“The Government through AIS 140 standards, although mandating the use of vehicle tracking systems in Commercial Vehicles, have not implemented the guidelines effectively, thereby giving scope for non compliance”.
Decreasing Dependence towards Import from China: The Hardware for Fleet Management and Telematics is usually imported from China. Nearly 75%-80% of the import market is dominated by China, with Israel and Lithuania being the other preferred countries. The cost of the hardware post importing is 60% lesser than indigenously manufactured hardware devices. This gap is now declining & in the future it is expected to have a similar price. More Companies are now focusing on manufacturing their own hardware, since in a low cost market such as this, margins from sale of hardware is more than margins from Software product.
Increase in Volume Based Incentives: Companies in this sector, since it is low cost, depend on the volume of fleets that they cater to a single client. Many companies have a minimum benchmark criteria (minimum fleets) in order to accept the demand of the client. In Order to attract more customers, companies are increasing their incentives (offering discounts or value added services) if the customer meets the required number of fleet.
Increasing Focus on Safety and Security: Introduction of AIS 140 standards by the government was done with the main aim of Passenger Safety and Security. Hence the mandate has been towards commercial vehicles and all public transportations. Increased data tracking and technological advancement will bring all CV’s under one common platform & introduction of emergency buttons also increases safety for drivers and passengers. However regulations without proper implementation are rendering these regulations ineffective.
According to a report by Ken Research titled “India Fleet Management Systems Market Outlook to 2025- driven by Introduction of AIS 140 Standards, Increase in use of Artificial Intelligence and Fleet Size” Varied applications with increase in use of IoT, AI and Machine Learning has led to increase in tech adoption in Fleet Management Solutions The market is expected to grow at a positive CAGR of more than 10% during the period 2019-2025.
Key Segments Covered:-
By Hardware and Software
Vehicle Health Monitoring
By Type of Commercial Vehicles
By Type of Transport Vehicles
By Type of Services
After Sales Service
Claim Inspection Service
By Solution Type
By Package Type
Key Target Audience:-
Fleet Management Companies
Digital Freight forwarders
Private Ventures and Equity Firms
Time Period Captured in the Report:-
Historical Period: 2014–2019
Forecast Period: 2020-2025
For More Information, refer to below link:-
Ankur Gupta, Head Marketing & Communications