blog

From basic to advanced

Why OEMs need to upgrade their telematics 
  • Author

    Vidushee Singh
    Marketing Manager

  • Release date

    April 18, 2025

  • Reading time

    3 min

Many OEMs still rely on basic telematics systems that primarily track location, speed, and operating hours. While this information provides a basic level of visibility, it falls short when it comes to optimizing efficiency, reducing costs, and driving innovation. Advanced telematics offers a far more comprehensive approach: delivering real-time machine insights, predictive maintenance capabilities, and seamless data integration that transform operations from reactive to proactive.

Why basic telematics falls short

Basic telematics solutions are often installed after the machine has been manufactured, using external sensors to gather data. While they can monitor GPS location, speed, and engine runtime, their ability to provide actionable insights is limited. The key drawbacks of basic telematics include: 

  • Limited data accuracy – Since basic telematics devices are mounted externally, they rely on indirect measurements and estimations rather than real-time machine data. For example, fuel consumption might be inferred based on engine runtime rather than measured directly from the fuel tank. 
  • No predictive maintenance capabilities – Basic systems lack access to real-time diagnostics, making it impossible to detect early warning signs of component failure or schedule proactive maintenance. 
  • Minimal integration with other systems – Because basic telematics operate independently of a machine’s internal network, they cannot integrate seamlessly with fleet management, ERP, or predictive analytics platforms. 
  • Reactive rather than proactive insights – With no real-time data on component wear, fluid levels, or fault codes, maintenance is often performed based on fixed schedules rather than actual machine conditions, which leads to inefficiencies and unexpected breakdowns. 

The power of advanced telematics

Advanced telematics solutions, on the other hand, are built directly into the machine during manufacturing. This integration allows them to access critical internal data sources like the engine control unit (ECU), hydraulic systems, and fuel sensors. By continuously analyzing real-time data, OEMs can: 

  • Monitor machine health with precision – Advanced telematics pulls data directly from the machine’s internal systems, ensuring accurate readings of key parameters like fuel consumption, engine load, and hydraulic pressure. 
  • Enable predictive maintenance – By detecting early warning signs such as increased vibration, overheating, or declining fluid levels, OEMs can schedule maintenance before failures occur, thus reducing downtime and repair costs. 
  • Enhance operational efficiency – Real-time insights help optimize machine usage, reducing idle time and improving overall performance. 
  • Provide remote diagnostics and updates – Service teams can diagnose machine issues remotely, reducing unnecessary technician visits and ensuring faster problem resolution. 
  • Create new revenue opportunities – With advanced telematics, OEMs can offer value-added services such as remote monitoring, data-driven maintenance plans, and spare parts sales, transforming their business model from one-time equipment sales to long-term service partnerships. 

Why OEMs need to upgrade now

In today’s increasingly competitive market, relying on basic telematics is no longer enough. OEMs that fail to evolve risk losing ground to competitors that leverage data-driven decision-making, remote monitoring, and predictive analytics to enhance their customer offerings. Investing in advanced telematics isn’t just about improving fleet management, but about securing long-term business success by reducing downtime, optimizing efficiency, and generating new revenue streams.