Southeast Asia Telematics Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| Forecast Data Period | 2024 - 2029 |
| Historical Data Period | 2019 - 2022 |
| CAGR | 11.53 % |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Southeast Asia Telematics Market Analysis
The market volume of telematics systems in Southeast Asia was 1.89 million units in the previous years, and it is expected to reach 3.57 million units, registering a CAGR of 11.53% during the forecast period. Telematics refers to the set of technologies used to monitor a broad range of information concerning an individual vehicle or fleet. Telematics systems can gather information, including driver behavior, tracking location, engine diagnostics, and vehicle activity. Along with these, it can also help fleet operators to visualize the data generated on the software platform to manage their resources.
- As modern telematics systems help drivers by heightening their awareness of their driving behaviors through tools such as driver safety scorecards, tech assistance for driver training programs and accidents, and optimal driving condition reports, the increasingly stringent government regulations pertaining to driver and vehicle safety are creating a favorable outlook for the growth of the market studied.
- The expansion of high-speed telecommunication networks in the Southeast Asian region is anticipated to work in favor of the market studied, as seamless internet connectivity is among the key infrastructural requirement for the telematics systems to work properly. For instance, according to Ericsson, growing 4G mobile broadband uptake is emerging to be among the key factor in digital acceleration, including Oceania, service providers in the region were expected to add about 90 million 4G subscriptions by last year, with strong growth projected to continue this year.
- Considering the growth potential the Southeast Asian region holds, several vendors offering telematics solutions are expanding their presence in this region. For instance, in November 2022, OPES, a digital-only insurance firm, partnered with IMS to offer app-based telematics insurance solutions in Vietnam. According to the company, this insurance offering will be the first wholly digital, telematics-based auto insurance solution in Vietnam.
- Hence, the expansion of the commercial vehicle industry, along with the industry's shift towards connected fleets and optimized operations, is anticipated to remain among the primary factors driving the market's growth in the region. The growing entry of global players is expected to drive competitiveness among the players and is anticipated to influence the technological landscape of the market studied during the forecast period.
- However, the higher cost of telematics systems, lack of standardization of products, and increasing cybersecurity threats are among the major factors restraining the growth of the market studied. A lower awareness among individual commercial vehicles and small fleet operators also challenges the development of the market studied.
- Macroeconomic factors play a crucial role in the growth of the Southeast Asian automotive sector, which, in turn, also influences the dynamics of the regional telematics industry. Factors such as the growing GDP or the purchasing capability of the consumers and supportive government regulations lead to higher sales.
Southeast Asia Telematics Market Trends
LCVs Expected to Register Significant Growth
- Light commercial trucks are among the most preferred vehicles for the transportation and distribution of goods over short distances and within preferred geographical areas. Qualifying light commercial vehicles include vans, pickup trucks, mini-trucks, and three-wheelers.
- Being an essential part of providing logistics solutions to various industries, LCVs offer several features, including low operational costs. Due to the presence of embedded fuel-efficient engines, they operate at a low cost, are smaller and more agile than trucks, and can move merchandise quickly, particularly in cities. Also, these vehicles are suitable for multiple trips within a day.
- As the Southeast Asian region has been witnessing rapid industrialization, moving away from agriculture and toward the manufacturing of electrical machinery and electronic components. This is resulting in higher prices and exports, and the demand for light commercial trucks is anticipated to grow in the near and long term. For instance, according to Statistics Malaysia, in 2022, the manufacturing industry generated about 23.4% of the country's GDP.
- According to the Malaysian Automotive Association (MAA), the commercial vehicle industry is expected to witness stable growth in the country, with sales volume predicted to be 67.7 thousand units during the forecast period, compared to 63.0 thousand units last year.
- The region is witnessing stable growth in the e-commerce industry as LCVs are widely used in distribution centers and warehouses to transport goods quickly from one place to another, such trends are anticipated to influence the market's growth. For instance, according to International Trade Administration (ITA), as of February 2022, the Central Bank of Indonesia recorded a growth of 12% in transaction value, reaching over USD 2 billion. The country witnessed significant growth in e-commerce users after the pandemic. This evolution of the Southeast Asian e-commerce and retail environment is driving large logistics developers to expand their presence in developing markets, driving the demand for LCVs in the region.
