In a developing country like India, the Commercial Vehicle Telematics industry is slowly making its presence felt in the unorganized Logistics sector. The untapped market is seeing a huge potential growth over the years with increased spending from the Indian Government for improving infrastructure. The implementation of laws pertaining to Cargo and Passenger safety is said to enhance the demand for telematics services. With the amplified government support, global players seek entry into the country.
For new entrants, the market seems favorable as the need for customized Telematics Services becomes more and more visible. The need for in-built Telematics Systems arises, to address the problem of dry run kilometers which is estimated to account for about 24% of the total runs made by fleets. Fleet Management Systems help in reducing the overall fuel costs and vehicle downtime along with providing monitoring services like Geo-fencing and Geo-location services to the fleet operator, to reduce unauthorized vehicle movements.
According to a recent research by Frost & Sullivan, the Commercial Vehicle Telematics market is said to grow six fold, from 2.4% in 2016 to 9.3% in 2023. However, the unorganized trucking sector ponders over the additional cost incurred as a huge hindrance to adopting to telematics based services. Hence, the telematics companies need to come up with solid business models that are cost-effective to harness this solid opportunity.
The industry is also looking at reducing the carbon footprint while managing their fleet to develop a greener image and thereby lowering the dry run kilometers. The Fleet Management Solution providers offer customized solutions to target transport specific needs to Reduce costs, Boost productivity and Improve operational efficiency. This has indeed attracted a lot of companies to build more Vehicle Tracking Applications and Devices with embedded features like navigation, tracking and location based emergency services.
Telematics Technology has made it easier for the end user by making it more autonomous. Fleet Tracking application dashboards have visuals in the form of informative graphs for mapping and analytics. Automated reporting not only provides transparency, but, it is also helpful in collecting and displaying the most critical data, thereby providing meaningful insights to the customer. These applications are made user-friendly to enable the customer, keep track of their fleet and to address vital issues on-time.
With the Commercial Vehicle Telematics solutions available today, there are more opportunities for companies to come up with mobile-based and cost-effective applications, as the market is anticipated to take an unprecedented growth in the years to come.