Market Trends of India Asset Tracking Industry
This section covers the major market trends shaping the India Asset Tracking Market according to our research experts:
Growing Presence of Hardware and Third-Party Service Asset Tracking Vendors in the Country
- Logistics companies are increasingly outsourcing their logistics activities to third-party logistics service providers (3PL). Logistics and supply chain management are critical components of global business.
- The various segments of the third-party logistics market are the logistics functions, such as transportation, warehousing, freight forwarding, and value-added services. Third-party logistics apply economies of scale to deliver the products more quickly, reduce frequent deliveries, and track inventory in warehouses more effectively.
- Companies mostly use third-party logistics providers (3PLs) for core fulfillment services like warehousing, transportation, and shipping. Third-party logistics offer more modern amenities, often known as "value-added services," due to fast-paced and on-demand business needs. For instance, e-commerce companies need to stand out due to consumer demands, tastes, and preferences due to the finer details in product delivery and order fulfillment. Specialized distribution, customized labeling, and final assembly are all examples of value-added services.
- Moreover, barcodes and QR codes are a type of hardware that has witnessed increased usage among the asset tracking systems in India. They improve the users' operational efficiency and foster better customer service, thus providing visibility into business management processes. Since the cost of developing a barcode or a QR code is low, they find applications on products that are non-returnable and have a shorter life cycle. For example, a unit shipment of any food package would bear such a tag.
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Transport and Logistics Segment is Expected to Hold a Major Share
Transportation and logistics are witnessing a significant demand for mobile asset tracking solutions in India. Transportation and logistics players use some of the most advanced custom-built tracking solutions in the current market scenario. Due to the significant demand from the sector, almost all the asset-tracking vendors in the market have custom-built solutions to serve the transportation and logistics sector.
- Moreover, according to the IBEF, the Indian e-commerce market is expected to grow to USD 200 billion by 2026 from USD 38.5 billion as of 2017. The above developments may boost the market's growth in the near future, and the ongoing digital transformation in the country is expected to increase India's total internet user base to 829 million by 2021 from 636.73 million in FY19. Transport and logistics may be a big part of why e-commerce in India is growing, which is expected to help the asset-tracking market.
- Furthermore, asset tracking systems are expected to gain significant demand from the public transportation sector in India. Fleets of buses and trucks commissioned by the government need to be monitored in real-time in order to ensure the good health of public transport and minimize maintenance and operation costs through the predictive maintenance features offered by asset tracking solutions.
- India is witnessing a significant increase in the production of passenger cars after the country saw a major decline in the automotive industry owing to the COVID-19 pandemic and global supply-demand disruption. Last year, the country produced 3.6 million passenger cars, with 2.8 million expected in 2020. This increase in automotive production is expected to drive demand for the asset-tracking market.
