Material Handling Equipment Telematics Market Size, Share & Trends Analysis Report By Product (Earth Moving Equipment, Tractors, Trucks, Cranes, Forklifts), By Region, And Segment Forecasts, 2019 - 2025

Report Overview

The global material handling equipment telematics market size was valued at USD 3.18 billion in 2017. It is expected to expand at a CAGR of 11.7% during the forecast period. The industry has witnessed significant developments in the past few years. Technological advancements and increased digitalization of material handling equipment have enabled easy tracking of equipment performance.

There has been a growing demand for equipment diagnostics data for predictive analytics by OEMs and a notable rise in government regulations pertaining to equipment safety, enhanced user experience, and improved operational efficiency of the equipment. These trends have been instrumental in leading to increased adoption of telematics in off-highway equipment of late.

Increasing construction activities in emerging economies such as India and China are providing a significant push to the overall market. For instance, the Chinese government announced the Belt and Road Initiative (BRI), also known as the One Belt One Road (OBOR) in 2013, which is an ambitious project aimed at connecting Chinese overland with the Middle East, Africa, and Europe with the help of highways, railways, ports, and energy projects. Several construction projects under the initiative are likely to create massive demand for construction equipment over the forecast period.

Given that construction equipment telematics accounts for over 50.0% of the total market, promising growth prospects of the construction industry are poised to boost the growth of the overall market. Deployment of telematics solutions in material handling equipment has helped monitor equipment usage trends and ensure safety and security of operators.

Improved equipment performance and innovative features of new product varieties such as driver monitoring, predictive equipment maintenance, fuel management, and fleet analytics have led to cost benefits. These benefits are projected to encourage the adoption of material handling equipment in the near future. The future scope of development of the market will essentially be determined by the need to reduce costs and boost productivity in the highly competitive market. Vehicle OEMs are estimated to capitalize on this growth by installing OEM telematics devices to deliver better results for customers.

However, implementing such advanced connected technology calls for a robust networking infrastructure to ensure seamless connectivity and transfer of real-time information. Lack of adequate network infrastructure, especially in developing economies such as India and Brazil, is one of the key factors inhibiting the growth of the off-highway equipment telematics market. Moreover, concerns about cyber-attacks and data-loss can limit the market from realizing its utmost potential.

Product Insights

Based on product, the market has been segmented into aerial work platform, forklift, crane, earthmoving equipment, truck, tractor, telehandler, and others. Amongst these, the truck telematics segment held the largest share in the market in 2017. It is anticipated to exhibit a CAGR of 15.0% over the forecast period.

Improvements in road infrastructure and surging demand for goods transportation from the e-commerce sector are estimated to bolster the sales of trucks, thereby leading to the increased scope of utilization of telematics solutions in trucks in the near future. Rising installation of telematics devices in trucks is expected to aid in an increment in the collection of data pertaining to aspects such as driver behavior, vehicle location, and engine diagnostics, which can open new avenues for players in the material handling equipment telematics market.

The technology is also being increasingly installed in a variety of earthmoving equipment such as articulated wheel loaders, road work vehicles, and spreaders to boost job-site productivity by enabling preventative maintenance of these vehicles, tracking equipment utilization, and reducing the overall consumption of fuel. The earthmoving equipment telematics segment represented over 20.0% of the overall revenue in 2017 and is also expected to grow at a substantial CAGR over the forecast period.

Regional Insights

North America commanded the dominant share in the market in 2017. It is characterized by the presence of technologically-advanced firms that make investments for the development of autonomous vehicles technologies, networking solutions, and IoT-enabled services. Robust IT infrastructure, high-speed networks, and rapid adoption of new technologies are contributing to the growth of the region. The regional market is also likely to register a CAGR of over 12.0% during the forecast period.

Asia Pacific telematics demand in off-highway equipment market is poised to rise at the highest CAGR during the same period, thanks to notable advancements observed in networking technologies, rising investments in the infrastructure development sector, and increasing regulatory mandates pertaining to fuel emissions. Soaring adoption of cloud, IoT, autonomous vehicles, and mobility solutions in the region is projected to further benefit the growth of the regional market.

Key Companies & Market Share Insights

The market is marked by the presence of both large-scale and medium-scale material handling equipment telematics solution providers. The major players in the market include TomTom International BV, ORBCOMM, MiX Telematics, Teletrac Navman US Ltd., Omnitracs, and Zonar Systems.

These companies are aggressively investing in R&D activities to develop novel telematics solutions in order to sustain in the highly competitive arena. Furthermore, off-highway equipment telematics solution providers are also emphasizing on strengthening their regional presence by collaborating with other players offering similar products and services. This strategy will help them augment their market presence and achieve a competitive advantage over their peers.

Material Handling Equipment Telematics Market Report Scope

Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global material handling equipment telematics market report based on product and region:

• Product Outlook (Revenue, USD Million, 2014 - 2025)

  • Aerial Work Platform

  • Forklift

    • Truck Mounted Forklift

    • Articulated Forklift

    • Side Loader

    • Other

  • Crane

    • Port Crane

    • Truck-mounted Crane

    • Others

  • Earthmoving Equipment

    • Spreader

    • Articulated Wheel Loader

    • Farm Implements

    • Road Work Vehicle

    • Self-propelling AG machine

    • Others

  • Truck

    • Military Vehicle

    • Trailer

    • Others

  • Tractor

    • Terminal Tractor

    • Tow Tractor

    • Others

  • Telehandler

  • Others

    • Sweeper & Scrubber

    • Personnel & Burden Carrier

    • Power Generation/Light Station

    • Others

• Regional Outlook (Revenue, USD Million, 2014 - 2025)

  • North America

    • The U.S.

    • Canada

  • Europe

    • U.K.

    • Germany

    • France

  • Asia Pacific

    • China

    • India

    • Japan

  • Latin America

    • Brazil

    • Mexico

  • Middle East & Africa