The first consideration is to identify what use cases the telematics control unit will be utilized for. Telematics extends from relatively simple applications for identifying the location of a machine, vehicle or device, to enabling automation and ultimately autonomy for complex vehicles with numerous features. The connectivity requirements for each extreme differ widely with 4G technologies such as LTE Cat 1 more than sufficient for enabling basic communications such as usage data, GPS allowing precise positioning and 5G utilized only for use cases that require ultra-reliable low latency communications.

One priority for developers is to avoid imposing connectivity constraints on telematics control units where possible. A key factor in telematics is the expected lifespan of vehicles, which can extend to two decades. This means it’s worth assessing future use cases that a telematics control unit may need to support before defining which connectivity to embed in it.

It could be a false economy to make a small saving today by, for example, selecting a module that only supports LTE Cat 1 and GNSS for positioning, when a relatively small incremental increase in module cost could result in a far richer telematics control unit that can support 4G, 5G, GNSS and Wi-Fi and Bluetooth, for example. This additional cost could result in greater flexibility but also remove the need for costly retrofitting of an upgraded telematics unit during the life of the asset.

Looking back over the last decade, we have seen telematics systems of all types access richer data and become more valuable as wider functionality is enabled. Data including vibration, speed and temperature can be monitored alongside vehicle insights such as fuel consumption, hours of engine use and driver behavior. Enterprises can utilize systems to optimize routes, reduce fuel consumption and emissions and save costs.

During those ten years, we’ve also seen vast improvements in computing power at the edge and connectivity performance, along with the introduction of AI. These developments have now come together to create telematics control units that feature deeper predictive analytics and increased automation. Rich information and insights handled by telematics will feed into assisted driving and operation of vehicles and assets during the lifespan of vehicles and assets hitting the road today.

This helps explain the sustained investment that organizations are making in telematics. ABI Research, for example, has projected that the worldwide commercial telematics market will surpass US$84 billion in 2032[1]. Local delivery, government and construction organizations are among the highest adopters, with compounded annual growth rates (CAGR) of 14%, 13.5%, and 12.3%, respectively, between 2023 and 2032, the firm says.

Functions such as video-based telematics are gaining traction and this has obvious impacts on which module a telematics control unit maker should select. Commercial video telematics vendors are progressing with capabilities such as gesture and object recognition, 360° views of in-cab and road triggers and live streaming for up to eight cameras, says ABI Research. Edge computing, coupled with more powerful connectivity, has also seen increased demand to capture and analyze data in real-time.

With 2G and 3G networks retiring across the world and 5G deployment still continuing in many markets, Quectel advocates selection of modules for telematics control units that provide maximized flexibility for the lifespan of the unit. Today, this includes 4G and 5G cellular capabilities alongside GPS and GNSS connectivity for positioning for most mainstream vehicle telematics. For assets such as construction equipment deployed in remote locations, the adoption of satellite connectivity may become even more important because cellular coverage may be unavailable.

Our view is that telematics control units have the potential to deliver fleet owners, vehicle makers, asset leasing companies and end users significant value over periods of more than a decade. It’s therefore worth considering carefully what capabilities a module will need to support not just for the coming few years but into the AI-powered, video-enabled next generation of automation. Our experts are available to help you select modules not just for today’s market, but for where the market will be in the future.

[1] https://www.abiresearch.com/press/commercial-telematics-revenues-set-to-surpass-us84-billion-as-fleets-seek-more-real-time-visibility/