Construction & Heavy Equipment Telematics

Construction & Heavy Equipment Telematics

Construction and heavy equipment telematics refers to the utilization of technology to monitor and manage the efficiency of heavy machinery and construction equipment. This technology allows for real-time monitoring and analysis of machine usage, fuel consumption, and maintenance requirements, leading to enhanced efficiency, safety, and cost savings for companies that operate these machines. The construction industry is increasingly focused on improving efficiency and productivity. Telematics solutions provide real-time data on machine usage, fuel consumption, and other performance metrics, allowing companies to optimize their operations and reduce costs, further driving the adoption of construction & heavy equipment telematics devices globally.

The Construction & Heavy Equipment Telematics Market is expected to grow at a strong CAGR of 16% during the forecast period owing to the advancements in technology and the development of new telematics solutions. For example, the proliferation of IoT devices and the increasing availability of high-speed mobile networks are making it possible to develop more sophisticated telematics solutions that can provide real-time data and insights. Moreover, the construction industry is also increasingly emphasizing safety and compliance. Telematics solutions can provide alerts and notifications in case of emergencies or maintenance issues, helping to prevent accidents and ensure the safe operation of heavy machinery. For instance, in September 2022, Cumulus Digital Systems and Bechtel successfully deployed a bolted joint management system, reducing the bolted connection leak rate to 0.1 percent, and increasing productivity. The partnership has also eliminated rework and improved work transparency. Cumulus is excited to continue this partnership and use technology to drive further success.

• Based on the solution, the market is segmented into asset tracking, fuel management, fleet performance reporting, fleet maintenance, fleet safety, and others. Amongst these, the asset tracking segment dominated the market in 2021. This is because asset tracking contributes to increased efficiency. By monitoring the location and status of heavy equipment, companies can optimize their operations and reduce downtime. Moreover, asset tracking helps improve maintenance. Telematics solutions provide real-time data on the condition of heavy equipment, allowing companies to proactively schedule maintenance and prevent breakdowns. This can lead to reduced downtime and maintenance costs, resulting in improved profitability.
• By technology, the market is bifurcated into satellite and cellular. Among these, cellular captured a significant share of the construction & heavy equipment telematics market in 2021 because cellular networks are widely maintained by mobile network operators, reducing the need for companies to invest in their own infrastructure for telematics solutions. This reduces the cost of maintenance and allows companies to focus on other aspects of their business. Furthermore, Cellular networks are highly scalable, allowing new devices and users to be added without significant investment in infrastructure. This makes it easy for companies to expand their telematics solutions with their business growth.
• On the basis of industry, the market is segmented into construction, agriculture, and mining. The construction held a major share of the construction & heavy equipment telematics market in 2021 owing to the construction industry experiencing a significant growth in the number of construction projects worldwide, which is driving the demand for heavy equipment. Equipment requires efficient and dependable telematics solutions to monitor and manage its usage effectively. Telematics solutions can help construction companies to optimize their operations by providing real-time data on equipment usage, location, and performance.
• Based on vehicle category, the market is bifurcated into new fleets and existing fleet. The existing fleet held a major share of the construction & heavy equipment telematics market because the construction industry has a large fleet of existing heavy equipment, which has already been installed with basic telematics systems. These systems typically provide basic information such as engine hours, location, and fuel consumption. As the construction industry evolves, there is an increasing demand for advanced features such as real-time monitoring, predictive maintenance, and remote diagnostics. These advanced features require the installation of additional sensors and hardware.
• For a better understanding of the market adoption of the Construction & Heavy Equipment Telematics industry, the market is analyzed based on its worldwide presence in the countries such as North America (U.S., Canada, and the Rest of North America), Europe (Germany, UK, Netherlands, France, Norway, Switzerland, Denmark, Rest of Europe), Asia-Pacific (China, Japan, India, South Korea, and Rest of Asia-Pacific), Rest of World. North America dominated the construction & heavy equipment telematics market in 2021 because the North American region hosts many technology companies at the forefront of innovation in the construction and heavy equipment telematics industry. These companies invest in research and development, driving the growth of the telematics market. Demand for efficient and safe construction operations drives the adoption of telematics solutions, which provide valuable data for optimization of equipment usage, reducing downtime, and improving safety. Strict environmental, safety, and fuel consumption regulations in the region necessitate compliance through telematics solutions. The mature market offers a wide range of telematics solutions and services while increasing demand for remote monitoring and diagnostics drives the adoption of telematics solutions.
• Some of the major players operating in the market include Verizon, Trimble Inc, TOPCON CORPORATION, Hexagon AB, Robert Bosch GmbH, Bridgestone Mobility Solutions B.V., Sierra Wireless., ORBCOMM, CalAmp Corp., and ACTIA Group.