The global construction and heavy equipment telematics market size is projected to reach USD 1,498 million by 2026, from an estimated value of USD 676 million in 2021, at a CAGR of 17.2%. Increase in demand for telematics solutions in off-highway equipment and government mandates on safety and security of off-highway equipment are the driving factors that are expected to boost the construction and heavy equipment telematics market.
Government mandates on safety and security of off-highway equipment
Governments across the globe are now focusing on making off-highway equipment safer and more efficient. As of now, many regional governments are focusing on deploying vehicle tracking in heavy vehicles. These vehicles are now equipped with a tracking device, Closed-Circuit Television (CCTV)-based surveillance system, and one or more emergency buttons, which would be fitted by the manufacturer. The major factor behind this mandate is safety. Since remote-tracking enables authorities to track any vehicle that deviates from its route, it helps authorities take corrective actions. Governments are increasingly aware of the need to use telematics technology in the long run, and hence, deployment planning and deploying phases have been initiated and are expected to be completed within a planned time.
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ELD mandate for construction and mining equipment
In the off-highway industry, ELD has been mandated for any self-propelled or towed motored vehicles such as dump trucks and cement mixers. Agriculture equipment have been exempted up to some extent in the new rule. An ELD synchronizes with a vehicle engine to automatically record the driving time for easier and more accurate Hours of Service (HOS) recording. ELD is expected to replace paper logs and an earlier type of recorder, known as Automatic On-Board Recording Device (AOBRD). This mandate has opened a new revenue stream for telematics providers. As per information by existing vendors, around 3 million vehicles are likely to be impacted. This has propelled the need for introducing new products and services, which are scalable to meet the present as well as future requirements. For instance, in October 2019, ORBCOMM announced its ELD in Spanish and French-Canadian versions, expanding its market reach to fleet customers in new geographic regions. It provides complete visibility, monitoring, and management of drivers, vehicles, and displays and helps fleets improve safety records, increase productivity, reduce operating costs, enhance fuel efficiency, and retain drivers. Similarly, Fleetmatics, a SaaS fleet management provider, announced the Logbook application for iOS. This application would automatically record the HOS once the driver logs in and starts driving, and the application will be updated based on future regulatory requirements. Vendors are now becoming ELD-ready and offering ELD solutions and services.
North America is estimated to be the largest market during the forecast period
The North American off-highway industry is one of the promising industries at a global level. The region is home to several OEMs such as Caterpillar and John Deere and telematics solutions providers like Verizon, Trimble, Geotab, and Sierra Wireless. The US is the largest market in the region and accounts for more than 70% of the overall market, followed by Canada and Mexico. The market is dominated by Verizon and Trimble as these companies focus on strategic partnerships or collaborations with leading OEMs. The demand for telematics solutions is expected to increase in the region due to strong penetration of telematics coupled with 5G connectivity, which will support advanced telematics solutions for the off-highway industry.
Key Market Players
The global construction & heavy equipment telematics market is dominated by players, such as Verizon (US), Trimble Inc. (US), Topcon Corporation (Japan), Hexagon AB (Sweden), and Robert Bosch (Germany). These players have adopted strategies such as new product launches, partnerships, supply orders, expansions, and acquisitions to increase their share and diversify and strengthen their business networks in the construction and heavy equipment telematics market.
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