Features of Commercial Vehicle Telematics solution

Commercial vehicle telematics is the method of using telemetry technology in commercial vehicles that are mainly used in transporting goods. With this vehicle telematics, wireless communication becomes possible and eases the transfer of data. Commercial Vehicle Telematics comes with multiple advanced traits that optimize the complete analysis of connected vehicles effortlessly.

1. Fleet Analytics
2. Fuel Management
3. Location Tracking
4. Driver Behavior Assessment
5. Engine Predictive Maintenance
6. Alerts & Notifications
7. Emergency Management
8. Insurance & Claims Management
9. Driver Information System & Scorecard
10. Real-Time Communication
11. Cloud-based Infrastructure
12. Compliance Management

Try Commercial Vehicle Telematics free of cost

Is Commercial vehicle telematics fascinating? Installing this software is always beneficial for organizations that need data on commercial vehicles. So getting software that matches all the requirements can be a strenuous task. When pricing is an important factor getting freebie software is an added advantage. The software listed below is available complementary by organizations and can be upgraded whenever required.

1. FleetBip
2. Odoo
3. KeepTruckin
4. FleetCo
5. FleetWise VB
6. GadiMalik
7. GoFleet
8. GPSWOX

Startups adopting machine learning and AI in commercial vehicle telematics

Machine learning and AI is influencing the vehicle telematics market with its advanced capabilities cloud services, AI driving, driver assistance, HMI’s, and many more. Multiple startups are making heavy use of machine learning and AI in their vehicle telematics solution having a great impact on this market. Few of them are listed below:

1. Idrive
2. TuSimple
3. Platoon Connect
4. Acacus
5. Autoban

What is Commercial Vehicle Telematics?

Commercial Vehicle Telematics is the use of telecommunications and informatics in commercial vehicles, like Light Commercial Vehicles (LCV), and Medium and Heavy Commercial Vehicles (M&HCV). The commercial vehicle telematics market comprises solutions and services, which enable communication & data transfer over long distances through wireless mediums. These solutions and services leverage the embedded technology, and mobile and telematics systems, and offer control over vehicles on the move. Telematics is the monitoring of a vehicle by combining a GPS with on-board diagnostics. This makes it possible to record and map exactly where a vehicle is and how fast it's traveling.

Telematics is also a term used to describe “Connected Cars” which includes features like live weather, traffic and parking information on the dashboard, applications, voice-activated features, and Facebook integration. Other features of vehicle telematics include fleet management, GPS tracking, driver management, journey management, driver behavior, insurance telematics and many more.

Market Overview

Telematics has become a vital part of commercial vehicle operations—more and more commercial fleets are adopting these solutions with an aim to increase efficiency and boost safety. Commercial vehicle telematics (CVT) solutions have a positive impact on organizational operations, and choosing the right telematics tools is important to ensure maximum RoI. Having begun by offering only basic engine data monitoring, GPS navigation, and tracking, the telematics solutions of today provide geofencing, fuel management, 5G technology, artificial intelligence, and many other cutting-edge features.

The Commercial Vehicle Telematics (CVT) market is projected to grow at a CAGR of 20.7% between 2020 and 2025. Today, the focus of CVT has moved from vehicle location and routing to drivers and their safety. By keeping track of driver behavior, vehicle condition, and maintenance intervals, commercial vehicle telematics solutions help reduce accidents, speeding, and unexpected vehicle downtime.         

Top 10 Commercial Vehicle Telematics providers:

• Trimble Inc.
• Verizon Communications Inc.
• Octo Telematics Ltd
• GPS Insight
• Mix Telematics
• Zonar Systems
• Geotab Inc.
• Cisco Systems Inc.
• AirIQ Inc.
• Webfleet Solutions

25 companies offering Commercial Vehicle Telematics were analyzed, shortlisted and categorized on a quadrant under Visionary Leaders, Innovators, Dynamic Differentiators, and Emerging Companies to identified best Commercial Vehicle Telematics providers.

