EVs

What is EV Telematics?

Syd Bishop blog author Syd Bishop
EV Telematics

Globally, electric vehicles account for around 25% of all new car sales; those very same electric vehicles provide challenges and opportunities for electric utilities. Every time an EV plugs in, it generates data about when it charges, how much energy it draws, and how healthy its battery is. That data stream is EV telematics, and it is one of the most useful tools available to utilities, fleet operators, and grid planners managing a rapidly electrifying vehicle fleet.

The global EV telematics market was valued at $15.11 billion in 2025 and is projected to reach $93.18 billion by 2034, a 22.5% compound annual growth rate. That growth reflects a simple reality: as EV adoption accelerates, the organizations that can see and act on charging data will manage the transition more smoothly than those that can’t.

 

In This Article

  • What is EV telematics?
  • How EV telematics works
  • Why EV telematics matters for the grid
  • EV telematics for demand flexibility and DER programs
  • EV telematics for fleet operators
  • The growing EV telematics market
  • Glossary of EV telematics terms
  • FAQs

 

What Is EV Telematics?

Telematics is the long-distance transmission of data using connected sensors and telecommunications, the internet of things as applied to vehicles. EV telematics applies that concept specifically to electric vehicles, capturing data points that don’t exist in a gas-powered car: state of charge, charging session duration, battery state of health, energy consumed per mile, and regenerative braking efficiency.

That data comes from a few sources:

  • Embedded telematics built into the vehicle by the automaker (OEM), which is projected to hold 95.27% of the market by 2026 as connectivity becomes standard rather than an add-on
  • Retrofitted telematics devices installed after the fact, common on older EVs or mixed fleets
  • Smart EVSE (electric vehicle supply equipment) that reports charging behavior even when a vehicle’s own telematics are limited

For a utility, fleet manager, or program designer, this data matters most in aggregate, revealing when vehicles charge, how much load they add to the grid, and how predictable that load really is.

 

How EV Telematics Works

A telematics control unit collects signals from onboard sensors and transmits them, typically over cellular networks, to a platform for analysis. That data set typically includes:

  • State of charge and remaining range
  • Charging start and stop times, duration, and location
  • Charging power level (Level 1, Level 2, or DC fast charging)
  • Battery state of health and degradation trends over time
  • Driving-behavior data, including acceleration, braking, and idling
  • Energy consumption per mile or kilowatt-hour

Individually, these are diagnostic details. Combined across a fleet or service territory, they become a forecasting tool that flags emerging battery issues, reveals where charging infrastructure is under strain, and shows how real-world charging compares to planning assumptions.

 

Why EV Telematics Matters for the Grid

EV charging load isn’t evenly distributed throughout the day, and that unevenness is the core challenge utilities face. Left unmanaged, charging tends to cluster overnight, right as time-of-use rates drop,  creating a sharp secondary demand spike on local circuits and transformers rather than easing pressure on the grid.

The scale of the problem is significant. For example, California’s three largest utilities may need to invest between $15 billion and $50 billion in distribution grid upgrades by 2035 to accommodate electrification, with EVs playing a significant role. The state expects roughly 8 million EVs on the road by 2030, up from about 1.5 million today, and utilities across New England and other regions are planning similar grid upgrades around an anticipated influx of EVs.

EV telematics gives utilities visibility into that load before it becomes a circuit-level problem, showing:

  • Actual charging start times and durations by vehicle and neighborhood
  • How charging behavior shifts in response to time-of-use rates or price signals
  • Where local infrastructure is likely to see concentrated demand first
  • How much flexibility exists in a given EV’s charging window

That last point matters more than it might seem. Reporting on California’s smart-charging pilots notes that most EV owners don’t care whether a charging session starts at 10 p.m., midnight, or 3 a.m., they only care that the car is ready by the time they need to leave. That flexibility, made visible through telematics, is exactly what demand flexibility programs are built to use.

 

EV Telematics for Demand Flexibility & DER Programs

For utilities running demand response or distributed energy resource programs, EV telematics data feeds directly into program design:

  • Load forecasting: Historical charging patterns help utilities anticipate energy purchasing needs
  • Program timing: Telematics shows the actual windows when EVs sit idle and plugged in, the raw material for scheduling non-disruptive demand events
  • Rate design: Seeing how drivers respond to existing time-of-use rates helps refine future rate structures
  • Vehicle-to-grid (V2G) readiness: As more EVs support bidirectional power flow, telematics helps identify which vehicles are realistically available as backup capacity

None of this disrupts the driver’s routine. The goal is usually to shift when charging happens within a window the driver has already indicated is flexible, maximizing the value of every electrified mile rather than asking drivers to change their behavior. It’s worth noting that telematics and EVSE-level data serve related but distinct purposes here: telematics reports on the vehicle itself, while the charger reports on the session, and the most complete load management strategies typically draw on both.

 

EV Telematics for Fleet Operators

Fleet electrification is where EV telematics adoption has moved fastest, largely because the ROI is easier to measure. Commercial fleets increasingly treat telematics data the way they once treated fuel data: as the primary lever for controlling cost, performance, and uptime.

