Construction Machinery Telematics Market Size
| Study Period | 2018 - 2028 |
| Market Size (2023) | USD 1.36 Billion |
| Market Size (2028) | USD 2.41 Billion |
| CAGR (2023 - 2028) | 12.04 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | Asia Pacific |
Major Players
*Disclaimer: Major Players sorted in no particular order |
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Construction Machinery Telematics Market Analysis
The Construction Machinery Telematics Market size is estimated at USD 1.36 billion in 2023, and is expected to reach USD 2.41 billion by 2028, growing at a CAGR of 12.04% during the forecast period (2023-2028).
- The COVID-19 pandemic impacted the market, primarily attributing it to halted construction and manufacturing activities. However, as the restrictions were being lifted, the market was anticipated to witness significant growth during the forecast period, which was likely to be primarily attributed to increasing government support and the restoration of construction activities worldwide.
- The construction machinery telematics market is driven by the growing demand for machinery efficiency from consumers. The surge in the usage of portable technology in construction types of machinery, such as smartphones and features like proximity detection alerts and collision avoidance systems, has given a push to the adoption of telematics in construction machinery.
- However, complexity and high price features make fleet operators reluctant toward these technologies, thereby negatively affecting the growth of the construction machinery telematics market during the forecast period.
- With growing construction and infrastructure activities across the world, construction companies are focusing on embedding new technology into their machinery and prefer vehicles having telematics in them to gain a competitive edge over other players in the market.
- Currently, telematics technology adoption in construction machinery is witnessing a notable revolution as telematics software help in monitoring fuel usage, driver behavior, asset location and engine hours, predicting maintenance schedules, etc., to provide real-time monitoring.
- Such active projects and notable government investments in improving infrastructure within their countries at a global level are expected to drive demand for these telematics solutions for construction machinery over the forecast period.
Construction Machinery Telematics Market Trends
The Excavators Segment Dominated the Construction Machinery Telematics Market
- Nowadays, comfort features from full-size machines are also seeping down into compact excavators. One of the major technologies making a leap in compact excavators is telematics. As a result, telematics systems are becoming more popular among both owner-operators and large fleet managers.
- In the last decade, full-sized excavators adopted new technologies and features, such as telematics, which made them more productive and fuel efficient. Telematics technology provides fleet management, remote diagnostics, GPS tracking, and even safety. At present, most of the telematics users are operators of large-scale excavator fleets that rely on this data in order to help manage their equipment and businesses more efficiently. One of the major advantages of using telematics in excavators is efficient active allocation. For instance, the generated data after analysis shows if an excavator is idling at the site for too long and if other sites can utilize the idle equipment.
- Some of the construction machinery manufacturers and telematics providers are developing new products to provide better features to their customers. For instance,
- In 2022, Doosan showcased its mini-excavators in dealerships across the United States and Canada. The various mini-excavators were outfitted with a variety of features, one of which was Doosan's telematics software (DoosanCONNECT), which aided in the monitoring and maintenance of equipment. Telematics helped in tracking the equipment, which in turn prevented theft and facilitated the recovery of lost or stolen machinery.
- During the same year, Takeuchi introduced its newest excavator, the Takeuchi TB2150R. This new 16.5-ton excavator was one of Takeuchi's largest, second only to the TB2150. The TB2150R came equipped with the Takeuchi Fleet Management (TFM) telematics system as standard. Owners and operators were able to remotely connect to their Takeuchi excavators and track loaders using TFM. TFM sent warnings and machine data, including location, usage, performance, and maintenance status, providing valuable insights into how and where the equipment was being used.
- However, complex features and extra price association make fleet operators hesitant to incorporate the technology into business operations. For instance, Ritchie Bros Auctioneers reports that it sold 3,888 excavators in the United States last year at a median price of USD 57,500, representing a 15% increase year-over-year for the three months ending on December 31, 2021.
The Asia-Pacific Region is Expected to Continue to Capture a Major Share in the Future
- Some of the major factors that may aid in driving the market studied are the growing construction industry in the region, the availability of a large number of heavy equipment, and the rising consumer base of mobile devices.
- China is also one of the major countries in the Asia-Pacific, with ample construction activities being supported by its growing economy. The country’s growth rate is high but is gradually moving toward moderate (as the population ages and the economy rebalances from investment to consumption, from manufacturing to services, and from external to internal demand).
- China’s construction machinery manufacturers have been extremely busy starting 2021, with these companies frequently facing a full workload in everything from production to sales and seeing their schedules filled with orders from home and abroad, according to recent China Central Television reports. Such chaos in handling activities elevated the necessity of telematics systems in the construction machinery in the country, encouraging manufacturers to launch or design products according to growing consumer needs.