The competitive leadership mapping (Quadrant) provides information for 25 major players offering Commercial Vehicle Telematics. Vendor evaluations are based on two broad categories: product offering and business strategy. Each category carries various criteria, based on which vendors have been evaluated.

The evaluation criteria considered under product offerings include a breadth of offering, delivery (based on industries that the vendors cater to, deployment models, and subscriptions), features/functionality, delivery, product quality and reliability, and product differentiation.

The evaluation criteria considered under business strategy include geographic footprint (based on geographic presence), channel strategy and fit, vision alignment, and effectiveness of growth (based on innovations, partnerships, collaborations, and acquisitions).

Visionary leaders are the leading market players in terms of new developments such as product launches, innovative technologies, and the adoption of growth strategies. These players have a broad product offering that caters to most of the regions globally under the Commercial Vehicle Telematics category. Visionary leaders primarily focus on acquiring the leading market position through their strong financial capabilities and their well-established brand equity. This section includes vendors such as Trimble Inc., Verizon Communications Inc., Octo Telematics Ltd, GPS Insight, Mix Telematics, Geotab Inc., Zonar Systems, Cisco Systems Inc., AirIQ Inc., TomTom Webfleet Solutions, Volkswagen AG and Donlen.

Dynamic Differentiators have established players with very strong business strategies. However, they have a weaker product portfolio compared to the visionary leaders. They generally focus only on a specific type of technology related to the product under the Commercial Vehicle Telematics category.

Innovators in the competitive leadership mapping are vendors that have demonstrated substantial product innovations as compared to their competitors. The companies have focused on product portfolios. However, they do not have very strong growth strategies for their overall business, when compared with the visionary leaders. This section includes vendors such as Omnitracs LLC, Emkay Inc., Arvento, Descartes, Microlise Telematics, Enterprise Fleet Management, Inseego Corp and Masternaut Ltd.

Emerging companies have niche products and service offerings. Their business strategies are not as strong as that of the established vendors. The emerging vendors include the new entrants in the market, emerging in terms of product portfolio and geographic reach, and require time to gain significant traction in the market. This section includes vendors such as Gurtam, Teletrac Navman, Aplicom, G7 Networks, and Actia SA.

Why is Telematics Important for your Business?

Commercial Vehicle Telematics Solution when implemented in businesses, can improve operational efficiency along with providing data for making strategic decisions. This information can also assist in planning fleet routes. Many such benefits come along with telematics solutions. 

Telematics solutions add value by providing full access to utilization records in real-time that can be used to improve the productivity of assets. The GPS devices provide access to critical information like engine hours or odometer readings, fuel level & service indicators. 

The use of telematics can make a regular vehicle a smart one. The automotive industry needs to address the importance of being a key monitor of telematics along with detecting performance and faults in vehicles with the safety of drivers. Revolutionary features like fuel management, geofencing, vehicle tracking, automatic driving assistance system, emergency alerts increase the value offered to the client. In the future, telematics would be a crucial part of the future smart cities as well as a will take a huge leap towards modernization.

Benefits of Telematics

• Maintenance Schedules
• Real-time communication
• Remote diagnostics & reduced fleet risks
• Reduced fuel consumption
• Reduced CO2 emissions
• Improved driver performance & productivity
• Compliance management
• Insurance management
• Improved fleet performance & optimized productivity

Use Cases

Use Case #1: Routing Optimization

The number of possible routes that a truck could take is extremely large. Back in the day, for logistics companies, the process of planning a delivery path was done manually and was very time-consuming. Besides, without real-time traffic conditions, it was difficult to provide accurate ETAs and save driving time on the road. To make the driving path more efficient and more optimal, big data relies on a number of key types of data to evaluate the best route based on the consuming time and fuel usage in a few seconds:

• Real-time GPS and speed data captured by telematics tracking devices
• Instant traffic information such as accidents and construction areas reported by other drivers on the road
• Road information such as the number of stop signs, road speed, school zones and so on posted by authorized institutions

Then, the optimized route is generated and displayed for the driver.

