The universal market for telematics is estimated to be in the extensive range of $113 billion – $230 billion, by the year 2022. Out of which, $300 million markets are forecasted to be in India.
Impact of Industry 4.0 on vehicle telematics.
Industry 4.0, has already begun to see the switch to smart industries – which uses a weave of cyber-physical systems, the IoT (Internet of Things), Cognitive Computing and Cloud Computing – to connect the whole of the production chain and to make faster, smarter decisions independently while minimizing expenses.
The automotive industry is highly dependent on efficient functions in its production for profits, has been fast to adopt, to the ways Industry 4.0 in the factories. For example, Daimler AG, the company has been obliged to the digitalization of its industries which has permitted it to have real-time knowledge of stocks and efficiently respond and adjust to the alterations required for every vehicle.
Since every detail of production is connected and digitized, the customer buying experience is improved as the customer has total visibility into the production process. The final part in this stage is literally the delivery of the vehicle. And this is where vehicle telematics come aboard.
“Smart logistics” such as automated cargo, warehousing, and asset tracking and vehicle fleet management, can be completely transformative in raising value across the whole of the supply chain.
In the near future, it is expected that vehicle telematics solutions comprehend much more deeply with Industry 4.0 automation to give a complete end-to-end system – ranging from smart factories to smart logistics.
How big is the opportunity for vehicle telematics in India?
The worldwide market opportunity for telematics is estimated to be in the wide range of US $113 billion – US $230 billion, by the year 2022. The Indian Vehicle Telematics market is projected to be around the US $300 million by the year 2021.
There is two key to shifts to be observed. Firstly, on the applicability of the system, noticing a change from simple, plain track-and-trace solutions to much more improved on-board diagnostics devices such as OBD II-based solutions which have the ability to not only providing location info but also vehicle info. These devices can be used to monitor driving behavior as well as to detect any potential problems with the vehicle. With the rise in talk around advancing smart cities in India, we also need to start talking about Intelligent Transport Systems (ITS) that will completely revolutionize the urban mobility of vehicles.
The Ministry of Road Transport and Highways has taken measures in the right way by introducing the AIS-140 regulation. While the process began in 2014, initially driven by the necessity to bring in safety measures in public transport, the rule took official shape only in May 2017. Since then, many device and auto-parts manufacturers have started working to develop AIS-140 issued devices, and presented them for certification.
Secondly, the policy conciliation front, a significant uptake in the number is expected of telematics devices sold in India once the Central Government’s mandates – that all public transportation vehicles must have a vehicle telematics device installed. The early deadline for the rule to be in effect was April 1, 2018, but that has been postponed.
So, let’s take a look at exactly what is AIS-140.
According to the AIS-140, all commercial vehicles and public transport should have the basic ability to convey real-time location, and other vehicle information. Several emergency buttons across the vehicle. Vehicle owners can do this by installing a GPS device in their vehicles. This device has to be compliant with AIS-140, by ensuring that it can mediate location, time data and velocity to the backend control servers through a GSM/GPRS network.
What’s the roadmap looking like?
On the hardware side, we will continue to develop on newer devices with much more advanced capabilities. For example, those products working with a 4G device that also has video capabilities and a WiFi hotspot could also expand into areas associated with vehicle telematics such as Asset Tracking.
On the software side, there will be a heavy focus on Big Data, dashboards and Analytics (reports) advancement. We are also improving the use of Blockchain technology to evolve a platform to access location and vehicle data.
Once all commercial and public and transports are brought under the AIS-140 regulation, we will have a total interconnected network of transport services. This would be a huge step in the creation of a smart mobility grid, making public transport more efficient, intelligent and convenient.