The expectations and requirements of the fleet business have changed dramatically over time. Today, fleet owners and managers are more concerned with operating lean and sustainably. Telematics is a major component in guaranteeing seamless operations. Telematics is basically the use of telecommunication devices to deliver information offsite or wirelessly. Consider having access to all of your equipment’s data (safety checklist fulfillment, training certification administration, sharp turning, unauthorized access, and so on) from the convenience of your desk, on your screen, which can be achieved by third-party telematics.
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Now that you have an understanding of telematics, the next crucial question is which telematics provider to select. Businesses considering purchasing telematics equipment for fleet management have two options: OEM (Original Equipment Manufacturer) or AM (Aftermarket or Third-Party Telematics).
What is Aftermarket or Third-Party Telematics?
As the name implies, aftermarket telematics or 3rd telematics system is a Telematics Solution that is retrofitted by the car owner primarily for GPS tracking, fuel surveillance, driver monitoring, and so on. As a result, it is done only on the basis of a genuine necessity, rather than simply because a function is available in a vehicle.
Third-party telematics solutions are often deployed by local solution providers or dealers. As a result, if a customer suggests a new use case, Telematics solution providers are ready to modify their software by adding new functionality such as new reporting and analytics. In many cases, hardware customizations are also achieved by integrating several types of sensors into the central unit; to name a few, fuel, temp, humidity, light, contact, pressure, load, and tire.
What challenges does third-party telematics solve?
As the market and need for telematics grow, aftermarket options distinguish their value offer from others, and as a result, it has created a new category with its own set of advantages.
- Almost every significant fleet company and organization has a multi-brand fleet. As a result, it is impossible to bring everything under one roof. So, if a corporation has five different branded vehicles and must utilize five different software systems, it becomes extremely difficult to generate relevant data and analysis.
- OEM Telematics also faces significant challenges in terms of after-sales service and support. In many situations, the dealership does not have a consistent service support staff. On the contrary, aftermarket specialists would be at your door for any service support, and in many situations, they would be willing to drive to remote regions where vehicles are stationed.
- Customization and integration are also significant constraints of OEM choices. Almost all large fleet firms would have their own operating procedures and priorities. No OEM will tailor its solution to meet such specifications. As a result, third-party telematics is the only arena where your needs may be explicitly handled.
Key Differences between OEM & Aftermarket Telematics Solutions
| OEM Telematics Solutions | Aftermarket / Third-Party Telematics Solutions |
| Telematics solution fitted in the vehicle by the manufacturer of the vehicle. | Telematics solution bought by the user by a manufacturer other than the manufacturer of the car. |
| You will have to replace every car and asset, which can be expensive. | Enable you to track many vehicle manufacturers and types of equipment with a single solution. |
| Does not offer scope for a lot of customization. | Third-party manufacturers provide additional customization and branding possibilities not accessible through traditional channels – and at a lower cost normally associated with custom orders. |
What are the advantages & disadvantages of third-party telematics?
When it comes to personalization, versatility, data transparency, and cost optimization, an aftermarket telematics system provided by a third-party telematics source offers some advantages and disadvantages.
Advantages:
- There is no preference for any brand, make, or model when it comes to aftermarket telematics. The system appears and feels the same across brands, gathering necessary data even from a diverse fleet, and delivering the optimal user experience.
- Their solutions are scalable to any equipment and provide personalization to make the service more customized to the needs of the customer. Third-party telematics is therefore available to ensure a smooth transfer from one brand of equipment to another.
- Their ability to combine various systems removes data redundancy and overlap while optimizing company procedures.
- Aftermarket telematics contributes to minimizing the total cost of ownership and enhancing ROI. A dependable telematics solution will save the end-user thousands in repair, compliance, and other incidental expenses.
Disadvantages:
- One negative of telematics is that many clients may regard it as a violation of their privacy. The majority of consumers/individuals do not want insurance firms to follow them or know where they are at any given time. They may not find this pleasant, making the proposition unpalatable.
- Some fleet owners are pressured and short on time, claiming that data analysis consumes important resources.
How third party fleet telematics industry growing with government mandates?
Despite the fact that Aftermarket Telematics has been around for over two decades, its adoption and numbers in comparison to the total market size are still quite low. Consider the Indian market: the vast majority of vehicles are still in the unorganized category, where things are done in the traditional manner. Although the smartphone revolution has caused a modest shift in this, the majority of people, even individual vehicle owners, still find it unpleasant to adapt to the telematics age.
However, things changed dramatically when governments made it essential to install telematics solutions in all vehicles, ushering in a massive market revolution. VLT installation and service is now considered a basic need, and it is becoming offered even in the most basic auto-electric stores.
Since such laws have become the new standard, people have begun to consider what other possibilities are available on top of this, paving the way for more integration such as fuel, temperature, OBD, and so on, exponentially growing diverse parts of telematics.