off-highway vehicle telematics Market

The global off-highway vehicle telematics market was valued at US$ 754.44 million in 2020 and is expected to reach US$ 1,166.96 million by 2028; it is estimated to register a CAGR of 5.9% during the forecast period.

Off-highway vehicle telematics refer to hardware and software solutions that enable remote monitoring and management of fleets of machinery and equipment used in various industries such as construction, mining, agriculture, and forestry. This market covers a broad range of equipment, including heavy machinery, lighter gear, and other vehicles. The devices used for OHV telematics provide GPS, cellular, or satellite connectivity to offer real-time equipment data and enable continuous monitoring of the position, condition, health, and utilization of equipment.

The off-highway vehicle telematics market is experiencing growth due to the increasing demand for OHV data analysis, which leads to improved productivity, utilization, and lower operational costs. Fleet managers are also seeking productivity solutions for better management, which is supporting the growing demand for off-highway telematics in fleet management systems. Moreover, regulations in developed regions are driving the off-highway vehicle telematics market by requiring off-highway vehicles to be equipped with telematics for improved tracking of vehicle emissions, fuel emissions, driver hour regulation, and accident detection. In the US, electronic logging devices (ELDs) or electronic onboard recorders (EOBRs) are being used in commercial trucks to increase road safety, and their compliance has been steadily rising since the mandate was initially announced. The heavy-duty on- and off-highway equipment industry is increasingly adopting telematics solutions, with major automakers now including telematics systems as standard equipment on their vehicles. Additionally, the expansion of end-use sectors such as construction, mining, and agriculture in emerging countries is expected to fuel the growth of the off-highway vehicle telematics market.

Impact of COVID-19 Pandemic on Off-Highway Vehicle Telematics Market

The COVID-19 pandemic has had a significant impact on the world, with several countries still struggling to cope with its effects. Prior to the pandemic, the automotive industry was witnessing notable growth in terms of production, sales, and technological advancements. However, the pandemic resulted in regional lockdowns, line closures, and the breakdown of transportation networks. The off-highway vehicle telematics market has been particularly vulnerable to financial difficulties caused by the pandemic, which is worse than previous outbreaks such as SARS, avian flu, swine flu, bird flu, and Ebola. The market has been affected from various angles due to the rapidly rising cases. The availability of the labor force has been disrupted, impacting the global market's supply chain as people are forced to stay indoors due to lockdowns and the virus spread. The manufacturing process is linked to the retail network, and when one is halted, it negatively impacts the other, which has affected off-highway vehicle telematics manufacturers.

Based on connectivity type, the off-highway vehicle telematics market is segmented into cellular-based OHV telematics and satellite-based OHV telematics. The cellular-based OHV telematics segment led the off-highway vehicle telematics market with a share of 77.6% in 2020.

Based on application, the off-highway vehicle telematics market can be segmented into construction industry OHV telematics, agriculture industry OHV telematics, mining industry OHV telematics, and others. The construction industry OHV telematics segment led the off-highway vehicle telematics market with a share of 64.3% in 2020.

Based on technology, the off-highway vehicle telematics market can be segmented into LTE-M, NB-IoT, Sigfox, and others. The LTE-M segment led the off-highway vehicle telematics market with a share of 82.3% in 2020.

Geographically, the market is broadly segmented into North America, Europe, Asia Pacific (APAC), the Middle East & Africa (MEA), and South America (SAM). In 2020, North America accounted for a significant share in the global off-highway vehicle telematics market.

The off-highway vehicle industry is being impacted by strict regulations that various governments are implementing to enhance the safety and security of heavy equipment. These regulations include regular inspections, timely brake servicing, and the integration of electronic tools and communication systems into vehicles. The US Department of Labor has mandated that heavy equipment accessories, such as engine parts, service brakes, dump trucks, and loaders, must be checked at the start of each shift to ensure safety. Telematics systems provide fleet operators with quick updates on engine and driving performance and serve as a communication channel. Moreover, the installation of telematics in heavy machinery reduces the manual labor and time required for equipment inspection. The off-highway vehicle telematics market is driven by the need to standardize equipment, improve equipment performance, and reduce the risk of accidents in the construction industry. Regulatory actions, such as the Executive Order 13834 Efficient Federal Operations report from 2019, highlight the need for telematics adoption in the federal government, which is likely to boost market demand in the future. According to a report by the Occupational Safety and Health Administration, there were approximately 15 deaths per day due to machinery and equipment failure in the US in 2019, highlighting the importance of these regulations. Despite the decline in automotive production, the construction industry's demand for off-highway telematics has increased in China, which has strict regulatory restrictions for installing satellite location and telematics systems. The German government has also enacted strict laws regulating off-highway vehicle safety, leading automakers and OEMs to implement modern technologies such as artificial intelligence and the internet of things to increase performance and offer real-time data, thereby reducing the risk on building sites. As a result, strict government policies are driving the growth of the global off-highway vehicle (OHV) telematics market.

The key companies operating in the off-highway vehicle telematics market include Omnitracs, LLC; ORBCOMM; Stoneridge, Inc.; Teletrac Navman; TomTom International BV; Trackunit A/S; Wacker Neuson, Zonar Systems Inc.; TTCONTROL GMBH; and ACTIA Group.