Solutions

Telematics and Asset Tracking Applications and Use Cases

January 30, 2025

Estimated reading time: 6 minutes

Futuristic car dashboard showcasing various digital information and graphs, seamlessly integrating telematics and asset tracking technology.

Rapid technology development is driving today’s telematics and asset tracking trends. As connectivity options increase, more data can be transferred faster across larger areas using less battery power.

With advanced analytics and AI capabilities, telematics solutions are becoming more agile and accurate. Recent research predicts the automotive telematics market value pool could reach $750 billion by 2030.

Connect, Monitor and Manage Your Fleet with IoT
A person interacts with a futuristic IoT telematics dashboard in a vehicle, displaying digital icons like AI, a brain and location markers.

Telematics and asset tracking use cases are expanding beyond automotive applications. Telematics solution architects and designers are exploring how to accelerate data flow. They want to enable decision-making based on real-time information.

Data analytics software and sensors work together, creating an ecosystem that provides operators with up-to-the-minute reporting. This reporting includes factors like:

  • Asset location
  • Battery health
  • Carbon emissions
  • Driver behavior

These insights are valuable for enhancing claim processing speed and accuracy for personal and fleet insurance applications.

Here is a closer look at five prominent trends in telematics today:

1. Internet of Things (IoT)

Connected IoT sensors and remote devices are pivotal in telematics and asset tracking solutions. As IoT module types and enhanced connectivity solutions expand, so do use cases.

Technologies like Bluetooth® wireless technology and ultra-wideband enable indoor asset tracking in hospitals and factories. The growth of high-bandwidth cellular 5G infrastructure enables telematics solutions to share more data faster than older cellular standards.

2. Real-Time Telematics and Tracking Data

Connectivity options that minimize latency and allow real-time data flow help fleet managers and AI tools make better decisions. For example, the weight of a delivery vehicle can change when goods are unloaded. This impacts potential routes for the next leg of the journey. Changing routes and tracking driver behavior and fuel use can optimize routes and cost savings over time.

3. Advanced Analytics and AI

Aerial view of a city intersection with digital network overlays, illustrating connectivity and data exchange among vehicles with IoT telematics solutions.

Advanced analytics software and AI tools make telematics solutions smarter and more capable of deep decision-making. Fueled with data flowing from vehicles and assets via sophisticated IoT devices, telematics systems can support:

  • Predictive maintenance
  • Fleet optimization
  • Driver behavior analysis

Increased awareness and adjustments based on analytics can extend a vehicle’s or asset’s lifespan.

4. Integrated Systems

User interfaces and other applications are becoming more streamlined and easily integrated. This integration makes telematics solutions easier to use and connect to disparate sources and systems to collect data.

In addition, it provides a 360-degree view of the driver, vehicle or asset. The types of telematics data available have expanded rapidly. As a result, telematics development has exploded across industries, including:

  • Construction
  • Micromobility
  • Logistics
  • Agriculture

5. More Connectivity and Positioning Options

Aerial view of a highway with trucks driving on it, overlaid with connectivity icons for telematics and asset tracking.

New and developing technologies for positioning and connectivity are also fueling the expansion of telematics applications. Technologies for position verification now exist, including:

  • GPS
  • Cellular triangulation
  • Wi-Fi positioning
  • Bluetooth Low Energy technology
  • Ultra-wideband
  • Scanning technologies like radio-frequency identification (RFID) and inertial measurement unit (IMU)

Each technology has pros and cons depending on the location and use case. GPS is best suited for outdoor tracking, while cellular triangulation can work well when GPS is unavailable in:

  • Urban areas
  • Indoor locations
  • Emergencies

Answering Current Challenges in IoT Telematics

While the telematics market grows rapidly, developers still face challenges depending on the use case. Here are some of the main obstacles telematics solution architects face and how to overcome them.

