The Indian connected trucks telematics market is expected to grow at a steady 25% year-over-year rate from 2020, and an estimated 7.42 million commercial vehicles are on Indian roads, serving various industries, according to the "Indian Connected Trucks Telematics Market, Forecast to 2022" report.
This scope of commercial fleets ranges from transport and logistics, oil and gas, construction, utilities, service and maintenance, and retail and delivery, according to the report. Of these, transport and logistics and oil and gas offer the highest opportunities for growth for telematics service providers (TSPs). The telematics installed base was evaluated at 0.29 million units, with a penetration rate of approximately 4% in 2019.
The market in India, for most parts, has historically remained dormant, the report found. However, recent developments in the political, social, and economical fronts have kindled growth in this slow-paced market.
The government has recently taken a keen interest in the safety of passengers in public and commercial transportation, according to the report. The AIS-140 is a key regulation that mandates all commercial vehicles to be fitted with GPS-tracking devices that enable continuous tracking and tracing. This mandate is key in driving adoption rates in the Indian telematics market.
The Indian telematics market is full of expectations of growth, attributed majorly to the AIS-140 regulation, the report read. By law, every truck must carry an active GPS device, thus enabling basic telematics services of tracking, tracing, and navigation, along with SOS functionalities.
Challenges such as the justification on return on investments (ROI), reluctance in spending on telematics, security concerns, lack of infrastructure and enforcement agencies, disruption in foreign investments, and technological challenges are found to be common. Amidst these, the market possesses promising growth potential and, in the next few years, is expected to display a growth spurt that will revive the telematics market in India.
The market is fragmented and competitive, with 41% of the market divided among the top three participants.