to provide services via telecommunication.
Recently, MG Motors has launched its MG Hector SUV with an Airtel e-Sim for providing telematics solutions.
SVT (Stolen Vehicle Tracking) technology has been in demand as the vehicle crimes are increasing in regions like Brazil, China, Russia, South Africa and Israel.
Telematics is helping companies/personnel by providing benefits like fuel consumption optimization, fleet efficiency enhancement, and remotely monitoring of vehicle via GPS and video-based telematics.
Advanced Driving Assistance System (ADAS) to help monitor drivers with-
Globally, the demand for commercial vehicle telematics has seen an increment in the past few years and is expected to grow in future.
Telematics is boon to Passenger Vehicle such as rail. With freight traffic analysis to signal processing along with path allocation, train running report and interruption in services, all these data and messages are harmonized with telematics.
Telematics is increasing infrastructure capacities which ultimately reduces the operational costs.
Digital innovations in Two-wheelers are becoming the driving force to implement telematics. Using telematics in two-wheeler can reduce risk of road accident by prompting driver against over speeding, failure of control etc. and it can also mitigate motorcycle theft incidence as it can be tracked.
Vodafone is providing embedded telematics for two-wheelers.
Telematics market is subdivided based on the type of application or services being provided by the vendor or companies. This can be classified in following-
Embedded telematics systems are providing users with advanced telematics and mobile connectivity services in new vehicles which features vehicle tracking, battery notification, stolen vehicle tracking and recovery option and software updates over FOTA (Firmware Over the Air).
Smartphones can be easily connected to vehicles with telematics. It enables the user to use most of the specifications of a phone on a system integrated with the vehicle like GPS navigation, nearby service centre, maps, panic alerts and many more.
This has led a new group of people to carry out their business in the market. In 2016, Honda, BMW and Yamaha together founded the CMS (Connected Motorcycle Consortium) to establish an innovative technology for motorcycles to ensure safety on-road through connectivity and communication.
Due to the presence of several players, the North American market is highly competitive. Integration of smartphones with automobiles for better driving experience is the crucial factor for the market in this region. The collaboration of vehicle telematics provider with insurance companies has also boosted the demand.
Government’s mandate for vehicle tracking positioning in commercial vehicles and escalating demand for high-end smartphones has also led to this market boost.
European government had passed a regulatory mandate in 2015 for e-Call facilities along with the installation of basic TCU (Telematics Control Unit) in all new vehicles for safety purpose. This has projected the market growth of telematics in Europe to reach new levels in the coming years.
The Asia Pacific is the emerging market for telematics. With regulations and policies, related to the safety of the vehicle, being mandated by governments of different countries like India, Japan, China, telematics market is expected to grow at a faster rate than any other region in the world.
With the majority of vehicle user in this region, comes an increase in vehicle crimes, telematics will prove to be a boon in such cases.
To know more about Global Commercial Vehicle Telematics Market, read our report
The COVID-19 pandemic has affected every sector of the world, where some markets flourished such as the medical and health departments, some plummeted and are recovering at a steady pace. The pandemic has affected the economy in mainly three ways; by affecting the production and manufacturing, by disrupting the supply chain operations and by affecting the financial sectors.
For OEMs and insurance carriers, telematic systems may offer opportunities to grow and recover by accelerating the future customer experiences. Consumers are more inclined towards IoT and data-enabled features that will make mobility safe, convenient and economical, data analytics and telematics will propel towards innovation to expand its market share.
Even though the automotive industry experienced a decrease in revenue due to the pandemic, some companies maintained a slow growth and increase in revenue. The company MixTelematics experienced a slight increase in revenue in the year 2020. The revenue of the company in 2019 was $143.7 million that saw a small increment to $145.6 million in the year 2020. This increase was primarily due to the increase in development of the telematics industry.
The global automotive telematics market was valued in the year 2023 at $XX billion, the market is expected to grow with a rate of CAGR XX% during the period of seven years from 2024 to 2030. This growth is based on numerous investments in the software telematics and increased penetration of smartphones.
Companies providing Telematics or any kind of services that includes collection of data in any form must know about data protection or privacy legal requirements in their operating region.
Faurecia, a global automotive supplier and a FORVIA Group subsidiary, has launched a new in-vehicle app relationship with the Mercedes-Benz Group.
The supplier will incorporate its dedicated automotive app platform, which it co-developed with Aptoide, into MBUX, Mercedes-own Benz’s infotainment system, as part of the long-term partnership.
Users will have access to an independent app store with over 250 dedicated automotive apps, including navigation, traffic, video streaming, in-vehicle payment, and parking and charging information, as a result of this integration.
