Off-highway Vehicle (OHV) Telematics Market Outlook 2031
The global off-highway vehicle (OHV) telematics market size was USD 0.37 Billion in 2022 and is likely to reach USD 1.53 Billion by 2031, expanding at a CAGR of 16.8% during 2023–2031. The market is driven by the increasing awareness of safety and operational efficiency across the globe.
Rapid industrial expansion across various regions is projected to impel the market during the assessment period. Over the years, significant efforts have been made by numerous countries to develop their supply & distribution networks, build infrastructure, increase mining activities, and develop efficient agricultural practices. Therefore, the requirement for off-highway vehicles has also increased.
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According to a survey conducted in May 2023, the revenue generated by the uppermost 40 global mining companies was USD 943 billion in 2022. The production in mining & quarrying is estimated to reach 16,020 billion kg in 2023.
The off-highway vehicle telematics offer improved operational efficiency and accurate data on performance and maintenance needs. Additionally, they play a vital role in enhancing safety by monitoring vehicle and equipment conditions. These factors are likely to increase their adoption in the mining, construction, and agriculture industries, thereby fueling the market during the projection period.
The COVID-19 pandemic hindered the market, due to the transportation restrictions imposed by several regulatory bodies and governments all across the globe. The import-export was disrupted and even the mining activities were halted, due to the absence of workers during this period. This led to a decline in the demand for off-highway vehicle (OHV) telematics, thereby causing a market slowdown.
Impact of Artificial Intelligence (AI) in the Off-highway Vehicle (OHV) Telematics Market
The use of artificial intelligence is likely to provide substantial propulsion to the off-highway vehicle (OHV) telematics market. It offers predictive maintenance capabilities, utilizing machine learning algorithms to analyze data. This helps in predicting potential equipment failure, thereby effectively curbing the downtime. Therefore, the incorporation of AI in OHV telematics is projected to boost the market in the coming period.
Off-highway Vehicle (OHV) Telematics Market Dynamics
Major Drivers
Growing emphasis on safety and security is expected to drive the market during the projection period. Industries such as mining, construction, and agriculture rely heavily on off-highway vehicles that pose significant risks to workers.
These risks arise from working with heavy machinery and operating in challenging environments. Businesses have accepted the significance of implementing telematics solutions that enhance safety measures to mitigate these risks and ensure compliance with safety regulations. Moreover, the increasing use of off-road electric vehicles is projected to boost the market during the assessment period.
Existing Restraints
High cost of initial investment is likely to hamper the market during the forecast period. Telematics technology involves the installation of specialized hardware such as GPS tracking devices and sensors in each off-highway vehicle.
This hardware is accompanied by the setup of data communication infrastructure and the implementation of fleet management software. The cost of this equipment and software licenses is substantial, especially for businesses with large fleets.
Emerging Opportunities
Incorporation of advanced technologies is anticipated to provide substantial growth opportunities for the market. Providers of telematics solutions are voraciously exploring ways to incorporate the latest technologies such as Artificial Intelligence (AI), the Internet of Things (IoT), and data analytics.
Integrating with the industrial Internet of Things (IIoT) permits telematics systems to capture a broad range of real-time data beyond standard data collection and vehicle tracking. Telematics capture equipment health, environmental conditions, and material levels data by connecting off-highway IoT-enabled devices and sensors to vehicles.
Scope of the Off-highway Vehicle (OHV) Telematics Market Report
The market report includes an assessment of the market trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Off-highway Vehicle (OHV) Telematics Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2022
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Historic Data
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2016–2021
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Forecast Period
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2023–2031
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Segmentation
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Technology (Satellite and Cellular), Sales Channel (OEM and Aftermarket), End-use Application (Construction, Mining, and Agriculture)
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, Market Trends, and Revenue Forecast
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Key Players Covered in the Report
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Bridgestone Corporation; Caterpillar; Deere & Company; HARMAN International; Hitachi Construction Machinery Co., Ltd.; J C Bamford Excavators Ltd.; Komatsu Ltd.; ORBCOMM; TomTom International BV; Trackunit Corporation; Navistar, Inc.; and Zonar Systems, Inc.