- In India, the significant allocation for the infrastructure sector in the 12th Five Year Plan and investment of USD 1 trillion is expected to create huge demand for construction equipment. The Indian government is further expected to increase its spending on public infrastructure in order to meet its ambitious development plans.
- Despite near-term challenges in certain construction sectors, the medium to long-term growth story in India remains intact. The construction industry in India is expected to grow steadily over the forecast period, as the infrastructure sector is a key pillar for the growth of the Indian economy. The government is taking various initiatives to ensure the time-bound creation of excellent infrastructure in the country.
- The Japanese government is also constantly focusing on major long-term projects (the Maglev railway long-term and short-term development plans) that the country is expected to witness in the future. For instance, an upgradation of highway networks and a new rail link to Haneda Airport in Tokyo. The construction is expected to begin by 2022 with an investment of JPY 300 million and open the line by 2029. Hence, such positive growth trends are anticipated to boost the Japanese construction market.
- The Rest of Asia-Pacific includes ASEAN countries, such as Malaysia, Indonesia, Singapore, Vietnam, Australia, as well as South Korea. With the consistent growth in these countries, the demand for both residential and commercial buildings is continually increasing.
- The construction sector in Singapore is expected to witness growth in 2020 due to the ongoing major public and private infrastructure projects. Some of the major projects include Integrated Waste Management Facility, infrastructure works for the Changi Airport Terminal 5, recreational developments at the Mandai Park, a new taxiway for the Changi Airport, and berth facilities at Jurong Port and Tanjong Pagar Terminal. However, the current pandemic has led to the extension of project deadlines.
- While some of the aftermarket players are focusing on launching telematics systems, and others are focusing on the expansion of their operations in the country to stabilize their positions in the market during the forecast period.
- In November 2021, Manitowoc announced the appointment of G Machinery as its new distributor for Grove all-terrain cranes in Japan. Shortly after coming on board as a Grove distributor, G Machinery sold and delivered its first two cranes: one GMK5150L-1J and one GMK5250XL-1J. Both cranes were purchased by a leading Japanese crane rental company.
- Such active developments by key players are expected to grow over the forecast period and hence support the growth of Japan’s construction machinery telematics market over the forecast period.
Construction Machinery Telematics Industry Overview
Some of the major players dominating the market studied are Caterpillar, Komatsu Ltd., Hitachi Construction Equipment Co.Ltd, Hyundai Construction Equipment Ltd, Volvo Construction Equipment, and others. The construction machinery telematics market is becoming highly competitive as new companies are entering the market with the latest technological advancements in the telematics market. For instance,
In April 2022, Liebherr redeveloped and fundamentally revised its range of mid-sized wheel loaders. The newly-designed lift arm ensures maximum breakout, holding, and lowering forces. It has optimized z-bar kinematics and improved working hydraulics.
In February 2022, Hitachi Construction Machinery United Kingdom revealed CTFleet Link®, a mixed-fleet telematics system developed by Hitachi Construction Machinery UK for construction machinery customers. The CTFleet Link® is a complete fleet management solution that gives clients access to a live online portal to track and locate their Hitachi equipment remotely.
Construction Machinery Telematics Market Leaders
Caterpillar Inc.
Komatsu Ltd
Hitachi Construction Machinery Co. Ltd
Volvo Construction Equipment
CNH Industrial NV
*Disclaimer: Major Players sorted in no particular order
Construction Machinery Telematics Market News
- April 2022: VOLVO Construction Equipment unveiled its new Connected Map solution for construction equipment machinery. This feature provides a real-time positioning service and a visualized site overview for all existing operational machines. The company emphasized that this feature is easily accessible by personnel seated in the machine, using Volvo Co-Pilot or Android/iOS devices. Additionally, it can be conveniently accessed remotely from the office using the Office Portal web platform.
- March 2022: Komatsu released a new digital hub called My Komatsu, which allows contractors to interpret visual analyses of data collected from numerous sources, including different OEM equipment. The My Komatsu application, equipped with the ISO-15143-3 (AEMP 2.0) telematic API (application programming interface), connects telematic data from all equipment or accesses it through monitoring and analysis services.
- January 2022: Liebherr introduced three new wheel loaders: L550, L566, and L580. These new L 550, L 566, and L 580 wheel loaders feature the proven hydrostatic Liebherr travel drive, renowned for its excellent efficiency.
