Since the introduction of telematics 15 years ago across the globe, it has been regarded as a tool to track vehicles; vehicle location and the duration of its journey. With the advance in technology, telematics has evolved to markedly and has become a dynamic part of fleet management.
What is Fleet Telematics System (FTS)?
A Fleet Telematics is primarily a system that permits the exchange of information between a commercial vehicle fleet and its central authority (the dispatching office). An FTS mainly entails a mobile Vehicle System (VS) and a stationary Fleet Communication System (FCS). It can be a standalone application maintained by the motor carrier or an internet service that run by the supplier of the system. This system usually includes a database that holds the record of the vehicle’s position and messages.
Why use Fleet Telematics?
The objective of fleet telematics is to provide support to fleets to plan for the future, ensure productive day-to-day operation, and also respond to unanticipated events in real-time. They are backed by data; thus, it helps fleet managers to automate significant functions, and permits them to focus more on the fleet while it is on the road.
Fleet telematics has gained popularity in the recent years as federal rule has announced to include Electronic Logging Devices (ELD) or Electronic Onboard Recorders (EOBR) in commercial vehicles for higher road safety.
Compliance for ELDs has seen an uptick since it was directed in 2014. This has led to an increase in the demand. The further benefits of ELDs include vehicle analytics, accident detection, driver behaviour monitoring, and fuel consumption analysis.
Who are the prominent users of Telematics?
Fleet telematics is not limited to just one application. Users primarily include:
- General Fleets
- Utility Companies
- Governments and Municipalities
- Taxi Companies
- Powertrain Manufacturers
- Car-Sharing Services
Nations that are ripe for fleet telematics implementation
With the integration of telematics into vehicle, the fleet managers have a better control over vehicle usage and driver performance. It also permits them to track the direction in which vehicle is heading, how it is being driven, and to efficiently manage fleets. With propelling regulation on safety and fuel efficiency in both commercial and consumer vehicles, North America and Europe are the major adopters for fleet telematics. Additionally, in Europe, heavy trucks account for 75% of inland transport, which presents a rich prospect for fleet management solution.
Despite the mounting opportunity and growth of the ICT sector, commercial telematics is yet to be established in other countries like Brazil, Germany, Nordic countries, Eastern Europe, Malaysia, and Thailand. To penetrate these markets, fleet management solutions need to modify their offerings through deeper insights into the cultural, infrastructural, and regulatory landscape; driver needs, and usage behaviour.
ICT Market Research Analyst