The sector is no longer only about basic GPS tracking and elementary devices. Service providers are under pressure to offer more advanced, value-added services that help them stand out from competitors and create new revenue opportunities.
There is growing demand for wireless connectivity in vehicles. This is being driven by the increasing use of information and communication technology, as well as the need to collect and transfer more vehicle and operational data.
Governments are placing more pressure on businesses to improve road safety. This is helping push the telematics sector forward, especially around services that monitor driver behavior and vehicle performance.
Hardware manufacturers are continually improving their products to meet changing market demands. The industry is also seeing collaborations, acquisitions, and mergers as companies respond to these changes.
To stay relevant, telematics service providers need to offer more than basic tracking. Diversifying into services such as driver behavior monitoring, vehicle diagnostics, asset tracking, logistics, and video-based services creates new value for customers.
Driver behavior monitoring and vehicle diagnostics have become important services in recent years. Many of these services rely on integration with the vehicle’s CANBUS to access more detailed vehicle data.
More service providers are incorporating video into their telematics services. In many cases, an alert or event triggers vehicle cameras to stream video to an operations center, either in online or offline scenarios.
Technology in telematics is constantly evolving, but the challenge is turning innovation into viable services that create practical value for service providers and their customers.
Diversified service offerings and increased wireless connectivity are not limited to developed markets. These trends are happening globally across both developed and emerging markets, although the maturity of telematics sectors differs by country.
Advanced telematics is not only found in developed countries. Some service providers in emerging markets are already offering complex services such as advanced geo-fencing and multilayered logistics operations.
Customers increasingly expect access to operational data and service information through mobile apps and web platforms. Mapping integrations, such as Google Traffic and Google Street View, help support this demand.
IoT is helping telematics service providers collect and transfer large volumes of sensor data from vehicles. This data can then be used to improve existing services or create new services in areas beyond traditional fleet management.
IoT-enabled data allows service providers to offer services in areas such as advanced logistics and asset tracking. To do this well, they need the right infrastructure to define and manage these new services efficiently.
Because IoT reduces the need for wired vehicle connections, it can lower both initial installation costs and ongoing maintenance costs.
Telematics service providers often work with multiple hardware providers, GPS tracking devices, IoT devices, sensors, video cameras, accessories, and mobile operators. A flexible software platform needs to support data from many different devices and vendors.
When vendors provide both hardware and software, service providers can become locked into specific devices and technologies. A software-only approach gives service providers more flexibility to work with different devices and third-party vendors without needing to manage multiple platforms.
Many service providers use cloud-based telematics platforms, and some choose white-labeled versions to maintain their own brand visibility with clients. Language flexibility is also important for service providers operating in different markets.
Many service providers start by offering advanced services such as driver behavior monitoring and vehicle diagnostics. Over time, they often expand into areas such as asset tracking and logistics, especially when the platform makes this information easier to access and manage.
Future growth is being driven by support for new applications and service areas. This includes stronger dispatching capabilities, expanded IoT-enabled services, and richer asset tracking functionality.
The growth of telematics service providers depends not only on technology, but also on having the right platform and support to help them define, deliver, and manage services for their end customers.