by WEX Fleet
Fleet managers across the country must deal with the annual challenge of making their fleets more efficient and less accident prone while dealing with tight profit margins and high logistical costs. One of the easiest ways to overcome this hurdle is by implementing solutions that tackle multiple fleet issues at once. Telematics is a prime example of one of these solutions. The versatile benefits of telematics are evident in the technology's surging appeal in 2015. Exploring this growth reveals just how helpful telematics can be for your commercial vehicle fleet.
1. Telematics technology contributes to fleet safety
A primary factor driving the adoption of telematics across the globe is the growing use of telematics to boost the safety of vehicle fleets. According to an article in Automotive Fleet, companies that utilize telematics were able to reduce the frequency of safety problems, as well as minimize the severity of incidents that did occur. These improvements translate to savings via fewer repairs and shortened downtime, just a few of the telematics-based cost reductions that can easily cover the cost of installation over time.
There are multiple ways that telematics technology contributes to the overall safety of the fleet. The ability to monitor vehicle location in real-time, for example, provides dispatch and the fleet manager with unprecedented resources for guiding drivers away from accidents, weather issues and inefficient routes. Performance data provided by on-vehicle systems can help maintenance staff catch repair issues before they turn into an on-the-road accident waiting to happen.
2. Evolving services translate to wider customer base
Another trend in telematics sales reflecting the technology's widening appeal is expected growth in commercial and consumer purchases. The latest MarketsandMarkets report predicted the commercial revenues to peak near $40 billion by the end of the decade. Similarly, research collected by IndustryARC expected worldwide sales to reach near $140 billion by 2020.
Pressure from governments around the world, including the United States, has helped to drive telematics adoption globally. More and more fleet managers are wise to the long-term safety and savings improvements telematics can offer, driven by increasingly strict compliance updates to find cost-effective means of improving fleet performance. Likewise, customers in the consumer and commercial sectors alike have greater awareness of the many benefits that telematics can bring to the dashboard.
3. Insurance companies continue to expand through telematics
Insurance providers, looking to utilize technology as a way of streamlining their accident claim adjustment process, have shifted toward offering telematics-based insurance rates to fleet companies. The detailed information collected by this technology can be used by insurance companies to investigate accidents with greater scrutiny. The extra details give insurers a closer look at what really happened to cause an incident, and this attention to specifics will protect safe drivers from being held responsible for a collision they didn't create.
4. Original equipment manufacturers recognize the value of telematics
Even original equipment manufacturers have begun to recognize the value of telematics. The latest ABI Research data reported 600 million telematic connections courtesy of OEM and aftermarket telematics installations on the market by 2019, according to the Machine 2 Machine Expo magazine. The news source pointed out that the installation of this technology is being driven by federal activity to ban mobile use in states across the U.S., leaving with many drivers with the need for new, legal means of on-the-road navigation.
It may not be unrealistic to expect telematics to be installed on most vehicles within a decade or two, and the fleets that cash in early will be able to take advantage of cost-effective installations available on today's market.