The Global Off-Highway Vehicle Telematics Market 6th Edition

The Global Off-Highway Vehicle Telematics Market 6th Edition

The Global Off-Highway Vehicle Telematics Market is thesixth consecutive report from Berg Insight analysing the latestdevelopments on the market for telematics solutions used in theconstruction, mining, agriculture and forestry sectors. This strategicresearch report from Berg Insight provides you with 250 pages ofunique business intelligence, including 5-year industry forecasts,expert commentary and real-life case studies on which to base yourbusiness decisions.

The Global Off-Highway Vehicle Telematics Market 6th Edition

Berg Insight’s definition of the off-highway vehicle market includes various equipment such asspecialised heavy machinery, lighter equipment and other vehicles used in the construction,mining, agriculture and forestry sectors. Off-highway vehicle telematics refers to telematicshardware and associated software solutions deployed for remote monitoring and managementof fleets of machinery and equipment used in these sectors. Early initiatives among the heavyequipment OEMs started to emerge already in the 1990s and many manufacturers followed suitin the 2000s. Today, most equipment manufacturers have introduced some type of telematicsofferings for their customers, either as a result of in-house development or through collaborativeefforts involving third-party technology partners powering telematics solutions commonly underthe OEMs’ brands. A wide range of aftermarket solution providers have entered the off-highwayvehicle telematics space, offering solutions for various assets including multi-brand equipmentfleets and commonly also other types of mobile and stationary equipment and vehicles.Solutions available on the market enable the delivery of vehicle management, operatormanagement and safety management applications linking off-highway machines and enterpriseIT systems.

Berg Insight estimates that the global installed base of active off-highway vehicle telematicssystems reached 8.8 million units in 2023. This includes connected units deployed on variousoff-highway vehicles across the construction, mining, agriculture and forestry sectors. Theconstruction sector accounts for the largest share, driven by OEM telematics systems offered byheavy equipment manufacturers. Agriculture and mining are the second and third largest sectorsin terms of the number of connected units deployed on machines and vehicles used inagricultural and mining operations respectively. The remainder is represented by the forestrysector including telematics systems fitted to various forestry equipment. Growing at a compoundannual growth rate (CAGR) of 12.9 percent, the active installed base of off-highway vehicletelematics systems across all sectors is forecasted to reach 16.1 million units worldwide in 2028.The North American market is estimated to be somewhat larger than the European. The Rest ofthe World is moreover estimated to represent more than half of the global installed base of off-highway vehicle telematics systems.

The top ten equipment manufacturers offering telematics together account for around 70 percentof the total number of off-highway vehicle telematics systems in use across the construction,mining, agriculture and forestry sectors globally. Berg Insight ranks Caterpillar as the leading off-highway vehicle telematics provider. Caterpillar was the first to surpass the milestone of 1.0million connected assets across all segments and the company now has more than 1.5 millionunits. The runners-up are Komatsu and SANY. Other major manufacturers with several hundredthousand active units include Deere & Company, Volvo Construction Equipment, XCMG,Zoomlion, Hitachi Construction Machinery and JCB. HD Hyundai, CNH Industrial and DoosanBobcat are also estimated to have reached the milestone of 100,000 units. Additional playershaving estimated installed bases of off-highway vehicle telematics units in the tens of thousandsinclude AGCO, Liebherr, Terex, JLG Industries, CLAAS Group and Tadano.

The aftermarket for off-highway vehicle telematics is expected to shrink as the equipmentmanufacturers continue to introduce standard fitment on additional machine models andsimultaneously increase the length of free software subscriptions. Arguments such as the OEMs’weak spot being the inability to adequately serve the needs of mixed multi-brand fleets arebecoming less valid thanks to initiatives such as the AEMP telematics standard which makes itpossible to collect data from different brands and manage it all from a software interface ofchoice. There are however promising opportunities for telematics players that partner with theOEMs, either as end-to-end full-service providers or – in many cases maybe more realistically –working alongside OEM personnel to optimise the telematics functionality. In addition to thestandard-fitted systems and time-limited subscriptions commonly included for free, thetelematics players can also benefit from the upselling of more advanced functionality. There areseveral notable examples of partner-powered and co-developed offerings in the equipment OEMtelematics space. In line with trends in adjacent markets such as fleet management for commercial vehicles, the partner strategy may grow in popularity among the equipmentmanufacturers at the expense of in-house telematics development efforts. This can especially bethe case for equipment manufacturers that do not currently offer OEM telematics to theircustomers. The future development path is however far from certain as there are also numerousexamples of OEMs moving from partner-powered to in-house developed telematics offerings inrecent years. An increasing number of players such as vendors focused on on-road commercialvehicle fleet management are nevertheless expected to diversify into telematics for various off-highway vehicles and stationary objects. This enables fleets to monitor and manage all of theirbusiness-critical assets through the same backoffice interface, using familiar applications andreporting tools. Asset tracking, especially for smaller and lower-value items, represents a heavilyunderpenetrated market with considerable potential for telematics providers that are ready todiversify their product offering. Particularly strong growth is expected for solutions that alsoenable tracking of ancillary equipment such as attachments, implements, handheld tools andsimilar items.