Majority of Indonesian truck companies are using telematics in their fleets with communication functions sent over 3G/4G, for efficient operation.
Currently, around 96% of truck companies in Indonesia are using telematics in their fleets with communication functions sent over 3G/4G, leveraging real-time information for efficient operation of their fleets, according to a new report by Frost & Sullivan. While the commercial vehicle telematics market in Indonesia is growing at a slow rate due to the impact of the COVID-19 pandemic, multiple vendors are populating this fragmented sector and competing to gain share.
“Indonesian businesses have adopted telematics for various functions with a majority opting for hardware that can communicate and transfer data,” said Krishna Chaithanya, Senior Industry Analyst—Connected Fleet, Mobility at Frost & Sullivan. “Telematics offer accurate data without requiring users to communicate with drivers, and access is available through various devices such as laptops, smartphones, and tablets. This allows companies to remotely manage their fleet and ensure efficient operation while addressing operational challenges such as compliance, safety, and cost-savings.
“Most companies in Indonesia prefer third-party service providers due to ease of solution availability on top of the highly fragmented market with over 30 players. Therefore, the market is ripe for service providers as well as OEMs to leverage growth opportunities in new business models based on industry and consumer needs, geographic expansion into other regions of Indonesia, and strategic partnerships with software companies to build a strong product portfolio.”
Companies are most interested in the telematics features geared toward safe driving analysis and vehicle durability. Other key findings in the report include: