What is Consumer Vehicle Telematics?
Consumer vehicle telematics is communication-based technologies and services that allow transfer of large amounts of data within as well as out of passenger vehicles in real-time. This includes in-vehicle services for consumers, navigation of the global positioning (GPS) system, traffic information, local search (such as gas pumps/gas stations or restaurants) and concierge services.
Today’s passenger cars offer unique connectivity solutions in order to monitor and track better. Increased smart phone market penetration, supportive government rules that require increased security and policies, growing demand for high-performance driving experience, lower connection and high-speed Internet technologies such as Long-Term Evolution (LTE) driving are driving the demand for Consumer Vehicle Telematics. Passenger cars are part of consumer telematics. The key policies adopted by market players to improve their market share are technology agreements and collaborations.
What’s influencing the need for Consumer Vehicle Telematics?
The major factor driving consumer telematics growth is projected to be a high demand for large-scale analysis and related services. Telematics is referred to as consumer communication technologies and services which permit transfer of high volumes of data in passenger cars in real time. Vendors focus on providing consumer security by providing superior products and services for vehicle tracking.
In the foreseeable future, the growth of cloud-based services to provide high customer experience will positively impact consumer telematics demand. Vendors also reinforce the development of interactive feedback systems using cloud-based information. High demand for more personalized systems which minimize the cognitive load of drivers by filtering intelligent data provides industry growth opportunities. The decline in connectivity price and high-speed internet technologies like 4G and 3G could also propel demand for the market over the period of predictions.
Consumer Vehicle Telematics Solutions
The way fleet managers operate their vehicles is changed by telematics. Whether it is the operators of a fleet of cars, pick-up trucks, transporters, or tractor trailers, telematics technology improves commercial transportation safety and efficiency. Fleet management services find a lucrative market place that is eager to use IoT.
In addition to telematics information, providers can collect GPS tracking and provide cloud-based management services that desktop computers or mobile devices access to. Custom apps interact with the telematics systems of vehicles to offer a complete overview of how the fleet works. Although GPS tracking is nothing new, advanced telematics provides fleet management with a wealth of data, alongside an increasing list of advantages that only get lengthened with innovations in telematics.
Drivers can enjoy the comfort of their journey with a GPS navigation system, as they can save time without getting lost on the way to their destination. The companies which supply rental cars also use navigation. These companies have GPS tracking systems on their rental cars to monitor their cars’ kilometers, speed and locations. These companies can charge customers who are found to be speeding or leaving the area under the lease agreement with significant surcharges. This type of monitoring was challenged because customers are generally not clearly explained about vehicle monitoring practices.
What is the Aftermarket Deployment Mode?
The consumer vehicle telematics aftermarket deployment mode is the secondary market place of this industry. It majorly concerns with the distribution, manufacturing, remanufacturing, retailing, and installation of all vehicle parts, equipment, chemicals, and accessories, after selling the vehicle by the original equipment manufacturer (OEM) to the consumer.
New technology can facilitate car ownership for loyal customers and offer automotive and aftermarket solutions that provide drivers with detailed maintenance alerts and services over a connected mobile, Web or car app. Data transmitted through telematics devices and platforms can also help to decommission and maintain calls with detailed data on problems from the car directly to the service provider, which means problems can be diagnosed faster. It allows suppliers to supply the appropriate parts more quickly and helps build long-lasting customer relationships.
Which industries are reaping maximum benefits from Consumer Vehicle Telematics?
- Cars (Personal & Rental)
Cab service providers adopt this telematics software and devices, as they can collect all information streaming over the asset from a distance such as fuel consumption, machine health, diagnostic information, fault codes, idle time, etc. Telematics has provided fleet managers with unparalleled data on driver performance, which makes it possible to detect and address unwanted behavior— such as severe braking, hash cornering, and aggression. All of these factors are monitored by in-cab telematics systems to directly return data to fleet managers for evaluation.
Telematics solutions are also required to be taken into considerable growth during the forecast period in the healthcare industry. M2M Remote Patient Monitoring Solutions include tracking systems for patients in Alzheimer or managed care facilities and use cases to monitor and maintain the efficient use of a patient prescription. In order to protect and monitor critical information, healthcare telematics infrastructure connects IT systems of pharmacists, hospital and health insurers and is expected to further expand the consumer vehicle telematics industry during the forecast period.
- Media & Entertainment
Car entertainment presents an interesting and unique set of telematics opportunities. Each modern vehicle has a standard music system and other media outlets. By collecting users’ preferences over time, a behavior pattern can be predicted and customized media can therefore be recommended for driver use. A similar mechanism could be developed by using GPS data for cars and vans similar to an in-flight suggestion system, which informs the driver of popular attractions, fuel depots, restaurants, ATMs etc.
- Government Agencies
Telematics provides the automotive sector with additional functionality and risk evaluation data to provide a safe driving experience. Governments make telematics services an obligatory requirement for automobiles since they can prevent a number of road accidents, traffic jams caused by car breakdowns, over speeding, etc. through telecommunications. For a number of uses governmental organizations can use the telematics data, such as accident statistics collection, regulation information, security data collection, and enhanced road construction.
What’s trending in the industry?
Companies are now focused on providing customized products and services due to technological developments that provide meaningful insights into customer behavior, analyzed by various means like connected motor vehicles, smartphones and more. The large volume of telematics-embedded vehicles may lower device costs and promote innovation, which should in the next few years further boost the growth of the consumer vehicle telematics industry.
The consumer vehicle telematics market has made significant advances in mobile appliance software, mobile technology, and all-embracing connectivity. Nowadays, smartphones display capabilities such as accelerometers and GPS that also offer growth opportunities. The connection between the telematics of vehicles and its benefits to the insurance sector is abundantly clear. They may help insurers to measure and report the driving behavior of the driver. The Consumer Vehicle Telematics Market is expected to grow at a market growth of 30.4% CAGR during the forecast period.