Fleet Telematics: Today & Tomorrow

Fleet telematics has evolved into a vital component of modern fleet management, integrating data across vehicles, trailers, and other assets & equipment to optimize operations. More fleets are adopting some form of telematics technology, and those who have leveraged telematics platforms are finding ways to extract more value from their subscriptions. At Flete, we specialize in unifying telematics with broader systems like reservations, maintenance, and compliance tools, delivering automation and actionable insights. This blog explores the latest trends in fleet telematics, its expanded adoption, and the innovations driving its future, as the part of a three-part telematics series (Part 1; Part 2). Let's dive into more telematics discussion and examine trends and opportunities for fleets' telematics programs in 2025.

Emerging Trends in Fleet Telematics

Proactivity

Fleet telematics systems introduce real-time data, which presents an opportunity for fleet optimization: shifting from reactive to proactive. Real-time driver coaching, powered by in-cab alerts, addresses behaviors like harsh braking or speeding as they happen, significantly improving safety. Paired with a coaching program, safety coordinators can incentivize positive driving behaviors and improve overall fleet performance. This means fleets can stay on top of their performance metrics, such as Safety Ratings, BASIC scores, etc. through planning & programming, rather than just correcting issues after the fact.

Video Telematics

Video telematics has become a cornerstone for improving fleet safety and efficiency. Advanced dash cameras now feature multi-lens configurations, AI-driven event triggers, and real-time monitoring. These systems reduce accidents, cut insurance costs, and streamline incident resolution. That said, they're not without their controversy, with many drivers feeling that video data can be intrusive or overbearing. Regardless of these concerns, the technology is taking hold.

According to the Penske 2024 Telematics Study, fleets using video solutions report up to a 42% reduction in accident costs . Video telematics is also proving invaluable for protecting drivers against false claims, with 70% of respondents highlighting its role in preventing litigation .

Pictured: The Sensata Kp2 dual-dash camera system.

Connected Technologies

Another emerging trend in fleet telematics is the integration of IoT technology with connected trailers. These advancements transform trailers from static, disconnected assets into dynamic data sources that enhance overall fleet management. Solutions like Phillips Connect and Drov Technologies’ AirBoxOne are providing fleets with real-time insights into trailer conditions, including load stability, temperature control, tire pressure, and location tracking. Our prediction is that this trend will continue across the industry, with more equipment being connected into the mesh of telematics systems that fleets outfit their vehicles with.

Diving into a case study further, Phillips Connect offers advanced IoT-enabled smart trailer systems that monitor everything from brake performance to cargo security. These systems notify fleet operators of critical maintenance needs, such as low tire pressure or braking inefficiencies, before they escalate into costly repairs or accidents. Meanwhile, Drov Technologies’ AirBoxOne takes connectivity further by automating the monitoring of air systems, offering proactive alerts that also reduce downtime and improve safety compliance. In both cases, IoT sensors communicate with integrated telematics devices, sharing data on dashboards for operators. Keep an eye on connected equipment in 2025.

Expanding Adoption of Telematics

Adoption Beyond Necessity

Telematics adoption is expanding beyond industries mandated to use it, such as trucking. Fleets in rental operations, ridesharing, and last-mile delivery are now integrating telematics systems to enhance operational efficiency. In some cases, these fleets inherit telematics as they replace older vehicles with factory-installed solutions. This trend provides a low-cost entry point for capabilities like GPS tracking, fault code monitoring, and odometer data collection, allowing fleets to explore telematics without substantial investment.

Insurance

Many insurers have historically offered steep incentives, such as 30% off premiums, for adopting dash cameras, due to the significant reduction in risk to the insurer that comes from having video evidence in the event of a claim. Effectively, these cameras operate as a passive witness to road safety events, and insurers value that highly. That said, with telematics becoming ubiquitous in the trucking space, insurers are shifting from carrot to stick, increasing premiums or outright not re-insuring fleets that don't adopt the technology. We'll explore the insurance side of fleets in a future edition, but the intersection of enhanced vehicle data collection systems & insurance are a key area to watch for any fleet in 2025.

Integrating Telematics with Other Systems

Telematics systems achieve their full potential when integrated with broader operational tools. At Flete, we enable geofence-based workflows, allowing fleets to automate status updates and maintenance scheduling based on vehicle actions. For example:

• Geofencing for Rental Fleets: Automate status changes when vehicles enter or leave designated zones.

• Proactive Maintenance: Fault code alerts trigger automated repair scheduling, reducing downtime.

Integrations also extend to tools like Transportation Management Systems (TMS) and fuel card systems, creating a unified platform for fleet managers. The aforementioned Penske report notes that 82% of fleets share telematics data with third-party systems, emphasizing the importance of interoperability for modern fleet operations. In other words, those fleets using telematics systems today choose systems that have integrations with the other tools they use to run their business.

Here at Flete, we're often having conversations about tying systems together. Telematics are one area where we get many requests — automatically updating Odometer readings; updating contracts based on timestamps when geofences are broken, and many others. Being able to support whatever system fleets have chosen — Flete is ready to support 60+ telematics integrations — and deriving business insights across multiple tools, that's our sweet spot.

The integrated Flete ecosystem, listing just some of the tools we can share data with.

The Future of Telematics

Telematics as a Feature

Telematics is becoming a standard feature in broader operational platforms. Providers like Samsara exemplify this shift by offering connected ecosystems that integrate telematics with compliance tools, driver safety programs, and customer dashboards. This transition highlights telematics’ growing role as a key enabler of IoT-driven fleet management .

Market Consolidation and AI Integration

With over 1,000 certified ELD providers, the adjacent telematics market is ripe for consolidation. Smaller providers are likely to be absorbed by larger players, streamlining the number of options for fleets as the bigger players (Geotab, Samsara, Motive, etc.) fight for market share. Concurrently, AI will continue driving advancements in areas like predictive analytics, enabling fleets to anticipate maintenance needs, optimize routes, and automate compliance. As the AI space matures, there will also be consolidation of offered services, as the economics around maintaining and training large language models increases exponentially.

The future also holds potential for prescriptive analytics, where telematics systems not only identify issues but provide actionable solutions. As these capabilities mature, telematics will remain indispensable for navigating challenges like sustainability and electrification, especially for ICE-heavy fleets in a changing regulatory environment.

Conclusion

Fleet telematics has transitioned from a niche tool to an essential system for improving safety, efficiency, and decision-making. At Flete, we specialize in maximizing the value of telematics by connecting it with systems that drive fleet-wide automation. Book a demo today to see how Flete can transform your operations, and explore the rest of our blog for more insights into the future of fleet management. Click here to subscribe to blog post updates!