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Off-highway Vehicle (OHV) Telematics Market Segment Insights
Technology Segment Analysis
Based on technology, the off-highway vehicle (OHV) telematics market is divided into satellite and cellular. The cellular segment is projected to hold the major share of the market during the projection period, due to the high demand for real-time data monitoring and communication capabilities in heavy machinery.
Industries are prioritizing safety and efficiency. Therefore, there is an increasing adoption of cellular telematics solutions across the industries, as they offer numerous advantages, including remote diagnostics, predictive maintenance, and seamless connectivity with the help of wireless technology. This is projected to fuel the growth of this segment during the assessment period.
Sales Channel Segment Analysis
Based on sales channel, the global market is segregated into OEM and aftermarket. The OEM segment is projected to register a high CAGR during the forecast period, as several manufacturers are directly integrating advanced telematics solutions into their machinery. This has been a result of the increasing demand for operational efficiency, comprehensive data analytics, and predictive maintenance for off-highway vehicles.
This is resulting in a shift towards the increasing use of smart and connected vehicles with embedded telematics features. Consequently, the segment is likely to experience significant spur in the years to come.
End-use Application Segment Analysis
On the basis of end-use application, the off-highway vehicle (OHV) telematics market is segmented into construction, mining, and agriculture. The construction segment is anticipated to register a robust growth rate during the forecast period, as it allows real-time insight into the construction equipment performance. It helps in minimizing downtime and allows for proactive maintenance.
Telematics systems provide accurate data on equipment usage, fuel consumption, and location. With the expansion of the construction industry in the developed and developing regions, the segment is anticipated to have considerable propulsion in the coming period.
The mining segment is anticipated to expand at a significant pace in the market, owing to the increasing adoption of telematics solutions in recent years. It helps enhance operational efficiency and safety in mining operations. The use of telematics helps with improved fleet management, preventive maintenance, and optimized productivity.
There is a rise in requirement for various raw materials, metal ores, and minerals, with the industrial expansion in several regions across the globe,. Consequently, the segment is likely to have significant growth in the coming years.
Regional Outlook
In terms of region, the global off-highway vehicle (OHV) telematics market is classified as Asia Pacific, North America, Latin America, Europe, and the Middle East & Africa. North America is expected to dominate the market during the projection period, due to the increasing demand for advanced fleet management and safety solutions across industries such as mining & construction.
This region has an excellent industrial infrastructure and technological advancements at its disposal. Furthermore, the presence of several key market players is also projected to fuel the market during the forecast period.
The market in Asia Pacific is likely to experience substantial propulsion during the forecast period, owing to the expanding construction and mining industries in this region. There has been a rise in infrastructure development in countries such as India and China in recent years.
The governments of several countries are taking initiatives to promote digitization and safety measures in off-highway vehicle operations. These factors are likely to create profitable projections for the market in the coming years.
Segments
The off-highway vehicle (OHV) telematics market has been segmented on the basis of
Technology
Sales Channel
End-use Application
- Construction
- Mining
- Agriculture
Region
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
Competitive Landscape
Key players competing in the global off-highway vehicle (OHV) telematics market are Bridgestone Corporation; Caterpillar; Deere & Company; HARMAN International; Hitachi Construction Machinery Co., Ltd.; J C Bamford Excavators Ltd.; Komatsu Ltd.; ORBCOMM; TomTom International BV; Trackunit Corporation; Navistar, Inc.; and Zonar Systems, Inc.
These companies implement numerous development strategies such as product launches, mergers, partnerships, collaboration, acquisitions, and production expansion to get an edge over the competitors. For instance,
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In March 2022, Navistar, Inc, one of the prominent market players, announced that all new builds of Class 6-8 International Trucks and IC Bus vehicle product portfolios are to come with factory-installed telematics devices, including electric models. This provides stakeholders with access to actionable vehicle data and improved capabilities with industry partners.
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