Answering Your Burning Questions About Vehicle Telematics and How It Will Shape Fleet Management in 2024

Resource type

Earlier in our blog, we analyzed the latest changes that were happening in the technology world of 2023 and highlighted top 10+1 technology trends that will shape 2024. The future is so unpredictable that everything may change any day. For example, look at how fast ChatGPT blew up when no one was expecting. In some way, this blow up could be predicted because of the increment of using various Artificial Intelligence and Machine Learning technologies in recent years. Therefore, sometimes it is possible to prepare at least a bit.

Many of our clients and other businesses have to deal with different fleet management activities, and we understand how it is important to have more automation and control over the fleet management process. That is why, in today’s article, we will take a more precise look at the trends that are happening in the fleet industry. According to the Precedence Research report, the global automotive telematics market is expected to hit US$ 236.40 billion by 2032, poised to grow at a CAGR of 16.40% from 2023 to 2032. So, let’s see which Vehicle Telematics trends are able to change your tracking processes in 2024 to the better.

What Is Vehicle Telematics Anyway?

Let’s start with the boring basics. It will help us to form the idea of how the fleet management process can be improved and which trends may suit your business the best. Vehicle telematics refers to the technology that combines telecommunications and informatics to enable the transmission of data from vehicles to remote systems (central server or cloud-based platform). The technology basically collects the required data on different aspects of the fleet management (vehicles and their performance, drivers and their behavior, packages, passengers, location, fuel consumption, etc.) via GPS tracking software, wireless telematics devices, satellite connections, onboard vehicle diagnostics systems, and other assets and transmits it to your fleet management software.

Vehicle telematics greatly improves the efficiency and safety of your business fleet operations by providing user-friendly navigation, detailed diagnostics, and precise analytics. In order to let your company better deal with fleet operations, you need to ensure that your team has the required hardware and software. From the hardware point of view, companies usually implement GPS tracking devices, sensors, wireless communication, and other similar devices. As for the software side, vehicle telematics allows using Artificial Intelligence, blockchain, GPS tracking systems, and other advanced and common options.

Overall, vehicle telematics plays a crucial role in enhancing fleet management, improving driver safety, optimizing vehicle performance, and enabling various connected car services. In general, the collected data can be used for a wide range of purposes such as the following:

  • Fleet Management
    Telematics systems provide valuable insights into fleet operations, allowing businesses to improve the monitoring of vehicle location, route optimization, tracking of fuel consumption, and management of maintenance schedules. As a result, your company is able to make better and efficient decisions, reduce costs, and enhance the overall fleet management process.
  • Vehicle Tracking and Recovery
    Telematics enables real-time tracking of vehicles, making it easier to locate stolen or lost assets. The data collected by telematics systems can aid in recovery efforts and provide evidence for insurance claims.
  • Vehicle Maintenance and Diagnostics
    Telematics systems can provide real-time information about vehicle health, engine diagnostics, and maintenance needs. This enables proactive maintenance scheduling, reduces downtime, and helps to prevent costly breakdowns.
  • Driver Behavior Monitoring
    Telematics systems can monitor the speed a driver moves with, acceleration, braking, and adherence to traffic rules. This information helps to identify risky driving patterns, promote safer driving habits, and improve overall road safety.

Read Also Freight Management System (FMS) vs. Transport Management System (TMS): Are They the Same Solution?

Which Components Are Crucial for Vehicle Telematics?

Of course, every business owner decides what is best for their company, which is why the combination of the integrated components may differ. However, there are some components that are vital for fleet operations. Therefore, let’s look at what we recommend to have in order to enhance your fleet business processes.

