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What is telematics and how do telematics systems work?

For businesses, telematics can improve efficiency and bottom lines by reducing fuel costs, improving asset utilisation and increasing safety.

Telematics can be defined as a broad range of wireless and mobile technologies that allow the remote gathering, sending and receiving of data. Telematics has many applications in everyday life, including GPS tracking, fleet management and even car insurance.

Let us take a look at how telematics systems work and some of the benefits they provide for businesses and consumers alike:

Telematics systems make use of a variety of technologies, including GPS, cellular networks, and sensors. GPS tracking is perhaps the most well-known application of telematics.

GPS tracking can be used for a number of purposes, such as keeping track of fleet vehicles or monitoring the location of employees. According to GPSWOX, telematics systems can also be used to monitor the performance of vehicles and drivers. This data can be used to improve fleet management and operations.

The average car fleet in the US is between 50 and 100 vehicles. It is no wonder the Telematics US market is forecast to grow from $24,22-billion in 2018 to $50,87-billion by 2025.

For businesses, telematics can improve efficiency and bottom lines by reducing fuel costs, improving asset utilisation and increasing safety. For consumers, telematics can provide peace of mind by helping to locate stolen vehicles and providing real-time traffic information.

Telematics and OBDII

Most telematics systems make use of the on-board diagnostics port (OBDII) found in most vehicles. The OBDII port provides access to a wealth of information about the vehicle, including engine performance, fuel economy and emissions data. Telematics systems can tap into this data to provide a variety of features, such as real-time vehicle diagnostics, fuel economy monitoring and more.

How do telematics systems work?

Telematics systems typically consist of three main components: a device that is installed in the vehicle, a cellular or satellite connection, and a cloud-based software platform. The device is usually installed in the OBDII port and is used to gather data about the vehicle. This data is then transmitted to the cloud-based software platform via a cellular or satellite connection.

The software platform processes the data and makes it available to businesses and consumers via a web-based interface or mobile app.

Other examples of telematics in everyday life

There are a number of other ways that telematics is being used in everyday life. For example, insurance companies are increasingly using telematics to track driving behaviour and offer discounts for good drivers. Telematics is also being used in agriculture to track farm equipment and animals. Some cities use telematics to monitor traffic patterns and improve public transportation.

As you can see, telematics is becoming increasingly prevalent in our everyday lives. If you’re not already using telematics in your business or personal life, now might be the time to give it a try.


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