Route optimization is a big deal for fleet management, not only because the reduction of driving distance and time saves the business millions of dollars, but also because the decrease of fuel consumption brings less environmental impact.

Use Case #2: Breakdown Alerts and Maintenance Reminders

Telematics devices collect an enormous amount of engine data, such as engine RPM, engine oil level, transmission, mileage driven, tire pressure, and more. Based on all the engine data and the historical records of maintenance and repair, big data predictive analysis could provide us with precautionary breakdown and maintenance notifications, as well as the recommended solutions.

By acquiring advanced visibility into potential vehicle health issues, the fleet can make the appropriate arrangement between downtime and work-time for vehicles to reduce the likelihood of an unexpected breakdown on the road. Of course, this will save the company both money and energy.

Use Case #3: Driving Behaviour Analysis

Driving safety and road safety have always been and will always be the highest priority in the transportation field. Running a large, global fleet makes managing safety extra challenging. So, analyzing driver behavior is essential both for fleet management, as well as the drivers themselves.

It is commonly accepted that a better understanding of driving behavior is helpful in developing more appropriate safety policies, more intelligent driving guiding systems or coaching systems, and most importantly, reducing the rate of accidents while protecting company property and reputation, and drivers’ lives.

The internet has been a great force for global reach and organizations are moving beyond boundaries in the search of new customers. This has mandated a strong asset base in terms of brick and mortar infrastructure and human resources. Lack of visibility has always been a roadblock for asset-intensive companies in Manufacturing, Retail, Oil and Gas, Construction, Manufacturing, and Transportation. With a highly disseminated asset infrastructure, it is imperative to have end-to-end visibility of the value chain.

Traditionally owners have been using asset monitoring solutions like EAM applications, barcodes or RFID to varying degrees of success. They have been providing information on status, maintenance and general tracking for disparate functions. IoT enabled asset tracking captures the data gathered from a sensor-rich environment into meaningful actionable insights. For example, it can combine the data about how frequently the asset is worked with and its maintenance schedule to create an optimized timetable of usage. It can also trigger an alert to the accounts department about the warranty needs while scheduling a maintenance run.

How telematics resolves day-to-day problems?

• Due to traffic congestion, there is an increase in fuel prices and fuel consumption which eventually increased the value of navigation systems that compute-optimized routes.
• Telematics monitors vehicle health and reduces fuel consumption which reduces the effect carbon monoxide emissions have on the environment.
• Vehicle-related crimes like carjacking have increased, which makes vehicle tracking, e-call services, and other safety-related telematics features more desirable.
• Technologically-advanced mobile devices offer an opportunity for automakers to substitute the computer running in-vehicle infotainment systems with the driver’s smartphone or tablet, by reducing system cost.

How Telematics is revolutionizing the market?

Telematics has become a very important technology and it support in five key areas:

• Improved customer service & productivity by using real-time GPS, trip management, dispatching & routing.
• High safety with In-vehicle driver coaching, risk & behavior reporting, accident notifications and ability to locate a stolen vehicle.
• The optimized process with vehicle maintenance, remote diagnostics and fuel management by tracking idling and other fuel issues.
• Compliance management with solutions for electronic logging and Hours of Service, IFTA reporting, and vehicle inspections.
• Integration of other software systems such as on-board camera technology or CRM software.

What are the applications of Commercial Vehicle Telematics?

Solutions and services are market applications of the Commercial Vehicle Telematics market. Commercial Vehicle Telematics is used in tracking vehicles, maintenance of the vehicle, passenger safety, and many more.

Vehicle sensors and controllers measures driving performance along with location and fuel consumption. This data is analyzed and used for further reporting. Commercial vehicle telematics improves traffic flow, decreases traffic and distance, prevents accidents and optimizes security problems. It also facilitates management and maintains fleets.

