Telematics is the technology that collects the data a vehicle generates — GPS location, fuel use, mileage, engine parameters, driving behaviour — and transmits it remotely to a platform where it can be viewed and analysed. The word blends telecommunications and informatics: in practice, it’s what turns a vehicle into a real-time source of data.
How it works
A telematics system has three parts: a device or module on board that reads the data (from the OBD port, the CAN bus, or a factory-fitted module), a cellular connection that transmits it, and a software platform that collects it and turns it into maps, reports and alerts.
The data can reach you in two ways: through an aftermarket device installed on the vehicle, or — on newer connected vehicles — straight from the manufacturer over the cloud, with no extra hardware (the Cloud OEM approach).
Telematics in fleet management
For a fleet manager, telematics underpins almost everything: vehicle location, route optimisation, fuel control, maintenance and safety. It’s distinct from the tachograph, which records driving and rest times for legal purposes — telematics is about running day-to-day operations (on that distinction, see G2V2 vs fleet telematics).
Optivo uses telematics as the engine of its fleet tracking platform, which works both with OBD devices and with no hardware at all.
FAQ
What’s the difference between telematics and GPS?
GPS only gives you location. Telematics includes location but adds fuel use, diagnostics, mileage and driving behaviour, transmitted to and analysed on a platform.
Do I need to install a device to use telematics?
Not always. On recent connected vehicles, telematics data can come directly from the manufacturer via Cloud OEM, with no aftermarket hardware.