How Telematics is Driving the Growth of the Connected Car Ecosystem
COVID-19 has had a significant impact on the automotive industry. While automakers observed historic low sales in 2020, purchases have bounced back to normal since the economy started looking up, post the first wave of the pandemic.
One of the automotive trends that seems to have cemented its position in the industry is vehicle connectivity.
Drivers of connected cars receive insightful instructions on navigation and vehicle health reports (predictive maintenance). Businesses operating a fleet are able to track the exact location of each vehicle in the fleet and driver behaviour, even from remote locations. All this is made possible through the revolutionary technology of telematics.
In this blog, we explore the concept of telematics in detail, the software and hardware components that form a telematics device, and the striking use cases of the technology today.
Understanding Telematics and Its Benefits
Telematics is the use of telecommunication networks for transferring information to and from remote vehicles. It helps in tracking and monitoring various aspects of remote vehicles.
Data exchange in telematics is accomplished via cellular networks or the internet.
But what are the individual components that equip a vehicle with this superpower to transmit data to a remote location? Here’s a rundown.
A vehicle telematics solution comprises of the following fundamental components:
1. Telematics Control Unit — The Telematics Control Unit (TCU) is the heart of the telematics device that is fitted into a vehicle. This unit has communication interfaces with the CAN Bus and the IoT cloud server. The telematics control unit collects important vehicle data in real time and transmits it to the cloud server, in a specific format.
2. Telematics Cloud Server — The telematics cloud server is the central database where all the telematics data is stored and accessed by end users. Business analytics solutions can be integrated with the cloud database to derive valuable insights from this data.
3. User Interface — The authorized end users (OEMs, fleet managers, technology providers, etc.) can access the telematics data from the cloud and streamline business operations based on this information. Web, mobile or desktop applications can serve as HMI for end-users.
4. Wireless Network — GPRS, Cellular, or LTE are the usual modes of communication between the TCU, telematics cloud server and the user interface.
Telematics System Versus GPS Tracking Device
It is not uncommon to confuse a telematics system for a GPS tracking device. In reality, a telematics device is much more complex than a GPS tracking tool. In fact, GPS tracking is only one of the functionalities offered by a telematics device.
A complete telematics system enables various other capabilities such as geofencing, vehicle speed tracking, accident alerts, vehicle diagnostics, remote vehicle inspection, transmitting sensor activity such as dashboard camera visuals, etc.
Telematics Control Unit Architecture and Software Components
Data related to vehicle diagnostics, location, speed, engine information and faults, fuel consumption, etc. are all collected by the TCU and transmitted to the cloud.
The telematics control unit has dedicated hardware and software modules that manage data collection, device memory and battery.
The telematics hardware component consists of the following parts:
· GPS module
· Central Processing Unit
· CAN Bus module
· Memory unit
· Communication interfaces
· GPRS module
· In-built battery module
· Bluetooth unit
· Audio interface
· General Purpose Input/Output (GPIO) system
· HMI unit
The software components that constitute a telematics solution are:
· Bootloader software stack
· Real Time Operating System (RTOS) and BSP modules
· Global Navigation Satellite Systems (GNSS) software
· Automotive Framework Classes
· OTA update software
· Software that integrates data analytics so that alerts can be sent to users
· Software for Multimedia device drivers
· Security algorithms
Refer to our in-depth telematics guide for more details on the hardware architecture and software components of telematics control unit.
How Telematics Can Contribute as a Key Growth Lever for Businesses
Telematics offers a host of benefits to drivers, passengers, fleet managers and OEMs. The striking advantages of integrating telematics into a mobility ecosystem are discussed below.
Fleet Management & Driver Monitoring
Telematics has been effectively utilized by fleet management companies to improve fleet safety. This technology enables the fleet manager to receive reports on vehicle speed and driver performance. This is useful for training risky drivers and rewarding good driving.
The fleet data is also used to minimize operating costs such as saving on fuel costs, preventing detours, reducing idling time, and improving the fuel efficiency of vehicles. Lowering fuel wastage and miles driven also leads to reduced carbon emission — a strong step forward in ensuring a greener future.
Through telematics technology, it is easy to estimate accurate arrival times of vehicles and re-route them in the event of delays. This ensures that deliveries are always on time. This overall improvement in efficiency of services is found to boost customer satisfaction in the long run.
Pay As You Drive Insurance
One of the prominent use cases of telematics in the insurance industry is Pay As You Drive (PAYD) insurance. Also, referred to as Black Box insurance, Pay As You Drive is a car insurance plan based on the usage of the vehicle.
When opting for PAYD insurance, a telematics device is installed in the vehicle to monitor the distance covered, driving behaviour, etc. So, the safer you drive, the lesser you pay!
Drivers who are generally alert and careful on the road can save immensely from this type of auto insurance plan. Some insurers also provide a weekly summary/score of the driving behaviour and tips on improving it, as this is what forms the basis of the premium charged.
Predictive Maintenance
Telematics systems not only help in monitoring drivers, it also assists in analysing the conditions of the vehicles. Based on various vehicle conditions (such as the odometer reading and engine run time), the telematics system provides notifications on when the vehicle is due for maintenance.
Vehicle OEMs also use this technology for after-sales monitoring and support of vehicles. For instance, through this technology, it is possible to predict faults in vehicle parts and proactively identify chances of a breakdown. This helps OEMs in undertaking timely repair measures, hence reducing the chances of recalls.
Overall, telematics is one of the most exciting IoT trends in the automotive domain. And it will remain so in the future, even after autonomous vehicles find their way into the mass mobility market.
