New data from Escalent’s Fleet Advisory Hub™ underscore driver influence in commercial vehicle telematics programs, offering new path to differentiation for solutions providers
The number of connected vehicles on the road is projected to more than double over the next three years. However, while the commercial vehicle telematics market is poised for strong topline growth, the commoditized nature of telematics solutions presents a mounting challenge for service providers. To stand out in an increasingly competitive landscape, telematics solutions providers must find new ways to differentiate their products and services for commercial vehicle and fleet businesses, and drivers could be the key.
These are the latest findings of the Roadmap to Telematics Growth report from Escalent’s Fleet Advisory Hub™, a leading insights tool designed to explore the needs, expectations and emotions of commercial vehicle and fleet business decision-makers. Based on input from more than 1,000 fleet decision-makers, this study explores how commercial vehicle and fleet businesses are using telematics solutions today, the barriers to adoption commercial vehicle and fleet businesses face and their plans to invest in connected services in the future.
“While telematics adoption is on the rise, not all commercial vehicle and fleet decision-makers are fully convinced of telematics’ value. Only about one-quarter of current shoppers and half of current users say telematics are either critical to operating their business or fully meet their needs,” said Dania Rich-Spencer, a vice president in Escalent’s Automotive & Mobility division. “By helping fleet businesses understand and implement the operational and financial benefits of integrated, driver-focused solutions, providers can close that gap and position themselves as trusted partners throughout the customer journey in long-term fleet success.”
Telematics penetration across connected vehicles in operation varies greatly among vehicle segments. Installation rates range from 16% in the medium-duty vehicle segment to 69% in the light commercial truck segment. Fleet decision-makers expect this to rise to 50% to 85% of vehicles in each segment over the next three years. This projected growth, especially within higher-volume segments such as light commercial vans, underscores the need for telematics solutions that not only support fleet operations but also meet the needs of commercial vehicle drivers.
Traditionally, telematics solutions have primarily focused on vehicle and fleet business management. However, there is an interest in functionalities that directly support drivers. In fact, according to Escalent’s research, 92% of companies involve drivers in the telematics shopping process, with 79% engaging them prior to the final decision. These findings are particularly notable when considered in the context of ongoing commercial vehicle driver recruitment and retention challenges across the commercial vehicle and fleet industry. As fleet businesses look for new ways to improve the driver experience and reduce churn, integrating driver-centric functionality into telematics programs offers a practical and scalable solution.
Among the connected driver solutions that fleets have adopted, safety- and security-focused features are some of the most popular. Yet, while use rates are relatively high, integration into telematics platforms lags. For example, roughly three-fourths of fleets use some form of emergency services feature, yet only 37% have it within their telematics solution. The same trend is reflected across other offerings. The majority of fleets have embraced connected services for vehicle inspections (70%), security alerts (60%) and hands-free two-way communication (61%). However, a much smaller share—just more than one-third—say those features are integrated with their telematics platform.
For commercial vehicle and fleet businesses, the value of integration is clear. Across the board, decision-makers report higher satisfaction when connected features are part of a telematics solution. Satisfaction with vehicle health and predictive diagnostics features, for instance, jumps by 77% when integrated with telematics compared with other digital or connected management systems. This represents an opening for providers looking to stand out in a crowded marketplace by emphasizing that fleet business decision-maker satisfaction increases when driver-centric features are integrated into the telematics solution—which connects decision-makers and drivers within the same ecosystem, allowing them to use the same data for shared problem-solving.
“There’s a real opportunity for telematics providers to support commercial vehicle and fleet businesses in tackling one of their most pressing challenges: driver churn,” said Lucas Lowden, an Automotive & Mobility insights consultant at Escalent. “By prioritizing the features drivers care about—and making sure those features are packaged within the telematics system—providers can both differentiate themselves, strengthen overall fleet performance and deliver another critical benefit to businesses: streamlining operations for decision-makers who prefer to deal with a single provider. This approach positions telematics providers to boost adoption while targeting the root causes of commercial vehicle driver turnover and ultimately leading to better business outcomes at every level.”
To learn more about Escalent’s Fleet Advisory Hub™ research, visit escalent.co
