Vehicular telematics combines GPS, wireless devices, black box technologies and onboard vehicle diagnostics to record and transmit vehicle-related data. This technology streamlines logistics for freight companies and bolsters driver safety on a systemic and interpersonal level.
In prior decades, telematics was predominantly known for its basic speed and location-tracking capabilities and dashcam recordings of the road. But in 2024, the scope of its technological and safety advantages is far greater and more advanced.
As of 2024, the automotive telematics industry is valued at approximately $50 billion and is projected to grow at a compound annual growth rate (CAGR) of 16.6% until 2030. This game-changing interdisciplinary technology field is transforming the way freight companies approach everything from employee management and logistics to driver safety—and boosting the economy at the same time.
The rapid growth rate and extensive use cases of vehicular telematics are increasing the demand for this groundbreaking technology every year. This is leading to high performance, environmentally friendly, and technologically advanced vehicles constantly being integrated with automatic telematics systems and freight companies across the globe.
Currently, five main technological features define telematics in the freight truck industry. These are vehicle tracking and recovery, accident prevention, driver behavior monitoring, vehicle diagnostics and maintenance, and fleet management.
However, the field of telematics is constantly expanding. New and innovative forms of advanced technology, such as automatic cloud storage and algorithmic route planning, are being adopted to continue the pursuit of fleet operation excellence.
As telematics advances, its capacity for preventing road injuries and optimizing fleet services increases exponentially.
Currently, vehicle telematic technology’s main features in use include:
Vehicle tracking and recovery
One of the most important features of a telematics device is providing fleet management with insight into where vehicles are while away from a truck terminal or yard. This information is useful for more efficient route mapping and tracking driver safety should they get lost or enter unsafe areas.
Due to the advanced geo-tracking capabilities of current telematics devices, freight companies can also streamline their vehicle recovery process. If a freight truck breaks down, gets lost, is stolen, or is hijacked, fleet managers can use telematics’ location-tracking abilities to identify exactly where the vehicle is and recover it safely. The real-time location tracking can be shared with law enforcement or rescue services, ensuring no time or resources are wasted in locating the vehicle.
Accident reporting
With over 6 million car accidents occurring each year in the US and commercial truck occupants accounting for 15% of roadside fatalities, accident reporting is a common concern for freight companies. However, the combination of GPS technologies and accelerometers makes accident reporting faster and more streamlined.
The sensors that telematics provides allow vehicles to detect when potential crashes have occurred and even measure the extent of their damage. The reports generated in real-time can be used to file the first notice of loss (FNOL) with insurance providers and ensure speedier repairs and legal resolution.
The data recorded by telematics also plays a crucial role in liability cases as it provides accurate footage of the accident for truck accident lawyers. By having unbiased evidence of the accident, parties can reach fair settlements quickly.
Driver behavior monitoring
Reckless driving, unsafe behavior, and failure to meet road and company standards are all dangerous occurrences that can have deadly consequences on the road. For freight managers, knowing how drivers are behaving and whether they are committing any safety violations can go a long way toward improving overall road safety.
Inward-facing telematics dashcam devices can help freight companies monitor these issues effectively and ethically. Fleet companies can use these real-time HD cameras to observe their employees’ behavior and use the information they find to discipline or reward them and create more effective training programs for new drivers. Many of these inward-facing dashcams also provide real-time alerts to drivers when they detect risky behavior, allowing them to correct their actions and learn while on the job.
Vehicle diagnostics and maintenance
Maintaining vehicle health is integral to the successful operation of a freight business and its bottom lines, as well as to safety on the road. Telematics technology makes diagnosing vehicle issues such as faulty engines, worn tyres, and all manner of vehicle-related problems automatic, reducing the likelihood of future breakdowns.
Telematics is closely connected to predictive data analytics and automation, making maintenance check-ups and problem detection a seamless advantage. Real-time data and metrics are readily available to managers who can act quickly when a vehicle shows signs of needing maintenance or repairs. This reduces the likelihood of a breakdown occurring on the road or a critical failure behind the wheel, reducing the chances of an accident.
Fleet management
Current telematics technology is much more holistic and comprehensive now than it has been in previous years.
Many of the devices, such as smart AI dashcams, are seamlessly connected to software clouds, making fleet management easier for both big and small logistics companies. These devices offer not only automatic data uploads and storage but also data analytics programs that offer valuable insights into company growth and driver behavior.
Vehicle telematics technologies have advanced greatly since 2020, and their evolution is certainly not slowing down. Going into the next decade and beyond, the freight industry can expect to see an even stronger link between fleet logistics and advanced technology.
Advanced analytics and AI, enhanced safety features, and blockchain logistics are just a few of the technological features the industry can expect to see more of in the coming years.
Another important aspect of the future of freight truck telematics relates to sustainability. As resources become increasingly limited and the push for meeting sustainability goals grows stronger, the presence of electric vehicles is projected to flourish in the coming years.
It is predicted that by 2035, electric freight trucks will be more affordable and accessible to run than diesel alternatives. This development will play a crucial role in the future of vehicle sustainability and telematics.
Telematics has the power to transform the logistics industry into one that’s safer and more sustainable. As features like driver safety, driver monitoring, accident prevention, and vehicle diagnostics become increasingly pertinent to the growth of the trucking industry, freight companies that utilize these tools for systematic optimization are likely to drive competition going forward.
