Video Telematics in Industrial Vehicles: A Valuable Investment

Introduction

The adoption of video telematics systems is rapidly increasing across many industries, including transportation, utilities, construction, towing, waste management and field service fleets. The global video telematics market is projected to grow significantly, with the installed base expected to rise from 9.74 million units in 2025 to over 22 million units by 2030. This growth indicates that organizations recognize the value of implementing video telematics in industrial vehicles. This article will explore the benefits and considerations of video telematics for heavy duty industrial vehicles, including utility vehicles, cherry pickers, bucket trucks, garbage trucks, tow trucks, dump trucks and other construction vehicles.

Key Benefits

• Safety: Industrial vehicles pose significant safety risks, with construction equipment alone accounting for a third of work zone fatalities in the US. Video telematics enhances work zone safety through blind spot monitoring, traffic scene marking, and improved visibility. In the towing industry, a driver is killed while working on average every 6 days. In addition, an estimated 1,280 tow truck drivers are injured each year while working. Video telematics systems help reduce such fatalities and workplace injuries by providing the driver with increased on-scene visibility around the vehicle and much more effective training through the use of video, as noted below.
• Liability Protection: Nearly 50% of all heavy duty truck crashes involve a second vehicle and in 88% of those crashes, the second vehicle is a car. Incredibly, over 80% of those crashes are the fault of the car driver. Yet, it’s the large truck that is often assumed to be at fault. Video footage can mitigate liability in accident claims, by effectively proving where the true fault lies. Many of these truck versus car collisions are merge related, whereby the car merges into the side of the industrial vehicle, often from attempting to “beat” the truck in traffic or simply “not seeing” the truck. This is where side cameras prove their worth. This protection can significantly reduce legal and insurance costs. In addition to accident liability, industrial service fleets in many industries, including utilities, towing and contractors are frequently subjected to false damage claims. Video telematics systems are often the only proof the company can rely on to stave off these costly claims.
• Compliance: These systems can help capture and prevent compliance violations, such as harsh braking, speeding, and distracted driving. They can also provide proof of vehicle safety checks and ensure adherence to safety regulations like wearing safety harnesses and proper vehicle grounding.
• Training: Video telematics systems can record unsafe practices and incidents, which can then be used to develop new safety protocols and improve driver training. This data-driven approach makes training more relevant and effective.
• Theft Protection and Insurance Premiums: Trucks and buses made up 12.1% of the vehicles stolen in 2023 in the US, which is astounding, considering they make up a much smaller part of the overall vehicle mix. Theft of construction equipment alone ranges from $300 million to $1 billion each year. Video telematics systems deter theft and aid in vehicle recovery, potentially lowering insurance premiums.

Potential Drawbacks

What are the challenges and potential drawbacks of implementing video telematics in industrial vehicles? Before reviewing this, let’s divide the available solutions into 2 segments, those being fleet dash cam systems and MDVR systems. As noted in our blog entitled “Video Telematics System -Key Considerations Before Making A Purchase“, the number of cameras and the amount of video history required takes us to a hardware related fork in the road, with fleet dash cam systems down one fork and MDVR’s (Mobile Video Device Recorders) down the other. (Please review this blog for help in determining the appropriate solution for your organization) Let’s review the pro’s and con’s separately for these 2 categories:

• Fleet Dash Cam Systems:
  • Pros: Lower initial hardware cost, simple installation.
  • Cons: Limited number of cameras, limited video history.
• Industrial MDVR Systems:
  • Pros: Support up to 12 cameras, blind spot monitoring, specialized cameras, greater video storage.
  • Cons: Higher initial hardware cost, more complex installation.

General Drawbacks

• Driver Complaints: Drivers may initially resist the installation of these systems, particularly those with driver-facing cameras. However, these concerns often diminish as drivers recognize the protection and benefits provided.
• Privacy Concerns: Privacy concerns can be addressed through manual or automatic privacy switches that temporarily disable interior cameras, or by disabling the camera when the emergency brake is enabled.

Implementation Considerations

The choice between fleet dash cam and MDVR systems depends on the specific needs and budget of the organization. These questions will help you determine the answer:

• Given the types of vehicles in use, what percentage of incidents/accidents would be out of view of a dash cam? (example -at the sides and rear of the vehicle)
• Given your claims history, what kind of claims can surface out of nowhere, after the fact that would be beyond the video history of a dash cam (assume 2 weeks history)
• Given your industry, are false damage claims a possibility and would those situations be beyond the typical viewing angles of a fleet dash cam?
• Is there any potential that if you implement a video telematics system into your industrial vehicles, you’ll be looking to add additional camera positions or blind spot detection at some future point?
• Given your application, would there be any value in having your camera positions displayed inside the vehicle to aid the driver in gaining visibility around the vehicle?

If the answers point towards an MDVR system being more appropriate, it then boils down to determining the budget and then calculating the return on investment.

• Cost Comparison: Fleet dash cam systems have a lower initial cost but offer fewer features. MDVR systems are more expensive but provide comprehensive video coverage and greater video storage.
• Leasing Options: Leasing can help eliminate capital outlay, making MDVR systems more accessible.
• Return on Investment: Organizations should consider the potential return on investment, including reduced accident costs, lower insurance premiums, and improved operational efficiency.

Video Telematics in Industrial Vehicles – Conclusion

Investing in video telematics is crucial for operating industrial vehicles efficiently and safely. These systems enhance driver behavior, improve compliance, and reduce liability, vehicle insurance costs, and downtime. Although there are initial costs and potential drawbacks, the benefits and return on investment make video telematics a valuable asset for any industrial vehicle fleet.

Given the safety risks and the potential liability costs in the case of an accident, video telematics systems make for a very intelligent investment with a tremendous return on investment potential.