Telematics is a disruptive automotive technology that utilizes IT and communication protocols to send, receive and store information pertaining to remote vehicles. The data is transmitted over a wireless network through secure means and an in-vehicle electronic device or smartphone is employed for establishing remote connectivity.
In this article, we explore the various facets of telematics and the key points to consider while developing a telematics system.
Here is an overview of the topics we are covering in this article:
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How Does Telematics Work?
Telematics Control Unit & IoT Cloud Connectivity
Types of Telematics Systems
Telematics Use Cases
Benefits of Telematics
Telematics for After Sales Revenues
Do All Cars have Telematics?
Types of Vehicles in Which Telematics Can Be Used
Telematics for Driverless Cars / Autonomous Vehicles
Telematics Control Unit Architecture
Telematics Software Components
Telematics System Development Considerations
Telematics and OBD
How GPS Tracking Differs from Telematics
AIS 140 Compliance
Telematics Implementation and Challenges
The Future of Telematics
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When we say that a vehicle is integrated with telematics, it essentially means that it is fitted with a crash-resistant black box with a complex electronic control unit inside. This black-box, also referred to as the T-Box in automotive engineering parlance, is a telematics control unit.
As indicated in the image above, the telematics device collects data from within the vehicle and relays it back to the IoT cloud through the communication channel. This information is then pushed to the telematics applications/back-office systems where it is analyzed, and business intelligence decisions are made.
Likewise, the back-end applications send data to the telematics control unit from IoT cloud through the same communication channel.
An automotive telematics solution fundamentally has four building blocks:
The TCU also manages the memory and battery of the telematics device. Additionally, it streamlines the data that is shared with the driver through the Human Machine Interface (HMI) device or dashboard.
On the IoT cloud platform, the data is extracted and stored in databases for processing.
The following video explains this concept further.
A vehicle’s telematics system can have a Telematics Control Unit or a Telematics Gateway Unit (TGU) based on the functionalities that the system is expected to perform.
TCU can communicate over CAN and dual CAN. The hardware circuitry of TCU is less complex and it is hence, used as a low cost/entry level telematics solution.
TCU facilitates vehicle tracking and management and remote vehicle diagnosis.
The TGU design, however, has high memory and power footprint.
The complex hardware circuitry in a TGU enables it to communicate with multiple CAN networks and it also includes audio/video interface. It can also support vehicle ECU reprogramming; hence, it is important that the TGU is compliant with ISO 26262 Functional Safety Standards and has safety mechanism in place
Here is a handy guide that explains the differences between Telematics Control Unit and Telematics Gateway Unit – https://www.embitel.com/wp-content/uploads/TCU-and-TGU-Handbook-1.pdf
Telematics can be effectively used in various industries such as agriculture & forestry, construction, manufacturing, freight & delivery, retail, finance/insurance, mining, etc.
Some of the use cases of telematics in the automotive industry include the following:
Let us classify these use cases and segregate them into the following broad categories:
Remote vehicle diagnostics basically includes monitoring remote vehicle status, collecting data and exchanging information in real-time.
Remote vehicle diagnostics provides the following benefits:
Telematics is a necessity for effective fleet management. Crucial fleet information is gathered by the telematics system using sensors, GPS and engine diagnostics and this data is transmitted to the cloud. This enables the fleet manager to get information regarding the vehicle’s location, speed, and direction of movement. It also provides driver monitoring assistance and detects activities such as sharp braking, dangerous cornering, etc.
In a nutshell, the advantages of using telematics technology for fleet management are as follows:
Telematics car insurance is a form of vehicle insurance that has been steadily gaining popularity in recent years. One of the greatest advantages of opting for telematics insurance is that the insurance premium is based on the usage of the vehicle and driver behavior – and this data is collected by the telematics device. So, if you are a safe driver, chances are that you will be paying much lesser than what you would normally pay for your car insurance!
Often referred to as usage-based insurance, smart box insurance or black box insurance, telematics car insurance works on the data collected by an electronic app installed on the driver’s smartphone or a telematics device fitted in the hardware of the vehicle.
