How Automotive OEM Telematics Trends are Changing the Outlook of Automotive Businesses?

Highlights:

• Introduction
• Trends in the automotive OEM telematics sector
• Key partnerships and collaborations

Widely used by fleet managers and car insurance companies, telematics technology monitors a broad range of information regarding an individual vehicle or the whole fleet. Telematics systems collect vehicle location data, driving patterns, engine diagnostics, and vehicle activity. This data is displayed on software platforms to help fleet managers make decisions and manage resources accordingly.

Automotive telematics enables various functionalities, such as GPS navigation, vehicle diagnostics, remote diagnostics, and even entertainment systems. The global automotive OEM telematics industry is anticipated to cite a growing CAGR of 15.1% by 2032. The sector has gained popularity due to the surge in the trend of connectivity solutions, ease of integration of vehicle diagnosis, and adoption of real-time fleet monitoring systems in connected vehicles.

Futuristic trends shaping the future of the automotive OEM telematics industry:

API (Application Programming Interfaces) is gaining momentum:

Application programming interfaces (APIs) allow significant data exchange and integration among different software systems, applications, and devices. In addition, it enables developers to enhance applications and services of vehicle telecommunications platforms.

Moreover, the API plays a crucial role in supporting over-the-air (OTA) software updates and enhances vehicle performance & functionality without requiring a visit to a service center. API is a key driver for the sector’s growth in automotive telematics. This ecosystem extends beyond vehicle manufacturers and suppliers, including application developers, data analytics companies, insurance providers, and various other stakeholders.

Rise in emphasis on vehicle data analytics:  

Another significant trend in the telematics sector is the rise in emphasis on vehicle data analytics. Telematics systems generate extensive data, covering vehicle performance metrics, driving behavior, and environmental conditions. This data is valuable for gaining insights into driver behavior, vehicle health, and overall fleet management.

Advanced techniques such as machine learning and AI are used to analyze this data, optimizing vehicle performance, predicting maintenance needs, and enhancing driver safety. The integration of data analytics with telematics systems allows the development of intelligent transportation systems. This enables fleet operators and automakers to make informed, data-driven decisions for improving operational efficiency.

Customized IVI (In-Vehicle Infotainment):

In-car infotainment (IVI) systems incorporate improved customization and offer specialized experiences for both drivers and passengers. These enhancements include features, such as voice-activated controls for convenience, personalized music choices, and customized navigation routes based on driver preferences. The continuous advancements in IVI technology personalize the elements in the in-car experience that make the journey enjoyable and hassle free.

5G integration:

The integration of 5G technology is a significant trend in the automotive OEM telematics industry. 5G enables vehicles to communicate seamlessly with each other and the surrounding infrastructure with its high-speed and low-latency connectivity. This integration elevates the capabilities of telematics systems and allows real-time data transfer for navigation, in-car communication, infotainment, and vehicle-to-everything (V2X) communication.

Automotive biometric system:

The automotive biometric vehicle access system enables automated vehicles to grant access based on the behavioral or physiological characteristics of a driver. This system is employed to enhance anti-theft protection and provide insights into the comfort and safety of car owners.

How strategic alliances are assisting frontrunners to dominate the sector?

The global automotive OEM telematics sector is competitive, and top players have made strategic alliances to maintain their position in the sector. These strategies include collaborations, mergers, acquisitions, and new product launches. For instance, in May 2023, Admiral Group introduced a partnership with Ford Smart Mobility and telematics provider Redtail Telematics.

This connected car offering allows owners of eligible Ford vehicles to share driving data directly collected from their cars. Customers share data by adding their vehicle to their FordPass app and activate the data-sharing feature on their in-vehicle screen using the product.

On the other hand, Arity, a mobility, and data analytics company, partnered with Connected Analytic Services, LLC (CAS), an affiliate of Toyota, on April 20, 2023. This collaboration aims to supply driving data from connected vehicles to auto insurance carriers on behalf of vehicle owners, enabling them to access usage-based auto insurance (UBI) products.

The partnership enabled the integration of connected-car data from Toyota and Lexus vehicles into the Arity platform. Arity's platform delivers unparalleled data insights to insurance carriers, empowering them with tools for enhanced pricing segmentation, assisting in the improvement of profitability, growth, and customer retention. The collaborative effort with Arity aims to broaden this access by including additional carriers.

Moreover, TSD, the global leader in rental management systems, and Zubie, a top-tier telematics solutions provider, extended their partnership on June 20, 2023. With this collaboration on board, Zubie's telematics capabilities integrate into TSD's dealer management system platform. This expansion aims to provide TSD's dealer customers with a unified telematics experience and contribute to the vision of connecting every car in operation.

To conclude, the global automotive OEM telematics industry has experienced growth due to the surge in the trend of connectivity solutions, ease in the integration of vehicle diagnosis, and adoption of real-time fleet monitoring systems in connected vehicles. However, better safety of vehicles & drivers and smart transportation systems are expected to open new avenues for the industry in the upcoming years.

To sustain the competitive industry of automotive OEM telematics with novel strategies and informed decisions, contact our experts today!

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