The adoption of telematics systems in construction is gaining traction, with the installed base of active systems exceeding 6.8 million.
IoT market research provider Berg Insight forecasts a compound annual growth rate (CAGR) of 12.0 percent for the active installed base, which is set to almost double to 12.1 million units worldwide by 2028.
The figures encompass all construction equipment telematics solutions offered by OEMs, whether developed in-house or supplied through partnerships with third-party telematics providers.
A regional breakdown reveals an estimated 900,000 active telematics systems in Europe as of 2023, with the North American market surpassing Europe in size. However, the bulk of the global installed base – more than 50 percent – comes from the “Rest of the World,” which reflects surging adoption in emerging construction markets.
Telematics systems becoming the norm
Telematics systems, which leverage hardware, software, and connectivity to better monitor machinery and improve operational efficiency, have increasingly become a standard offering by major construction equipment OEMs.
Rickard Andersson, Principal Analyst at Berg Insight, said: “OEM telematics systems are today commonly factory-installed as standard at least for heavier machines and increasingly also for compact equipment.”
Andersson highlights how telematics technologies are changing the construction industry by offering fleet managers and operators data-driven insights that improve machine utilisation, predict maintenance needs, enhance safety, and lower operational costs.
Construction industry telematics leaders
The report identifies Caterpillar as the market leader in construction equipment telematics. With well over 1 million connected assets globally in the construction equipment segment alone, Caterpillar cements its position not only as the leading telematics provider but also as the largest construction equipment manufacturer worldwide by market share.
“Based in the US, Caterpillar’s largest markets for its telematics offerings are North America and Europe,” added Andersson, reflecting the company’s stronghold in developed markets.
Trailing Caterpillar are SANY and Komatsu, key players in the Chinese and Japanese construction industries respectively. Both maintain significant telematics-enabled fleets in their domestic markets, with Komatsu also holding notable shares of installations in regions such as North America, Europe, and China.
Other prominent contributors to the telematics boom include Swedish manufacturer Volvo Construction Equipment and Chinese companies XCMG and Zoomlion. Japan-based Hitachi Construction Machinery and the UK’s JCB boast active telematics bases numbering in the hundreds of thousands.
American manufacturers Deere & Company, HD Hyundai, and Doosan Bobcat have each surpassed the milestone of 100,000 active units.
Emerging construction telematics players
Several OEMs with smaller but growing telematics installations are also making headway. Companies such as Liebherr, Terex, JLG Industries, CNH Industrial, and Tadano have established active telematics fleets numbering in the tens of thousands as reported in Berg Insight’s findings.
The expanding adoption of telematics systems reflects a broader shift in the construction sector towards increased digitalisation and data utilisation.
As competition intensifies, an increasing number of OEMs are likely to invest in either developing robust in-house telematics solutions or forging partnerships with specialised third-party vendors to meet rising customer expectations.
As the construction industry continues to embrace IoT technologies, telematics systems are playing an ever-more critical role in driving productivity, efficiency, and sustainability. With the global installed base of construction equipment telematics systems expected to surpass 12 million in the next five years, these solutions are poised to transform the industry landscape, enabling operators worldwide to harness the power of data.
For OEMs, the opportunity is clear: those with the most advanced and integrated telematics systems will be best-positioned to boost customer loyalty and expand market share in an increasingly competitive space.
As Berg Insight’s research highlights, the construction industry’s digital transformation is well underway, and the evolution of telematics technology will be central to shaping its future.
(Photo by Mika Baumeister)
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