New report says construction industry to retain dominance in off-highway vehicle telematics
Off-highway vehicle telematics have witnessed a surge in demand in various sectors attributed to comfortable, controlled, and monitored driving. The global off-highway vehicle telematics market is expected to expand at a CAGR of 8.9% in terms of revenue from 2016 to 2026 according to a report by Future Market Insights.
According to the study, growth of the global off-highway vehicle (OHV) telematics market is influenced by a number of factors such as the recovering construction industry, increasing demand for precision agriculture, focus on operational excellence in the mining industry, and government policies to increase safety and security of off-highway vehicles.
Key trends observed in the global OHV telematics market are collaboration between OEMs and telematics service providers, adoption of dual-mode service option for M2M communication, reduction in the cost of telematics services, and high adoption of telematics by rental equipment companies.
On the basis of end-use application, the global OHV telematics market is segmented into construction, agriculture, and mining. The construction segment is estimated to account for 62.4% value share of the market in 2015.
By technology, the global OHV telematics market is segmented into cellular and satellite. The cellular segment is expected to be the preferred technology, because of its ease of availability, and to register a CAGR of 9.0% over the forecast period.
Social media integration, such as automatic GPS location tracker, enables vehicles to update followers on Facebook and Twitter regarding the current location of the vehicles. Such factors will enable vehicles to cater to the needs of customers and earn loyalty.
The New Federal Motor Carrier Safety Administration requirements are compelling the telematics industry to focus on compliance and performance management. Such factors have fueled adoption of off-highway vehicle telematics in their vehicles by various organizations. Furthermore, the off-highway vehicle telematics market enables end users to monitor and manage requirements such as driver vehicle inspection reports, hours of services, and fuel taxes that will enable fleets to improve and maintain safety, accountability, and compliance.
On the basis of sales channel, the global OHV telematics market is segmented into OEM and aftermarket. The OEM segment is estimated to register a CAGR of 9.4% in terms of value over 2016–2026. End users generally prefer telematics services provided by OEMs compared with those provided by aftermarket telematics service providers. OEMs collaborate with telematics companies to offer enhanced services to end users and gain competitive advantage in the long term. OEMs such as JCB, Caterpillar, Komatsu, and Volvo offer their own telematics services: LiveLink, CAT Product Link, KOMTRAX, and CareTrack, respectively.
Among various regions, North America dominated the market with a share of 66.8% in 2015, followed by APEJ, Japan, and Western Europe. Additionally, Latin America will witness relatively high CAGR, followed by Japan. Moreover, due to surge in demand for mining, construction, and agriculture in Latin America and Japan, the market in the respective regions will witness high CAGR growth over the following decade.
Key players in the global OHV telematics market include TomTom International, Harman International, ORBCOMM Inc., Topcon Corporation, MiX Telematics, Navman Wireless, Omnitracs LLC, Wacker Neuson, Trackunit A/S, and Zonar Systems Inc. These key players collaborate with other companies in the supply chain or acquire them to enhance their product offerings in the market. For example, in January 2016, Harman International acquired TowerSec, a cybersecurity provider, to integrate cybersecurity architecture into its infotainment systems. These companies are also acquiring their local rivals; for example, in January 2016, TomTom International acquired Finder SA, a leading fleet management service provider in Poland.
Overall, the construction industry will benefit from the off-highway vehicle telematics market over the next ten years. This is primarily attributed to GPS-based technology, which enables vehicles operating for various industries to track and monitor location. Furthermore, attributed to benefits of telematics, the end users can track the unknown routes, monitor the driving pace, and ensure security, allowing project managers to meet deadlines on time.
For more information, visit http://www.futuremarketinsights.com/reports/ohv-telematics-market.