Commercial Vehicle Telematics Market Outlook in India
With the vast opportunity available, the Indian CV telematics market is anticipated to witness explosive growth
Commercial Vehicle Telematics Market: Key Takeaways, India, 2013
In 2013, sales was units, and is expected to reach million units by 2021, at a CAGR of % from 2013 to 2021.
The concentration of telematics users is higher in large fleet owners having tie ups with companies in the manufacturing segment.
The installation of vehicle tracking systems was a priority during the 11th Five Year Plan; this was carried out on a pilot basis, in Tamil Nadu and Chhattisgarh, to track the movement of vehicles transporting targeted public distribution system (TPDS) commodities.
A 3-way partnership between Russia's NIS Glonass, BSNL and MTNL is in place, for the delivery of satellite-based navigation services.
The rising number of collaborations between truck manufacturers and aftermarket telematics vendors will drive OEM share. The products offered through such alliances help combine truck manufacturers’ vehicle expertise and telematics vendors’ transport business expertise.
India plans to make an infrastructure investment of about ₹ trillion, with an additional planned construction of 10,000 kms of national highway by the National Highways Authority of India (NHAI), during the 12th Five Year Plan.
About this report
The main drivers of the commercial vehicle telematics market is increasing fuel prices and wafer thin profit margin in the transportation industry which compels the fleet operators to gain competitive advantage by vehicle tracking, route calculation, checking on oil pilferage, and other telematics offerings. However, the initial cost of telematics hardware is interrupting growth in the smaller fleets (up to 5 trucks) which account for around 70% of the transport industry. Even the larger fleets (more than 20 trucks), holding around 14% of the share, get pinched by the effects of debilitated economic climate, and are unwilling to update or continue subscription of any Fleet Management Systems. Another growth deterrent stalks from anxieties about sensitive company data being exposed to third party or competitors.
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