The state of the telematics solutions industry

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Telematics, like any technological industry in the 21st century, is growing. Those in the know project the industry will reach a value of $320.6 billion by 2026, meaning a growth rate of 26.8% from 2019. Fleets all over the world use telematics to optimize productivity and promote safety in their fleets. The fleet industry is responsible for everything from the services we order to our houses to the goods that move across our highways. Without the fleet industry, the US economy would fall apart, and that industry relies on telematics. 

What is Telematics?

Telematics is the technology that allows a fleet to track vehicle data such as speed, location, fuel efficiency, HoS, maintenance requirements, and more. The technology transmits this data in real-time from the vehicle to a program such as fleet management software. The software consolidates this information into reports that make it easy to consume, so fleet managers can make decisions to maximize efficiency and encourage safety among their drivers. The hardware for a telematics system is plug-and-play. The driver simply plugs the device into their OBD port, and it’s ready to go. 

Telematics can help ensure the safety of drivers by tracking data like speed, braking, and rapid acceleration. These behaviors can be signs of distracted or aggressive driving that fleet managers must eliminate. The technology can also help fleets keep up with vehicle maintenance. Telematics alerts fleet managers when vehicles need maintenance, making it easy to keep track of each vehicle’s care needs. Insurance carriers often provide discounts for fleets that utilize telematics, and many fleets take advantage of this benefit. Finally, telematics helps to ensure compliance with federal regulations at DOT inspections and other inspections. 

Significant Trends in Telematics for Fleets

Many factors play into the rise of the telematics industry that we see today. Telematics has become increasingly common in fleets, especially since the introduction of the ELD Mandate in 2017. There are three major trends in telematics that apply directly to fleets, and we will go over those here. 

Dash Cams

Dash cams have exploded in popularity among fleets. Dual-facing dash cams like Azuga’s SafetyCam are particularly popular as they provide a view of what’s happening in the cab along with what’s happening on the road. There are innumerable benefits to having a dash cam in every fleet vehicle. First of all, an AI-powered camera can promote safety by tracking behaviors that indicate distracted or drowsy driving, like yawning, unfocused eyes, eating, or cell phone usage. Distracted and drowsy driving kills thousands of people every year, and minimizing that impact is certainly a bonus for dash cams

Another benefit that fleets appreciate is having a witness in the event of an accident. 70% of accidents are not the fault of fleet drivers, and dash cams can prove it. They serve as an irrefutable witness, showing a comprehensive view of everything that happened at the time of an accident. This testimony saves fleet companies thousands of dollars. It also saves insurance companies a significant payout, and they may offer a discount on a fleet’s premium just for having a dash cam. 

Predictive Analytics

Predictive analytics analyzes data from statistics, machine learning, and other methods and makes predictions by generating a likelihood score. The higher an event’s score is, the more likely it is to occur. One example of predictive analytics at work is route optimization. Route optimization analyzes data from previous traffic conditions, historical job details, current conditions, and scheduling needs and utilizes an algorithm to create the most efficient and cost-effective route between destinations. Predictive analytics is also used in promoting safety among fleets by analyzing driver behaviors and predicting if they need coaching or manager intervention. Managers also use it to keep track of vehicle maintenance, as it can expect when parts will need repair, and alert the manager that they need to send it in for care. 

Driver Rewards

Driver rewards are an excellent way to gamify safety and motivate drivers to develop safer driving habits. The system works by taking telematics data and assigning each driver a score based on their safe driving behaviors. Drivers with a higher score will be eligible for rewards. Safe driving is essential not only for everyone on the road but also for a business’s reputation in the community. Keeping vehicles and drivers safe benefits everyone. 


These trends are what is currently fueling telematics in the fleet industry today. As the telematics industry grows, it will make new strides in fleet technology that make drivers safer, fleets more effective, and businesses more profitable. The experts at Azuga employ telematics technology every day in fleets all over the country. Reach out to Azuga today to learn more about the telematics industry and keep up with the new technology to come.