How Telematics is driving vehicle market


Telematics has been grabbing headlines recently with global vehicle makers aggressively leveraging this technology to meet the rapidly changing demands of the travel and transport industry.

The combination of telecommunication and informatics has helped enterprises to reduce fleet management costs by providing essential information regarding transport directly to fleet managers.

Recent newsmakers

Lots of evolutions and expansions are happening in tech centers in view of the increasing demand for connected vehicles.

Automobile-maker Volvo greeted its customers on the New Year with a wearable-enabled voice control system with the help of its mobile app Volvo on Call and Microsoft’s wearable Band 2.

This system allows Volvo owners to instruct their vehicle to perform tasks including, setting the navigation, starting the heater, locking the doors, flashing the lights or sounding the horn.

Launched in 2001, Volvo on Call became one of first ever car-based telematics systems in the world. The new facility will be available for customers in Volvo on Call enabled markets in spring 2016.

In a similar move, Nissan Motor took the decision to deploy Connect Telematics Systems powered by Microsoft Azure in all Nissan LEAF models and Infiniti models in Europe. Nissan selected Azure to meet customers’ expectations about in-vehicle mobility solutions, create additional ways to interact with their vehicles, and enhance safety.

Elsewhere, Ford and drone-maker DJI announced that they are driving innovation in smart drone-to-vehicle software with DJI Developer Challenge.

In connection with that, Ford invited innovators to participate in the DJI Developer Challenge to crea The Company’s proprietary Ctrack telematics solution for car-sharing includes options such as driver ID and authorization for te drone-to-vehicle communications using Ford SYNCAppLink or OpenXC.

From the IT side, Novatel Wireless recently announced an advanced telematics solution optimized for the car-sharing sector. Named as the Ctrack solution, the company expects its solution to power car-sharing initiatives in Europe.

The Ctrack solution includes options such as driver ID and authorization for keyless vehicle access via RFID smartcards and mobile applications. Other features include remote vehicle immobilization, a suite of vehicle tracking and location based services, and driver behavior metrics that provide asset control and support safe driving initiatives.

Factors driving telematics market

From a user’s point of view, safety is the primary cause for adopting such technologies, coupled with the crave for most modern facilities.  Researches show that there are many factors boosting this sector from an IT vendor’s view.

According to research findings by ABI Research, converged devices, such as tablets, are driving the market.

“The adoption of converged devices opens the door for entire application ecosystems and the emergence of dedicated commercial telematics application marketplaces,” says Dominique Bonte, Managing Director and Vice President at ABI Research.

He also said the importance of converged devices for improving safety and productivity is growing and the mobile industry is now well aware of this development.

Rakesh Panda, Technavio’s senior machine (M2M) research industry analyst says automobile and big data analytics companies are forging partnerships to understand vehicle performance and connecting with vehicle owners to improve brand loyalty and efficiency.

Since these remote monitoring features are expected to improve safety and security aspects in vehicles by preventing collisions and informing owners about faults inside vehicles, market demand will rise.

Research and Markets predicts that the global connected car M2M services market will grow at a CAGR of over 30 percent, while the connections market is expected to grow at a CAGR of over 28 percent during 2016 to 2020.

In another report, the research agency said the global commercial telematics market is poised to grow at a CAGR of around 16 percent in the next 5 years to reach approximately $41 billion by 2020.


Like in every connected facilities, the telematics service providers also face challenges like customer acceptance, regulator’s support and maintenance of privacy. The tougher part lies in proving how these technologies work in real time.

Arya MM
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