Internet of Things (IoT) is finding a new application, telematics. Advanced wireless data-tracking devices in vehicles combined with an increased demand for e-commerce and restaurant delivery spurred by Covid-19 in 2020 is driving the development of telematics.
It will continue to grow as customers have welcomed the convenience of delivery likely to last long beyond the current pandemic restrictions. While businesses are seeing an increasing need for driver safety and fleet optimization. Research says the Global Commercial Vehicle Telematics Market is expected to rise from its initial estimated value of USD 8.80 billion in 2018 to an estimated value of USD 39.07 billion by 2026, registering a CAGR of 20.47%.
Companies managing fleets often have measures in place, such as fleet management and safety programs. However, accidents still happen. In fact, the annual fleet accident rate has reached 20%. Safety and risk managers are looking for ways to find the source of these accidents and to ultimately improve the health and safety of their drivers and ensure continued business viability.
The fleet management industry has also seen an increase in their insurance premiums. According to the Wall Street Journal, insurance premiums have doubled every year due to what’s known as “nuclear verdicts.” Underwriters are increasing their premiums to cover losses due to the large “nuclear” accident payout amounts. This trend will only continue to increase unless fleets can reduce the number of fatal accidents. The use of telematics can assist companies in managing fleet safety related costs and help enable safer driving behaviors.
Adding telematics to a company’s fleet and risk management plan, along with fleet safety communication, policies and programs, will support in creating a culture of fleet safety and assist in reducing the number of vehicle accidents.
Now is the time to Invent the Future!
Watch the video to find out how technology and telematics implemented across your fleet can provide benefits to the business.
What is Telematics?
Vehicle telematics continues to rise in popularity as a direct result of business demand and regulatory requirements. Fleets rely on telematics data not only to stay compliant with the ELD mandatebut to run their operations more efficiently.
Telematics Offers Hope in Improving Driver Safety
Today, more than ever, companies have the ability to enable safer driving behaviors through the latest in telematics and video monitoring technology. [LINK]
Global Commercial Vehicle Telematics Market Industry Trends and Forecast to 2026
Global Commercial Vehicle Telematics Market is expected to rise. [LINK]
N³ Innovation is engaged with a client to assist in piloting telematics technology within a segment of their fleet. Over the last year, our client has seen a rise in the size of their fleet due to increased product demand and productivity. A similar trend is estimated in 2021. To ensure continued, superior service while taking care of their drivers and providing increased operating efficiency our client is interested in evaluating telematics as a way to help improve driver efficiency, safety and connectivity.
The telematics system measures driver safety using smartphone sensors, such as the accelerometer, gyroscope, and GPS. The system analyzes driver behavior and returns actionable insights through dashboards, including notifications of collisions, risk analysis, and a guide to coach drivers for sustained improvement. The system will track fleet data such as, knowing the location of vehicles and how gas is being used. It will also track productivity to identify ways in which fleet managers can streamline the business and improve service delivery standards, including average job completion time, time on site and vehicle activity.
In order to ensure pilot success, we defined several key success criteria to measure the capabilities of the telematics system as a way to assess the fleet management program and improve driver safety. Several of these success criteria include:
Ability to capture strategic data and reporting for insurance and stakeholder objectives
Number of driver behavior events (e.g., traveling speeds, collisions, mobile phone use, etc.)
Ability to track and log vehicle mileage and fuel consumption, as well as engine idle time
Telematics technology and its features can be a helpful tool for entire fleets – big and small. It is more than just a vehicle tracking system, it can provide detailed information on how fleets and drivers are performing. The power of telematics data can deliver improvements in driver safety, efficiency and overall fleet performance.
N³ Innovation’s mission is to help corporate clients create measurable enterprise value by inventing the future. Clients have generated millions of dollars of revenue in new markets, with new products and new technologies.
Want to learn more about how to successfully execute a telematics pilot? Contact us today!