Penske 2024 Telematics Use and Trends

2024

TELEMATICS USE AND TRENDS

TELEMATICS IN THE TRUCKING INDUSTRY Key findings of the study:

 More than half of fleets—56%— use telematics.

 Larger fleets and those with more complex business operations continue to adopt telematics devices at a higher rate than smaller fleets.

 Data sharing is increasing, and more than 80% of fleets are sharing telematics data with third-party providers. The majority share data with multiple providers.

 The top problems fleets are trying to solve with telematics are maintenance related.

 Cost remains among the most important factors influencing purchasing decisions.

Decision-makers also look at the ease of installation and feature availability.

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Today’s supply chains run on data, and carriers of all sizes are adopting technology to collect and transmit information about their equipment and drivers.

Telematics—the branch of technology that deals with the long-distance transmission of computerized information— plays a critical role in collecting and transmitting data, and the use of telematics devices within the trucking industry continues to increase among carriers of all sizes.

Telematics devices transmit vast amounts of data in real time, allowing fleets to take action on issues that need immediate attention while aggregating and analyzing information for future improvements. Fleets are using the data within their operations, integrating it with other technology, and sharing it with other providers to increase efficiency, visibility, safety and communications.

Several departments within a fleet use telematics data, including maintenance, safety and operations.

Many devices can also integrate with transportation management systems (TMS) to provide real-time visibility that powers TMS functionality.

There are hundreds of telematics devices on the market today, and definitions of telematics can vary based on the user and the provider. This report defines telematics as solutions based on devices that collect data from a vehicle’s systems and transmit it over a telecommunications protocol for access and storage in databases.

2024 TELEMATICS USE AND TRENDS

This study examines who uses telematics devices, how fleets choose technology, how they use the data they collect, and the benefits they experience. It also evaluates fleets’ concerns and opportunities for improvement. The 2024 report compares findings to findings of the 2022 report and details how telematics use has changed over the past two years.

Who Is Using Telematics Today With costs of technology coming down, new telematics features and the increased ability to turn data into useful information, it is no surprise that the number of fleets adopting telematics devices is on the rise.

More than half of respondents—56%—reported that they are telematics users, up from 49% in the 2022 study. The overall adoption of transportation technology solutions has also increased, with 61% of fleets reporting they have deployed transportation technology solutions, up from 56% previously.

Larger and more complex business operations are the most prominent telematics users today. Nearly three-quarters of large fleets—71%—use or have used a telematics solution, up from 54% in 2022. Among medium fleets, 61% use or have used a telematics solution, up from 51% in the last study. However, the number of small fleets that use or have used a telematics device has dropped slightly since 2022, decreasing from 37% to 32%.

FLEETS USING TELEMATICS SOLUTIONS BY SIZE 2024 2022 71% 61% 54%

51% 32%

Large Fleets

Medium Fleets

37%

Small Fleets

Fleet size is depicted as: Small fleets (1-5 units); Medium fleets (6-50 units); Large fleets (51+ units).

Fleets across various business functions use telematics at a similar rate—around 50%. The only exception is private manufacturing companies, with 73% using telematics devices.

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The Selection Process The telematics field is a competitive market with a wide range of technology providers offering products and services to fleets. There are more than 200 telematics devices on the market, and their features vary. GPS, trip distance and fuel tax are among the expected offerings, and there are several factors fleet decision-makers consider when selecting a device.

SELECTION FACTORS



Price/Cost of Service



Ease of Installation and Use



Feature Availability



 Free Training*  Consultation/Support* Fleets have increased the degree to which they evaluate telematics features to find the right solution for their operations. Small, medium and large fleets are nearly even in terms of how much they research telematics offerings.

On average, fleets that extensively study features offered by multiple providers said they use about five resources ranging from OEMs to internet searches.

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2022

50% 49% 46% 49% 41% 37% 29%

41%

Telematics Solutions in

 Other Owned Vehicles

2024

58% 50%

 Data Analysis Platform Ability to Integrate Non-Telematics Data Sources

60%

35%

33%

31%

“

*Not asked in 2022

Fleets are educating themselves much more. They are evaluating different use cases and they’re much more discerning when evaluating technology.”

– Bill Donnelly, vice president of market intelligence and customer experience for Penske Transportation Solutions

2024 TELEMATICS USE AND TRENDS

FINDING THE IDEAL SOLUTION Determining the features and tools fleets need can be a complex process, but Penske works with fleets to understand their needs and help them find the best telematics device for their goals.

Penske sits down with fleets to understand the specific information they’d like to receive and, more importantly, why they need it. “Understanding customers’ needs, goals and how they plan to use the information allows us to develop solutions that meet their needs,” said Brandie Searle, vice president of digital product management for Penske Transportation Solutions.

Penske is device agnostic, and can help fleets find the best provider for their needs. Penske Customer Success is a team dedicated to helping customers get the most out of fleet technology. Taking a device-neutral approach, the team helps customers evaluate, select, implement and use telematics systems.

Bill Donnelly, vice president of market intelligence and customer experience for Penske Transportation Solutions, said systems need to be simple and intuitive and filter out the noise so customers can make informed decisions quickly. “Fleets don’t need more data. They want to know how to use the data to make their trucks more efficient and they want a holistic view of their operations,” he said.