Indonesia to Hold Significant Share
- Indonesia is the largest and among the most populous countries in Southeast Asia. The country is developing fast in infrastructure and industrial sector development and holds strong growth potential for the market studied.
- The demand for commercial vehicles, especially for medium and heavy trucks, is growing significantly in the country as industries such as mining, food and beverage, petroleum, manufacturing, etc., are witnessing stable growth. For instance, mining is among the major industries in Indonesia as the industry contributes more than 10% to the country's GDP, with the Indonesian government planning to increase the sector's economic contribution to 12% of the country's GDP by 2024.
- Due to the growth of the major end-user industries, commercial vehicle sales have been witnessing strong growth in the country. Although the pandemic has restrained the growth of commercial vehicles in the country, removing pandemic-related restrictions positively impacted the growth of the market studied. For instance, according to OICA, commercial vehicle sales in Indonesia declined from 2,74,194 units in 2018 to 1,43,152 units in 2020, which increased further to reach 2,64,477 units in 2022.
- Furthermore, according to the Changing Transport Organization, the high volume of imported and exported goods places a high demand on logistics services in Indonesia, 90% of which is dominated by trucking. As freight transportation is a significant contributor to greenhouse gas (GHG), the Indonesian government has been taking several initiatives to reduce emissions from these vehicles. For instance, the government's Mitigation Action Plan encourages truck owners to modernize their fleets, replacing the least efficient vehicles with new trucks carrying emission control and the latest generation of engine efficiency technologies.
- Hence, such trends are anticipated to create opportunities in the market studied as telematics data can detect vehicle emission levels, giving the fleet owners real-time information to act upon.
Southeast Asia Telematics Industry Overview
The Southeast Asia Telematics Market is fragmented as the intensity of competitive rivalry in the market is high, with multiple players vying for market share in a contested space. The competition is expected to increase, with newer players looking to offer specialized offerings, value add-ins, and innovative business models. DTC Enterprise, GPSiam, Forth Tracking System, Thai GPS Tracker, and Guarantee GPS are some of the major players in the market.
- June 2023 - TransTRACK attended a webinar for SMEs to make them understand smart export facilities. In the webinar, the company explained Mobility Tracker. Without using GPS, a Mobility Tracker can help the user track the delivery of goods. The tracking process can be carried out through a driver's cell phone and connected to a task management application and TransTRACK Fleet Management System.
- May 2023 - Scania, a leading commercial vehicle manufacturer, delivered its first battery-electric truck in Singapore. The truck was acquired by Jasico Express Services, a transport and freight-forwarding company in Singapore.
Southeast Asia Telematics Market Leaders
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DTC Enterprise
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GPSiam
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Forth Tracking System
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Thai GPS Tracker
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Guarantee GPS
*Disclaimer: Major Players sorted in no particular order
Southeast Asia Telematics Market News
- March 2023 - OCTO Group, a telematics solutions provider to insurance, fleet management, and smart mobility, announced its entry in Singapore. Other notable names, such as Radius Telematics, GeoTab, etc., have also expanded their footprint in the Southeast Asian region in recent years.
- October 2022 - Malaysia's Road Transport Department (RTD) announced that actions would be taken against any commercial vehicle involved in an accident if it fails to comply with the technical aspects set out in the department's Safety Inspection and Audit Report (JISA). As per the new policy, various aspects will be examined, including a check on the vehicle's last periodic inspection at the Computerised Vehicle Inspection Centre, which involves if it exceeds 35% of the permitted load (BDM). If found guilty, the individual concerned can also be fined under Section 57(1)(b) )(vi) Land Public Transport Act (APAD) 2010.
Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Analysis of Business Models and Solutions
4.3 Assessment of the Impact of Macroeconomic Trends on the Industry
4.4 Industry Attractiveness - Porter's Five Forces Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
4.5 Industry Value Chain Analysis
4.6 Regulations/Policies/Mandates
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 Increase in Vehicle Safety, Emission, and Fleet Management Regulations
5.1.2 Advancements Such as Route Calculation, Vehicle Tracking, and Fuel Pilferage
5.2 Market Challenges/Restraints
5.2.1 High Installation Cost
5.2.2 Lack of Uninterrupted and Seamless Internet Connectivity
6. MARKET SEGMENTATION
6.1 By Type of Vehicle
6.1.1 LCV
6.1.2 M/HCV
6.2 By Country
6.2.1 Thailand
6.2.2 Indonesia
6.2.3 Malaysia
6.2.4 Rest of Southeast Asia
7. FLEET MANAGEMENT SOFTWARE MARKET IN SOUTHEAST ASIA
8. COMPETITIVE LANDSCAPE
8.1 Company Profiles*
8.1.1 DTC Enterprise
8.1.2 GPSiam
8.1.3 Forth Tracking System
8.1.4 Thai GPS Tracker
8.1.5 Guarantee GPS
8.1.6 Onelink Technology
8.1.7 Thai Global Technologies Co. Ltd
8.1.8 East Innovation Co. Ltd (EyeFleet)
8.1.9 Xsense Information Service Co. Ltd
8.1.10 PT. Navindo Technologies
8.1.11 Foxlogger (PT. Sumber Sinergi Makmur)
8.1.12 Maxxfleet (PT. Lavinta Buana Sakti)
8.1.13 IntelliTrac GPS Tracking
8.1.14 TransTrack
8.1.15 UTrack
8.1.16 Gigabyte Indonesia
8.1.17 i-Tracking (S) Pte Ltd
8.1.18 Tramigo Singapore
8.1.19 Evo Systems SDN. BHD.
8.1.20 Omnicomm Vietnam
8.1.21 i-Fleet (CelcomDigi)
8.1.22 EUPFIN Technology SDN. BHD.
8.1.23 FindMyCar Philippines
8.1.24 Manila GPS Trackers
8.1.25 SkyFy Technology Pte. Ltd
8.1.26 Vectras Inc.
8.1.27 Teltonika Asia Pte. Ltd
8.1.28 Explosoft International SDN. BHD.
8.1.29 Get Prepared SDN. BHD.
9. VENDOR RANKING ANALYSIS
10. FUTURE OUTLOOK OF THE MARKET
Southeast Asia Telematics Industry Segmentation
The telematics market involves using a set of technologies to monitor a wide range of information concerning an individual vehicle or fleet. The analysis is based on the market insights captured through primary and secondary research. The market covers the economic factors impacting the growth of the Southeast Asian telematics market in terms of drivers and restraints.
The scope of the study is limited to the commercial vehicle market in Southeast Asia. The scope includes both aftermarket and OEM-embedded telematics systems in commercial vehicles. The commercial vehicle types considered include light commercial vehicles (LCV) and medium and heavy commercial vehicles (M/HCV). The hardware units tracked in the study include telematics systems such as GPS Trackers, OBD dongles, backboxes, and telematics control units. Vendor ranking analysis of top vendors is also included as part of the deliverables.
The Southeast Asian Telematics Market is segmented by Type of Vehicle (LCV, M/HCV) and Country (Thailand, Indonesia, Malaysia, and the Rest of Southeast Asia). The market sizes and forecasts are provided in terms of volume (units) for all the above segments.
| By Type of Vehicle | |
| LCV | |
| M/HCV |
| By Country | |
| Thailand | |
| Indonesia | |
| Malaysia | |
| Rest of Southeast Asia |
Frequently Asked Questions
What is the current Southeast Asia Telematics Market size?
The Southeast Asia Telematics Market is projected to register a CAGR of 11.53% during the forecast period (2024-2029)
Who are the key players in Southeast Asia Telematics Market?
DTC Enterprise, GPSiam, Forth Tracking System, Thai GPS Tracker and Guarantee GPS are the major companies operating in the Southeast Asia Telematics Market.
What years does this Southeast Asia Telematics Market cover?
The report covers the Southeast Asia Telematics Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the Southeast Asia Telematics Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
Southeast Asia Telematics Industry Report
Statistics for the 2024 Southeast Asia Telematics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Southeast Asia Telematics analysis includes a market forecast outlook to for 2024 to 2029 and historical overview. Get a sample of this industry analysis as a free report PDF download.
