The Asia-Pacific (APAC) region is the world’s economic growth engine, powered by a growing consumer class, a strong manufacturing base and an accelerating innovation sector. Much of that growth has been powered by technology, and in fact a recent World Economic Forum report found that in Southeast Asia could be a US$1 trillion growth opportunity.
Often, my own corner of the tech industry — vehicle telematics — is thought of as niche; a subcategory of the Internet of Things, interesting only to fleet managers who handle large numbers of vehicles. Telematics, at its core, is about retrieving data generated by vehicles and uploading it to the cloud where it can be analysed. It’s no surprise that fleet managers have more interest than most, but telematics helps to underpin new technologies that are reshaping the way we live and improving the consumer experience.
It’s having a bigger impact than you think. Here are three great examples — all of which have either transformed the Asian economic landscape in the last decade or will change it dramatically in the future.
Transforming the ride-share industry
It wasn’t so long ago that arriving in a new city meant taking a chance on a metered cab in unfamiliar surroundings. Now, you can be sure that you’ll get the fastest route from the airport to the hotel, with an agreed-upon price, and most likely in a well-maintained car. Telematics helps to underpin all of this, delivering a better, safer service to customers in the process.
Telematics solutions help providers track their cars, maximise fuel efficiency, and conduct predictive maintenance. They also monitor driver behaviour, both through cameras integrated into many solutions and by monitoring the vehicle itself for sudden braking, speeding, idling, and other worrying driver behaviour. This not only ensures a safer ride but also helps to better maintain the resale value of the vehicle.
Having visibility over a fleet and its costs has helped to make the ride-share leasing model financially viable. This model means that drivers don’t need to own a car. It usually means customers get a nicer car too. That might sound like a minor perk on a short ride, but newer cars are safer and more fuel-efficient. It’s also a nicer working environment, which means more drivers are willing to do the job.
One additional perk will be delivered to customers from the telematics device itself; the next generation of devices will enable ride-share vehicles to offer in-car Wi-Fi to passengers.
To your door: powering e-commerce
It wasn’t so long ago that groceries and other essentials required a trip to the store. E-commerce has made shopping more convenient than ever, and few regions have embraced it with as much enthusiasm as APAC.
E-commerce is another area where telematics has proven essential. In many APAC markets, homegrown heroes battle for market share against Chinese and US competitors. For this reason, e-commerce is a fiercely competitive industry where margins matter. Businesses need technological solutions to drive efficiency at every stage of the supply chain. Managing costs and driving efficiency is exactly what telematics solutions do.
In many cases, the cost of last-mile delivery has been one of the toughest nuts to crack. But telematics helps to address this problem by enabling service providers to better track their costs — such as fuel and maintenance — and reduce them, while also facilitating the most efficient delivery possible.
Accelerating the EV transition
Telematics are also helping to accelerate the transition to electric vehicles. The case for making the switch has only grown stronger as the climate crisis has intensified. That’s particularly true in Asia, a key driver of carbon emissions and one of the regions most affected.
China is the undisputed leader in EV deployment, both building and selling more EVs than any other country. According to the International Energy Agency, electric car sales in China could reach 10 million in 2024, accounting for about 45% of all car sales in the country. A key component of China’s success has been the operational support for taxis and bus services to adopt EVs.
The entire region has high hopes for an electric future. In many cases, other markets in the region might replicate China’s approach, treating public transport as the low-hanging fruit. Buses, for example, adhere to set routes and can be recharged at depots, which means that range anxiety isn’t as much of an issue. This allows the transition to begin before the charging infrastructure is fully built out, which remains a significant challenge in many markets.
However, even if fleets act as catalysts for EV adoption, they must make the transition in the most cost-efficient way, which is typically a data-intensive exercise. A major part of the decision involves determining which vehicles to retire and replace with EVs and calculating potential savings. Fleet managers also need to identify which locally available vehicles will meet their needs. Telematics helps with all of these issues.
Accelerating change
These are just three examples among many use cases, but they clearly demonstrate how telematics can act as a powerful catalyst for economic change.
Organisations in the region are only beginning to explore the potential of telematics. Vehicle telematics can generate data on almost anything involving a car or truck, which means there are applications in urban planning, waste management, traffic management, and many other areas. Several of our customers have already been using the technology for these purposes.
The next time you book a car to take you to the airport or order groceries through an app, remember that telematics solutions are crucial to delivering those services — and possibly many others in the future.