While the platform is built on Google’s Android operating system, it functions as an open-source version of Android Automotive. This independence, according to the provider, helps to promote enhanced security and privacy standards while giving OEMs more control over their content offerings.
The Aptoide app store takes the role of Google’s Play Store, and the OEM can ask the user to log in to its own connectivity and infotainment programme rather than their Google account, which is the default for Android Automotive.
Under the IRDAI’s Regulatory Sandbox, Tata AIG General Insurance Company Limited launched a usage-based insurance (UBI) private car policy for car owners on Thursday. It will be included in all policies that provide personal accidental coverage of up to Rs 15 lakhs for both the owner and the driver.
Other value-added features include depreciation reimbursement, daily allowance, and no-claim bonus protection insurance, among others. The coverage also includes a kilometre-based package that allows for lower premiums than traditional policies.
‘Auto Safe,’ a GPS-enabled gadget linked to a mobile app that captures all information, tracks the distance travelled, and creates data regarding the vehicle’s condition or the policyholder’s driving patterns, was also introduced by the company. assists policyholders in reducing premiums by allowing them to choose the number of kilometres driven, encourages safe driving, and acts as an anti-theft device.
Insurance will become more intuitive and responsive to the needs of customers as a result of the regulatory sandbox allowing telematics-based solutions. It’s time for insurance plans that are tailored to your specific needs.
The company Solera Holdings Inc. has announced the acquisitions of three companies as of June 2021, Omnitracs, Dealer Socket and eDriving in a $15 billion deal. The company’s expansion into the data management and automotive sector has attained its position as a prominent global leader in technology and data intelligence
General Motors has partnered with LexisNexis Risk Solutions, a provider of analytics, data and technology to integrate its Telematics exchange feature that provides a device-agnostic telematics ecosystem for sharing connected car data approved by consumers with insurance companies.
The UK based vehicle data company Wejo and Waycare have joined hands to offer an AI cloud-based solution for traffic management. They have offered the integration across 20 geographies in the US. The platform predicts and indicates the users with road congestion, traffic stops and less ETA travel routes.
The company OCTO telematics has acquired Nebula Systems Ltd with the entire share capital. The acquisition will confirm the commitment of OCTO to expand into the vehicle data analysis tools, automotive and mobility companies with increased integration. The technology offered by Nebula combines the patent chipset and cloud based VIN interpreter, configuration file builder to access all the ECUs as well as thousands of PIDs for a vehicle.
The company Bridgestone Corporation announced the agreement between the company and subsidiary Bridgestone Europe NV/SA with TomTom to acquire their telematics department and their digital fleet solutions business by the end of 2020. The deal has closed with an amount worth $1.034 billion where EUR 750 million will be redistributed to the shareholders of TomTom as part of the capital repayment.
The Avis Budget group partnered with the Indian electronic systems developer Verizon Communications to develop an all-in-one digital travel assistant to be introduced in the telematics market. The 4G network connectivity of Verizon Communication was the primary factor for the partnership.
The automotive embedded telematics industry is defined as the incorporation of communication and information technology into automobiles to provide functions such as wireless connectivity, data transmission, and remote monitoring.
The growing demand for connected cars, as well as the increasing integration of modern technology in vehicles, are driving this industry. Vehicle tracking, navigation help, remote diagnostics, emergency services, and infotainment services are all provided via embedded telematics systems. Increased sales of passenger vehicles, SUVs, and high-end luxury vehicles are predicted to propel the automotive embedded telematics market.
These systems are being integrated by automobile manufacturers in order to improve vehicle safety and security. Toyota, for example, introduced Toyota Safety Connect and Toyota Fleet Management, which provide a variety of helpful features and services such as emergency assistance, stolen vehicle locator, automatic crash notification, roadside assistance, and driver behavior monitoring.
The necessity for safety and operational efficiency is projected to drive firms to use embedded telematics solutions. Furthermore, these technologies assist users in aggregating complete vehicle information linked to vehicle components, physical proximity to other vehicles, and roadside gadgets. The aggregated data can be utilized to better troubleshoot in the event of an accident or component malfunction, hence enhancing logistical efficiency.
Leading companies are spending in research and development (R&D) to design, develop, and test the systems. They make alliances to boost their competencies and exchange resources and knowledge. Collaborations also help a company’s operating capabilities.
Telematics hardware includes, among other things, a Telematics Control Unit (TCU), a Wi-Fi module, a display screen, a speaker, a GSM/GPRS module, and amplifiers.
Over the projection period, the growing emphasis on Pay-As-You-increase (PAYD) automobile insurance services is likely to increase hardware adoption. Improved functionalities such as fault diagnostics, field support, and GPS monitoring are expected to increase usage even further during the projection period.