What are the types of Commercial Vehicle Telematics?

Commercial Vehicle Telematics is divided into two major types namely by solution/service offered and market by provider type. Commercial Vehicle Telematics Market by Type

• Solution
• Fleet Tracking and Monitoring
• Driver Management
• Insurance Telematics
• Safety and Compliance
• V2X Solutions
• Service
• Professional Services
• Managed Services

Commercial Vehicle Telematics Market by Provider Type

• OEM
• Aftermarket

What are the key features to be considered?

The commercial vehicle telematics market is expected to grow due to the increasing adoption of NGTP, decreasing sensor and connectivity costs, and strict government mandates regarding the deployment of vehicle tracking systems in commercial vehicles. The Electronic Logging Device (ELD) mandate across different regions is also expected to provide a wholesome opportunity to the telematics vendors.

The commercial vehicle telematics provide various solutions and services as listed below -

FLEET TRACKING AND MONITORING

Fleet tracking and monitoring solutions help in the identification of the real-time location of every commercial vehicle in the fleet. These solutions are backed by real-time monitoring capabilities. Fleet tracking and monitoring solutions help companies make decisions regarding fleet handling by adapting to new developments in the field of fleet management.

LOCATION TRACKING

Location tracking solutions send the real-time location data of the vehicles to the operating fleet managers at the back end. This data offers vital information, such as the anomalies of the locations covered, number of halts, and vehicle location history and previous destinations.

DYNAMIC ROUTING

Dynamic routing, also known as adaptive routing, refers to the technique where a defined route is altered in real-time when the vehicle is on the move. This route alteration comes into effect when there is a change in the nominal condition, such as in the case of traffic congestion.

ROUTE OPTIMIZATION 

Route Optimization determines the most cost-efficient route. It includes factors, such as the number & location of all the required stops on the route, as well as time windows for deliveries.

REMOTE DIAGNOSTICS

Remote diagnostic is a vital element for monitoring the health of commercial vehicles owing to the extensive distance coverage and high travel time. The solution makes use of the integration of hardware and software technologies to extract fault codes and other required information from the Electronic Control Unit. It monitors vehicle-related information with the exchange of real-time data from a remote location.

ALERTS & MAINTENANCE

Alerts provide real-time notification for driver and vehicle activity. Users can set up an alert based on convenience.

ENGINE PREDICTIVE MAINTENANCE

Engine predictive maintenance solutions are capable of accessing multiple data sources in real-time. They aid in predicting engine failure and quality issues. This helps in reducing the unplanned downtime and maintenance costs. Temperature and other key factors are monitored by the Engine Predictive Maintenance.

GEOFENCING

Geofencing is a location-based service in which an app or other software triggers a pre-programmed action when a vehicle enters or exits a virtual boundary set up around a geographical location.

INSURANCE TELEMATICS

In insurance telematics, driver’s behavior is monitored while driving and data are transmitted to the insurance company. By assessing the risk of that driver having an accident, premium charges are calculated.

FUEL MANAGEMENT

Fuel management solutions help fleet companies gather fuel data and compare it with the industry benchmarks. Telematics can help identify areas of waste, such as vehicle idling or fuel slippage, and allow fleet managers to address them promptly, which positively impacts fuel efficiency and the bottom line.

DRIVER BEHAVIOR ASSESSMENT 

Driver behavior assessment has emerged as the most sought after solution for vehicle owners. The entire vehicle's health completely depends on the driving pattern. Various driver data such as acceleration, braking, cornering, and route choosing are analyzed.

DRIVER INFORMATION SYSTEM

Driver information system provides drivers with information related to congested streets, roads accidents, and road closures. This solution also prioritizes information according to the present situation.

DRIVETIME ANALYSIS

Drive Time Analysis is a feature that helps management to be more productive. It enables you to create drive time buffers. The main benefit is that it saves time and increases the productivity of fieldwork.

