Connected car telematics is easier to understand than it might seem. This blog post explains what embedded telematics is, how it is used, and which car brands equip their vehicles with this technology.
What is embedded telematics?
Embedded telematics — often called connected car telematics — is a technology that allows so-called connected vehicles to connect to the internet. “Telematics” is a combination of telecommunications and informatics. It encompasses information transfer between telecommunication devices, computers, GPS satellite systems, and objects. Most of the time, the term “telematics” is used to specifically mean “embedded vehicle telematics,” which allows cars to communicate with other devices via an internet connection.
Just like a smartphone, a vehicle that is equipped with embedded telematics has a cellular modem built into it right from the factory. This embedded telematics modem allows the car to connect to the cellular network and communicate with other internet-connected devices such as mobile phones.
If your car features embedded telematics, you can access your vehicle’s telemetry by downloading your car manufacturer’s connected services app. This mobile app differs from car brand to car brand, but most apps let you monitor your vehicle’s location, lock and unlock the doors, and do other things like preheating the battery.
So, your car has telematics. What does that mean?
If you can access your automaker’s connected services application, then that means you have a connected vehicle!
By now, you might ask yourself: Why does this technology exist, and who uses it?
The purpose of your car’s embedded cellular modem is to send vehicle telemetry—which is another word for the data your car generates—to your car manufacturer. Examples of vehicle telemetry are a car’s location, odometer reading, fuel tank level or EV battery level, tire pressure, and engine oil life.
Traditional telematics vs. Connected car technology today
Traditional telematics systems were often powered by an aftermarket telematic device that is retrofitted into vehicles. These devices would typically need to be installed into a vehicle’s on-board diagnostics port. You would mostly hear about vehicle telematics data used in commercial fleets to track fuel efficiency, driving behavior, and vehicle location. These systems were used to optimize fleet operations by improving visibility into maintenance needs, improving scheduling, identifying fuel-efficient routes, and ensuring compliance with safety and regulatory standards.
Connected car technology, on the other hand, refers to internet connectivity that already exists in a vehicle after it has been manufactured. By having network connectivity built into vehicles, mobility businesses, and consumers experience a more seamless data-sharing process with fewer limitations around how that data can be integrated into new applications.
Connected vehicles go beyond fleet management and unlock more consumer-facing features. Unlike traditional telematics systems that require more complex data management processes, platforms like Smartcar help businesses standardize connected car data so it’s more secure and accessible for third-party developers via APIs.
The perception of telematics is shifting.
With connected car telematics, accessibility to real-time data was seen as necessary for large fleets but lacked appeal or incentive for individual consumers. But today, we’re seeing more innovative players sit at the intersection of technology and automotive development to empower consumers with services that use connected car data to improve convenience, safety, and sustainability.
What data does connected car telematics collect?
Research by S&P Global found that connected vehicles can generate nearly 25 GB of data per hour from over 100 different data points.
This data can be generated from metrics like location, speed, and mileage to more detailed information about engine health, EV battery health, or vehicle specifications However, not all this data is immediately useful.
For businesses and consumers to get value from this data, it must be standardized into formats that applications and services can interpret. This becomes more complex, considering how data can vary between brands, models, and vehicle types.
For instance, a 2015 gas-powered car will generate different types of data compared to a 2023 electric vehicle. This is why businesses use Smartcar to help them standardize vehicle data across 40+ vehicle brands while streamlining these vehicle connections into a single API with consistent endpoints.
With Smartcar, developers can retrieve the following key data points across compatible brands and models:
- Location
- Odometer
- EV state of charge
- EV charging status
- EV charge limit
- Fuel tank level and range
- Tire pressure
- Engine oil life
- Vehicle attributes
- VIN
- Ability to lock and unlock car doors remotely
- Ability to start and stop EV charging remotely
- Ability to set EV charge limits
6 ways connected car telematics is being used
Let's take a look at some examples of how businesses and consumers are getting value from connected car telematics data:
Grid modernization
DERMS software and virtual power plants use connected car telematics to integrate with power grids so EV charging activity can be proactively controlled to balance energy loads. Although utilities have traditionally shaped energy generation to meet demand, telematics-powered managed EV charging is a big step in modernizing power systems without spending hundreds of millions on infrastructure costs. With connected car telematics, utilities, and energy retailers can gain visibility into an EV’s state of charge and coordinate charging schedules to occur when demand is low. This is key to preventing blackouts as EV adoption increases and reducing renewable energy curtailment.
Predictive maintenance
By regularly monitoring a vehicle’s health, connected car telematics can help auto repair businesses stay on top of wear and tear or predict when parts might fail. Having this insight enables proactive and predictive vehicle maintenance for customers so they prevent accidents and save money otherwise spent on unexpected repair costs.
