Telematics, which should be a term you’re well familiar with by now, combines telecommunications info with informatics, allowing certain vehicle data points to be tracked and analyzed. This is most often used on school buses for:

• GPS tracking
• Routing
• Ridership tracking
• Video (monitoring driver and student behavior, and other vehicles)
• Parent apps
• Driver tablets
• Crash detection
• Preventive maintenance 
• Tire pressure, fuel, and engine monitoring

Evolution of Telematics Products

Years ago, telematics was a “nice-to-have,” that early adopters used to replicate what was happening in trucking (an industry that required ELDs in 2016). Now, it’s a must-have for school buses with instant information delivery.

Once groundbreaking innovations, today simple things like directions, reading fuel gauges, and tire pressure feel like child’s play. Telematics’ real value allows admins to evaluate large data sets and make real-time, data-driven decisions, especially as transportation managers must ruthlessly assess the fleet’s time and capacity. 

Telematics also now integrates with many other systems, increases safety, and ensures compliance, with data stored in the cloud. With electric bus adoption growing, too, telematics is stepping in to monitor battery health, charging schedules, and energy optimization.

For instance, one benefit of the integration between Zonar and Tyler’s solution is that Tyler provides the planned route, and then Zonar can report on the actual route the driver took. This helps the transportation director track whether a driver followed the planned route or not.

Transfinder Corp., which provides its own hardware and solutions suite, says telematics is critical both on the road — with tracking routing, driver behavior, and attendance data — and in the garage. On the maintenance side, Servicefinder helps detect problem buses in need of repair. Mitch Oney, shop foreman at Ferndale (Wash.) School District, said the data he collects helps drive decisions on bus replacement, as well as inventory management.

To ensure regulatory compliance, telematics can geofence unsafe areas. 

On-board WiFi helps students stay connected to complete homework or stay occupied to reduce disruptive behavior. 

The telematics providers themselves also continue to diversify.

“The track and trace function, the epitome of any telematics platform, relies on the same basic principles used by sailors and pilots for generations,” said Tim Ammon, VP and GM, Passenger Services at Zonar. 

The change now is how the data is captured, the number of products that can integrate, and position and timing information. And AI-enabled dashcams are now providing more information than ever. “Many school bus fleets value the ability to identify potentially dangerous behaviors or activities and exonerate drivers in the event of an incident,” Ammon said.

Peggy Tesdahl, transportation director for. St. Francis (Minn.) Area Schools, says their drivers, especially subs, love having GPS routing and stop-arm cameras. The one thing they don’t yet have but want to add is a live feed for both inside and outside the bus that could help folks back at the office watch something in real-time that a driver reports.

Challenges to Telematics Adoption

“GPS availability has increased as costs have come down, so we are seeing a lot more adoption,” said Antonio Civitella, Transfinder’s president and CEO. “There are a lot more use cases, but now there is an expectation: There has to be a return on investment, and there has to be minimal effort. So there becomes a sense for districts not wanting to be left out when they see neighboring districts have this technology at their fingertips. You have to protect your drivers and have answers handy when called by the school board with questions. You can’t say, ‘Let me go find out for you.’”

Adding an entire suite of software solutions onboard a fleet of buses can be timely and costly. Using a solution hosted by the vendor can reduce IT and related costs. Grants may also exist to support the financial burden of adding new technologies (in Minnesota, the Department of Public Safety introduced a $14.2 million state-funded grant in 2022 for two years. Those funds equipped nearly 7,000 6,998 buses with camera systems, representing about 59% of the eligible school bus fleet in the state).

A good telematics vendor will also provide the training and ongoing support needed to help your team. Make sure to cross-train this information and create a set of best practices to ease any confusion down the road.

“Adoption challenges often revolve around concerns, cost, and capacity,” Ammon said. “Our customers worry about routes making unauthorized stops, non-obvious vehicle maintenance issues, driver behavior, on-time performance, etc. Telematics solutions can alleviate many of these concerns.”

What about data privacy and security? “When evaluating new technology, it is essential to involve IT departments to thoroughly vet vendor solutions,” advised Zach Moren, Transfinder’s manager, sales enablement and engineering. “Transfinder follows industry best practices, such as encrypting data, using secure hosting tools, and implementing robust login features like multi-factor authentication and single sign-on. We encourage districts to ensure these measures are standard with any vendor they partner with.”

What’s Next for Telematics?

Bill Westerman, director of integrated solutions at Tyler Technologies, believes what’s next for telematics is requirements for more information, better analytics, and actionable insights, with AI and machine learning continuing to evolve.

Ammon says video telematics will be highly sought after to identify driver training opportunities and provide remote coaching to improve new driver safety and performance.

Safety Vision mentions a shift toward cellular connectivity, which will become more cost-effective with 5G technology and will improve real-time video access and incident response rates.

Both Tyler and Transfinder believe transportation directors want fewer vendors offering broader solutions, meaning solution suppliers will continue to expand their product lines. “What we are finding more and more is that schools want companies that provide all-in-one solutions,” Civitella said. “They do not want to have to deal with multiple technology companies for multiple solutions. That’s over.”

One other telematics technology that has hit other markets is weather telematics. This provides critical information on road conditions and extreme weather, which dispatchers find invaluable. Predictive weather intelligence alerts can be prompted in advance of an extreme weather event or atmospheric threat.

“As expectations continue to rise, it’s inevitable that transportation departments will be expected to provide even more information about activities within shorter timeframes,” Ammon said. “However, it’s clear that as acquisition costs decrease, adoption will continue to surge across sectors. Telematics remains the only tool available to transportation providers to meet these expectations.”

Telematics has already changed the game, and in 2025, it will continue to help address pain points across the entire school transportation landscape.

Editor's Note: This article is part of our 2025 trends analysis exploring key issues to watch this year, from telematics to safety, alt fuels, the driver shortage, and school bus ridership.

Check out the other articles in this series:

• Bus Driver Shortage: Coming to a Close?
• Bus Ridership Declines: How are Kids Getting to School?
• Cloudy Future for Alternative Fuels
• School Bus Safety Issues in 2025