The Global Off-Highway Vehicle Telematics Market - 5th Edition

The Global Off-Highway Vehicle Telematics Market is the fifth consecutive report analysing the latest developments on the market for telematics solutions used in the construction, mining, agriculture and forestry sectors. This strategic research report provides you with 220 pages of unique business intelligence, including 5-year industry forecasts, expert commentary and real-life case studies on which to base your business decisions.

How will off-highway vehicle telematics market in the construction, mining, agriculture and forestry segments evolve in 2024 and beyond? This report covers the latest trends and developments in the dynamic telematics industry. The report forecasts that the global installed base of active off-highway vehicle telematics systems will grow at a CAGR of 13.1 percent from 7.9 million units at the end of 2022 to 14.6 million units by 2027. Get up to date with the latest information about vendors, products and markets.

Highlights from the report

• Insights from 30 executive interviews with market-leading companies.
• Overview of the construction, mining, agriculture and forestry sectors.
• Profiles of 42 equipment OEMs and their telematics offerings.
• Comprehensive overview of the off-highway vehicle telematics value chain and key applications.
• Summary of the latest industry trends and developments.
• Market forecasts lasting until 2027

The installed base of off-highway vehicle telematics systems to reach 14.6 million units worldwide by 2027

The report's definition of the off-highway vehicle market includes various equipment such as specialised heavy machinery, lighter equipment and other vehicles used in the construction, mining, agriculture and forestry sectors. Offhighway vehicle telematics refers to telematics hardware and associated software solutions deployed for remote monitoring and management of fleets of machinery and equipment used in these sectors. Early initiatives among the heavy equipment OEMs started to emerge already in the 1990s and many manufacturers followed suit in the 2000s.

Today, most equipment manufacturers have introduced some type of telematics offerings for their customers, either as a result of in-house development or through collaborative efforts involving third-party technology partners powering telematics solutions commonly under the OEMs’ brands. A wide range of aftermarket solution providers have entered the off-highway vehicle telematics space, offering solutions for various assets including multi-brand equipment fleets and commonly also other types of mobile and stationary equipment and vehicles. Solutions available on the market enable the delivery of vehicle management, operator management and safety management applications linking off-highway machines and enterprise IT systems.

The report estimates that the global installed base of active off-highway vehicle telematics systems reached 7.9 million units in 2022. This includes connected units deployed on various off-highway vehicles across the construction, mining, agriculture and forestry sectors. The construction sector accounts for the largest share, driven by OEM telematics systems offered by heavy equipment manufacturers. Agriculture and mining moreover each account for a similar number of connected units deployed on machines and vehicles used in agricultural and mining operations respectively. The remainder is represented by the
forestry sector including telematics systems fitted to various forestry equipment. Growing at a compound annual growth rate (CAGR) of 13.1 percent, the active installed base of offhighway vehicle telematics systems across all sectors is forecasted to reach 14.6 million units worldwide in 2027. The North American market is estimated to be somewhat larger than the European. The Rest of World is moreover estimated to represent more than half of the global installed base of off highway vehicle telematics systems.

The top-10 equipment manufacturers offering telematics together account for around 70 percent of the total number of off-highway vehicle telematics systems in use across the construction, mining, agriculture and forestry sectors globally. The report ranks Caterpillar as the leading offhighway vehicle telematics provider. Caterpillar was the first to surpass the milestone of 1 million connected assets across all segments and the company now has more than 1.4 million units. The runners-up are SANY and Komatsu. Other major manufacturers with estimated installed bases of more than 100,000 units include Volvo Construction Equipment, Deere & Company, XCMG, Hitachi Construction Machinery, JCB, HD Hyundai and Doosan Bobcat. Additional players having estimated installed bases of off-highway vehicle telematics units in the tens of thousands include CNH Industrial, Liebherr, Terex, JLG Industries, AGCO, CLAAS Group and Tadano.

The aftermarket for off-highway vehicle telematics is expected to shrink as the equipment manufacturers continue to introduce standard fitment on additional machine models and at the same time increase the length of free software subscriptions. Arguments such as the OEMs’ weak spot being the inability to adequately serve the needs of mixed multibrand fleets are becoming less valid thanks to initiatives such as the AEMP telematics standard which makes it possible to collect data from different brands and manage it all from a software interface of choice. There are however promising opportunities for telematics players that partner with the OEMs, 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 the standard-fitted systems and time-limited subscriptions commonly included for free, the telematics players can also benefit from upselling of more advanced functionality. There are several notable examples of partner-powered and codeveloped offerings in the equipment OEM telematics space. In line with trends in adjacent markets such as fleet management for commercial vehicles, the partner strategy may grow in popularity among the equipment manufacturers at the expense of in-house telematics development efforts. This can especially be the case for equipment manufacturers that do not currently offer OEM telematics to their customers.

The future development path is however far from certain as there are also numerous examples of OEMs moving from partner-powered to in-house developed telematics offerings in recent years. An increasing number of players such as vendors focused on on-road commercial vehicle 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 their business-critical assets through the same back-office interface, using familiar applications and reporting tools. Asset tracking, especially for smaller and lower-value items, represents a heavily underpenetrated market with considerable potential for telematics providers that are ready to diversify the product offering. Particularly strong growth is expected for solutions that also enable tracking of ancillary equipment such as attachments, implements, handheld tools and similar items.

The report will answer the following questions

• Which are the main telematics systems offered by off-highway vehicle manufacturers?
• Which are the key off-highway vehicle telematics applications?
• What business models are used by OEMs offering telematics?
• Which OEM telematics offerings are powered by telematics partners?
• How are aftermarket providers approaching the off-highway vehicle telematics market?
• Which equipment manufacturers have developed their telematics offerings in-house?
• How does the off-highway telematics market compare with other related markets?
• How will the off-highway vehicle telematics market evolve in the future?

Who should read the report?

The Global Off-Highway Vehicle Telematics Market is the foremost source of information about the market for telematics solutions used in the construction, mining, agriculture and forestry sectors. Whether you are a telematics vendor, vehicle manufacturer, telecom operator, investor, consultant, or government agency, you will gain valuable insights from our in-depth research.