Guide to Vehicle Telematics System - Types, Benefits & Working

Telematics systems are the best medium for companies to receive and view data about delivery vehicles, shipping containers, and packages. Try TrackoBit’s packaged telematics solution with advanced GPS tracking, prompt alerts, and other 50+ features.

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Fleet management businesses heavily embrace telematics technology mainly due to reduced operational costs (majorly fuel and insurance costs). Fleet managers can get a discount of up to 20% on insurance premiums. Other than this, there are 3 following motives for using telematics technology:

  • Firstly,

    To locate vehicles in real-time and ensure their safety which is particularly important if there's an accident or theft.

  • Secondly,

    To have a look at driver behavior and conduct to ensure they aren’t violating traffic rules while moving with valuable consignments.

  • Thirdly,

    To assign more efficient and optimised routes for faster and more on-time deliveries; to keep up with customers’ expectations.

Telematics is a technologically advanced method for m onitoring and planning the movements of commercial vehicles, heavy equipment, and other valuable assets. The system uses GPS technology and onboard diagnostics (OBD) to manage the moving asset’s movements over a computerized map. Telematics, also known as fleet tracking or GPS vehicle tracking, is a crucial management tool leveraged by many commercial and government fleets.

Let’s discuss the A to Z of telematics systems, right from its benefits, features, and best solutions, which ensure optimum fleet utilization, deployment, and maintenance.

What is Telematics? Decoding the Basic!

Telematics is a seamless telecommunication component, particularly vehicular sensors, data dashboards, and wireless networking that enables long-distance data transmission from transportation devices in transit.

What's a Telematics System?

Vehicle telematics systems help with retracting and monitoring important data from any moving asset, which could be a car, truck, heavy equipment, or ship, via GPS and onboard diagnostics. From vehicle speed and idling to fuel use to low tire pressure — it can help detect all. It conveniently records a vehicle’s movements and condition at a given point in time and transits data precisely as:

  • Current location
  • Speed
  • Trip distance/Mileage
  • Fuel consumption
  • Engine diagnostics
  • Driver behavior
  • Live vehicle activity
  • Patterns of idling or harsh acceleration
  • Live vehicle activity

Telematics systems, when combined with the power of ADAS (Advanced driver assistance system) and DMS (driver monitoring system), can provide more advanced intel than we could imagine. You can know —

  • How many times the vehicle changed lanes, took abrupt turns, or was about to collide into another vehicle or pedestrians?
  • How often does your fleet driver leave the cabin to take unbillable breaks?
  • The times of the day, when the driver was unattentive, carelessly smoking or distracted on his phone and was even on the verge of dozing off.

Best Part?

God forbid if there is an accident on the road, the telematics system in combination with dashcams helps store visual information of the entire incident. It even includes collision speed. Saving you from insurers' heavy cross-questioning.

Fun Fact

  • Do you know 44% of UK fleets use telematics solutions? It’s 50% more than those in Europe.

Top Benefits of Telematics Systems

When as a fleet manager, you decide to employ telematics systems, you do not just invite fleet safety but also open doors to saving on operational costs.

  • Saving Time and Money

    By forming a partnership with a 3PL, you can avoid full-time employing or renting the labour, technology, warehouse space, and logistics operations needed for in-house fulfilment. As your business expands, fulfilling orders yourself becomes increasingly expensive. These expenses include workers' compensation, liability insurance, recruiting and labour costs, warehouse space, forklift costs, and other equipment.

  • Better Operations

    Telematics systems help get real-time data about each fleet, like location, speed, and current movement. It helps fleet managers identify the efficiency of each vehicle. They can ascertain the underutilized and overutilized vehicles. The system also ensures drivers stick to their prescribed HOS (Hours of service), giving both vehicle and driver due rest.

  • Less Operational Costs (for fuel & other costs)

    Further, when these systems are combined with effective route planning applications, it lets drivers operate away from high-traffic roads. They get to choose routes that can minimise their time on the road and eventually decrease their spending on fuel bills.

  • Reduces Asset Thefts

    As telematics systems convey real-time information about the fleet’s location and current activities, it’s hard for fleet managers to miss sight of their valuable vehicles. This helps prevent assets or vehicles from the risks of theft or vandalism.


    Many fleet managers opt for video telematics solutions, wherein they get visual surveillance of their fleet recorded through top AI-powered dashcams.

  • Better Track on Drivers' Actions

    Telematics software when integrated with ADAS and DMS helps look into the driving events and drivers’ behaviour and conduct during the transit.

