marketxcel
		April 2014
Market Potential of Vehicle Tracking Management System
Overview

The Vehicle tracking management system market though still in its infancy, is expected to take off now. The VTMS segment of the telematics market in India is estimated to be worth about USD165 million currently and is growing at about 45% CAGR during 2011-2013. Vehicle tracking management systems sales in India are expected to increase with better awareness of new passenger and commercial vehicle sales and penetration into the market. Some of the other key drivers for the market are:-

Potentials

  • India’s infrastructure investment plans of nearly US$ 1 trillion over the coming five years, including planned construction of an additional 15,000 km of highway by 2017 is likely to drive demand growth for tracking and fleet management throughout India
  • Emergence of GPS oriented services from telecom companies further fueling growth in the market
  • Government of India is also playing a crucial part in boosting the market, with its pipeline projects of equipping public transports system with GPS
  • It primarily finds its implementation across various sectors, some of the major sectors include logistics, sales, taxi and fleet management companies
  • GPS services providers cement bond with automobile manufacturers to introduce their products from OEM level
  • India to launch its own version of GPS, one satellite will be launched every six months with the IRNSS expected to be fully operational by 2015
However, the environment and infrastructure in India pose a problem in introducing VTMS in large scale. Like in the transportation sector, fleet operation is composed of small players with a handful of trucks. This poses significant challenge in integrating large scale solutions. There is also a lack of awareness in applying Telematics solutions to realize enterprise value beyond rudimentary track and trace functions...