Measurable benefits fleet operators report include:

  • Predictive maintenance that can reduce repair costs by up to 30% by catching issues before they cause a breakdown
  • Realistic range planning, since telematics reveals how temperature, terrain, and duty cycle affect range rather than relying on a single advertised number
  • Battery longevity insight: Geotab research found batteries degrading at an average 1.8% per year would retain more than 80% of their state of health after 12 years, generally outlasting a typical fleet vehicle’s service life
  • Smarter charging schedules, both to capture off-peak rates and to identify the most reliable fast-charging stations along common routes
  • Driver-behavior coaching, since telematics can connect hard acceleration and braking to reduced range

That connectivity is also becoming a purchasing factor in its own right: a McKinsey survey cited in recent fleet coverage found nearly 57% of EV buyers said they’d switch vehicle brands for better connectivity features, a sign that telematics has shifted from nice-to-have to baseline expectation.

 

The Growing EV Telematics Market

The data tells a consistent story across research firms. Beyond the $93.18 billion Fortune Business Insights projection, a narrower segment focused on EV telematics-driven energy optimization was valued at $2.1 billion in 2024 and is projected to reach $10.4 billion by 2033, growing nearly 20% annually. The broader vehicle telematics platform market, EV and internal combustion combined, has been projected to reach roughly $127 billion within the next decade as OEMs increasingly integrate connected data directly into new vehicles.

A few trends are driving that growth:

That growth comes with real friction points worth naming: data privacy and security concerns around detailed vehicle and driver data, the upfront cost of hardware and platforms, and inconsistent data-exchange standards across OEMs and telematics providers. Even where the technology exists, getting drivers to enroll in managed-charging or demand response programs remains one of the more practical hurdles utilities report, since many EV owners simply aren’t aware the option exists.

 

Glossary of EV Telematics Terms

  • Telematics: The long-distance transmission of data from connected devices, used to monitor location, performance, and status.
  • EV telematics: Telematics data specific to electric vehicles, including charging behavior, battery health, and energy consumption.
  • Telematics control unit (TCU): The onboard hardware that collects vehicle data and transmits it to a telematics platform.
  • Embedded telematics: Telematics hardware built into a vehicle by the manufacturer, as opposed to added afterward.
  • Retrofitted telematics: An aftermarket telematics device installed on a vehicle that didn’t ship with built-in connectivity.
  • Distributed energy resource (DER): A small-scale energy resource, such as an EV, solar panel, or battery, located close to where electricity is used.
  • Distributed energy resource management system (DERMS): Distributed energy resource management systems (DERMS) are a software platform utilities use to monitor, coordinate, and dispatch DERs, including EVs.
  • Demand response (DR): A program that adjusts electricity usage, often temporarily, in response to grid conditions or price signals.
  • Virtual power plant (VPP): A virtual power plant is a network of connected DERs coordinated to act collectively like a single power plant during periods of grid need.
  • Vehicle-to-grid (V2G): Technology that allows an EV battery to send stored energy back to the grid, not just draw from it.
  • Vehicle-to-everything (V2X): A broader category that includes V2G as well as vehicle-to-home and vehicle-to-building power flow.
  • Managed (or smart) charging: A system that adjusts when and how fast an EV charges based on grid conditions, rates, or renewable availability.
  • Time-of-use (TOU) rate: An electricity pricing structure where cost per kilowatt-hour changes by time of day.
  • State of health (SOH): A measurement of a battery’s remaining capacity relative to when it was new.
  • Grid-edge: The point where the traditional grid meets customer-owned devices and DERs, such as EVs, solar panels, and smart chargers.

 

FAQs

What is EV telematics in simple terms? EV telematics is the technology that collects and transmits data about an electric vehicle’s charging behavior, battery health, and energy use, so drivers, fleet managers, and utilities can act on real information instead of assumptions.

How is EV telematics different from telematics in a gas-powered car? Both track location and driving behavior, but EV telematics adds data unique to electric vehicles, such as state of charge, charging session details, battery state of health, and energy consumption per mile.

How do utilities actually use EV telematics data? Utilities use aggregated, anonymized charging data to forecast energy purchasing needs, design demand response and time-of-use rate programs, and identify where local infrastructure may need upgrades as EV adoption grows.

Is EV telematics the same thing as smart charging? Not exactly. Telematics is the data layer; it reports what’s happening with the vehicle. Smart or managed charging is the action layer that uses that data, along with charger-level information, to adjust when and how a vehicle actually charges.

Do I need a new EV to get telematics data? Not always. While most new EVs ship with embedded telematics, retrofitted devices and smart EVSE chargers can capture much of the same charging data on older vehicles.

How big is the EV telematics market? Estimates vary by research firm and market definition, but most place the global EV telematics market in the $15–18 billion range as of 2025–2026, with projections reaching $93 billion or more by the early 2030s.

 

What is EV Telematics Conclusion

EV telematics has moved from a novel feature to foundational infrastructure for the electrified grid. As adoption climbs and more OEMs open their data to third-party platforms, the utilities and fleets that build their planning around real telematics data, rather than static assumptions, will be best positioned to keep the lights on and the fleets rolling as electrification accelerates.

This blog was originally published on May 18, 2022 with updates made on September 18, 2026.

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About The Author
Syd Bishop blog author

Syd is a senior content specialist and all-around word nerd for Virtual Peaker. Syd believes in the inevitability of renewable energies and in implementing a diverse energy portfolio and is excited to use his skills to help spread that message far and wide. In his scant free time, Syd is a father of two, husband of an awesome wife, a musician, and a lover of comic books, and all things sci-fi.

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