    ADAS

    ADAS or “Advanced Driver Assistance System” helps track external events that could be alarming for road safety. It helps track when the driver is suddenly changing lanes, taking abrupt or sharp turns, tailgating, and continuing with driving practices that could cause a life-threatening collision.

    DMS

    DMS unfolded as a “Driver Monitoring System” involves the installation of dashcams in the cabin and exterior of the vehicle to judge drivers’ conduct during the journey. Whether he is not wearing a seatbelt, is about to doze off, or has poor attention while driving — everything is recorded – live and candid.

    Both methods help you track your drivers’ actions and differentiate between the good and the bad drivers.

  • Vehicle Maintenance (Preventing Mid-way Breakdown)

    Telematics systems prevent vehicle maintenance issues through:

    • Real-time diagnostic monitoring
    • Predictive maintenance analysis
    • Fuel efficiency tracking

    They help provide immediate alerts for potential problems, enabling timely intervention and reducing the risk of major breakdowns, ultimately improving overall vehicle health and efficiency.

  • Telematics systems help in optimizing fleet operations, ensuring vehicle safety, and improving fuel efficiency, which enables effective management of a wide range of vehicles of small scale to large commercial vehicle fleets.

Fun Fact

  • Do you know the global vehicle telematics market size is expected to reach USD 159420 million by 2028?
  • It stood at USD 60380 million in 2021 and is consistently growing at a CAGR of 14.7% during 2022-2028.

How does Telematics Work?

Complete ABC Explained!

Following is the workings of telematics in the context of fleet management. Discover how it effortlessly monitors and transmits accurate vehicle location, performance, and other key data.

  • Step1

    Data Collection with Sensors & Hardware

    The telematics system involves installed vehicular sensors like types of GPS trackers/ receivers that collect data and help with locational tracking. It also involves other sensor types like:

    • Accelerometers help in gauging the acceleration and deceleration of the vehicle.
    • Gyroscopes that measure vehicles’s orientation
    • Plus, there are other sensors available that help gather data on the vehicle's condition and performance.
  • Step 2

    Collected Data Processing

    The data collected through receivers or sensors is further processed within the vehicle. Typically within an onboard computer or electronic control unit (ECU).

    The raw data is processed into meaningful information — such as engine speed, fuel consumption, engine health, and more.

  • Step 3

    Communication Module

    Telematics systems work parallel to communication modules like cellular or satellite transmitters, which further send the processed data to a central server or a cloud-based platform. Typically, vehicle telematics software.

  • Step 4

    Data Transmission

    The processed data retrieved from the vehicle is further transmitted to a remote/cloud server via wireless communication networks like satellites.

  • Step 5

    Data Storage and Analysis

    The data which is received by the cloud server is safely stored in databases for further analysis. Telematics systems leverage this data to transform information into insightful reports.


    These reports display data trends for vehicle health, fuel consumption, track driver behavior, and other important fleet management KPIs and metrics.

  • Step 6

    Comprehending Data from Simplified UI of Telematics System

    Fleet managers can access the telematics data through a user interface – which can be a web-based portal, a mobile app, or other software applications.


    This interface allows users to view real-time information, historical data, and performance metrics.

  • Step 7

    Alerts and Notifications

    Telematics systems are easy to configure to send alerts or notifications on the basis of predefined criteria.


    For example - You can set alerts whenever there are events for harsh braking, acceleration, or deviations from planned routes.

  • Step 8

    Integration with Other Systems

    Vehicle telematics systems are easy to integrate with other pre-enterprise systems like ERP, and CRMs — fleet businesses already own. Making it easy to transfer data, without needing to do it manually.

Pros and Cons of Advanced Driver Assistance Systems

Read More

Types of Telematics Systems - 6 Common Kinds!

  • OBD II Telematics Systems

    OBD-II telematics systems work via the vehicle's onboard diagnostics port. From this, it accurately gathers and transmits vehicular data to help with better remote monitoring and diagnostics.

  • Bluetooth-powered Telematics Systems

    Bluetooth-powered telematics systems work via Bluetooth technology to ensure wireless communication. They effortlessly connect with various devices to transmit and receive major vehicular data.

  • Smartphone-based Telematics Systems

    Smartphone-based telematics systems leverage smartphones to gather vehicle driving data. Helps get rebates on insurance premiums based on individual behavior and promotes safe driving practices.

  • Black Box Telematics Systems

    Black box telematics systems involve the installation of a black box into the vehicle. With the use of GPS technology, it records, monitors and transmits raw data on vehicle usage to draw insights into driving behavior and performance.

  • OEM Hard-wired Telematics Systems

    OEM telematics systems are embedded in vehicles to collect data for diagnostics, maintenance, and safety features. This helps enhance performance and user experience.

