The perilous aftermath of the COVID-19 pandemic in 2020 and its continuous carnage has indeed slowed down the automobile industry’s growth worldwide. It is not just the automobile industry, but every other industrial sector has suffered a considerable loss. Touted as bigger than the Great Depression of the late 1920s, the pandemic’s unprecedented nature and magnitude are posing problems to both local players and the biggies of the industry.
Although the harrowing trend continues, the Asia-Pacific and especially the Middle East has shown some resilience in the automobile and automotive industry growth. Apart from the resolute GDP and cooperation of the governments and the interest of the international players to penetrate this seemingly lucrative market, user safety, and a superior user experience continue to drive the adoption of cutting-edge technological offerings in vehicles.
However, the forces mentioned above have also failed to restrain the negative impact of innovative vehicular technology and its projected growth. The Gulf Cooperation Council has noted this significant trend and has declared that a couple of factors have impeded the adoption of intelligent technology in automobiles.
- The economy being hit by the ongoing COVID-19 pandemic, and
- The slump in oil prices.
The COVID-19 pandemic impacted the global telematics industry in a three-pronged manner-
- By directly affecting production and demand,
- By disrupting the supply chain market, and
- By creating disruption amongst financial markets and firms.
But there is already a silver lining!
Although poised for gradual growth in the immediate future, the telematics technology industry is being taken care of by local aftermarket participants as well as OEM suppliers. Let’s take a look at what the industry experts have to say about adopting intelligent vehicular systems across the UAE.
The Telematics industry scenario across the UAE:
With the global telematics industry taking a severe hit along with the automobile and the automotive sectors, it is only natural for a modest CAGR till the negative factors mentioned above recede. The global telematics market was valued at 40.3 billion USD in 2020, and according to industry experts, it would grow at a CAGR of 14.7% to reach a 121.5 billion USD valuation by the end of 2026.
Being one of the most potential markets for global telematics solutions, UAE is doing its bit to resurrect the indigenous telematics industry and offer a level field for big international players. The country has already registered a growth in the commercial vehicle telematics (CVT) sector in the past few years. Some of the critical factors that have contributed to this growth are-
- Ease in governmental regulations
- Amplification of demand in information transparency
- Expansion of commercial fleets and the high level of services expected there
- Addition of customer-centric ridesharing vehicles and cab services by the Dubai Transportation Authority
- Vehicles under the logistics and transportation, along with construction and infrastructure applications adopting commercial telematics solutions, vehemently
- Growing awareness regarding the improvement of vehicular efficiency, enhancement of intelligent routing and tracking, the overall increase of driver and user experience, better on-road assistance, etc.
In the UAE, the growth of various avant-garde technologies like the IoT, 5G, AI, ML, and robotics have led to the increased utilization of digital devices. It has paved the way for a rapid digital disruption aiding in sophisticated connectivity solutions and the relentless rise of the telematics industry irrespective of the pandemic scare.
Telematics- a term that will govern intelligent automobile solutions in the coming years:
Before we dive deep into the benefits that telematics devices offer to your vehicles and overall business, let us take a closer look at the solutions themselves.
So, let’s try to answer this simple question first.
What is a telematics device?
A telematics system is basically nothing but a combination of advanced technology that blends two scientific disciplines:
- Telecommunications- systems involving remote means of communication and
- Informatics- systems that practice information processing.
The telematics device is an instrument that performs specific functions as articulated within the telematics system framework or architecture. Car insurance companies usually provide these devices for installation within the vehicles. The primary purpose of these devices is to collect data by employing GPS technology, multiple sensors, and onboard diagnostic codes.
What does the collected data include?
Well, everything from real-time engine diagnostics, vehicle activities, vehicle location, and driver behavior.
Components of a telematics system:
The following comprise the components of a telematics system-
- A GPS management system that forms the core of the telematics system
- A fleet management software system that can be essentially integrated with GPS tracking to improve efficiency in informed decision-making
- An input/output interface
- An engine interface
- A SIM card
- An accelerometer and
- A buzzer.
Benefits of telematics solutions for your vehicles:
Telematics solutions offer a range of upsides for your vehicles and overall business. We have tried to compile and analyze some of the most important ones.
● Reception, storage, transmission, and analysis of data:
A telematics system’s fundamental role is the reception, storage, and transmission of telemetry data. It uses a GPS tracking device to do the same. With the help of a SIM card, a telematics device connects to the onboard diagnostics port (OBD-II) or a CAN bus port and implements the above functions. An onboard modem helps the device to communicate with the company’s central server using a wireless network. The transmission of GPS and vehicle-specific data occurs through the following methods-
- Cellular network
- 4G/5G mobile data
- GPRS (general packet radio service)
- Satellite communication, etc.
The data is transmitted to a central server that analyzes the collected data and displays the results. The data analytics software in the server enables the end-users to view the results via a secure web or mobile app.
● Critical insights into driver behavior and fleet operations:
A telematics device collects the following data about the vehicle.
- Real-time location of the vehicle
- Vehicle usage
- Vehicle maintenance issues
- Fuel consumption of the vehicle
- Idling time
- Vehicle speed and rapid acceleration instances
- Rash driving instances like hard braking and cornering.
The above data is beneficial to create reports based on specific events and patterns after comprehensive data analytics. Hence, you can create custom reports on drivers as well as the entire fleet.
● Vehicle tracking:
Telematics systems enable real-time vehicle tracking with the use of GPRS networks, GPS receivers, and satellites, as well as cloud computing.
