Telematics Industry in India: Growth and Opportunities


Growing crimes on the move is increasing the need for Auto Telematics in India

Telematics-Industry-in-IndiaTelematics is a technology that includes computers and wireless telecommunications allegedly to communicate information over several networks. These include vehicular technologies, road safety and transportation networks, electrical engineering systems and of course the Internet connectivity which is the base for all the networking. The GPS (GLOBAL POSITIONING SYSTEM) is a part of Telematics but it is not limited to the technology alone, it is integrated with computer and mobile technology in automotive navigation systems.

Telematics is basically sending, receiving and storing data through telecommunication devices which are interconnected to remote devices and this is probably done while on travel. Auto Telematics is the most in use technology that is useful for vehicles which are constantly on the move. This technology is also popular as Vehicle Telematics. Penetration of Telematics technology in cars in 2012 was recorded to be 11.4%.


Telematics Technology in car is estimated to be around 60.1% by the end of 2017.


Indian Telematics Market: Dominated by Vehicle Telematics-

According to reports, Telematics industry in India is dominated by vehicle Telematics as its automobile industry is undergoing tremendous innovations on a long-term basis. Going by recent Indian Telematics market research reports; BRIC countries (that includes India) are expected to have healthy automobile business turnover, thus notably contributing to the 46% gain in the global Auto Telematics industry by the end of 2018.

The machine to machine (M2M) technology is very popular in developed countries as it is expected to be an industry that will cover 80% of Western Europe and America. However, the coverage of developing regions such as Latin America and Eastern part of Europe will witness a hike as newer vehicles will come with the Telematics settings. The industry will be primly driven by regions like Brazil and Russia.

In comparison, the M2M sector in India is at its infant stage, yet it is expected to cross $150 million in few years from now.

Following are some key factors which will encourage the Indian Telematics industry:

  • Transportation industry includes sub-segments like the logistics, construction, mining and employee transportation. These vertical segments indicate rock-strong demands which will give rise to the auto Telematics industry in India.
  • The Indian government is planning to construct 15,000 kilometers at an expenditure of $1 trillion over a span of next 5 years. This is ought to push the demands of fleet management and vehicle tracking needs; including mass driver data requirements.
  • Introduction of 4, 00,000 new buses on Indian roads until 2017 is targeted as a major opportunity as there is a long waited demand for security in both public and private travel systems. Thus, there is a nationwide need for vehicle tracking thereby stimulating the Indian Telematics industry in automobiles.
  • Vodafone joining hands with Mahindra & Mahindra is the latest example of connected cars industry in India. Experts assume that such collaborations will increase in the future thus providing gush to the Telematics industry in India.