Executive Summary
The automotive industry and its supporting ecosystem are experiencing significant growth around telematics and related connected car services. Innovative approaches to personal transportation, including ridesharing, car-sharing, and lift-hailing, grouped under the umbrella of mobility-as-a-service (MaaS), are reshaping the methods by which people move from one point to another. These new mobility models unlock opportunities to apply telematics in areas such as short-term insurance, vehicle monitoring, and value-added services. As connected car technologies become an integral part of modern vehicles, rental companies are seeing value in using telematics to track vehicles and oversee operations, improving efficiency and customer experiences.
Usage-based insurance (UBI) has become a primary application of telematics with proven success, and MaaS extends the potential use cases for telematics into many new areas. The monitoring, maintenance, sharing, and operation of vehicles, as well as the improvement of driver behaviors, are tasks all well suited to telematics technology. For example, as more young drivers enter the market, educational programs and active coaching can help them in real-time as they develop their driving skills, improving overall road safety. These opportunities provide benefits both to the companies or government agencies who develop these programs and to the drivers who take advantage of them.