● Asset tracking:
One of the specific upsides provided by telematics devices is helping you route your drivers efficiently to specific trailers and non-motorized assets. It can be done by installing GPS trackers on such trailers and non-motorized assets. Another great feature is that drivers can tag their locations after disconnecting from specific trailers. The system can also be set up in a way that alerts you when a trailer moves without prior authorization.
● Safety tracking:
Minimizing occupational hazards and maximizing driver safety is possible with a robust telematics system. While these systems enable you to monitor the speed, location, acceleration, etc., they can also help you identify harsh driving practices and ensure safety protocols like wearing seatbelts.
● Vehicle maintenance:
Management of vehicle maintenance and asset lifecycle becomes foolproof with a telematics system. With these efficient systems, you can track hours-of-use, service records, engine hours and schedule preventive maintenance, and keep a tab on warranty recovery. Apart from these, you can manage maintenance expenses and monitor vehicle operating conditions by running engine diagnostics like powertrain, coolant temperature, battery voltage, oxygen sensors, etc.
● Insurance risk assessments:
With the help of a robust telematics architecture, an insurance company can set up its premiums by assessing driver behaviors and associated risk levels.
● Additional benefits:
With a host of other features, the telematics devices in your car can have impeccable advantages. These include the following-
- Automatic collision notification
- Emergency assistance options featuring SOS buttons and Good Samaritan assistance
- Roadside assistance
- News alerts
- Text message displays
- Local search
- Media streaming services
- Gas price finder
- Enhanced Automatic Crash Notifications or E-ACN.
Benefits of telematics solutions for your fleet:
With a range of upsides for companies that employ a fleet of vehicles, telematics solutions are becoming nearly indispensable.
● Improvement of efficiency and productivity:
Vehicle-based GPS systems used as part of holistic telematics solutions monitor a vehicle’s location in real-time, thereby creating safer and more efficient routes for drivers. This, in turn, leads to a reduction in delivery time and fuel consumption. With the use of geofencing, tracking and comparing driver performance against delivery schedules reduce driver detention time.
● Reduction in fuel and operational expenses:
Using telematics to track and reduce vehicle idling and plan smarter routes enables minimizing fuel and operational expenses. These are the most significant expenses for a fleet.
● Promoting proactive vehicular maintenance:
Identification, assessment, and addressing vehicle maintenance issues can occur remotely with the help of lean and smart telematics solutions. While hours of service information helps schedule preventive maintenance, real-time notifications of vehicle fault-code detections prevent escalation of maintenance concerns. As a result, your fleet of cars runs longer and has minimal upkeep and maintenance expenses. It also helps prevent critical safety violations and improve your Compliance, Safety, and Accountability (CSA) scores.
● Payroll management automation:
With the exact data of how far and long specific vehicles have run, you can automate employee records and payroll management, thereby nullifying manual errors in administrative and clerical jobs.
● A more streamlined organizational and customer communication:
Fleet management software integrated with advanced telematics solutions supports real-time, two-way communications between the drivers and company personnel. They also help customer support agents deliver a more streamlined service by providing real-time vehicle location data and accurate delivery estimates.
● Enhanced driver safety and legal support:
With fleet management software and telematics systems, you can collect real-time data on driver and overall fleet behavior and driving trends. You can rank your drivers according to their safety score, train them on better driving habits and improve the overall fleet safety.
Accidents and collisions occurring due to rash driving instances might not always translate to your drivers’ fault. You can use dashcam footage in the court as solid evidence of your driver’s innocence and even protect your enterprise from legal proceedings and ensuing financial liabilities.
● IFTA report automation:
Apart from automatically computing distance driven and fuel costs for drivers under multiple jurisdictions, telematics systems integrated with advanced fleet management software help automate the International Fuel Tax Association (IFTA) reports. Thus, there is a more streamlined administrative service without manual errors and prevents the risk of being audited.
How to install a telematics device in your vehicle?
Now that we know why to onboard telematics systems into our vehicles and fleets, it is time to learn the appropriate installation of such devices. While some cars these days are manufactured with built-in telematics systems, you don’t need to fret if your vehicles are not one of those models. Essentially, every car manufactured after the mid-1990s comes with a port that is compatible with fitting a telematics box, which again is small and compact and might fit into the palm of your hand.
A telematics installation in your vehicle is quite possible without assistance. However, you can refer to a manual or a user guideline if there is any at your disposal. Let’s follow the listed steps to install a telematics device with a vehicle-based GPS system in your car.
- The first step is to find the vehicle’s OBD-II port. Remove the dash panels. Switch off the ignition and test the voltage using a digital multimeter.
- Clear the OBD-II port by removing the bolts that hold it in place.
- Now you need to place the mounting bracket over the replacement port and push it into place.
- The next step involves plugging in the bypass connector, screwing in the replacement port, and pulling the bypass cable through the dashboard.
- Connect the PNP device to the bypass and secure both with zip ties if required. It would be best if you made sure that neither of them is bouncing around.
- The following step is the most important. Carefully read registration and activation instructions that are specific to your device. Follow these instructions properly.
- Don’t start the vehicle until and unless the entire procedure is completed and the device has been activated.
- Finally, reassemble the dashboard panels.
Most of the telematics installations are more straightforward than the steps mentioned above. You might have to skip certain steps since they are not needed in specific models. Modify the steps according to your car model and seek professional assistance from the device manufacturer or the vehicle manufacturer if you need any.
Closing thoughts:
Choosing the best-in-class telematics technology enables your car and your fleet to stay on top, perform better, and helps you with upkeep. With telematics becoming a must-have item in modern-day vehicles, we are yet to see the rise of smarter and leaner machines that further simplify our tasks and operations.
