telematics industry : challenges &...
TRANSCRIPT
2fashioning POSSIBILITIES
Arya Omnitalk (AO) is the market leader in onboard GPS/Telematics systems in India
* Internal estimates
Leader in on-board GPS market in India with >20%
share*
End-to-end solution including hardware, integration and
support
Proven solutions for several industries – Oil & Gas, Staff Transportation and many
others
Bespoke Analytics and System Integration
capabilities
Featured in Gartner’s list of global telematics players
Clear profitable track-record
3fashioning POSSIBILITIES
Arya Omnitalk Solutions Portfolio
Employee & Student
Transportation
Trucking &
Logistics
Oil & ChemicalTransportation
Coal Mine & Cold Chain
Solution
Taxi Dispatch
Public Safety Solution
Field Force Management
Passenger Information
System
Video Surveillance
Vehicle Classification & Tolling Solution
End to EndSolutions fromArya Omnitalk
4fashioning POSSIBILITIES
Arya Omnitalk solution is a proven platform based on standards & meets multiple compliance requirements
▪ Hardware reliability: Average downtime lower than 2%
▪ Scalability: Control on embedded core for rapid firmware customization & third party interface
compliance
▪ Credible 3rd Party approvals: IP 67,EMI & EMC, Wireless safety for automotive use, MIL 810 for shock,
dust & vibration
▪ 3 tier web platform architecture, global IT security compliant: KPMG IT security audit 2017
▪ Proven interface with multiple platforms & technologies: SAP , Oracle , RFID , CCTV surveillance,
Biometrics, Weighbridge ,Exit boom barriers
▪ Unique analytical reports: Driver behavior ,accident reconstruction, routing & route optimization,
customized dashboards; real time Service uptime statistics, consolidated reports
▪ Server load optimization with BCP & DR: Assured plan for Business Continuity and Disaster Recovery
▪ Wide range of Industry vertical solutions
5fashioning POSSIBILITIES
The Indian Telematics market ~250-300K units, growing at ~25% per annum and poised to accelerate
60,000Others
Employee Transportation
Logistics
Oil & Gas 45,000
45,000
110,000
Low
Medium
25% +
200 % +
• Route optimization (cost, occupancy, security), automating billing based , MIS
• Monitoring vehicle & driver performance, reduce fuel pilferage, route deviations etc.
• Logistics modernization & GST• Rental option to step-up growth
• Public Transportation, Passenger Information Systems, Public Safety, Cold Chain, School Bus.
Market size of ~250k units Growth drivers
6fashioning POSSIBILITIES
Significant upside given low penetration even in the established market segments
• 3 m parc, with ~300 k new trucks/year
• Penetration of ~5% (~30% in the US)
• Modern logistics & Government mandate driving growth
4,035,968
2021E
Truck population
468,584
2016
3,038,142
145,000Telematics installed
CAGR: 5.8%
CAGR: 25.6%
Source: SIAM, Internal estimates
Established segments: Trucks/ Tankers Emerging/ nascent segments
• Telematics solutions
– Cold Storage; Warehouse; Mining, Hotel, Hospitals, Garbage collectors
– PIS for Public Transport systems
– Asset tracking; e.g. Rental equipment, high value shipments, re-usable assets such as pallets , Earth moving equipment
• Small fleets
– ~1.8 m trucks (70% of total) belong to small fleet owners which pay ~10% commission to agents for getting business
– Market-place enabled by Arya Omnitalk Telematics can be a disruptive value creating play
7fashioning POSSIBILITIES
Telematics Industry : Other Upsides
• Government mandate from 2018 for all commercial Vehicles to be Telematics enabled
• Vehicle modernization & “value offered “ to professional fleet owners may drive CAN bus as a de facto standard for Automotive OEMs for real time vehicle / engine diagnostics plus other key parameters.
• Vehicle Manufacturers getting interested in the value proposition offered by Telematics for both differentiation and in driving logistics efficiency for customers. Though traction is still low , it is bound to increase.
