Telematics is an interdisciplinary field, relying on collaboration between government regulatory bodies, OEM suppliers, telecom service providers, and component manufacturers. Service providers play a key role in enabling connectivity by partnering with OEMs to provide mobile signals and 4G network connectivity in vehicles. The European Union is using this technology to mandate a device called eCall, which will automatically call emergency services when it detects a serious accident. OEMs in developed countries are testing more advanced connected cars with self-driving capability, and providers are starting to offer both web-based and mobile application solutions including driver management, asset management and workflow solutions.
Telematics plays a key role in five elements of successful fleet utilization and monitoring.
- Productivity and improved customer service through real-time GPS tracking, trip reporting, and dispatching and routing tools
- Safety with the availability of in-vehicle driver coaching, risk and driver behavior reporting, accident notifications and reconstruction, and the ability to locate a stolen vehicle
- Optimization of vehicle maintenance with predictive maintenance abilities and remote diagnostics, as well as optimization of fuel management by tracking idling and other fuel-guzzling habits
- Compliance with solutions for electronic logging, IFTA reporting, and vehicle inspections
- Integration of other software systems such as onboard camera technology or CRM software
Telematics is highly dependent on telecom networks for its growth, as these networks are slowly adopting 5G technology worldwide. However, executives should plan for a one-year lag between the introduction of network connectivity in developed markets and emerging markets. While more than 50% of Southeast Asia’s population uses the internet – with mobile use driving much of this growth – Asia still falls lower on the Connected Consumers Index than European and North American countries. Smart phone usage and mobile data subscriptions are still too low in emerging countries, slowing telematics adoption. We expect 5G network capability to penetrate the market in one year, with connected vehicles at a halfway point on their journey from telematics introduction to self-driving cars.
DuckerFrontier’s Automotive team is at the forefront of key trends impacting the industry. Thus, our goal is to help clients deliver growth solutions to support critical business decisions and growth strategies. How can we help you deliver better outcomes for your business? Contact us to connect with a team member.