External forces driving growth in the Telematics market

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Telematics will continue to save businesses huge amounts of money in the traditional ways, however over the past few years external pressures have increased the potential savings even further.

While companies and public sector organisations are increasingly looking to technology to help them drive down costs, they are also evaluating and comparing different aspects of technology to see which will deliver the best return on investment. Technologies such as telematics, which can be implemented with a relatively low capital cost whilst delivering a fast payback, are becoming increasingly popular.

There are a number of factors that contribute to this fast payback, as are discussed in more detail below.

HMRC:

A change in the way in which HMRC appraise private vehicle use has put pressure on companies to install vehicle tracking solutions such as Causeway Telematics 2015. Historically companies have been investigated and fined if it could be shown that their staff have been using vehicles privately. Essentially, it was up to HMRC to prove that there had been private usage. Now there has been a shift in HMRC’s strategy, putting an onus on businesses to prove that their vehicles are not being used privately.

By using a vehicle tracking solution, companies are able to efficiently and definitively prove that there vehicles have not been used privately, ensuring compliance with the law. Of course, as well as avoiding fines, tackling the problem of private usage also helps to eliminate costs associated with it.

Carbon Trust:

The Carbon Trust are also having an impact, with more pressure being put on companies to accurately measure their carbon footprint and take measures to reduce it . One of the largest contributors to carbon footprint for any business operating a commercial fleet is the vehicle emissions.

Telematics solutions are able to measure carbon footprint using pre-defined figures or by taking a feed directly from the vehicle CANbus. Improvements in emissions can be driven by routing or scheduling vehicles more efficiently and encouraging improvements in driver behaviour. The fact that all mileage is recorded through the Telematics solution means that the company can also demonstrate that any such improvements have been made, supporting their ‘green’ credentials.

Insurance:

Implementing telematics solutions such as Causeway Telematics 2015 has always been a highly effective way for companies to reduce their insurance premiums. The use of telematics in the consumer insurance market to drive down premiums for young (and now all) drivers has made those operating outside of the fleet world more aware of this tool and its capabilities. As a result demand for telematics is growing and more is being expected in regards to driver and vehicle performance analysis. It is no longer acceptable for providers just to inform users where and when a vehicle is being driven, there is now considerably more emphasis on how it is being driven too.

Fuel Price:

Clearly the price of fuel has always been a massive pressure on fleet managers, no doubt causing many a sleepless night. Although the price of fuel has fallen in recent months, it is still one of the highest expenditures for every fleet, with fleet managers keen to find any way possible of reducing it. Using Telematics to ensure efficient routing, efficient job allocation, reduced idling, reduced speeding and improved driver performance makes a significant contribution to reduced fuel costs. In fact, in using a telematics solution efficiently, fleet managers can reduce their annual fuel bill by over 10% – a substantial saving that makes a major contribution to a fast return on investment in telematics technology.

Big data:

The Internet of Things (IOT) is playing a much larger role in the lives of those who are running businesses and making decisions regarding the purchase of Telematics solutions. The ‘connected car’ and ‘connected mobile worker’ are both now a reality. There is no longer a requirement to call or ask these workers what they have been doing, as there is an automated flow of data back from the devices in the vehicle or on the engineer’s person. As a result, the expectation levels of those in senior roles is to be able to get all the fleet data they require instantly with regards to the operation of their fleet. A solution such as Causeway Telematics 2015 is absolutely crucial in not only capturing all the required data, but also presenting it in a user-friendly and accessible way that can be easily consumed by those who are short of time.

Integration:

As mobile workforce solutions become more widely used, there is growing demand for telematics solutions to enhance them. Companies using mobile workforce solutions such as Causeway Vixen, FM Facts or Highways Infrastructure Management need to integrate their workforce management software with a tracking solution. This enables them to ascertain the locations of mobile workers in order to allocate work most efficiently. This integration can also allow field engineers to find their nearest colleague with van stock, or help companies to understand which customers their vehicles are visiting most frequently.

For all of these reasons we can expect to see sustained growth in the Telematics market as this technology becomes more accepted and continues to add value to the organisations that deploy it.

Further information: www.causeway.com/telematics

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Corporate Account Manager at Causeway Telematics. Has worked in the telematics industry for the past 7 years implementing and supporting telematics solutions at some of the UK’s largest fleets. At Causeway has also been responsible for providing and supporting telematics solutions for fleets operating across Europe & in Australia.

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