A certain set of hardware. First of all, you need to ensure that you have all the required mobile and stationary devices that will help you to connect your assets with the remote system. These components work together to provide various benefits, including the utilization of relevant tracking and other applications for vehicle telematics in order to ensure better navigation, diagnostics, and safety:

  • A GPS receiver is what you need without doubt, because it will help your team to track the location, speed, and direction of your vehicles in real time. Without it, you basically won’t be able to perform your duties;
  • An engine interface is what will allow you to connect to the vehicle’s on-board diagnostic port and gather data on engine performance, fuel consumption, mileage, etc.;
  • As for the input/output interface, it will let your team implement additional sensors, devices, or peripherals to be connected to the telematics system. For example, you will be able to easily set cameras, microphones, speakers, or other peripheral devices if needed;
  • Some vehicle telematics systems may also include an accelerometer that measures the acceleration, deceleration, and braking of the vehicle, and a buzzer that provides audible feedback or alerts to the driver.

GPS tracking software. Vehicle telematics highly relies on GPS technology to monitor vehicle location in real-time. It is the system that will perform the biggest part of the entire process, hence it will be impossible to work without it. Combining a system with the GPS tracking tool enables businesses to track vehicle movements, optimize routes, and enhance fleet management.

Want to know how we created a Traccar-based GPS Tracking System?

Check our clickable prototype to see how we managed to achieve customer's requirements.

Learn more

Integration capabilities. There is a very high chance that your company already has a system or systems that help your team to deal with a great variety of daily tasks. You should keep them in mind, because you may need to integrate chosen telematics with those systems of yours. For example, you may already have fleet management software, inventory management software, dispatch or delivery management systems, CRM platforms, ERP systems, etc. Seamless integration allows for efficient data sharing and enhances overall operational efficiency.

Communication network. A reliable communication network is essential for transmitting data between vehicles and the central telematics system. This can be achieved through cellular networks, satellite communication, or a combination of both.

Data processing and storage. Of course, you can’t avoid considering the storage required for the data that will be collected by all your devices and systems. It is essential to understand that telematics systems need robust data processing capabilities to handle the large volume of data generated by vehicles. This involves storing and analyzing data related to vehicle location, performance, and other relevant metrics.

Read Also Using Dynamic Tables for Advanced Data Modeling and Analysis

Security measures. Vehicle telematics systems must incorporate strong security measures to safeguard transmitted and stored data. This includes encryption techniques, secure access controls, and measures to prevent unauthorized access or tampering.

Which Vehicle Telematics Trends to Expect in 2024?

We know that you can’t wait anymore and want to know what will be trendy this year. Let’s wait no more and see what we all can expect. It’s important to note that the trends are speculative and based on the current trajectory of the industry. The actual landscape in 2024 may differ based on technological advancements, market dynamics, and regulatory changes. Therefore, always keep in mind that something may blow up later while other trends may not become ones at all. Let’s not beat around the bush and dive into the possible telematics trends in 2024.

1. Environmentally-Friendly Routing and Electric Vehicles

In 2023, the European Union announced that all sales of new ICE vehicles will be banned from 2035, which caused a big discussion in the automotive industry. Later, it was decided that “vehicles with combustion engines can still be newly registered after 2035 if they use only CO2-neutral fuels,” which was stated by German transport minister Volker Wissing on X (prev. Twitter). However, the discussed issue is still on the table, which can cause the change of previous plans.

The discussions about the pollution caused by humanity have been circling around different business spheres for a long time now. Therefore, hopping on this trendy train might actually be a good idea for those companies that deal with the fleet management processes. The trend reflects the increasing adoption of electric vehicles and the development of a robust charging infrastructure. Telematics systems help fleets manage the challenges and opportunities of EV adoption, such as range management, charging logistics, and sustainability.

Reducing the environmental impact of fleet operations by using telematics systems to plan and optimize routes that minimize emissions and fuel consumption can also be a great investment to the common cause.

2. Advanced Analytics and Predictive Maintenance (AI, GenAI, ML, etc.)

Advanced analytics capabilities is what any business strives for, because the gathered data lets one plan further actions. It is believed that fleet management systems are likely to incorporate more advanced options, leveraging machine learning and artificial intelligence algorithms. With predictive tools, it is possible to discover maintenance needs, improve tracking activities, make better decisions on operations, and simulate possible issues to avoid them in the future.

