The telematics market in India is expected to grow at around 29% (CAGR) over the course of years, thanks to Indian Commercial Vehicles (CV) industry that is extensively propelling the demand for telematics in county.

Although at nascent stage, the Indian Commercial vehicle (CV) telematics market is projected to grow almost six-fold as CV telematics market installed base is estimated to cross 1.30 million units by 2021 from 234,000 units in 2014.

The government of India’s initiation to improve infrastructure for safety and intelligent transportation systems compounded with people’s expectation for safety transportation services are expected to fuel the market of CV telematics.

Moreover, the spiraling fuel prices, theft of vehicles, fuel pilferage, increasing number of road accidents, etc. are also catapulting the CV telematics market in the country.

The lucrative opportunity unfolded by the CV telematics market in India has benefitted after-market players a lot. They are likely to occupy almost 85% market with entry level solutions. Of the total market share, three key players—Trimble, Arya Omnitalk and CMC Technology, control almost 60%.

To take the benefit of the soaring market for CV telematics, Original Equipment Manufacturers (OEMs) are also concentrating on production lineup with telematics fitment. Tata’s SKOOLMAN and FleetMan, Eicher’s Drive Telematics and Mahindra & Mahindra’s Digisense are some of its examples. Few OEMs, on the other hand, are partnering with after-market telematics solution providers, too. Out of total installed base units by 2021, around 15% would be OEMs fitted.

Besides, the hardware component (on board and off board) of CV telematics market in India is growing at fast pace whereas the services market (content providers and content aggregators) is increasing more rapidly. Hardware market accounts for half of the CV telematics market in the country.

Heavy Commercial Vehicles (HCV) and taxi companies account for major proportion of CV telematics market in India at present. But the decreasing price of telematics due to intense competition and rising need of telematics solution for fleet management for individual vehicle operator—Medium and Light Commercial vehicle—is likely to trigger growth of CV telematics market further in coming years.


Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at subarna.poudel@frost.com


Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at sapan.agarwal@frost.com | +603 6204 5830