What is telematics?

How telematics works

Telematics is a varied field, but it is mostly used in vehicular technologies and road transportation. It uses communications-enabled devices to store, send and receive information that can control remote objects, specifically in moving vehicles using navigation systems. The integration of the Global Positioning System (GPS) into mobile devices and computers enables telematics to mark its location and communicate with a wide range of vehicles.

Other industries that use telematics include the following:

• Telecommunications.
• Wireless communications.
• Electrical engineering.
• Computer science.

Vehicle telematics

In commercial usage, telematics is usually synonymous with vehicle telematics. The automotive industry uses telematics to describe onboard communications services and applications. Cars, trucks, buses and other vehicles use GPS receivers and telematics devices installed in each vehicle. Technologies that support vehicle telematics include the following:

• Fleet telematics. Fleet telematics refers to the use of telematics to manage and monitor commercial vehicle operations, locations and status. These systems enable information exchange between a central location and individual fleet vehicles. A fleet vehicle can include trucks, ambulances, municipal vehicles and school buses.
• GPS. GPS tracking and other wireless communications transmit information to and from a vehicle's computerized systems. This enables services such as GPS navigation, roadside assistance, remote diagnostics and fleet management. General Motors first popularized automotive telematics with its OnStar system.
• Wireless. Wi-Fi and cellular networks -- such as fourth-generation wireless (4G) LTE or 5G -- could also facilitate communication between vehicles and applications or services. Faster wireless networks enable more advanced onboard services, such as vehicle firmware updates, multiuser Wi-Fi hotspots and streaming video for passengers. This eliminates some tasks that previously required a visit to a car dealership.

Combining telematics systems with sensors has opened up additional opportunities in the automotive industry and beyond. For example, telematics systems help shipping companies analyze how much time trucks spend idling. Car insurance companies can offer lower premiums to customers who are safe drivers. Telematics also supports other industries, such as car-sharing. Zipcar, for example, uses onboard network-based services to enable usage-based pricing and self-service reservations.

Beyond automotive applications, other industries have developed other telematics use cases, such as monitoring water and air pollution, providing medical and healthcare information, and enabling distance learning.

Telematics companies

Some third-party companies offering customers communications and information management for their fleet vehicles brand themselves as telematics providers or fleet management services providers. These providers often specialize in specific services for their customer bases, including the following:

• GPS fleet trackers.
• GPS tracking software.
• Vehicle security services.