Expanding Coverage to Rural Markets and Remote Areas

A tall communication tower stands in a field of golden wheat, with a few scattered trees and a small house in the background under a cloudy sky.

Rural areas worldwide have fewer cell towers and less communications infrastructure than urban areas. Ensuring a remote deployment’s success might require building infrastructure so tracking devices can stay online.

Creating a private local network at a remote mining site ensures communication will be possible. It also allows for tracking vehicles and assets. Telematics solution designers should also anticipate that access to reliable power could be challenging in rural areas.

A low-power wide-area (LPWA) connectivity option can be a good solution in such use cases. For some remote deployments, like maritime use cases, telematics devices travel far from land-based networks. Non-terrestrial networks (NTNs) are an excellent solution for these.

Many NTNs rely on privately owned and managed satellite networks. These networks provide coverage when connecting to a physical cell tower is impossible.

Data Congestion in Urban Areas

Urban areas typically have abundant infrastructure. However, that can create complications for telematics solutions.

Connected devices and radio networks operating within a limited area can create significant data congestion and interference. To solve this problem, device designers select modules that support different types of communication. They can switch to a fallback network technology if necessary.

Many governing bodies have also implemented network slicing, a partitioning of available spectrum. This solution ensures that critical data and information can be communicated during an emergency.

Data Security for Telematics and Asset Tracking Applications

A worker in a hard hat and vest inspects shipping containers, while a digital map overlay of the world with location markers highlights global logistics connections for asset tracking.

While information collected in new telematics solutions empowers better decision-making, it also presents new data security risks. A new potential doorway for cyber attackers comes with each connected device or endpoint.

Telematics developers must build cybersecurity into the design at every layer of the solution by ensuring:

  • Data encryption
  • Secure transmission
  • Secure storage

When personal information is included (e.g., driver identity and behavior), solutions must also have safeguards to protect data privacy. Developers must ensure regulatory compliance with laws like GDPR.

Integration with Legacy Systems

Many fleet managers who want to adopt a telematics solution also operate legacy systems that they cannot yet replace. Asset managers might encounter complications around different system architectures and security risks when embracing a new system.

Telematics system designers must consider these areas of concern by looking at typical legacy architecture in the target industry. They must strive for compatibility and ease of integration with those existing systems.

Telematics Solution Battery Life and Power Management

Connected vehicle with digital binary code.

Power management is a common hurdle for telematics and tracking solutions. This is especially true in rural areas. It also applies to devices deployed apart from a built-in power source (e.g., gas- or electric-powered vehicles).

Designers should consider a module with low-power connectivity options. This can maximize battery life when the device is far from a power source.

LoRaWAN® is a long-range, low-power network with battery-powered devices that works well in rural areas. It’s affordable and easily scalable. This technology can also support a high number of connected devices.

To solve the challenges in your telematics market, zero in on the use case and anticipate any potential complications. Consider hybrid solutions that incorporate multiple forms of communication (e.g., NTNs). These will provide resilience and ensure global coverage and redundancy when local power networks are not available.

Power Your Telematics and Asset Tracking Application with Telit Cinterion

Telit Cinterion offers myriad products and services to power your telematics solution. Our positioning modules, connectivity plans and custom solutions can help get your telematics deployment to market fast.

Speak with a Telit Cinterion IoT expert to choose the right IoT module and connectivity plan for your telematics IoT solution.

Key Takeaways

  • Enhancements in telematics and asset tracking applications are being driven by IoT, real-time data and technologies like 5G and cellular LPWA. These improvements empower fleet and asset managers with better decision-making due to faster data transfers and lower latency.
  • Advanced data analytics and AI can enable telematics solution capabilities like predictive maintenance and fleet optimization. Logistics and fleet management verticals depend on these insights to lengthen asset lifespans and optimize operations.
  • Telematics solution providers are addressing coverage and cybersecurity challenges by implementing secure data practices and hybrid connectivity solutions. These ensure that telematics and tracking applications remain reliable and adaptable.