The renewal rate of telematics services for passenger car owners is very low. Most modern cars are equipped with built-in telematics modules. Car makers provide remote vehicle management services for free for the first few years after vehicle purchase, but many consumers don’t see the justification for the monthly subscription fee for those vehicle management services.

The situation is quite the opposite for commercial and off-highway vehicles. More trucks, vans, and buses are getting telematics modules installed, but this is still a fraction of the total number of vehicles. 

The off-highway vehicle market is even slower when it comes to telematics technology adoption. However, once the fleet owners decide to install the connectivity device and deploy vehicle management services, they see the value and continue to expand the deployment.

Let’s take a quick look at some of the core technologies involved in telematics for off-highway vehicles:

• GPS and GNSS: The backbone of telematics is the Global Positioning System (GPS) or Global Navigation Satellite Systems (GNSS). These technologies enable precise tracking of vehicle location, speed, and route information, which is crucial for logistics and fleet management.

• Internet Connectivity: Telematics systems typically rely on cellular networks. This can be done with a built-in modem or sometimes with smartphone tethering, which means the driver/operator’s mobile phone can act as a modem. When the vehicle has to be deployed in a remote area with no cellular signal, satellite communication is becoming more affordable to transmit data from the vehicle to a central system. This ensures that data is accessible in real time, even in remote or off-road locations.

• Sensors and IoT: Modern telematics systems are equipped with various sensors, including those for engine diagnostics, fuel consumption, tire pressure, and load monitoring. Cameras are also becoming important sensors to provide high-fidelity information within and around the vehicle. These sensors are part of the broader Internet of Things (IoT) ecosystem, allowing vehicles to be monitored comprehensively.

• OTA (Over-the-air) SW Update: This is a very comprehensive topic, but in general, the vehicle's ECUs (Electronic Control Units) should support a common protocol for communicating with the telematics gateway unit to download and update firmware using Internet connectivity.

• Onboard Diagnostics (OBD): Telematics systems often integrate with a vehicle's OBD system, providing detailed information on the vehicle's health, including engine status, emission levels, and fault codes. This data is invaluable for predictive maintenance and reducing downtime.

• Data Analytics and AI: Advanced telematics systems use data analytics and artificial intelligence (AI) to process the vast amounts of data collected. This allows for predictive modeling, pattern identification, and optimization of vehicle operations.

Once the telematics system is enabled with these technologies, fleet owners can expect to take full advantage of the connectivity by collecting real-time data from the vehicle and remotely updating software to fix bugs or improve functionality:

• Enhanced Fleet Management: Telematics provides fleet managers real-time data on vehicle location, driver behavior, and fuel usage. This information can be used to optimize routes, reduce fuel consumption, and improve overall fleet efficiency.

• Improved Safety: With real-time monitoring, telematics systems can identify unsafe driving behaviors such as speeding or harsh braking. Alerts can be sent to drivers or fleet managers, helping to reduce accidents and improve road safety.

• Predictive Maintenance: Telematics systems monitor vehicle health through OBD data and other sensors and predict when a vehicle will likely require maintenance. This proactive approach reduces unexpected breakdowns and extends vehicle life.

• Compliance and Reporting: Telematics systems simplify regulatory compliance by automatically recording driving hours, fuel consumption, and other critical metrics. This reduces administrative burdens and ensures adherence to legal requirements.

• Reduced Downtime: Instead of taking vehicles offline for an ECU software update, firmware can be updated over the air for critical bug fixes, functionality improvements, or even new feature additions. 

• Operational Efficiency: Telematics can track equipment usage, idle time, and fuel consumption for off-highway vehicles used in industries like construction or mining. This data helps optimize equipment usage, reduce costs, and improve project timelines.

Telematics systems are transforming the landscape for commercial and off-highway vehicles by leveraging advanced technologies to enhance safety, efficiency, and operational effectiveness. As these systems continue to evolve, their impact on the industry is set to grow, offering even more sophisticated tools for vehicle management and control.

Telematics for commercial vehicles is no longer a nice-to-have feature. It’s a must-have technology to keep up with the industry's rapid innovation cycle.