The Rise of Telematics in India

The rate of technological changes has started to move very rapidly in recent years. The modern systems are used to connect vehicle technology for creating integrated end-to-end business systems that allow them everyday processes that are entirely digitized. The Indian telematics is full of expectations about growth; the passenger vehicle sector and fleet management markets are key drivers of the telematics segment. The technology enables safety, security, remote diagnostics, and navigation of a vehicle’s performance.

What is Telematics?

Telematics is a mixture of telecommunications and informatics that makes computerized telecommunications. Simple words are the convergence of wireless communications, computer, location technology, and in-vehicle electronics.  With mobile technology, the Internet, GPS receivers, and smartphones, a business of vehicle telematics is presently witnessing a watershed moment of sorts. An in-car electronic is no longer but just a trend. It is evolving fast.

How does telematics work?

The data will be collected by telematics devices, such as GPS position and the vehicle’s speed, are measured by built-in accelerometer, were sent in packaged format to data center, later the data gets decoded. More data can be collected through the telematics device and the other connected hardware or the sensors like speed, a distance of the trip, idling, position, fuel consumption, and other engine data.

How is Telematics useful for the industry?

Telematics will enable original equipment manufacturers to aggregate diverse data from geographical location and usage patterns to maintenance needs and information based on performance. The other benefits of telematics are mentioned below – 


  • Connects, safer, and it is a vehicle reliable for the vehicle owners. 
  • It protects automatic crash response and helps during emergencies and crises.
  • Secures in the remoting door lock and unlock
  • Has a stolen vehicle  tracking
  • Navigation feature, i.e., provides maps, assists during each turn. 
  • It gives a complete report on vehicle’s health, i.e., It diagnoses vehicle’s performance. 
  • It helps connect the internet and provides some social networking applications, and RSS feeds such as weather forecasts, news bulletins, and stock updates in vehicles. 


Note that telematics is not new for automobiles. It costs genesis to General Motors that commercialized the feature as early as 1996. The fractured investments and lack of consumer demand have interrupted telematics from smartphones and the need for constant and Instant connectivity of requirements. The key drivers for telematics segments are passenger vehicles and the fleet management markets. The technology gives security, safety, remote diagnostics, and navigation to vehicle performance.

History of telematics for vehicle

Informatics and telecommunications were merged in the 1960s while the US Department of Defense developed GPS to track asset position and improve communication on the battlefield. Telematics has gained more traction rapidly and made it popular among the business markets and production sector. 

Let’s get more brief into this. 

1960’s –  

GPS has been introduced and developed by US Defence Department to check their assets and position of their assets and improve communication on the battlefield. The Advanced Research Projects Agency Network (ARPANET) was the first network to use Internet Protocol Suite. The M2M was conceptualized by a Greek Inventor and scientist named Theodore G. Paraskevakos while working on the Caller ID Technology.


Telematics was first created in the French prime minister’s report on computer technology’s fast development.


A major EEC research program began into the use of vehicle telematics for improving road safety and reducing the impact on the environment. 


In 1993 the  Full civilian access to GPS was given by the government to reach the consumer market. 

In the mid-1990s, telematic was invented in South Africa to tackle a massive car hijacking problem by allowing remote engine disablement. In the late 1990s, the first vehicle tracking systems emerged in-vehicle hardware connected to the PC’s software with some data stored on the local server. The historical data has been retrieved from the server, and customers must have to pay for each of the real-time vehicle position updates. 

Early 2000’s

The enterprise-wide use of telematics technologies for Web-based fleet management system’s service with real-time information updates remote network. The slow rates are limited to one or two instances per hour. 

Mid 2000’s

The consumer market had a demand for GPS-based vehicle navigation systems. 

Late 2000’s

The cloud’s growth and M2M technologies have set up a super-fast and accurate tracking of GPS data and other sensor parameters accessible for real-time reporting. 

Recent days

Latest inventions in the Internet of things, ie. IoT and M2M-based telematics data management capabilities are for the enterprise and consumer market.

The Telematics in India

The telematic Industry is one of India’s fastest-growing segments. It has been further thrown by the growth of accidents, spiraling fuel prices, car thefts, navigation, and cases of fuel wastage. It helps in tracking, route calculation, vehicle tracking, and fuel theft checks. This is the combination of the government’s involvement, and the passenger and the security will be giving more boost for the industry. The government initiates 12,000 crores, i.e., 2.4 dollars billion investment in upgrading the police force, including the consolidation of the key cities’ security grids. In today’s world, especially in India, telematics will provide a real-time location, and then it relies upon 2G GSM to the central computer. The vehicle’s owner or the authorities have been relayed on location in real-time. 

Though things are fast-changing, the Indian telematics market is on a high growth path. These credits must go to mobile communication industries that have made the possibilities in detecting and determining any variable in real-time. The evolution of telematics has been witnessed in developed and developing countries and was in 4 different types of services such as navigation, safety measures, information, remote diagnostics, and navigation.

Telematics Market Potential

The technology has enabled us to connect cars that are on-trend. These types of cars give myriad smart profits. Apart from these safety measures and securities, one can have a rich user experience and the whole M2M (Machine to Machine) product offerings.  The M2M devices are cheaper, sensitive, small, and accurate. 

The telematics market is expected to register a CAGR of 20.7% from the period 2021 to 2026. By starting the capabilities of telecommunications and information technology, telematics is now used for various transportation and logistics uses. In recent days, the application’s focus has been shifted from the vehicle’s location, and the routing for the solutions focused on the drivers and their safety. While monitoring the driver’s behavior, the car’s health, and interval maintenance, telematics solutions will help minimize accidents, downtime, and speeding tickets.

Future about the telematics in India

As transportation and logistics companies are slowly emerging in India, telematics is not about monitoring, tracking vehicles, or providing other offers. It also includes achieving transparency during the business processes efficiently. 

Our Indian Government has announced to make the nation free from toll plaza by the year 2023. The money for toll will be deducted through a GPS tracking system that has been installed in the vehicle. The government has decided to maintain smoothness in all the cars on toll plazas. The bikes, cars, and trucks are congested in the toll plazas, which becomes irritations for computers. Thus, to avoid such situations, the government might make GPS trackers compulsory for all vehicles. 

This kind of decision is the most considerable boost for the industry of telematics in India. With an increase of GPS, mobile technology, and other technological stuff, fleet management has grown by raising and bounding in recent years. The emergence of smartphones has boosted industries of telematic and one of India’s fastest-growing sectors. During the year 2018, India’s resolution announced that all public transportation has six or more than six seats.

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.

Team VAMOSYS have been into GPS business since 2014 and have good experience on GPS Vehicle Tracking, Fuel Monitoring, Fleet Management and GPS Tracker Devices. Writes article on various topics to share the industry experiences and knowledge.

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