According to the latest market research study released by Technavio, the commercial vehicle telematics market in India is expected to grow at a CAGR of close to 16% during the forecast period, 2016-2020.
This market research report by Technavio provides an in-depth analysis of the market in terms of revenue and emerging market trends. The report also includes an up-to-date analysis and forecasts for various market segments and all geographical regions.
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Technavio research analysts categorize the commercial vehicle telematics market in India based on the solution type:
Commercial vehicle telematics market in India share by the solution type 2015
|
Entry level |
68% |
|
Mid-tier |
31% |
|
High end |
1% |
Source: Technavio
The top three revenue contributing solution segments are discussed below:
Entry level commercial vehicle telematics market in India
During 2015, the entry level commercial vehicle telematics market in India accounted for around 68% of the overall market revenue. Driven by the increased demand for GPS tracking from the small fleet owner segment, the Indian commercial vehicle telematics market for entry level solution implementation is expected to showcase substantial growth during the forecast period.
“A small fleet owner segment is when a fleet owner owns less than five trucks. This segment accounts for more than 80% of commercial vehicles in India and has immense potential for growth in the form of collective spending power. Since it is the last segment in the logistics sector to adopt new technology, the small fleet owner segment is considered as technology laggard. As a result, there is an increased demand for entry-level commercial vehicle telematics solutions from this segment,” says Siddarth Jaiswal, a lead analyst at Technavio for research on automotive electronics.
The unorganized sector in India is undergoing huge reforms due to the emergence of several start-ups in the region. Many of these start-ups have developed platforms to consolidate the small fleet owners. However, transit losses that account for almost 10% of the total logistics cost in India are one of the key concerns that such consolidators face. This gives rise to the need for basic telematics applications, like GPS tracking and GIS, that help counter transit losses.
Mid-tier commercial vehicle telematics market in India
The mid-tier commercial telematics solutions segment was second largest in the Indian market with around a 31% share of the overall market revenue. The Indian commercial vehicle telematics market for mid-tier solution implementation is driven primarily by the increased penetration of outsourced logistics as they are the largest consumers of mid-tier and high-end telematics solutions.
Rapid growth in many sectors such as retail and e-commerce in India has spurred an increase in the demand for efficient trucking. As a result, there is huge scope for growth for 3PL and 4PL players in the market. These players provide facilities such as online shipment tracking and reduced transit to their customers. However, they have to keep their operation costs low by minimizing transit losses, vehicle breakdown, and avoiding traffic congestions. Mid-tier telematics systems help 3PL and 4PL players curb such losses and hence are in huge demand.
High-end commercial vehicle telematics market in India
The Indian commercial vehicle telematics market for high-end solution implementation accounted for a mere 1% of the overall market share during 2015. The growth of this market segment over the next few years will be fueled primarily by the rising adoption of high-end telematics systems among 3PL and 4PL players in the Indian logistics market.
3PL and 4PL players in India are implementing high-end telematics systems wherein telematics services are linked with the back-end operations of the companies. These companies have already implemented SAP and CRM to maintain efficiency and enhance customer satisfaction. The integration of telematics systems with these back-end systems can further improve the system’s overall efficiency. Such system integration can bring about substantial cost advantages and helps the 3PL and 4PL players stay ahead of their competitors.
The top leading vendors operating in the commercial vehicle telematics market in India are:
- Arya Omnitalk
- Ashok Leyland
- CMC
- Tata Motors
- Trimble Navigation
The other prominent vendors in the market include Dhanus Technologies, eLogistics, and Mahindra & Mahindra.
A more detailed analysis is available in the Technavio report titled, ‘Commercial Vehicle Telematics Market in India 2016-2020’. Technavio also customizes reports by other regions and specific segments upon request.
Other related reports:
- Global Commercial Telematics Market 2016-2020
- Global Intelligent Transport System Market 2016-2020
- Global IOT Market in the Transportation Sector 2016-2020
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