• With expanding 3G/4G coverage, integrating video with applications may open new markets for Telematics.
• GST likely to disaggregate logistics (while encouraging organised fleet operators),number of warehouses may reduce, resulting in trips becoming longer , in the process driving logistics companies to adopt Telematics faster , thus driving higher penetration.
• Insurance Telematics is likely to make a beginning in India soon , on the back of increasing deregulation and increasing insurance premiums.
• Smart City projects bringing a game changing role for Telematics in several verticals, offering opportunities of a magnitude never witnessed before by the Telematics Industry
8fashioning POSSIBILITIES
Telematics Industry : Roadblocks
• Industry is still largely fragmented with intense competition due to lack of entry barriers, with no standardisation of specifications or deliverables.
• Availability of ‘throw-away’ price devices, tempting small players to enter the Telematics industry without a proper assessment of the service challenges & costs of operation , leading to “fly by night’ business operations, shaking up customer confidence.
• Steeply declining prices ,shrinking margins and increasing costs of operation (since the industry is manpower intensive) – for many players it’s like having to run faster while discovering you are only running on a treadmill.
• Growing wish list of functionality expected by customers, without readiness to pay for such customization is stretching sales / payment cycles.
• Opex based business model is fast becoming a market norm, requiring higher investments in capital with all its attendant risks and costs.
• Insurance Telematics may need standardization of specifications and conformance to a threshold standard (a regulatory body ?) .
9fashioning POSSIBILITIES
Telematics for Smart Cities
Intelligent Transportation Solution
Solution for Solid Waste Management
Dispatch solution for Police and Hospitals
Surveillance
10fashioning POSSIBILITIES
Intelligent Transportation Solution
Bus mount equipment▪ In Bus Computer including GPS▪ Driver Console▪ In bus LED Display with Announcement system▪ CCTV Cameras▪ E Ticketing machines
Bus stop equipment▪ LED display board for PIS and advertisement▪ Cameras
Control Room Applications▪ Inventory and scheduling solution▪ Tracking and PIS solution▪ Video management ▪ Route planning and Driving pattern monitoring▪ Advertising management module
11fashioning POSSIBILITIES
Broadban
d
Broadba
nd
Broadba
nd
GPRS/ 3G
/ SMS
Broadba
nd
Intelligent Transportation Solution
12fashioning POSSIBILITIES
Solid Waste Management
Vehicle mount equipment▪ GPS device▪ RFID tag▪ Camera for image capture
Field equipment▪ Long range RFID readers▪ Attendance system▪ Metal tags for bins▪ Weigh bridge solution▪ Camera
Control Room Applications▪ Bin management utility▪ Tracking and scheduling utility▪ Exception management utility
13fashioning POSSIBILITIES
Public Safety Dispatch Solution
Vehicle mount equipment▪ GPS device▪ Tablet / Smart phone
Control Room equipment▪ EPABX / Telephony solution ▪ Call taking utilities▪ Decision making utility ▪ Map based route optimizing tool▪ Vehicle Dispatch utilities▪ CRM utility
14fashioning POSSIBILITIES
Surveillance Field Mount equipment▪ CCTV Camera▪ Connectivity solution
Control Room equipment▪ Video management tool▪ Video analytics utility▪ Storage and retrieval utilities
15fashioning POSSIBILITIES
Telematics Industry :The way forward
• Innovation in technology and business models shall be key to build a winning
position. Differentiation in offerings will become increasingly important to succeed.
• Reliability of products and solution uptime will be essential to succeed. Make in India
likely to become the best option.
• Scalability of the solution offered shall be an important success requirement.
• Data analytics likely to become a “must have” feature.
• Gap analysis on RFP for pragmatic operational and technical requirements while
bidding shall become a key to sustainability.
• This industry is not for the weak hearted – will become increasingly working capital
intensive ,requiring large outlays of capital for Projects, besides System integration expertise.
• Government /PSUs need to keep ‘realistic’ prequalification criteria to ensure
widespread participation and ‘optimal’ cost of purchase