DRIVER SCORECARD

Driver Scorecard is a driver performance estimation based on driving metrics, like speeding or idling, which are measured via a GPS fleet tracking or telematics system.

COMPLIANCE AND ENFORCEMENT

Electronic Logging Device (ELD) compliance is a law that is important for drivers to manage fatigue and stay safe. Telematics streamlines ELD logging procedures, reduce paperwork, and facilitate quicker inspections.

V2X SOLUTIONS

The V2X communication encompasses vehicles exchanging data with each other and infrastructure. V2X technology enables vehicles to communicate with their surroundings and makes driving safer and more efficient for everyone.

How to choose the best Commercial Vehicle Telematics solution?

When selecting a commercial vehicle telematics system, owners should consider what features they need in it—in the present as well as in the future.

Since no two fleets are identical in the way they operate, buyers need to use a questionnaire when selecting a telematics solution for improving efficiency, limiting costs, and promoting safety. Below is one such questionnaire for prospective buyers of CVT solutions.

Is the system compliant with regional, national, and international mandates?

This is the first thing to consider, as government guidelines for electronic logging devices (ELDs) are often mandatory under law. Even if a provider promotes its product by mentioning that it meets regulatory requirements that may not always be sufficient to guarantee its legality in all jurisdictions that a fleet operates in. In the US, the Federal Motor Carrier Safety Administration (FMCSA) lists certified ELDs that can be used.

Is the solution customizable as per the needs of users?

In recent times, there have been numerous improvements in telematics technologies. If a CVT system cannot be customized as per the needs of its users, then it might not be effective as the needs of the fleet change.

Does the solution come with vendor support?

As telematics technologies expand and regulatory requirements evolve, support from the provider can prove invaluable. Therefore, a CVT provider with robust customer support is preferable.

Does the solution allow integration with other business technologies?

Telematics solutions with high integrability can easily be made a part of payroll, accounting, timekeeping, regulatory, inspection, and maintenance processes within an organization. This helps streamline operations, reduce administrative hours, optimize processes, lower costs, and minimize overheads.

Is the solution easy to use?

The best telematics systems are easy to learn and user-friendly. This allows users to save time when implementing CVT solutions, on-boarding new staff, and undertaking other fleet-related operations.

Does the solution have a smartphone application?

Smartphone applications are crucial in trucking, transportation, construction, and other similar business areas—where data review and analysis take place in numerous on-field locations as well as in a central office.

Are there any hidden fees?

If cost is an issue, it is recommended to make a checklist of features that are needed to be implemented on an immediate basis and pay only for those. This will increase ROI and ensure satisfaction. However, it is crucial to confirm with vendors whether they offer web training, unlimited support, and installation at no extra cost.

What are the current market trends in Commercial Vehicle Telematics?

The Commercial Vehicle Telematics market segment based on vehicle type is anticipated to see faster growth in the vehicle telematics market. This can be maintained by the mandatory government regulations and rise in the implementation of cloud-based telematics solutions by owners across the globe.

In the future, there will be an increase in the number of collaborations and partnerships between different systems providers, OEMs, telematics solution providers, and other investors.

Integration of 5G network technology, that has high radio frequencies than a 4G network, in telematics solutions will provide huge growth opportunities to companies in the commercial vehicle telematics market.

The Federal Motor Carrier Safety Administration (FMCSA) authorized the installation of electronic logging devices (ELD) in commercial vehicles will act as a mandatory rule by the government. Such initiatives will provide an opportunity for innovation and future growth of the telematics industry. 

The connected cars produce mass amounts of data which is impacting the insurance industry. Because of this data usage-based insurance (UBI) policies are spreading widely. By using embedded telematics, insurers can collect and analyze this data to make improved policy. 

Market trends in Commercial Vehicle Telematics:

• Usage-Based Insurance
• V2X Technology
• Smartphone Integration via Apps
• Video Telematics
• Machine Learning + AI Capabilities