5 Ways Telematics is Impacting Connected Car

Connected car technology is quickly reshaping the future of the global automotive industry, but the future of the automobile will be defined by connected car telematics. Automotive telematics, which combines telecommunications and vehicle informatics, enables vehicles to share data with the outside world, and it’s big business.

How big? The global automotive telematics market is projected to reach $106.24 billion by 2022. Market revenue will be shared between OEMS and the growing list of companies whose products and services comprise the Internet-of-Things (IoT) ecosystem.

In this article, we examine five ways telematics and connected car technologies are merging to transform how we use our automobiles. We will also examine the value of telematics in connected car applications for personal and business uses.

1. Insurance Telematics

If there is one aspect of vehicle ownership with which we have a love-hate relationship, it is probably insurance. Without it, we would be responsible for paying the medical bills of anyone we injured in an accident, and we would have to pay to repair the victim’s vehicle as well as our own. Our car insurance policy gives us peace of mind, but we sometimes wish it could be administered more fairly. Sure, drivers who get traffic tickets for speeding have to suffer the consequences through higher premiums, but what about irresponsible drivers who seem to never get caught?

Thanks to telematics, the guy who passes you at a high rate of speed might not get caught by law enforcement, but he may soon be reported by the very vehicle he is driving.

Usage-Based Insurance (UBI) is a telematics-based insurance product that drivers can choose to install on their vehicles. UBI usually involves plugging a dongle into the vehicle’s OBD II port, or downloading a mobile app. The UBI device or app will track driver behavior and report the details to the insurer. Depending on the insurance company, insurance premiums may be based on any combination of the following driving characteristics:

    • Acceleration
    • Braking
    • Speed during turns
    • Miles driven
    • Frequency of driving
    • Time of day

UBI, or Pay-How-You-Drive (PHYD) insurance, as it is also called, offers advantages for drivers and insurers, including reduced premiums for customers, reduced risks for insurers, driver coaching and feedback, distracted driver detection, and automated claims processing.

Although UBI insurance is currently optional, it is likely that auto insurance companies will mandate UBI policies in the future, as it is only to their advantage to do so.

2. Fleet Management Telematics

Telematics is changing the way fleet managers operate their commercial vehicles. Whether one manages a fleet of cars, pickup trucks, vans, box trucks or tractor trailers, telematics technology improves the safety and efficiency of commercial transportation.

Fleet management services are finding a lucrative market that is eager to adopt IoT technologies. By collecting GPS tracking, along with telematics information, providers can provide cloud-based management services that can be accessed by desktop computers or mobile devices. Custom-designed apps interact with vehicles’ telematics systems to provide a complete picture of how the fleet is operating.

Telematics fleet management services offer managers the following advantages:

    • Fuel consumption tracking
    • Improved operation efficiency
    • Asset tracking
    • Compliance verification
    • Route optimization
    • Improve fleet safety
    • Real-time vehicle tracking
    • Automatic trip logging
    • Vehicle maintenance issues alerts
    • Risky driver identification

While GPS tracking is nothing new, advanced telematics offers fleet managers a wealth of data not available till now, along with a growing list of benefits that only gets longer with advances in telematics technology.

3. V2X Connectivity

Vehicle-to-X (V2X) is a communications technology that allows a connected vehicle to connect to any IoT device that can affect the vehicle. While vehicle-to-vehicle (V2V) enables a car, for example, to exchange data with other connected vehicles, V2X allow a vehicle to exchange data with other vehicles, smart traffic lights, toll road collection points, and 3rd-party products and services.

As the vehicle telematics system is, in many respects, the central hub of all connected car data, it is also central to V2X connectivity.

But V2X is about more than connecting vehicles to external IoT things. It must also foster intelligent and cooperative IoT data exchanges that are relevant and useful to the driver at the time they are executed. Artificial Intelligence (AI), is being employed to help transform connected mobility into intelligent mobility.

Current V2X technology relies, for the most part, on Wireless Local Area Network (WLAN) radio frequency technology in order to facilitate data exchanges. As telematics technology advances, it is all but certain that V2X will increasingly rely on cloud-based services to overcome the inefficiency of siloed data exchanges.

V2X offers drivers a wealth of information and features, including the following:

    • City information
    • V2V communication
    • Collision avoidance
    • Intersection information
    • Road hazard warnings
    • Traffic alerts
    • Emergency vehicle alerts
    • Pedestrian crossing alerts
    • Smart home connectivity
    • Commercial enterprise offerings

As telematics systems become more advanced, and as autonomous cars finally hit the road, V2X capability will become essential. OEM systems may get the headlines, but purveyors of aftermarket and 3rd-party V2X products and services will, nevertheless, likely dominate the market.

4. Mobile Apps

Regardless of the type of telematics system — OEM or aftermarket, drivers and passengers can interact with the vehicle through the telematics or infotainment display. However, mobile apps provide expanded features and, in some cases, better features than are included in the OEM user interface.

Here are just a few examples of the type of apps we will see in the near future, if not already available:

    • UBI insurance
    • Personal driving behavior monitoring
    • DIY vehicle diagnostics
    • Customized GPS location of family members or other groups
    • Low-cost fleet tracking solutions
    • Vehicle maintenance alerts

Whereas a small collection of telematics-related apps are already available through iTunes, more and more will be made available as developers figure out just how much data is available to them through connected car telematics systems.

5. Consumer Telematics

Lastly, we cannot ignore the useful features connected vehicle telematics systems can offer every driver.

Here is a short list of features that telematics now offer, or will soon offer connected drivers, passengers, and even family at home:

    • Remote vehicle location by GPS
    • Remote access to vehicle operation information
    • The ability to remotely limit vehicle speed
    • Turn-by-turn navigation with augmented 3rd-party information
    • Family notification of vehicle collision
    • Automated emergency calling
    • Vehicle diagnostics and maintenance notifications

It has yet to be seen how autonomous driving will open even more demand for automotive mobile apps. Till then — and maybe afterwards, market demand will outpace availability as more connected vehicles hit the highways.

How Ignite Can Help

Vehicle telematics systems have been around for decades; the ability to connect them to things around the world has not. A $106 billion market awaits automotive technology companies that can tap the power of connected telematics to make driving safer, more efficient, and more enjoyable.

However, market success in the highly complex field of connected vehicle telematics requires a combination of technologies that not many companies possess under one roof. Vehicle technology, cloud technology, big data technology, IoT technology, and mobile app development are just a few of the disciplines that must be brought to bear for the development of telematics products.

Ignite offers outsourced development of cutting-edge automotive technologies and app development. We were experts when a car was just a car, and we are experts in the technology that will power autonomous vehicles. It’s just a matter of what you need, not whether or not we can pull it off — because we can.

We operate six R&D labs across Western Europe, and some of the best developers in the world are on our team. Our success comes from Ukrainian leadership that is truly visionary, and from a whole-team commitment to making our clients succeed. If you are looking for a technology partner who knows the road, why not contact us today for a no-cost consultation? We’ll do the driving.

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