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JapaneseConnected Vehicles and Telematics – Revolutionizing the Commercial Vehicle Business Model
In today’s data-driven world, connected vehicle technology is transforming the commercial fleet landscape by enabling smarter, more efficient operations. With operational costs—especially fuel and driver wages—comprising over 50% of total fleet expenses, connected truck solutions powered by telematics are becoming indispensable for modern fleet managers.
By leveraging real-time vehicle telematics, driver-focused mobile apps, and interactive dashboards, connected fleet systems empower transportation and logistics companies to optimize performance across their operations. The adoption of a robust Fleet Management System (FMS) leads to reduced idle time, lower fuel consumption, improved vehicle utilization, and up to 15% increase in productivity.
What is a Connected Vehicle Ecosystem?
The connected vehicle ecosystem is a dynamic network of systems and interfaces that enrich both customer experiences and business operations. Through a combination of mobile apps, web portals, call centers, and in-vehicle systems, customers can manage subscriptions, monitor driver behavior, and receive proactive maintenance alerts.
From a business perspective, automakers and service providers use an integrated suite of tools to shift from one-time vehicle sales to continuous, data-driven service delivery models.
Key Components of the Connected Vehicle Ecosystem:
- Telematics Systems: The digital core that captures and analyzes real-time vehicle and driver data.
- Operational Datastores: Provide actionable insights for performance optimization and personalized engagement.
- Agent UI Platforms: Empower customer support teams to handle subscription management and service tracking.
- Dealer Management Systems (DMS): Enable seamless dealer-customer interactions and service fulfillment.
- Billing & Subscription Management Tools: Facilitate scalable pay-per-use and tiered telematics service models.
Monetizing the Connected Vehicle with Cubastion’s Three-Pillar Framework
To generate recurring revenue and enhance user engagement, Cubastion’s connected vehicle monetization strategy is built on a three-pillar foundation:
1. Product & Packages
Flexible, tiered packages (free-to-paid models) introduce users to connected services and drive adoption at scale.
2. Campaigns & Incentives
Data-driven campaigns tailored to ownership milestones or external events (e.g., extreme weather) help maintain engagement and promote service upgrades.
3. Order Orchestration & Subscription Management
Efficient backend systems automate transactions—activations, renewals, billing—ensuring scalability and marketing agility.
This framework supports not just revenue growth, but also robust customer retention through meaningful digital touchpoints.
Value-Added Services (VAS): Unlocking the Full Potential of Connected Vehicles
Adapting a proven telecom strategy, value-added services in connected vehicles are reshaping how automakers and OEMs deliver utility. Much like telecom operators offer core and premium services, OEMs can extend vehicle functionality beyond basic transportation.
Key Elements in Connected Vehicle VAS Lifecycle:
- Vehicle Capability Definition – Similar to device capability in telecom, vehicle functionality is determined by its hardware (e.g., TCU).
- Product Creation – Bundles of connected vehicle features are created as purchasable services.
- Feature Bundling – Services categorized by function (security, safety, infotainment)
- Customer Experience Channels – Services are accessed via portals, mobile apps, in-vehicle systems, or dealership/customer service channels.
- Service Lifecycle Management – Once a service is activated, it’s provisioned, monitored, billed, and managed—mirroring the steps in telecom service delivery.
Adding VAS to the connected vehicle ecosystem transforms the vehicle into a platform for ongoing digital experiences, increasing customer engagement and opening new revenue streams.
Use Cases: Enhancing the Driving Experience with Connected Vehicle Services
Connected vehicle platforms empower OEMs to deliver contextually relevant experiences. These VAS use cases demonstrate real-world applications:
Hospitality Partnerships – Curated Coffee Breaks
Through brand tie-ups (e.g., Starbucks), connected vehicles can offer drivers location-based discounts, transforming routine drives into personalized, rewarding journeys.
Extreme Weather Comfort
During snowstorms or heatwaves, connected systems can activate remote start, pre-condition interiors, and suggest alternate routes, boosting comfort and safety.
EV Range Management – Beating Range Anxiety
With intelligent route suggestions and real-time EV charging station locators, connected electric vehicles provide a seamless, stress-free driving experience.
Future of Connected Vehicles: Telematics Trends to Watch
The future of connected vehicles and telematics is steering the automotive industry toward service-oriented, digitally empowered models. By 2030, over 90% of new vehicles are expected to feature some form of connected capability.
Key Future Trends:
- Shift to Subscription-based Automotive Services
- Usage-based Insurance (UBI) through vehicle telematics data
- In-vehicle eCommerce and infotainment ecosystems
- Enhanced customer lifecycle touchpoints
The shift toward data-driven services will fuel recurring revenue models, with the global connected vehicle services market projected to exceed $190 billion by 2028 (Markets and Markets, 2024). Automakers will monetize vehicle data, collaborate with insurance providers for usage-based policies, and develop in-vehicle commerce ecosystems, blurring the line between automotive and digital industries.
Drive the Future with Cubastion’s Connected Vehicle Expertise
Revolutionize your fleet and customer experience with intelligent connected vehicle solutions. Whether you’re an automaker, OEM, or logistics provider, Cubastion enables end-to-end strategy, deployment, and monetization of your connected ecosystem.
Anubhav Mangal
Principal Consultant