  • 12v Plug-in Self-installation Telematics Systems

    Self-install telematics systems for vehicles are compatible with 12V plugs. They offer offering easy setup and monitoring to enhance vehicle tracking and performance.

  • Do you know?

  • Of all vehicle accidents, 40% involve commercial vehicles.
  • Every year, 4,842 large trucks get involved in fatal road crashes in the US. The cost of a truck crashing can be between $97,811 and $5,11,582.

    Connecting dashcams to the telematics systems is like adding an extra brake. Recording footage at the right time helps know who’s at fault and puts a stop to heated arguments.

    The system offering in-cabin alerts lets drivers foresee uncertainties, and insightful reports and evidential footage help managers better train drivers for future trips. AI-based video telematics is a purposely built software that gives you a proactive view of all possible risky events.

    When clients onboarded Video Telematics backed with DMS and ADAS solutions, they experienced:

  • 38% decrease in accident costs
  • 44% decrease in insurance costs
  • 83% increase in vehicle protection

Top Industries That Benefit From Telematics Technology

Telematics-driven fleet management systems are not limited to trucks or long-haul transport vehicles, they can be used by…

  • Industry
    Use Case
    Type

  • 1. Transportation & Logistics

    It includes trucking and transportation logistics, with delivery trucks moving across manufacturing and distribution hubs.

    • Freight forwarding service.
    • Stevedoring & cargo handling.
    • Third-party logistics
    • Fright trucks, box trucks, cargo vans
    • Inbound/outbound logistics
    • Reverse logistics

  • 2. Construction Companies

    Construction companies with heavy and light machinery or any expensive pieces of equipment can track their precise movements.

    • Earth-moving equipment
    • Construction Vehicles & equipment

  • 3. Government Fleets

    From street sweepers to public waste management vehicles, from recycling to emergency service vehicles – a telematics system is there to track all.

    • Police cars
    • Waste management vans
    • Fire trucks & ambulances, military vehicles
    • School buses, and public transportation vehicles.

  • 4. Service Companies

    Contractual or service companies require vehicle telematics software to track and trace their technicians' vehicles.

    • Plumbing
    • HVAC (heating, ventilating)
    • Air conditioning or electrical

  • 5. Other Industries

    Telematics systems are applicable in every other industry where multiple vehicles are regularly moving to load and upload assets.

    • Courier and delivery companies
    • Field service or after-sales service companies
    • Towing companies
    • Food and beverage companies
    • Oil, gas, and mining industries, Utilities
    • Agriculture & Landscaping
    • Car rental and leasing companies

Cost of Telematics Systems - Are they Expensive?

Note that the costs of telematics systems are defined by two components —

  • The costs of telecommunication devices. The hardware part is inclusive of GPS devices, sensors, or any hardware component important in the telematics system. Most telematics hardware packages will come with a hardware cost ranging from $50 to $200.
  • The costs of informatics aka vehicle telematics systems. It’s the cost attuned to web or mobile software applications that helps translate the raw data from vehicular sensors for better comprehension. The cost of it depends on vendors and their monthly subscription fees which can range from $15 to $40 per month.

After integrating the best-in-class GPS hardware devices or trackers, enquire about the custom price of the vehicle telematics software you can avail with us!

  • More Reads on Vehicle Telematics Systems

  • What is telematics and how does it work?
  • What is video telematics? How do they work?
  • How do video telematics secure on-road vehicles?
  • Top 7 leading telematics companies
  • How does telematics help farming and overall agriculture?

Is Telematics the Same as GPS? Let’s Find Out!

Telematics and GPS technology aren’t the same, but they work together. GPS, expanded as a Global Positioning System, is referred to as a satellite-based navigation system, while telematics involves a combination of GPS integration with communication technology to gather and share data from vehicles.

Telematics is a much-advanced technology component that can provide information beyond location, such as data on vehicle diagnostics and driver behavior.

Regions Leading the Vehicle Telematics Market

North America

  • United States
  • Canada
  • Mexico

Middle East and Africa

  • Saudi Arabia
  • UAE
  • Egypt
  • Nigeria
  • South Africa

Europe

  • Germany
  • UK
  • France
  • Italy
  • Russia
  • Turkey

Asia-Pacific

  • China
  • Japan
  • Korea
  • India
  • Australia
  • Indonesia
  • Thailand
  • Philippines
  • Malaysia
  • Vietnam

South America

  • Brazil
  • Argentina
  • Columbia

“TrackoBit is Continuing to Maximize on-road Safety for Big Shot Fleet Management Businesses with 99.9% Accurate Video Telematics System”.

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