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:
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.
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.