Research firm Netscribes has released its Global Telematics Market Report, which indicates that the telematics market will have a compound annual growth rate of 28.5 percent from 2017 to 2022, reaching $233.24 billion in revenue worldwide. Aftermarket Business World spoke to Netscribes analysts Piu Chatterjee, Assistant Manager - ICT Research, Rahul Sengupta, Manager - ICT Research, and Sagnik Dasgupta, Manager - Product Development, about the report.
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What are some the challenges you see around consumer education and technical issues that might impede the use of telematics?
Piu Chatterjee: It depends on the region. If you have to install a separate device in the car, that can be costly. People are reluctant to install or embed another item and then paying for it. There are also countries where many people do not have car insurance, so the concept of usage-based insurance is not appealing, since many owners don’t have insurance.
Rahul Sengupta: As we progress, high-speed network connectivity would be required, so that is something that governments and regional players would need to work on so that connectivity is available. There are some companies developing applications that can actually check for network availability.
Chatterjee: We should add that adoption of telematics is less in some regions like South America and Asia. Consumers are being educated now, so the growth rate is very high, but the availability of the infrastructure is less in those places.
How important are remote troubleshooting and maintenance applications in this market?
Chatterjee: Maintenance and monitoring the health of the vehicle has great significance in terms of fleet management. It’s very important for commercial vehicles, and even passengers are very much concerned about the health of the car.
I think the passenger vehicle owners are using these kinds of telematics solutions, either embedded or using their smartphones, to track the health of their car, fuel consumption, and other things. Those are the types of things that will take telematics even farther.
What trends do you think will be important in the future?
Sagnik Dasgupta – Mobility as a service will also be the future of the telematics industry. The ownership of the car will change. People will not buy cars, but can use services without owning a car. We see utilization of passenger cars at less than 20 percent. Most of the time they are inactive. We might expect in the future something like an autonomous fleet management system that people can use. Fewer vehicles would be required.
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