Another benefit of using the telematics device is that the insurer will be alerted of accidents involving the vehicle so that they can record crucial and accurate data for the claims process. This also averts any fraudulent claims by the policyholders.
The concept of telematics is not a recent introduction in the automotive industry. It was prevalent from 1996, but remained an untapped technology at that time due to the high investment cost for infrastructure setup and lack of consumer demand. However, the rise in popularity of vehicle connectivity has given telematics a new leash of life!
Some of the key benefits offered by the implementation of telematics are:
The competition in the automotive industry is perennially growing. And OEMs need to find innovative ways to deliver value to customers and stay relevant. This has resulted in the usage of telematics for after sales monitoring and update of vehicles.
There are various styles of delivery of telematics technology by OEMs:
With the advent of connected and autonomous vehicle technology, more and more vehicles will be equipped with telematics technology in the future.
A report from Berg Insight clearly indicates how the aftermarket car telematics space is set to see phenomenal growth in the coming years. The report estimates that the total number of installed aftermarket car telematics systems worldwide was 58.7 million in 2018, and it will grow to 150 million in 2023 – an annual growth rate of 20.6 percent!
Telematics devices can be fitted in all types of vehicles – Cars for personal use, fleet of trucks, buses, trailers, personal and cargo boats, tow trucks, etc.
Today, telematics control unit hardware is commonly found in commercial vehicles like buses and trucks. The telematics device helps in tracking these vehicles while they are at remote locations and also streamline fleet management requirements.
Telematics in Trucks
OEMs across the globe are integrating high-end telematics systems in their trucks, as it is now a necessity for such heavy vehicles to stay connected.
The IoT engineering team at Embitel have recently worked on the development of a Telematics Gateway Unit (TGU) for electric trucks. The primary purpose of the TGU was to facilitate Over the Air (OTA) updates by connecting with the vehicle manufacturer’s cloud infrastructure.
Based on project requirements, it is possible to configure the TGU and other vehicle dashboard components (such as digital instrument cluster) on the same hardware platform.
Although autonomous vehicle technology is still at its nascent stages, a large global market is observing the latest self-driving vehicle trends. There has also been a huge amount of investment made in developing technologies that fuel autonomous or partially autonomous vehicles.
One of the biggest aspirations in the industry is that self-driving vehicles will be able to reduce accidents and make the roads exponentially safer. For autonomous vehicles to be able to achieve this feat, it is crucial that the underlying telematics systems are empowered to be able to collect vehicle and location data seamlessly and utilize it for boosting the driving performance.
Modern-day telematics systems collate a large amount of information such as insights on fuel usage, vehicle speed, real-time location of the car, etc. All this information will be relevant even when autonomous vehicles become mainstream. In fact, it is estimated that the dependency on telematics to gather all this crucial information will increase when self-driving vehicles enter the roads.
All in all, the usage of telematics in the autonomous vehicle economy will be more pronounced than it is now.
As indicated above, the telematics control unit is a central part of a vehicle’s telematics system. It manages a host of functionalities such as:
We will now take a look at the hardware architecture of the telematics control unit:
The various components of the TCU hardware are as follows:
The telematics system in vehicles usually have the following software components:
During the design phase of a telematics system, it is important for the engineering team to lay out all the basic considerations and requirements. This could include security features to be implemented, flexibility of the design so that various communication protocols are supported, optimization of power consumption, reinforcing the system performance, etc.
The engineering team also has to consider the cost restrictions that outline the scope of the project. In other words, the engineers should be able to find the most suitable hardware components and software development methodology that optimizes system features, while staying close to the estimated budget.
It is also important to consider the regulatory compliance or certification requirements for the telematics product. Apart from this, the memory and power footprint optimization aspect should be given a serious thought.
Another important aspect to consider is the design of the telematics cloud server. The cloud database design, web server and application server design, and user role definitions and management are crucial aspects to consider during the telematics product design phase.
Telematics and IoT Security
The key to the development of a secure telematics system is planning during the design phase. We have an elaborate three part IoT security series on how to develop IoT systems/applications using holistic security principles. Some of these design principles can eliminate common design flaws and present you with a secure IoT product.
