Revving Up Profits: Exploring Opportunities in the Off-Highway Vehicle Telematics
Off-highway vehicle telematics is an evolving field that offers various market growth opportunities for businesses and organizations operating in the mining, construction, agriculture, and forestry industries. Telematics technology allows companies to monitor and manage their fleets more effectively by, reducing costs, and increasing profitability. In this blog, we are going emphasize on market growth opportunities in off-highway vehicle telematics.
Rising demand for construction and mining equipment
The mining and construction industries are expected to grow significantly in the coming years. According to Future Market Insights, the global construction industry is expected to grow by 4.6% per year between 2023 and 2028. The global mining industry is anticipated to grow by 3.90% per year over the same period. The rising demand for mining and construction equipment is creating numerous opportunities for off-highway vehicle telematics, as companies seek to increase the performance and maintenance of their fleets.
Adoption of IoT and AI technologies
The rising adoption of AI (Artificial Intelligence) and IoT (Internet of Things) technologies is another factor fuelling the demand for off-highway vehicle telematics. IoT technology allows devices to communicate with each other and exchange data, while AI technology can do data analysis of huge amounts of data and provide insights that allow businesses to make strategic decisions. The incorporation of AI and IoT technologies into off-highway vehicle telematics allows companies to manage their fleets more effectively, identify areas that need improvement, and optimize vehicle usage.
Government regulations regarding emissions and fuel efficiency are also expected to propel growth in off-highway vehicle telematics. Governments around the world are implementing regulations that require companies to decrease emissions and reduce fuel consumption in their fleets. The growing focus on sustainability is further expected to create a significant market opportunity for off-highway vehicle telematics.
Thriving agriculture and forestry industries
The forestry and agriculture industries are also anticipated to flourish with sizeable growth over the next few years. According to the analysis, the global agriculture equipment market is estimated to grow by 6.39% per year between 2023 and 2028, while the forestry equipment market is projected to grow by 4.4% per year during the same period. Telematics can be used to track the speed, location, and activities of vehicles, which can help farmers increase their crop yield. The data collected by telematics can help farmers decide the ideal time to plant and harvest crops, monitor irrigation, and identify field areas that need attention.
Telematics is a combination of telecommunication technologies and informatics. Off-highway vehicle (OHV) telematics is an integrated use of information and communication with telecommunications technology. It is the technology of sending, receiving, and storing information pertaining to off-highway vehicles through telecommunication devices.OHV telematics business has been witnessing rapid change over the past few years with advancements in the internet, cell phones, and GPS (global positioning system) receivers. GPS receivers and GSM devices are installed in each OHV, which communicates with the user and web-based software.
The associated technology and solutions with the off-highway vehicle telematics market act as go-to solution for enhancing the total cost of ownership, mainly in specific segments such as mining, construction, industrial, and agricultural equipment, which, in turn, drive the growth of the market worldwide. Among all the above-mentioned segments, the mining industry is expected to provide the maximum potential in the near future as it creates space for technological innovation and advancement. Hence, the demand for OHV solutions would increase over the next six years. Moreover, government regulations and standardizations would boost the OHV telematics market, resulting in a growing installation base. In the next six years, the global market for off-highway hybrid commercial vehicles is expected to grow significantly at a high CAGR of around 70%.
The key players in the OHV telematics market include Caterpillar Inc., Daimler AG, General Motors Co., Omnitracs, MiX Telematics, Telogis, Verizon, Masternaut, AB Volvo, Orvcomm, and TomTomNV. Participants in this market follow the strategy of acquisitionsand mergers to enhance their market share and customer base. Moreover, OEMs dealing in heavy equipment are going into strategic partnerships with aftermarket vendors to develop advanced solutions. For example, in 2013, Telogis signed an agreement with Manitowoc Company Inc.to develop OHV solutions.