Telematics, an integrated use of mobile communications, vehicle monitoring systems and location technology, has hit the sweet spot of growth in India with the entry of more number of quality players, according to industry experts.
According to them, more and more companies are gradually coming into contact with telematics as they have started believing that telematics is not just about monitoring, but it is all about achieving more efficiency and transparency in business processes.
“Now the telematics are made available at reasonable price backed by local hardware manufacturing capabilities, we believe that we have reached the sweet spot to push adoption of these solutions across segments,” said Sanjay Nigam, CEO and President, TVS Automobile Solutions, at a panel discussion organised here on Tuesday.
Anush Gopalan, Chief Executive Officer of Hetrogenous Communications Technologies, felt that a proper eco-system needed to be developed to accelerate adoption of telematics.
“A proper eco-system involving all stakeholders such as telecom operators, auto firms, hardware vendors and technology companies will augur well for industry,” he added.
He also said that “In the last two years, a lot of consolidation has happened in the Indian telematics industry, which has seen more quality players coming into the market. These developments will definitely change the face of the industry in the coming months.”
According to estimates, the market size for telematics is projected at $30 billion globally over the next 3-4 years. In India, however, it is still in nascent stage, and is estimated to reach $150 million over the next few years.
With a wide range of applications, telematics find acceptance beyond automobile sector. Bangalore-based Red Sun Telematics has been working on telematics-based auto insurance solutions for the public and private insurers.
“Our solutions, which are awaiting patents, will help insurance companies save a lot of money in motor insurance business,” said Ravi Kumar Neeladri, Chief Visionary Officer of the company.
Industry experts pointed out that regulatory interventions would also be critical, and favourable laws would accelerate the adoption of telematics.
