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India Fleet Management Software Market - Growth, Trends, COVID-19 Impact, Forecasts (2021 - 2026)

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  • 120 Pages
  • July 2021
  • Region: India
  • Mordor Intelligence
  • ID: 5394076

The Indian Fleet Management Software Market is expected to reach a CAGR of 15.2% during the forecast period (2021 - 2026). The global spread of COVID-19 has also negatively impacted the Indian Fleet Management Market but the impact is expected to be for a limited period. Demand from customers is seeing a downturn. Moreover, customers with vehicle assets are considering sale and leaseback options. As new leasing activities are slowly resuming, there will be extended lead times, and leasing companies are also offering contract extensions to retain customers. Profitability is expected to reduce, and this, in turn, will have an impact on lease prices in the future.

  • Fleet management software includes a range of functions, such as vehicle financing, vehicle maintenance, tracking and diagnostics, driver management, speed management, fuel management, and health and safety management to name a few. The market for such solutions in India is observed to be still at a nascent stage, thereby portraying ample opportunities for the vendors.
  • Regulatory norms in India have come up with the installation of vehicle trackers on public transport from 1st January 2019. The Government’s progressive push for better connectivity and vehicle tracking through such mandates is driving the use of telematics devices and solutions in the market studied. Further, the Insurance Regulatory and Development Authority of India (IRDAI) endorsed telematics as a saving scheme for drivers along with bringing safety and awareness. IRDA estimates that based on driving behaviors, a car with telematics can save up to 30% on insurance premiums.
  • The region is witnessing increased funding towards fleet management due to increasing awareness and offered benefits. For instance, in February 2020, FleetX raised USD 2.8 million in Series A round, led by a Singapore-based venture capital firm, named Beenext along with India Quotient. The company planned to invest this funding towards product and technology enhancement, hiring talent and expansion of operations to other Indian cities. These funding trends are indicative of market support in flourishing homegrown business for the market studied.
  • Looking at other stake holders in the market, that is, fleet leasing companies, the trend suggests that growth of renewable energy resource is likely to further push the market in adoption of fleet management.

Key Market Trends

Cloud Deployment is expected to Witness Significant Growth

  • The vendors in the market are opting for cloud offerings due to its offered benefits such as faster time to market, High efficiency, more number of features and lower cost as compared to On-premise. For instance, Zoho Corporation is banking on technologies such as the cloud, Internet of Things (IoT), and artificial intelligence (AI) to leverage IRDA’s estimates. For instance, WebNMS enhanced its fleet management solutions with AI and machine learning and claimed that a midsized fleet with 25-50 vehicles can benefit from 10-15% fuel savings by using its offerings.
  • The company, in addition, has collaborated with a bike manufacturer in India to monitor and manage their test vehicles. Location, condition, and among others can be tracked, reported, and analyzed to minimize operational costs and improve product quality.
  • Startups additionally, form an emerging, yet key vendor for the Indian fleet management software market. The use of advanced technologies, such as cloud-based GPS tracking systems, radio-based frequency identifying software will offer a competitive advantage while competing with global players that are already present.
  • For instance, LocoNav, a startup offering fleet solutions earlier, recently evolved into an integrated vehicle management platform. The company offers Fleet Management Solutions, Vehicle Tracking System, FASTag and AIS 140 Certified GPS Trackers services. Via intelligent analytics and IoT as core of their offerings, the startup is able to achieve lower running costs of vehicles, greater security and repeated sales.

Logistics is Expected to Witness Significant Growth

  • The current penetration of telematics (which serves the purpose of fleet management) in India is expected to take some time before becoming mainstream as nearly 80% of the Indian market comprises small truck owners, who don’t understand the scope of vehicle telematics, as per iTriangle. However, due to the country’s digital transformation initiatives, many regional logistics players are trying to shift to fleet management solutions.
  • The rising concern on fuel efficiency and fuel theft activity in the country is supporting the emergence of global players to offer sophisticated solutions in the market.
  • For instance, in February 2020, Aeris Communications partnered with Omnicomm to launch a fuel monitoring solution in India. The collaboration is expected to add fuel monitoring features from Omnicomm in the former’s portfolio of packaged IoT solutions. With the target audience being logistics & transportation, construction equipment, locomotives, the company will address fuel pilferage in India.
  • While at the same time of the month, Shell Fleet Solutions with an aim on lowering the total cost of ownership (TCO) of the fleet owners and increasing efficiency entered India with its portfolio of products and services, namely Shell Fuels, Shell Fleet Prepaid program and Shell Telematics. These three main segments of the Fleet Solution are said to provide better control over operations and increased protection against fraud.
  • Logistic companies, on the other hand are observed to have entered the market by offering fleet management solutions. Companies like Kale Logistics offer Helios Fleet, a comprehensive fleet maintenance software catering to fleet owners and operators. The software is capable of managing activities ranging from trip sheet, driver settlement, fuel tracking, vehicle turn-around time, to billing and invoicing.

