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GPS market poised for
rapid growth
June 27, 2007
MUMBAI, JUN 26 : The Global Positioning System (GPS) market
in India is in a nascent stage but the industry believes the use of the system could develop rapidly owing to increased use
of the technology in fleet management and transport navigation in the country.
Major logistics companies in India
like VRL Logistics, Gati and AFL Logistics, have firmed up plans to introduce the system for their vehicle tracking very soon.
Others have already started using the system on an experimental basis. In India, GPS services are provided by the major GSM
players.
According to a Frost & Sullivan report, sales of vehicle tracking systems in India are expected to
increase with growing awareness and exponential growth in new commercial vehicle sales. The vehicle-tracking segment of the
Indian telematics market is expected to reach around Rs140 crore ($35 million) between 2008 and 2009.
“The
GPS market has just begun to penetrate in India, and is slowly catching up with the logistics market. The vehicle tracking
system is generally used by logistics companies which transport goods mostly by trucks,” says an analyst from Frost
& Sullivan. Worlwide prices of GPS systems have been declining.
According to a senior official of VRL Logistics,
“We are planning to introduce GPS system in our supply chain very soon. However, we have already introduced the system
in some of our trucks on a trial basis.”
With the manufacturing sector in India enjoying double digit growth
rates, the Indian logistics industry is at an inflection point, and is expected to reach a market size of over $125 billion
in the year 2010.
According to a Mumbai-based analyst, strong foreign direct investment inflows (FDI) in automotive,
capital goods, electronics, retail and telecom sectors have increased the market opportunities for the logistics industry.
However, in India, the logistics segment needs more technological advancement than at present to compete with major global
logistics players.
GPS systems are available at a price of Rs 15,000-20,000. Now, major GSM operators like Bharti
Airtel are providing GPS systems to the logistics companies through their GPRS services for vehicle tracking. Satguide, Acom
Communications Corp and D-vitec Ltd are some of the companies who are in the manufacturing of GPS space internationally.
With increased geographical distribution of incomes in India, the logistics consumer markets are extending beyond
the five metros, say experts.
Source: financialexpress.com
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