Telematics is defined as the blend of telecommunications with data processing to monitor and manage remote objects. Telematics is part of (almost) every category of IoT, from asset tracking to wellness, but it’s vehicle telematics, such as fleet management and usage-based insurance, that highlights the current advances in telematics technology.
First, let’s discuss the components of telematics. Essentially, telematics consists of data collection (sensors and devices), communication networks (wireline and wireless), data processing (analysis and actionable insights), and user interfaces (displays or dashboards to display the actionable insights). The data collected is related to vehicle performance, location, and usage, and often utilizes GPS and onboard diagnostics.
We say we are at Telematics 4.0 because of the technological advancements and regulatory developments over several decades. This evolution can be delineated into four primary stages, each building upon the innovations of its predecessors.
1980s-1990s -Telematics 1.0: Laying the Foundation
Telematics starts off by blending Global Positioning System (GPS) – which became available for civilians enabling vehicle tracking; On-Board Diagnostics (OBD), allowing for the monitoring of vehicle performance and emissions; and cellular networks to facilitate the transmission of data from vehicles to central systems, laying the groundwork for real-time monitoring.
1990s-2000s Telematics 2.0: Maturing Applications and Regulation
The second phase was marked by the development of commercial services, which offered solutions like OnStar (1996) and fleet management, where businesses started optimizing routes, monitoring driver behavior, and improving overall efficiency. It also marked the government’s initial rules that would become electronic logging devices (ELDs) and hours-of-service (HOS) regulations.
2010s Telematics 3.0: Wide - Spread Availability and Adoption
The third stage was characterized by smartphone/tablet integration with mobile apps, which changed the dashboard requirements for both drivers and management. The shift to cloud-based platforms enabled scalable data storage and processing, facilitating advanced analytics and real-time decision-making. The implementation of the ELD mandate in the United States required commercial drivers to use electronic logging devices, significantly increasing the adoption of telematics in the transportation industry.
2020-Present Telematics 4.0: Artificial Intelligence and Retooling
Currently, the incorporation of AI enables more comprehensive analysis enabling better maintenance, driver assistance, autonomous vehicles, predictive analytics, and sustainability. Telematics 4.0 signifies a shift towards intelligent, interconnected systems that not only monitor, but also actively manage and optimize vehicle operation.
Telematics 4.0 includes advanced sensor integration and edge computing that monitor vehicle speed and acceleration, engine performance metrics, fuel consumption rates, driver behavior patterns, and environmental conditions. Analyzing the data with AI and ML enables optimization and reduces downtime. Storing the data in the cloud allows for data to be saved and shareable with many applications.
The evolution to Telematics 4.0 is marked by improved connectivity standards, including the adoption of 5G networks and advanced IoT protocols. These advancements ensure reliable and high-speed communication between devices, vehicles, and central systems. Such connectivity is crucial for real-time data transmission and for supporting applications like dynamic route optimization and remote diagnostics. Last, but not least, is the ability to perform predictive forecasts future events and prescriptive analytics recommends actionable strategies.
The following companies are recognized as thought leaders in Telematics 4.0:
- Geotab
A Canadian company with over three million active fleet management subscribers in North America. Geotab offers scalable telematics solutions with advanced data analytics and AI-driven insights.
- Verizon Connect
A division of Verizon Communications, providing comprehensive telematics services including predictive maintenance and advanced job scheduling tools.
- Samsara
Known for its user-friendly platform that integrates real-time GPS tracking, AI-powered video telematics, and environmental monitoring, catering to various industries.
- Trimble
Offers integrated telematics solutions with a focus on transportation and logistics, providing tools for route optimization and fleet performance analysis.
- Teletrac Navman
Provides cloud-based telematics solutions with features like driver behavior monitoring and compliance management, aiming to enhance fleet productivity.
- Omnitracs
Delivers comprehensive fleet management solutions, including routing, dispatching, and compliance tools, tailored for various transportation sectors.
- Azuga
Specializes in GPS fleet tracking and driver behavior analysis, offering solutions that promote safety and efficiency through gamification and rewards systems.
- Spireon
Provides telematics solutions for fleet and asset tracking, focusing on real-time visibility and analytics to improve operational decision-making.
- Quartix
Offers vehicle tracking systems with an emphasis on fuel efficiency and driver performance, suitable for small to medium-sized fleets.
- Motive (formerly KeepTruckin)
Provides a comprehensive suite of fleet management tools, including electronic logging devices (ELDs), dash cams, and GPS tracking, serving over a million drivers.
These companies offer innovative solutions to meet the evolving needs of fleet and asset management. Their platforms facilitate enhanced operational efficiency, safety, and compliance across various industries.
However, perhaps based on Samsara’s success, venture capitalists have actively invested in companies advancing Telematics 4.0. Here are notable examples of venture capital investments.
- Applied Intuition specializes in AI-driven software for autonomous vehicles and advanced driver-assistance systems (ADAS), serving major global automakers. In 2024, it secured a $250 million Series E funding round, followed by a $300 million secondary offering, achieving a valuation of $6 billion. Investors included Andreessen Horowitz, Fidelity Investments, Kleiner Perkins, Microsoft's M12, and Porsche Investments Management.
- Motive (formerly KeepTruckin) provides telematics solutions for trucking, including GPS tracking and AI-powered dashcams. Motive raised $150 million in a Series F funding round in 2022, reaching a valuation of $2.85 billion. The investors were Insight Partners and Kleiner Perkins.
- Smartcar is a young company that has raised $36 million. Andreessen Horowitz funded the seed round, while NEA and Microsoft’s A16z participated in the A & B rounds, but the B round was led by Energize Ventures. SmartCar’s focus is on developing APIs for developers to access the vehicle’s data and functions, particularly for self-driving cars.
- Lytx develops video telematics solutions focusing on driver safety and fleet efficiency. Permira in 2020 became the majority investor, valuing the company at over $2.5 billion.
- SmartDrive Systems provides video-based safety and analytics solutions for commercial fleets. SmartDrive Systems secured $90 million in 2019 from investors including Sixth Street Partners and Michelin.
- Veniam is now part of Nexar but remains focused on connected transportation through vehicle-based mesh networks. In 2014 it raised $4.9 million, with subsequent investments from Verizon Ventures and others.
What is noticeable here is the dominance of existing players, suggesting a reluctance to change partners. Unlike other industries, where the mere mention of AI gets a seed round going, vehicles seem to be rather stagnant. This may be an awareness of the investments V2X represents and the need to work closely with the vehicle manufacturers.
Edited by
Erik Linask
