Published: 25 October 2016
The Commercial vehicles telematics market in India had very less to cheer till now but this might change in near future.
One of the reasons behind sluggish market for telematics in India was delay in implementation of schemes by the government. This resulted in exiting of many companies and it stifled the enthusiasm of investors. But this may change soon as market is showing signs of surging again amid the concerns of safety and craving for diagnostics and efficiency among the players.
As the states and Municipal transport corporations would be entering the market to initiate safety services, such as real-time, location-based services and intelligent transport systems in public vehicles. This would lead to improvement of Infrastructure and adoption rates. Such steps will also need the backing of legislation and as they will grow, the market will shift toward advanced, fit-to-purpose solutions, such as collision avoidance and on-board driver training. Reducing vehicle downtime through vehicle health management and preventive maintenance will be another focus area for OEMs and large fleets.
It is being predicted by a recent analysis from Frost & Sullivan that by 2023, the telematics sales will become six times of what it is now. This needs to be understood by the players and they should come up with optimum business models to harness this opportunity.
Satendra Kumar, Industry Analyst of Intelligent Mobility says “With vast untapped potential for telematics usage in various industries, India will become a hotspot for new entrants to introduce future-generation products and services, and attract a large customer base,”
“The telematics market in India will consolidate going forward as small companies with a healthy customer base are acquired by multinational companies, such as Trimble Navigation and Efkon, looking to enter the arena,”
“OEMs will also step up partnerships with aftermarket vendors to support services for mixed fleets.” He says further.