Global Construction Machinery Telematics Market Size Grows at a Staggering CAGR of 11.84%

Introduction

A telematics system device facilitates equipment data transmission through a communication network. Telematics systems use GPS technology, sensors, and onboard diagnostics to effectively monitor the performance and operation of construction equipment. The telematics of construction machinery enable remote monitoring, complete tracking, and control of assets. Telematics has several advantages, one of which is asset location, which uses data to monitor equipment activities on-site.

Market Dynamics

Rising Construction and Infrastructure Activities Drive the Global Market

As construction and infrastructure activities increase globally, construction companies embed new technology into their equipment and favor vehicles with telematics to gain a competitive edge over other market participants. Telematics software helps monitor fuel consumption, driver behavior, asset location and engine hours, predict maintenance schedules, etc., to provide real-time monitoring of construction machinery.

The demand for machinery and equipment in the construction industry has experienced a substantial increase in recent years due to heightened infrastructure spending by governmental entities and industry participants. Indonesia announced in July 2020 its intention to invest approximately USD 430 billion in infrastructure between 2020 and 2024, a 20% increase over the USD 359.2 billion invested between 2015 and 2019. Demand for these telematics solutions for construction machinery is anticipated to be driven over the forecast period by such active projects and significant government investments in improving infrastructure.

Connected Technology Creates Tremendous Opportunities

As the construction industry evolves toward new technology, embracing connected and telematics construction machinery, it may be crucial to aggregate data, analytics, and user-based skills insights. This will aid businesses in shifting from a reactive to a predictive approach to problem-solving. Thus, connected construction is anticipated to provide future market growth with numerous advantages.

In 2022, connected construction will likely serve as a catch-all for substantial digital investments to connect, automate, and integrate operations and to bring the entire value chain under a secure, intelligent infrastructure. The growing demand for digital and technological capabilities in the commercial building industry is anticipated to create opportunities for the construction machinery telematics market.

Regional Analysis

Asia-Pacific is the most significant global construction machinery telematics market shareholder and is anticipated to exhibit a CAGR of 12.47% during the forecast period. The region presents numerous opportunities to expand the construction equipment telematics market. Due to the likelihood of large infrastructure projects and shifting labor dynamics, the demand for construction equipment will increase over the forecast period. According to projections, the construction industry in ASEAN nations is anticipated to experience a growth rate of 6% beyond the year 2021. In the next five years, the combined value of all mega-projects in the ASEAN region is anticipated to reach USD 2.9 trillion. Approximately USD 1.5 trillion is invested in this value's planning or pre-planning phase.

In addition, public and private investments in infrastructure, such as the Indonesian National Medium-term Development Plan (USD 460 billion), the Philippine Development Plan "Build, Build, and Build" (USD 71.8 billion), and the Vietnam Socio-Economic Development Plan (USD 61.5 billion), are anticipated to increase the demand for construction machinery telematics in these regions.

Key Highlights

• The global construction machinery telematics market size was valued at USD 1,221.71 million in 2022. It is estimated to reach USD 3,344.58 million by 2031, growing at a CAGR of 11.84% during the forecast period (2023–2031).
• Based on machinery type, the global construction machinery telematics market is divided into cranes, excavators, telescopic handlers, loaders, backhoes, and other machinery types. The excavator segment owns the highest market share and is estimated to grow at a CAGR of 11.91% during the forecast period.
• Based on the sales channel, the global construction machinery telematics market is bifurcated into OEM and aftermarket. The OEM segment dominates the global market and is projected to exhibit a CAGR of 11.47% over the forecast period.
• Based on the telematic feature type, the global construction machinery telematics market is segmented into tracking, diagnostic, and other telematic features. The tracking segment is the largest revenue contributor to the market and is expected to exhibit a CAGR of 8.81% throughout the forecast period.
• Asia-Pacific is the most significant global construction machinery telematics market shareholder and is anticipated to exhibit a CAGR of 12.47% during the forecast period.

Competitive Players

Competitive Players

The key global construction machinery telematics market players are Caterpillar, Komatsu Ltd., CNH Industrial NV, Joseph Cyril Bamford Excavators Ltd. (JCB), Deere & Company, Hitachi Construction Equipment Co. Ltd., Hyundai Construction Equipment Ltd., Volvo Construction Equipment, and others.

Recent Developments

Market News

• In November 2022, Doosan Infracore North America, located in Suwanee, Georgia, launched Smart X-Care, a subscription-based telematics monitoring service. A new machine monitoring center is located at the Doosan Infracore North America headquarters in Suwanee to facilitate Smart X-Care.
• In March 2023, Quake Global, a leading supplier of telematics hardware and software solutions, announced that it was selected by Yanmar Holdings Co., Ltd., a global innovator of a wide range of industrial equipment with a major emphasis on designing and manufacturing advanced solutions for customers' challenges, as their exclusive supplier for telematics hardware requirements for their Spraying Robot YV01.

Segmentation

Global Construction Machinery Telematics Market: Segmentation

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

By Regions

• North America
• Europe
• Asia-Pacific
• Rest of the World