Usage-based insurance
Insurance companies can use telematics to offer personalized rates based on actual miles driven. Mileage-based insurance is a key innovation in auto insurance that can help address driver concerns about increasing insurance rates. Connected vehicle technology allows drivers to enroll for insurance offerings that best reflect their day-to-day driving behavior instead of factors like a policyholder’s age, place of residence, or car model. Mileage data is pulled directly from a vehicle’s odometer, reducing the likelihood of errors from smartphone telematics or aftermarket devices installed by the vehicle owner.
Personalized out-of-vehicle experiences
Vehicle connectivity allows drivers to do a lot more than personalize their driving settings, climate control, and infotainment offerings. Connected car telematics helps vehicle owners easily bridge their driving preferences to experiences beyond the confines of a vehicle. From route planning tp mileage-based incentives and vehicle recommendations, drivers can use mobile applications and web portals to get the most value from their vehicle data without a clunky user experience and hard-to-install technology. These capabilities are unlocked by allowing innovators to solve real-world mobility problems with secure, standardized access to vehicle data. We’ve yet to see just how much bigger our mobility ecosystem can grow!
Sustainable mobility
Our current transportation systems have been shaped around the influence of private car ownership and gas-powered transportation — from gas stations to routes, road taxes, insurance policies, maintenance services, and more. Connected vehicles accelerate the deployment of new infrastructure upgrades and driver experiences through software. For example, using software to incentivize sustainable mobility practices by:
- Simplifying EV ownership with easy-to-use solutions for managing EV charging, monitoring battery health, and accessing exclusive discounts.
- Enabling EV participation in demand response initiatives and virtual power plants.
- Improve access to and reliability of shared mobility options like ride hailing, car rentals, and car sharing services.
- Unlock visibility into multimodal transportation options in route planning and travel solutions.
Automotive intelligence
Connected vehicles give mobility businesses more freedom to use advanced analytics and artificial intelligence to turn real-time data into powerful solutions. For example, companies use EV state-of-charge data via Smartcar to power proprietary algorithms to analyze EV charging behavior and provide accurate load control recommendations. Similarly, companies like Lyft use EV battery data via Smartcar in its ride-matching algorithm that eliminates range anxiety for drivers.
What’s influencing the transition toward connected car telematics?
5G technology
Connected vehicle technology can be a lot more advanced than what's offered in a telematics device. The rollout of 5G technology eliminates many of the connectivity concerns of integrating telematics into broader mobility ecosystems. With faster, more reliable data transfer, 5G unlocks stronger communication between cars, mobile applications, and surrounding infrastructure. Unlike past generations of cellular network connectivity, 5G systems consider the needs of vehicle communication because 9 out of 10 new cars today are shipped with built-in internet connectivity.
Improved security measures
With more vehicle data comes concerns around privacy and security. Automakers and mobility businesses are being increasingly scrutinized for how they process and manage vehicle data. Robust encryption protocols, secure data storage, and user authentication are some of the non-negotiables for protecting this data. Smartcar, for example, emphasizes user consent and privacy, ensuring that vehicle data is only shared when authorized by the owner. Many businesses turn to us for our expertise in developing a vehicle consent management platform and ensuring API security.
Understanding ROI
Ten years ago, the costs of innovating with connected car telematics was hard to understand. There was no urgency to build these forward-looking solutions, hence the difficulty in visualizing how these solutions could impact infrastructure development and regulatory targets. However, decarbonization goals and grid reliability developments have emphasized how the long-term benefits of connected car telematics outweigh the costs.
For instance, telematics allows for efficient EV charging station utilization and renewable energy usage, reducing the need for costly infrastructure upgrades to EV charging networks and power grids. Similarly, mileage-based vehicle tax collection via connected car telematics can help US departments of transportation avoid a 30% decrease in gas tax revenue by 2030. .
Lower technical barriers
Historically, aftermarket telematics systems were difficult to use and required extensive training. Today, platforms like Smartcar simplify the process, providing developers with standardized APIs that make it easy to access vehicle data and create connected car applications. This gives mobility innovators more time back in their day to develop advanced solutions that solve real-world problems and achieve product market fit. As a result that, we’re seeing a more diverse mobility ecosystem than ever before — you can see what our customers are building as proof of that!
Smartcar helps connected car telematics reshape driving experiences
Connected car telematics is revolutionizing how we interact with our vehicles. Software solutions powered by telematics ease the friction in mobility infrastructure, enabling innovative experiences.
At Smartcar, we believe that connected car telematics increases the value of connected services, expands the ecosystem of available applications, and fills gaps in low-emission transportation infrastructure. By providing a standardized platform for vehicle data, we empower developers to create purpose-driven mobility solutions that enhance sustainability and convenience. Learn more about how you can get started with us!
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