Competitive Landscape

The Indian fleet management market is served by many players including small local vendors, a number of pan-Indian players, and a few international telematics giants. The competitiveness in the market is driven majorly by the increasing level of technology integration in the solutions offered. Several players in the market are adopting advanced technologies such as IoT, Asset Tracking, and RFID among others to enhance the performance of their fleets. As domestic as well as international players integrate these technologies in their offerings, the competition is expected to grow during the forecast period.

  • August 2020 - Mahindra Truck and Bus (MTB), a part of the USD 19.4 billion Mahindra Group, announced the launch of its new connected vehicle technology, called Mahindra iMAXX. The new Telematics platform is fitted into Mahindra’s BS6 emission norms compliant CV range, which includes the BLAZO X range of HCVs, FURIO range of ICVs & LCVs, and CRUZIO range of buses. This new technology promises to further strengthen the value proposition of the MTB range for the company’s discerning customers.
  • July 2020 - Tata Motors announced the launch of Fleet Edge, a connected vehicle fleet management solution with informed decision making. The Tata Motors Fleet Edge offers real-time insights for tracking and tracing its commercial vehicles, their health, driving behavior, fuel efficiency, and fuel-loss alert, among others. The solution is available with the entire medium and heavy commercial vehicles (M&HCV) range, BS-VI range of Tata Motors trucks and buses, a select range of intermediate and light commercial vehicles (I&LCVs) as well as small commercial vehicle (SCV) models.

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Table of Contents

1.1 Market Definition and Scope of the Study
1.2 Study Assumptions
4.1 India Fleet Management Software Market Overview
4.2 India Fleet Management Stakeholders Analysis (Fleet management solutionproviders, fleet leasing companies, fleet management companies, etc.)
4.3 Industry Attractiveness -Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Intensity of Competitive Rivalry
4.3.5 Threat of Substitutes
4.4 Market Drivers
4.4.1 Lowering Total Cost of Ownership Among Fleet Operators
4.4.2 Growing Demand for Mobility and Digital Transformation Trends
4.5 Market Challenges
4.5.1 Concerns Regarding Traditional Fleet Management Companies Reluctant to Adopt Technology
4.6 Impact of COVID-19 on the India Fleet Management Market
5.1 Key Fleet Statistics
5.1.1 Commercial Vehicle Production and Sales in India (2014-2019)
5.1.2 Fleet Industry Overview -Analysis covering trends across Fleet Operators (< 10, 11-50, 51-100, and >100)
5.2 Key Market Insights and Opportunities
5.2.1 Software Provider/Vendor Innovations and Partnerships -Global vs Local
5.2.2 Role of Vehicle Manufacturers(OEMs) in the Fleet Management Ecosystem in India
5.2.3 Analysis on Online Aggregators Impacting Fleet Management Market in India
6.1 By Deployment
6.1.1 On-Premise
6.1.2 Cloud
6.2 By End User
6.2.1 Logistics
6.2.2 Manufacturing
6.2.3 Other End Users (Corporate, Education, etc.)
7.1 Company Profiles
7.1.1 Trimble Inc. (Trimble Mobility Solutions India)
7.1.2 TATA Consultancy Services Limited
7.1.3 Mahindra Group (Mahindra Telematics)
7.1.4 Zoho Corporation (WebNMS)
7.1.5 fleetx Technologies Private Limited
7.1.6 Efkon India Private Limited
7.1.7 Kale Logistics Solutions Pvt Ltd
7.1.8 iTriangle Infotech Pvt Ltd
7.1.9 BT TechLabs (LocoNav)
7.1.10 Uffizio India Software Consultants Pvt Ltd
7.1.11 Orange GPS Solutions Pvt Ltd (iTrack)

Companies Mentioned

A selection of companies mentioned in this report includes:

  • Trimble Inc. (Trimble Mobility Solutions India)
  • TATA Consultancy Services Limited
  • Mahindra Group (Mahindra Telematics)
  • Zoho Corporation (WebNMS)
  • fleetx Technologies Private Limited
  • Efkon India Private Limited
  • Kale Logistics Solutions Pvt Ltd
  • iTriangle Infotech Pvt Ltd
  • BT TechLabs (LocoNav)
  • Uffizio India Software Consultants Pvt Ltd
  • Orange GPS Solutions Pvt Ltd (iTrack)