Telematics companies must not only figure out a way to successfully bring the product to this highly fragmented market, but will also have to deal with the job of convincing customers to buy them.
Market participants are likely to find this a particularly daunting scenario because end users often lack the technical knowledge and product awareness required to operate and appreciate this technology. However, participants are increasing their visibility and making inroads into this market by astutely devising marketing strategies focused on the customer's business.
New analysis from Frost & Sullivan (automotive.frost.com), Indian Market for Telematics in Commercial Vehicles, finds that market earned revenues of $5.5 million in 2008 and estimates this to reach $10.7 million in 2013.
If you are interested in a virtual brochure, which provides a brief synopsis of the research and a table of contents, then send an email to Ravinder Kaur/ Amrita Nandi, Corporate Communications, at ravinder.kaur[.]frost.com/ amritan[.]frost.com with your full name, company name, title, telephone number, company email address, company website, city, state and country. Upon receipt of the above information, a brochure will be sent to you by email.
Market participants are also improving sales and penetration by providing a strong value proposition.
"Given that every business has its set of unique needs, telematics companies are looking to cater to a particular element of business requirement. By meeting customers to gauge their needs rather than just offering an original equipment (OE) fitment, they are able to model the product to meet the client's approval" says Frost & Sullivan Research Analyst.
Transparency is crucial to survive in this market, since only by providing customized service can manufacturers sustain and grow their business.
Businesses are increasingly relying on just in time (JIT) delivery of goods, catapulting logistics to the top of the priority list. Moreover, large hiring authorities are making it mandatory for their fleets to be fitted with telematics, giving a further boost to the market.
Second-generation entrepreneurs are more likely to be attracted to this technology because they have greater awareness of its benefits. However, several users are expected to offer stiff resistance to the incorporation of telematics in vehicles.
Drivers, for instance, will be unhappy at being monitored all the time since they often indulge in pilferage of goods and fuel, take unofficial routes, and follow other such unprofessional practices to supplement their meager incomes. Many companies have started implement driver counseling to help counter this problem and increase their acceptance of telematics.
"With only one percent of the addressable market utilizing the technology, manufacturers have a large potential market to target," notes the Analyst.
Considering almost 85.0 percent of goods traffic and 75.0 percent of passenger traffic are directed through roads, medium and heavy vehicles are lucrative end-user segments for the telematics industry. Further, as telematics applications can be both retrofitted as well as factory fitted, it throws open the markets of both new vehicles and vehicles in operation.
Indian Market for Telematics in Commercial Vehicles is part of the Automotive & Transportation Growth Partnership Service program, which also includes research in the following markets: Commercial Vehicles Market in India, Strategic Assessment of the Automotive Ferrous Castings Market in India, and Strategic Assessment of the Indian Automotive Market Outlook All research services included in subscriptions provide detailed market opportunities and industry trends that have been evaluated following extensive interviews with market participants.
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation, and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.
Indian Market for Telematics in Commercial Vehicles / P283
Corporate Communications – Middle East
P: +91 22 4001 3437
F: +91 22 2832 4713