Frost & Sullivan releases its report on telematics in Indonesia
Frost & Sullivan‘s recent analysis on the Indonesian connected trucks telematics market finds that, currently, 96% of companies are using telematics in their fleets with communication functions sent over 3G/4G, leveraging real-time information for efficient operation of their fleets. The commercial vehicle telematics market in Indonesia is growing at a slow rate due to the impact of the COVID-19 pandemic. However, multiple vendors are populating this fragmented sector and competing to gain share. This analysis focuses on commercial vehicles comprising light-duty truck (LDT), medium heavy-duty truck (MHDT), and heavy-duty truck (HDT) plying in the transport & logistics and postal & delivery services sectors. It analyzes the usage of and interest in telematics and fleet management solutions.
“Indonesian businesses have adopted telematics for various functions with a majority opting for hardware that can communicate and transfer data,” said Krishna Chaithanya, Senior Industry Analyst—Connected Fleet, Mobility at Frost & Sullivan. “Telematics offer accurate data without requiring users to communicate with drivers, and access is available through various devices such as laptops, smartphones, and tablets. This allows companies to remotely manage their fleet and ensure efficient operation while addressing operational challenges such as compliance, safety, and cost-savings.”
Chaithanya added: “Most companies in Indonesia prefer third-party service providers due to ease of solution availability on top of the highly fragmented market with over 30 players. Therefore, the market is ripe for service providers as well as OEMs to leverage growth opportunities in new business models based on industry and consumer needs, geographic expansion into other regions of Indonesia, and strategic partnerships with software companies to build a strong product portfolio.”
Companies are most interested in the telematics features geared toward safe driving analysis and vehicle durability. Key findings include:
- When selecting a telematics system, the most important criteria are product reliability, its ability to fulfill operational challenges and track real-time data, followed by compliance, safety, and cost-savings.
- Telematics solutions are mainly installed in transport (93%), transport & logistics (79%) and postal & delivery (50%) in vehicles that are older than 10 years and operate long distances. The top three usages of vehicle-related features in telematics are vehicle inspection reminder (88%), vehicle malfunction alert (86%), and vehicle maintenance alert (85%).
- Currently, 65% of companies employ on-demand operation patterns and flexible routes, led by transport and logistics companies.
- Currently, 88% of companies use telematics solutions as a standard function with set features, while 12% are using customized features.
Transport & Logistics Sector to Fuel the Indonesian Connected Trucks Telematics Market is the latest addition to Frost & Sullivan’s Mobility research and analyses is available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future. A total of 17 companies and 4,252 vehicle operators in Indonesia were surveyed for this study.