Market Overview:
Off-highway vehicle (OHV) telematics systems are used to monitor the performance and track heavy machinery such as earthmovers, excavators, and loaders used in construction and mining applications. OHV telematics collects data on location, fuel consumption, engine diagnostics, operator behavior and machine performance to optimize fleet operations. Real-time monitoring of OHV performance helps reduce downtime and maintenance costs. The data gathered also helps improve operation efficiency and reduce fuel wastage.
The global Off-highway Vehicle (OHV) Telematics Market is estimated to be valued at US$ 488.3 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The growing adoption of Internet of Things (IoT) in construction and mining industries is a major trend fueling the growth of OHV telematics market. IoT enabled telematics systems provide real-time visibility of remote worksites and heavy equipment. This allows fleet managers to make timely decisions regarding repairs, maintenance scheduling and optimize route planning. Furthermore, the demand for real-time machine diagnostics is prompting OHV manufacturers to offer telematics as standard or optional feature. Analytics capabilities of OHV telematics also help evaluate operator performance and detect unsafe driving behaviors to improve safety. The development of 5G network infrastructure will further support high bandwidth applications of OHV telematics.
Porter’s Analysis
Threat of new entrants: Low barriers to entry due to availability of low cost technologies. However, established players have strong brand image and distribution networks.
Bargaining power of buyers: Large fleet owners have high bargaining power due to bulk purchase volumes. Small buyers have less bargaining power.
Bargaining power of suppliers: A few large suppliers exist for key components like GPS modules and connectivity devices. This gives them some bargaining power over manufacturers.
Threat of new substitutes: Alternatives like equipment monitoring without telemetry exist. However, telemetry provides richer analytics for improving efficiency.
Competitive rivalry: Intense competition among major players to gain market share through new solutions and partnerships. Price wars can affect margins.
Key Takeaways
The Global Off-Highway Vehicle (OHV) Telematics Market Size is expected to witness high growth, exhibiting 16% CAGR over the forecast period, due to increasing demand for real-time equipment monitoring and predictive maintenance of agricultural and construction vehicles. Rising adoption of telematics solutions enables fleet managers to track key parameters, optimize fuel efficiency, prevent downtime and reduce operating costs.
The North America region currently dominates the OHV telematics market owing to high vehicle penetration andtechnological advancements. Government mandates regarding vehicle safety and efficiency also support market growth. However, Asia Pacific is expected to witness the highest growth rate during the forecast period with increasing mechanization of farms and rising infrastructure projects in countries such as China and India.
Key players operating in the Off-highway Vehicle (OHV) Telematics market are TomTom International BV, Zonar Systems Inc., Harman International Industries Inc., Bridgestone Europe NV/SA, Trackunit A/S, ORBCOMM Inc., Omnitracs LLC, Topcon Corporation, Navman Wireless, Wacker Neuson SE, and MiX Telematics Limited, Stoneridge, Inc. Major players are focusing on partnerships to expand offerings and global footprint. For instance, ORBCOMM partners with local GSM network operators for connectivity in international markets.
*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it