Having consistent, quality data is becoming even more important as use of technology increases, and while the data itself is essential, there is still a human element that comes into play. “Penske has found success by pairing technical expertise with domain experts. That is when you can deliver real value,” said Joe Mlachak, vice president of vehicle diagnostics for Penske Truck Leasing.

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Telematics' Influence on Maintenance The data from telematics devices is helping fleets get ahead of operational problems, especially around maintenance. Among respondents, 62% said they look to telematics to reduce costs by solving maintenance issues before they lead to major repairs; 59% expect telematics to improve uptime; and 57% want to get ahead of potential problems with proactive diagnostics.

Additionally, 57% want telematics data to enable maintenance to be scheduled when convenient.

Fleets use a mix of internal and external maintenance providers, but the number of fleets that outsource maintenance has grown, which could be due, in part, to the increased complexity of new equipment and emissions technology.

Telematics information can enable a more customized maintenance experience, improve uptime and enable predictive analytics. When using telematics information for maintenance, the ultimate goal is to increase vehicle uptime by speeding up and getting ahead of repairs.

“

o effectively manage the T health of a vehicle, it's critical to integrate information from the vehicle itself, the driver, and the maintenance records.

Systems that combine these perspectives will provide a comprehensive view of the vehicle's performance and ensure proper care.”

– Joe Mlachak, vice president of vehicle diagnostics, Penske Truck Leasing

HOW FLEETS SELECT LEASING AND MAINTENANCE PARTNERS 78%

Has a Solution to

 Centralize Vehicle Data 

Provider Reputation



Contract Terms



Sales and Support

55% 77% 73% 77% 65% 75% 68%

Inclusion of Service/

 Maintenance in Contract

76% 65%

2024 2022

Sharing data with maintenance providers allows technicians to use real time odometer readings to streamline preventive maintenance schedules, gain advanced visibility of potential problems, and receive eDVIRs so repairs can be made quickly to keep equipment and drivers in compliance.

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2024 TELEMATICS USE AND TRENDS

FLEET TOP PRIORITIES FOR TELEMATICS SOLUTIONS Respondents use data from telematics systems to shape a wide range of business outcomes.

TIER

 Increasing productivity

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and efficiency

 I mproving maintenance tracking and analysis

TIER

2

 Improving driver and

maintenance scheduling

 Reducing fuel spend  Improving vehicle utilization, vehicle

TIER

3

lifecycle planning and vehicle uptime

 Improving driver satisfaction and back-office efficiency

TIER

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 Reducing unnecessary

“

e know that uptime is W important for our customers to achieve the day-to-day commitments of their business.

Maintenance drives uptime, but the benefits go much deeper.

Maintenance also contributes to greater fuel efficiency, safety and driver satisfaction, which all impact our customers’ operating costs and reputation.”

– Gregg Mangione, executive vice president of maintenance, Penske Truck Leasing

miles driven

 Increasing compliance and reducing vehicle count

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PENSKE’S INTELLIGENT MAINTENANCE Proactively Analyzing Data Penske collects and analyzes data on component failures and repairs on a wide variety of vehicles, looking at specific repairs that were performed and following telematics information upstream to identify the patterns of codes that preceded it to determine the root cause of the issue. The system also helps prioritize fault codes and filter out information that isn’t useful.

“We've had our own scenario-based diagnostics program for several years. We have matched that up with an AI model that makes predictions about

Improving Service As equipment becomes more sophisticated, it becomes more difficult to repair, making it even more important to have innovative maintenance solutions.

“When you have more complexity and more onboard computers, there are more things to go wrong,” Mlachak said. “That is going to be amplified with the EPA 2027 requirements.”

There are also more and more onboard safety systems, sensors and driver comfort features that must be regularly maintained and monitored. “The HVAC is critical for the driver to have a good day. It won’t

Assisting Technicians By drawing on data, Penske can customize each inspection routine based on the vehicle’s age, condition, specifications and reliability trends.

Penkse also integrates technology into its preventive maintenance program, so technicians receive prompts directing them through detailed inspection steps.

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Vehicle technology is becoming more complex, and there is more data than ever before coming from the vehicle. Penske Truck Leasing is tapping into that data, combining it with artificial intelligence and machine learning, and sharing it throughout the organization to drive uptime for fleets. The AI models are constantly learning, and Penske’s teams review the accuracy of the system to ensure it is delivering value.

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time to failure,” Mangione explained. “It makes a difference to our customers if that breakdown is going to occur in six hours or six weeks. If we don’t have to interrupt their routes today, we don’t.”

The system also identifies parts needed to complete the repair and where they are in stock. “If we don't have a part, we can order it and get it there before the vehicle arrives, so we're prepared when the vehicle shows up,” Mlachak said.

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break the vehicle down, but it is going to affect driver fatigue or frustration. We can see if the HVAC system is going to need work and address it with other vehicle needs,” Mlachak added.

