Is Telematics Revolutionizing the Way We Drive?|Sasken

  Sep 21, 2023 5:10:15 PM

Picture this: You're driving down the highway, cruising in a car packed with cutting-edge technology that seamlessly connects you to the world. 

Your vehicle isn't just a mode of transportation; it's a data hub, a guardian of safety, and a harbinger of the future.

Welcome to the world of Automotive Telematics, a realm where innovation knows no bounds.

In 2023, the telematics market was valued at a staggering USD 85.23 billion, and it shows no signs of slowing down.

With a projected CAGR of over ~17%, it's poised to soar to a mind-boggling USD 334.84 billion by 2032. Buckle up as we take you on a journey through the ever-changing paradigm of Automotive Telematics.

This shift is a result of telematics penetrating passenger vehicles, commercial vehicles, off-highway vehicles, two wheelers, bicycles.

In addition to traditional emergency services, Telematics devices inside vehicles now serve as the digital nerve center, commonly known as the Data Gateway.

Forward-thinking OEMs have turned the telematics game on its head by introducing cutting-edge features. Your vehicle can now turn into a digital fortress, thanks to telematics.

Software Defined Vehicle (SDV) is another game changing concept that enables the vehicle software to keep updating periodically and provides users the best experience, performance and prevents possible security vulnerabilities.

Telematics services as backbone of Data Gateway with high speed 5G connectivity makes SDV a reality.

Key Telematics applications and Use Cases

Let’s look at some of the key use cases for Telematics applications involving specific entities in the eco system:


  1. Voice Call
    1. Automatic Crash Notification Call
    2. Emergency Call
    3. Information Call
  2. Stolen Vehicle Tracking/Recovery
  3. On-Road assistance
  4. Navigation support

Vehicle OEM

  1. Remote Diagnostics
  2. Predictive Maintenance
  3. Remote Software Update for connected Vehicle ECUs
  4. Provide Wi-Fi access point to vehicle users.


  1. Fleet Management
  2. Ride Sharing
  3. Insurance support through:
    1. Usage Based Insurance
    2. Geo Fencing
    3. Driving Pattern Detection
  4. Vehicle data analysis:
    1. Work/Usage Hour
    2. Billing
  5. Remote Vehicle Monitoring and Control

Vehicle User

  1. Remote Control –HVAC, Door lock, Power Windows, Alarm
  2. Key in vehicle notification
  3. EV charging scheduling
  4. Remote Immobilizer
  5. Phone as a Key (Digital Key): Key sharing

Beyond these use cases, vehicle diagnostics emerge as the unsung heroes, tirelessly warding off potential hazards and glitches.

Think of it as your car's personal health tracker. Telematics services for remote diagnostics and predictive maintenance provide important insights directly to the user through a smartphone app.

Telematics Ecosystem

Want to understand Telematics Ecosystem and role played by different players? Here’s your visual cue:


Telematics Cloud:
  1. Telematics cloud infrastructure collects data from vehicles.
  2. Implements use-cases for fleet, personal car, trucks, and more.
  3. Data analytics plays a big role in providing useful features such as Predictive maintenance, Driving behavior and insurance, vehicle fleet planning, and such.
  4. Cloud infrastructure also plays an important role for providing emergency responses, near real time vehicle tracking.
OEM / Operators:
OEMs/Operators provide smart phone app through which vehicle owner\user initiates Remote control operations. For e.g. Remote HVAC, Remote lock/unlock etc.
Vehicle without On Board Unit (OBU), uses another vehicle network connectivity to communicate with backend infrastructure.
Telematics Control Unit:
  1. TCU is connected to vehicle network over CAN and communicates externally using Mobile Network Operator (MNO) network.
  2. Multiple connectivity with external world – Mobile Network, WiFi, Ethernet, and Bluetooth.
  3. Implements in-vehicle use cases such as voice call, information collection, notification to cloud, Remote SW update for in-vehicle ECUs, and more.
  4. TCU provides Wi-Fi hotspot inside vehicle for user device connectivity.
  5. Helps to implement sensor\camera-based use-cases for driver\passenger safety. 

New Technologies Driving Changes in Telematics Architecture

With the adoption of new technologies, changing vehicle architecture with Electric Vehicles and making vehicle always up-to-date with SW Update Over the Air (FOTA\SOTA\OTA), pushes changes in the Telematics Architecture:

OTA, Enhanced Security
  1. Secure communication channels and encrypted data payloads.
  2. Secure storage for storing certificates and keys.
  3. HW and SW assisted encryption and decryption algorithms.
  4. Secure OTA update with secured private cloud infrastructure.
  1. WAN Connectivity through 5G/LTE- includes dual sim capabilities with DSDA (Dual Sim Dual Active).
  2. Wi-Fi Connectivity – May involve multiple modules for inside car and external car connectivity.
  3. Bluetooth and BLE connectivity for tethering and remote operations.
  4. GPS/GNSS based location tracking with assisted precision location and multi-band support.
  5. Co-existence of multiple technologies.
  1. Peer-to-Peer communication protocol between vehicles and roadside infrastructures.
  2. Support of one or more V2X Technologies.
  3. Handling safety messages.
  4. Sensor fusion with Radars/Lidars.
  5. ITS Stack Integration with Security protocols.
Application Framework
  1. TCU’s have several distributed applications across different end use cases.
  2. Need a framework to allow applications to interact with services and other applications beyond vehicle and OEM Cloud.
  3. Complex Software Update Framework (FOTA\SOTA) opens the path for Software Defined Vehicle (SDV).
Key Takeaways 
•    The automotive telematics industry is booming, set to reach USD 334.84 billion by 2032 with a 17% projected CAGR.
•    Telematics has transformed vehicles into data hubs, offering features like Software Defined Vehicle (SDV) and 5G connectivity.
•    Key use cases span TSPs, Vehicle OEMs, commercial applications, and vehicle users, enhancing safety and convenience.
•    Telematics diagnostics serve as a car's health tracker and support predictive maintenance.
•    The telematics ecosystem involves various players, enabling data collection, communication, and control.
•    New technologies, such as OTA updates and multi-connectivity, are reshaping telematics architecture.
•    Challenges and security concerns accompany these innovations, necessitating ongoing attention.


Posted by:
Shantanu Das
Shantanu works as a senior solutions architect at Sasken Technologies. He works closely with customers across different automotive domains to define and develop customized solutions to meet business needs. He holds 22+ years of experience in automotive and embedded engineering and is an expert for developing solutions in the connected car domain. In his free time, Shantanu loves to play the Tabla and listen to the Indian Classical Music.

Want To Know More About This Topic?

You might also like