Construction Machinery Telematics Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Drivers
4.1.1 Rising Construction And Infrastructure Activities To Drive Demand
4.1.2 Connected Technology To Aid In The Growth Of The Studied Market
4.2 Market Challenges
4.2.1 High Initial Cost
4.3 Industry Attractiveness - Porter's Five Forces Analysis
4.3.1 Bargaining Power of Suppliers
4.3.2 Bargaining Power of Consumers
4.3.3 Threat of New Entrants
4.3.4 Threat of Substitute Products
4.3.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION (Market Size in Value - USD Million)
5.1 By Machinery Type
5.1.1 Crane
5.1.2 Excavator
5.1.3 Telescopic Handling
5.1.4 Loader and Backhoe
5.1.5 Other Machinery Types
5.2 By Sales Channel Type
5.2.1 OEM
5.2.2 Aftermarket
5.3 By Telematic Feature
5.3.1 Tracking
5.3.2 Diagnostic
5.3.3 Other Telematics Features
5.4 Geography
5.4.1 North America
5.4.1.1 United States
5.4.1.2 Canada
5.4.1.3 Rest of North America
5.4.2 Europe
5.4.2.1 Germany
5.4.2.2 United Kingdom
5.4.2.3 France
5.4.2.4 Italy
5.4.2.5 Rest of Europe
5.4.3 Asia-Pacific
5.4.3.1 China
5.4.3.2 India
5.4.3.3 Japan
5.4.3.4 South Korea
5.4.3.5 Rest of Asia-Pacific
5.4.4 Rest of the World
5.4.4.1 South America
5.4.4.2 Middle-East and Africa
6. COMPETITIVE LANDSCAPE
6.1 Vendor Market Share
6.2 Company Profiles*
6.2.1 Komatsu Ltd
6.2.2 Caterpillar Inc.
6.2.3 Volvo Construction Equipment
6.2.4 Joseph Cyril Bamford Excavators Ltd (JCB)
6.2.5 Hitachi Construction Machinery Co. Ltd
6.2.6 CNH Industrial NV
6.2.7 Deere & Company
6.2.8 Hyundai Construction Equipment
6.2.9 Liebherr Group
6.2.10 Doosan Infracore Ltd
6.2.11 ACTIA Group
6.2.12 Geotab
6.2.13 Trimble Inc.
6.2.14 Orbcomm
6.2.15 Octo Telematics
7. MARKET OPPORTUNITIES AND FUTURE TRENDS
7.1 Shifting Fleet Owners Preferences Towards Telematics
Construction Machinery Telematics Industry Segmentation
Construction machinery telematics is an electronic device unit that provides real-time access to machines by tracking engine hours, providing mileage report alerts, and monitoring fuel consumption. Additionally, equipment management personnel can receive alerts through fault codes when something is wrong with a piece of equipment outfitted with electronic monitors.
The construction machinery telematics market study includes machinery type, sales channel, telematic feature type, and geography. Based on the machinery type, the market is segmented into a crane, excavator, telescopic handler, loader and backhoe, and other machinery types. Based on the sales channel type, the market is segmented into OEM and aftermarket. Based on the telematic feature type, the market is segmented into tracking, diagnostic, and other telematic features (fleet or asset management, etc.). Based on Geography, the market is segmented into North America, Europe, Asia-Pacific, and Rest of the World.
For each segment, the market sizing and forecast have been done based on the value (USD) million).
| By Machinery Type | |
| Crane | |
| Excavator | |
| Telescopic Handling | |
| Loader and Backhoe | |
| Other Machinery Types |
| By Sales Channel Type | |
| OEM | |
| Aftermarket |
| By Telematic Feature | |
| Tracking | |
| Diagnostic | |
| Other Telematics Features |
| Geography | |||||||
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Construction Machinery Telematics Market Research FAQs
How big is the Construction Machinery Telematics Market?
The Construction Machinery Telematics Market size is expected to reach USD 1.36 billion in 2023 and grow at a CAGR of 12.04% to reach USD 2.41 billion by 2028.
What is the current Construction Machinery Telematics Market size?
In 2023, the Construction Machinery Telematics Market size is expected to reach USD 1.36 billion.
Who are the key players in Construction Machinery Telematics Market?
Caterpillar Inc., Komatsu Ltd, Hitachi Construction Machinery Co. Ltd, Volvo Construction Equipment and CNH Industrial NV are the major companies operating in the Construction Machinery Telematics Market.
Which is the fastest growing region in Construction Machinery Telematics Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2023-2028).
Which region has the biggest share in Construction Machinery Telematics Market?
In 2023, the Asia Pacific accounts for the largest market share in the Construction Machinery Telematics Market.
Construction Machinery Telematics Industry Report
Statistics for the 2023 Construction Machinery Telematics market share, size and revenue growth rate, created by Mordor Intelligence™ Industry Reports. Construction Machinery Telematics analysis includes a market forecast outlook to 2028 and historical overview. Get a sample of this industry analysis as a free report PDF download.
