26 December, 2024

Our Christmas forecast: Telematics in 2025

Thoughts on factors driving the industry next year.

Telematics isn’t just about tech — it’s the backbone of logistics, safety, and mobility. Pre-holiday Vilnius used to be snowy, but familiar traditions have shifted. This change gives us a fair reason to ponder other “what ifs” that could unfold in the year ahead. This isn’t just idle speculation — there’s plenty happening in the industry to lend credibility to even the wildest ideas. From major trade shifts to groundbreaking AI innovations, 2025 could mark another upward trajectory for telematics. Or so we hope.

US trade policy to affect markets

The possible reelection of Trump and his commitment to increasing tariffs could significantly impact the U.S. market for Chinese-made GPS trackers. These brands have already been targeting Europe, a region with growth potential in telematics. Eastern Europe, with its lower market density, could become a key battleground for these brands, as the Central and Northern regions are already highly competitive. Europe offers opportunities, but overcrowding in segments like fleet management might force brands to innovate or niche down. For example, Queclink and Streamax could take a slice of emerging markets in Eastern Europe with their diversified and pioneering product lines.

Beyond market realignment, companies relying on Chinese components may face supply chain disruptions or cost increases, reshaping where telematics devices are produced and how they are distributed. On the other hand, every 'trade war' stimulates domestic production, which in turn increases inflation and weakens economic appetites. A lack of resources to adapt will hit start-ups and small businesses hardest, leading to unemployment, while larger companies can afford to invest in technology and R&D. This scenario is plausible; however, trade policy shifts are rarely linear in their effects.

OEMs and Connected Solutions

'Advanced Vehicle Architecture' and 'Connectivity Solutions' have been identified as one of the global trends for the truck industry in 2025. They will enhance traditional telematics by offering live logistics visibility and integrating data from traffic and weather(sic!). This will drive the adoption of applications like fleet tracking, intelligent cruise control, eco-driving, and predictive diagnostics in the short term. Meanwhile, ongoing conflicts have forced logistics companies to rethink supply chains. Real-time telematics data has become critical for rerouting shipments and ensuring cargo security.

The convergence of telematics and green energy is paving the way for new developments. With the rise of EVs, telematics systems could become indispensable for monitoring charging stations, optimizing battery life, and even managing energy grids. The trend is clear, but challenges remain. 

While instant insights are a powerful tool, integrating such data at scale can be difficult. Many businesses will struggle to ensure that the data collected is accurate, timely, and actionable. To unlock the full potential of connected truck services, the industry must adopt an ecosystem approach where OEMs embrace standardized APIs and frameworks for seamless data integration across diverse truck models and systems. This ensures interoperability, enabling flexible, and truly scalable solutions.

AI implementation

AI is on track to reshape the telematics landscape, turning GPS devices into active problem-solvers. Imagine a tracker that not only learns driving patterns to recommend maintenance schedules but also reroutes vehicles based on historical traffic data. AI-driven sensors capable of predicting equipment failures and optimizing routes based on live conditions are game-changers.

I’d call on AI to help turn these ideas into practical solutions, bridging gaps in fleet readiness and transforming potential into real-world impact. While it may seem like the dominant trend, the reality is more nuanced. Howen is already integrating AI power into its solutions. In 2025, we might even see trackers capable of live fault detection, using predictive analytics to alert operators before issues arise.

Security concerns

The well-known character from Groundhog Day once exclaimed desperately: “Is it snowing in space too?” It’s a joke, but it highlights a critical point. The recent incident in the Baltic Sea, where data cables were likely damaged by ship anchors, raises concerns about the resilience of telematics systems. While the impact was barely noticeable due to load distribution, such disruptions point out the vulnerability of critical communication infrastructure.

Similar events could cause delays or issues with live data transmission, especially in regions dependent on these cables for connectivity. As more devices become interconnected, ensuring robust data privacy frameworks will be essential. Challenges remain — GPS signals can still be disrupted by jammers or blocked in urban canyons. This has spurred interest in alternative technologies like inertial navigation systems, which operate independently of external signals.

But it’s not just the physical transport of data that’s crucial — cybersecurity will play a vital role as more devices collect data and become part of an interconnected ecosystem. Will we be ready for a scenario where milliseconds for data access stretch into seconds or even minutes?.. Interestingly, the rise of AI in telematics may bolster cybersecurity by detecting anomalies and potentially preventing attacks. However, protecting backbone communications shouldn't be laid off the scope.

Telematics reshaped… Again?

Such headlines are a common sight, aren’t they? Without a doubt, telematics is one of the fastest-evolving industries. Making forecasts for it is like snapping a sporty car speeding past — the faster it moves, the harder it gets to capture its next position. I’d lean on AI to make sense of the pace though it may seem like the dominant trend, the reality is foggy. Thanks to its ubiquity, AI can harness the most valuable aspects of telematics, centered on the idea of connecting everything. So, it’s more accurate to say, “Telematics is still shaping up,” with the most exciting upgrades yet to come. But for now, the closest event on our minds is New Year! 🎄