Listed below are some essential practices that will ensure that you build a secure telematics product:
On-Board Diagnostics (OBD) is a mode of communication between the ECUs in a vehicle. OBD II is an international standard of communication written and regulated by the International Standards Organization (ISO) and Society of Automotive Engineers (SAE).
All modern cars support OBD II protocol. With an OBD port that is fitted in a vehicle and an OBD connector, a technician can access the critical vehicle parameters in the form of Diagnostic Trouble Codes (DTC).
Initially, OBD II was predominantly used for vehicle engine diagnostics, but today, it is useful for various other purposes:
In the beginning, most vehicle tracking devices were based on GPS. These systems transmitted data related to vehicle location so that companies could track their fleet. The introduction of OBD in vehicle tracking opened up a world of new opportunities to fleet managers.
Companies now had access to driver behavior information such as vehicle idling time, over speeding, sudden braking, etc. This enables them to discontinue unsafe driving practices.
Vehicle tracking devices that use OBD data are also able to notify the company when there is a problem with the engine.
To summarize, OBD enhanced telematics provides so much more information to fleet managers than GPS alone. It helps them stay up to date with the location of the fleet and also have a grip on the vehicle condition and driver behavior. Additionally, they can use the information received from each vehicle to lower fuel costs and improve the overall fleet efficiency.
A telematics solution can be connected to the OBD II port of a vehicle quite easily. An adapter can also be used, in case the vehicle does not have an OBD II port. Although the installation is quick, the data it collects is vast and extremely useful for fleet management.
GPS is the use of satellite technology to track and trace the location of a vehicle or a device. It is useful for drivers who are seeking the way to a particular destination.
On the other hand, telematics is more than just GPS.
GPS is essentially a part of a telematics system. As explained above, telematics devices transmit data related to the location of the vehicle and also various other details such as driver behavior information, vehicle status, etc. The telematics device transmits all this information to the cloud in real-time.
Automotive industry Standard (AIS) 140 is a set of regulations that are published by the Automotive Research Association of India (ARAI) for all commercial vehicles. It aims to build an intelligent transportation system in the country.
As per AIS 140, it is mandatory for all commercial and public transport vehicles to be equipped with vehicle tracking systems. These telematics systems are also required to have emergency buttons and camera surveillance for the safety of the vehicle’s occupants.
Some of the advantages of complying to this standard are given below:
Since the AIS 140 standard has been mandated by the Indian government, it becomes all the more important for the associated IoT architecture to be up to date. The transport authorities also need to have stringent surveillance and management mechanisms for the emergency requests from vehicles.
Some of the challenges faced by fleet management companies after the implementation of a telematics system are as follows:
Insurance companies are also facing similar challenges when convincing customers to opt for telematics-based insurance. Many insurers had to sacrifice some margin while introducing telematics, as they were offering discounts for customer acquisition. However, this is expected to even out over time, as customers will be more aware of their driving behavior and opt for safe driving practices. Gradually, accidents and claims will reduce, and the insurer margins are likely to improve..
Telematics has been on the path of exponential growth in the automotive industry. These days, companies manufacturing heavy vehicles and luxury passenger cars opt for high-end telematics systems, complete with a telematics gateway unit.
The insurance industry is also embracing telematics in order to differentiate themselves from competition in the market.
Fleet management companies have recognized the need to integrate telematics technology in their operations to boost accountability, control costs and be compliant to government regulations. Fleet managers have also benefited immensely from the technology as it easily integrates with other software related to ERP, workforce management and business management.
Telematics can cater to a large list of use cases that we could have never imagined before. By leveraging the vast amount of data transmitted to the IoT cloud by telematics systems, it is possible to determine actionable insights for a variety of business scenarios.
For instance, the telematics cloud data can be used for urban analytics for smart cities, fleet performance benchmarking, predictive maintenance and suggestions for vehicle spares, to name a few.
All in all, telematics is poised to become an integral part of all future automobiles and we are certain that this will bring about a paradigm shift in the automotive industry. Exciting times ahead!