Even GenAI can be used in this case. For example, the technology can generate realistic and diverse traffic scenarios for testing and training purposes or create personalized and adaptive navigation systems that learn from drivers’ preferences and behavior. GenAI can also help improve the security and privacy of telematics data by using encryption and anonymization techniques. The possibilities are endless when you think about it.

3. Integration with Smart City Infrastructure

As cities become smarter and more connected, fleet management systems may integrate with smart city infrastructure. This could involve accessing real-time data on traffic and road conditions and accidents, optimizing routes and ensuring safety based on those details, and leveraging smart parking solutions to enhance fleet efficiency.

You can also get increased data monetization and value creation by enabling the use of blockchain or other new business models and opportunities.

Read Also How Inbound and Outbound Logistics Work, and How to Make Them Work Better

4. Automotive Biometric Vehicle Access System

An automotive biometric vehicle access system allows access for automated vehicles based on behavioral or physiological characteristics of a driver. It is used for better anti-theft protection and insight into car owners’ comfort and safety. This technology can be in the form of fingerprint recognition, iris scan, facial recognition, or voice recognition. The technology slowly but surely rises in various industries thanks to the high level of security it provides. So, all the spy movies where a character opens a secret door by scanning the iris may soon be our ordinary life, considering the variety of devices with similar features that we have today.

From the end-user’s point of view, it is a really user-friendly and convenient tool. A person doesn’t need to have traditional keys, which can be lost or stolen, or feel uneasy about the thought of their personal data being stolen. However, it is important to include all the other factors, such as environmental conditions, specified data collection, and cost. But, sooner or later these disruptions may simply disappear due to the evolution of biometric access features.

5. Enhanced Safety Features

What can be done to ensure the safety of all participants and inanimate objects included in fleet operations? This is a critical question that will surely be occurring from time to time, thus making the enhanced safety features a trend.

Vehicle telematics in fleet management will continue to prioritize safety by incorporating advanced driver assistance systems (ADAS) and collision avoidance technologies.These features may include the following:

  • Real-time driver coaching. The feature monitors and analyzes driver’s behavior and condition to notify them of critical driving events in real-time in case they increase the speed, feeling fatigue, or if something else unusual is registered by the system. It can also provide alerts and suggestions (audible and visual) to the drivers to foster immediate self-correction and heightened awareness.
  • Vehicle maintenance. In order to ensure safe experience for the assets, your system can collect and send data on vehicle health (engine performance, fuel consumption, mileage, etc.) and send alerts to the drivers and fleet managers of any issues or faults that need to be fixed.
  • Assistance in the event of an accident. Safety measures can also include the feature that can be life-saving in case of an emergency or a collision. It can automatically detect the accident and summon help. It can also provide the location and status of the vehicle and the driver, as well as record and store the data and evidence of the incident.

6. AdTech

Yes, you see it correctly. Considering that advertising from teleshopping moved to the Internet after its rise, companies are always looking for new ways to advertise their services and products. In case of fleet management, adtech can help different advertisers, publishers, and agencies to deliver, manage, and optimize digital ads that target and reach potential customers who use vehicle telematics systems. Adtech can also help to measure and improve the performance and profitability of these ads, as well as to provide relevant and personalized content and offers to the users.

Maybe unexpectedly, but it gains its popularity because of the benefits it provides. For example, it can enhance the user experience and satisfaction by offering useful and engaging content and offers, such as navigation, entertainment, diagnostics, and more. It can also generate new revenue streams and value creation by enabling data monetization and new business models, such as data-driven advertising, insurance, maintenance, etc.

Read Also Five Examples of Using Digital Twins in Different Industries


It is impossible to say what awaits us tomorrow let alone predict the exact trends that may blow up when no one expects. Therefore, it’s better to go with the flow. Analyze what is best for the fleet  and tracking operations your business deals with every day. Think if the trends are useful for your particular case and listen to the needs of your customers. They will tell you which trends to keep an eye on.

If you need a thorough consultation on your tracking, fleet, or logistics solution and are considering modernizing it or building a new one, please contact us and let us know about the idea you have in mind. We will be pleased to assist you and offer our insights.