Penske’s Dynamic PM® pulls together all available data to identify necessary repairs, coordinate maintenance resources and talent, and ensure parts or components are available to improve compliance, quality and uptime. This leads to better quality maintenance, which means fleets and drivers spend more time on the road.

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Additionally, Penske invests heavily in training technicians as equipment technology evolves. “Penske Truck Leasing has done a great job of not only keeping up with training but also leading the industry on how to train,” Mlachak said, adding that technicians take pride in their work and need to have the proper training, tooling and resources to do their job.

2024 TELEMATICS USE AND TRENDS

SHARING TELEMATICS DATA Fleets are sharing telematics data with supply chain partners and service providers, including leasing companies, vehicle manufacturers, insurance providers, outsourced logistics providers and outsourced maintenance providers.

Today, 82% of fleets share telematics data with at least one third-party provider, up from 76% in 2022, and 53% of fleets share telematics data with more than one provider.

Technology as a Solution

“

In addition to an increase in the number of fleets using telematics devices, the number of transportation technology solutions in business operations has also increased. Currently, 61% of fleets reported using transportation technology solutions (TTS) in their business operations, up from 48% in 2022, and 94% of fleets are using at least one TTS feature, up from 81%.

Features with the highest current usage include those used for simplistic vehicle tracking, maintenance information and hours reporting.

ur customers have invested in their O assets and they want to keep them on the road and making deliveries.

Incorporating these new data sources into our existing processes has created greater value for our customers.”

– Gregg Mangione, executive vice president of maintenance, Penske Truck Leasing

KEY WAYS FLEETS ARE USING TRANSPORTATION TECHNOLOGY SOLUTIONS



Schedule or Reschedule Maintenance Online

57% 22% 56%

Maintenance

 Tracking Dashboards 

Remote Diagnostics to Determine Vehicle Failure Risks



Report on Key Efficiency Metrics

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30%

48% 19% 48% 24%

2024 2022

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PENSKE’S DIGITAL EXPERIENCE ENABLES SYSTEM COMPATIBILITY FOR COMPREHENSIVE INSIGHTS More than half of fleets using telematics use devices from different providers, creating an added level of complexity when combining and mining data. Not every provider collects the same information or stores it in the same way, but fleets must have consistent, quality reporting to turn data into actionable insights.

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Penske is committed to helping its customers optimize their telematics investments, and Penske's digital experience combines information coming from equipment and telematics devices (no matter how many sources there are), processes it and analyzes it, turning it into useful knowledge. Information is consolidated into a centralized platform so it is easy to access and use.

“Data can be overwhelming because there is so much of it, and fleets don’t have time to spend getting more training or trying to understand it.

They need it to be presented in the most user-friendly way possible,” said Samantha Thompson, vice president of customer success and fleet telematics, Penske Transportation Solutions.

Additionally, Penske is device agnostic, so fleets can choose the system that works best for their operations, business and budget. Fleets can also pull in data from systems they may have inherited through acquisitions.

Penske can make it easy for fleets of all sizes, including those with 15 or fewer trucks, to tap into the latest telematics technology and data benefits.

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2024 TELEMATICS USE AND TRENDS

The Bottom Line Data is bringing new value to fleets, which is driving increased adoption of telematics devices and transportation technology solutions. The telematics market is attracting users by introducing new features, functionality and integrations, and fleets are finding new ways to use information to increase efficiency and optimize operations.

However, fleets aren’t simply looking for more data.

They expect telematics devices to solve problems, especially regarding maintenance, uptime and efficiency, and they are more willing to share data with third-party providers as they seek results.

Going forward, fleets are likely to seek out features that are more prescriptive in nature by dissecting data to make recommendations for their vehicles and business, especially as vehicle architecture becomes more complex to repair.

Top uses today include remotely locating equipment, tracking and scheduling maintenance, electronic driver trip reports and remote diagnostics. Telematics can help carriers uncover driver behaviors that contribute to fuel waste, such as aggressive driving, idling and speeding. The devices also help increase visibility, improve communication and routing, minimize the risk of disruptions, and create a more efficient and productive fleet.

Devices and data collection are expected to continue becoming more affordable, which will spur increased adoption. Plus, applications will continue to evolve.

As use cases expand, it will be important for data to be housed in a centralized platform so data can be easily accessed and put to work.

At the same time, fleet decision-makers have become more educated customers and are researching devices and their capabilities. They want providers that transform data into actionable insights that create value.

 Solve Disruptive Problems  Share With Third-Party Providers  Prescriptive Data Features  Valuable Actionable Insights

Methodology The Telematics Use and Trends study was conducted for Penske to survey fleet decision-makers from small, medium and large fleets. Two online surveys were deployed to gather data. The first survey, which ran from Nov. 1 to Nov. 23, 2023, asked fleet decision-makers about their fleets’ maintenance outsourcing, telematics solutions, service providers and data sharing. It garnered 250 results. The second survey asked fleet decision-makers specifically about transportation technology solutions, related features and integrated data feeds. It ran from Nov. 22 to Dec. 1, 2023, and garnered 250 results.

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CO N TAC T U S Penske Customer Success hello@penskecustomersuccess.com 844-426-4555

©2024 Penske Truck Leasing