by Telematics software and services have become integral part of transportation and logistics industry in Europe. With growing connectivity and availability of real-time data, telematics solutions are enhancing efficiency of fleet management and providing better services to customers.
Emergence of Connected Vehicles
Connected vehicles with in-built communication and telematics devices are becoming common in Europe. Many new vehicles come pre-installed with telematics hardware that can track location, monitor driver behavior, access vehicle diagnostics and enable various connectivity features. This is allowing seamless integration of telematics solutions for fleet managers. Various automotive OEMs are also offering their own telematics platforms and services. Connected vehicles are setting the course for next generation of mobility with real-time optimization and assisted driving features.
Fleet Management Trends
Fleet operators across industries are leveraging telematics solutions to optimize fleet utilization, reduce costs and improve services. Europe Telematics Software and Service provides live vehicle tracking, speed management, fuel consumption reports, driver behavior analysis, job scheduling, maintenance alerts and many other capabilities. This is helping large fleet owners to centrally manage thousands of vehicles across countries. Many SME fleet owners are also adopting basic telematics devices and services to track vehicle location and stay connected with drivers. Over-the-air vehicle diagnostics and remote troubleshooting features of telematics are reducing downtime of commercial vehicles.
Logistics Optimization with Telematics
Real-time vehicle tracking and automated job management is streamlining logistics operations of many transport and delivery companies. Telematics enables route optimization, real-time dispatch of nearest available vehicles, electronic proof of delivery and integrated invoicing. This is enhancing customer experience with accurate estimated time of arrival, real-time delivery status updates and improved first time delivery success rates. Integration of telematics with warehouse management and shipping systems provides end-to-end visibility and control over logistics activities. Many last mile delivery companies are actively using telematics to efficiently manage thousands of parcels and optimize delivery routes of vehicles and riders.
Ridesharing and Mobility Services
Emergence of new mobility services like ridesharing and car sharing has further expanded the application of telematics in transportation sector. Leading ridesharing platforms rely on telematics to efficiently manage availability of vehicles, assign rides to drivers, enable cashless payments and provide safety features like emergency button. Advanced fleet management capabilities including live vehicle monitoring, optimized dynamic routing, integrated payments are effectively utilized by these platforms to offer reliable on-demand mobility services across dense urban regions. Telematics also enables usage-based insurance and fuels innovative business models in emerging mobility-as-a-service (MaaS) landscape.
Regulatory Compliance Using Telematics
Government regulations regarding driving hours, vehicle maintenance, fuel usage and emissions monitoring are driving demand for compliance telematics solutions across Europe. Solutions like digital tachograph, remote vehicle inspection systems and on-board diagnostics integrated with telematics are helping commercial vehicles and operators stay compliant with regulations. Remote access to hours-of-service logs, digitized inspection and maintenance reports through telematics portals provide efficient audit management. Integration of vehicle GPS data and business systems also aids in tax compliances for goods transporters. Advancement of ELD (Electronic Logging Devices) mandate in Europe will further accelerate deployment of regulatory telematics.
Emerging Connected Mobility Services
With growing adoption of connected vehicles, new generation of in-vehicle services are emerging across Europe powered by embedded telematics devices, high speed connectivity and location technologies. In-vehicle infotainment, advanced navigation and travel assistant systems delivering hyperlocal personalized information are already available in many new vehicles. Integration of third-party apps, voice assistants, integration with smart home devices through telematics is set to deliver more immersive in-cabin experiences. Usage-based insurance, electric vehicle integrating charging solutions, integrated payment features are other connected mobility services gaining traction. Over-the-air remote updates and upgrades to vehicle systems enabled through telematics will become a norm enhancing overall ownership experience.
Fleet management segment accounted for over 50% share of the telematics market in 2020. Rapid fleet electrification and compliance mandates will further fuel telematics procurement across commercial vehicles. Logistics telematics solutions are witnessing strong growth fueled by e-commerce boom. Connected mobility services segment is projected to be the fastest growing with 35% CAGR over next 5 years. Germany, UK, France, Italy and Spain collectively contribute to over 60% of Europe’s telematics revenues. OEM telematics, electric vehicle solutions and MaaS integrations will be key focus areas for telematics vendors to tap into future growth opportunities in Europe’s dynamic transportation landscape.
Transformation of transportation and logistics sectors driven by connectivity, electrification, automation and shared mobility is fueling rapid expansion of telematics software and services industry across Europe. Telematics solutions are enhancing productivity, efficiency and sustainability of entire mobility ecosystem. Future integration of advanced technologies like AI, IOT, Big Data are expected to bring more contextual intelligent applications leveraging telematics platforms. With strong policy push for smart mobility, Europe is well positioned to emerge as leader in connected vehicle technologies and telematics enabled transportation services.
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1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it
