Automotive telematics is the technology of sending, receiving and storing information relating to vehicles, or their drivers, using telecommunication devices.
The word telematics is the combination of telecommunications and informatics.
The global automotive telematics market is set to experience rapid growth in the coming years, with approximately 104m, or 88%, of new cars expected to have some form of connectivity by 2025. In the last 5 years the cost of the technology both the hardware and the software has dramatically decreased making the option to retrofit your existing fleet a viable option. Devices are now easily connected to the smart phones, tablets and desk top computers on cloud-based software, making telematics easily accessible and readily available.
The future of telematics is being driven by the needs of fleet owners who continue to look for ways to cut costs and boost their productivity. Whilst there is a monthly cost associated with telematics systems, many fleet managers find the expense well worthwhile when the benefits are realised.
The telematics benefits:-
* Reducing Fuel Consumption
* Reducing Accidents
* Focused Insurance Policies
* Reducing Costs and Improving Efficiencies
In April 2016, the Crown Commercial Service launched a vehicle telematics agreement to support the public sector improve fleet safety and efficiency. Based on data provided from fleets who are already using vehicle telematics, the service anticipates that customers will save £3 for every £1 invested in a telematics solution.
A recent study by consultancy Ptolemus estimating that globally there are currently 12 million telematic based insurance policies, and this is projected to increase to 100 million by 2020. According to LexisNexis, Telematics insurance has led to a 35.32% reduction in collisions for 17-19-year-olds over the past six years, this trend is expected to be replicated across all sectors using telematics.
Reducing your Carbon Footprint!
Car manufacturers are under increasing pressure from regulators to reduce carbon-dioxide emissions to combat climate change, prompting Volkswagen, BMW and Nissan to increase the number electric only vehicles they produce. This is in line with the Governments plans to tackle air pollution, stating that all new diesel and petrol cars and vans will be banned in the UK from 2040. Telematics have also been proven to improve driver behaviour and in turn reduce fuel consumption and Co2 emissions.
What can you do now?
Company vehicle owners and fleet drivers are key players in the telematics market. With high volumes of vehicles on the road, fleet vehicles are responsible for a large percentage of Co2 emissions and road traffic accidents. It has been estimated that an aggressive driving style can lead to about a 37% increase in fuel consumption, this significantly increases the production of greenhouse gases. When telematics is used effectively and ‘Eco Driving’ standards are adopted the results can be amazing: –
* Reduce fuel consumption by up to 25% *
* Improve overall productivity by up to 15%*
* Lower total miles driven by up to 10%*
* Decrease idling by up to 30%*
Telematics are here to stay, and the technology will only improve and become more intuitive over time. For those who implement telematics systems, the benefits are clear and proven.
*Benefits After Effective Deployment of Fleet Management System. Frost & Sullivan. 2015