Construction Machinery Telematics Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The Construction Machinery Telematics Market is segmented by Machinery Type (Crane, Excavator, Telescopic Handling, Loaders and Backhoes and Other Machinery Types), by Sales Channel Type (OEM, Aftermarket), By Telematic Feature (Tracking, Diagnostic and Other Telematic Features (Fleet or Asset Management, etc.) and Geography.

Market Snapshot

construction machinery telematics market
Study Period: 2018-2027
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: Asia Pacific
CAGR: 11.97 %

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Market Overview

The construction machinery telematics market (henceforth, referred to as the market studied) is expected to register a CAGR of 11.97%, during the forecast period, 2020-2025.

  • The market studied is driven by the growing demand for machinery efficiency from consumers. The high surge in the usage of portable technology, such as smartphones and ADAS features, like proximity detection alerts and collision avoidance systems, in construction machinery has also boosted the adoption of telematics in construction machinery.The construction machinery telematics market is experiencing positive growth, as a result of heavy investments made in the smart residential and commercial buildings sector and government policies boosting the manufacturing sector.
  • However, complex features and additional price associations make the fleet operators reluctant to integrate the technologies into business processes.
  • Owing to the growing communications between construction machinery telematics system and ERP system, the threat of loss of information and privacy concerns is increasing.
  • Asia-Pacific is anticipated to witness the highest CAGR over the forecast period, followed by Europe and North America. Factors, such as the growing usage of portable devices and the presence of large number of construction machinery in the region, are likely to boost the Asia-Pacific construction machinery telematics market over the forecast period.

Scope of the Report

Construction machinery telematics is an electronic device unit, which provides real-time access to machines by tracking engine hours, providing mileage report alerts, and monitoring fuel consumption. Additionally, equipment management personnel can receive alerts through fault codes when something is wrong with a piece of equipment outfitted with electronic monitors.

The construction machinery telematics market study includes machinery type (crane, excavator, telescopic handler, loader and backhoe, and other machinery types), sales channel type (OEM, Aftermarket), telematic feature type (Tracking, Diagnostic and Other Telematic Features (Fleet or Asset Management, etc.) and Geography.

By Machinery Type
Telescopic Handling
Loader and Backhoe
Other Machinery Types
By Sales Channel Type
By Telematic Feature
Other Telematics Features (Fleet or Asset Management, etc.)
North America
United States
Rest of North America
United Kingdom
Rest of Europe
Rest of Asia-Pacific
Rest of the World
South America
Middle-East & Africa

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Key Market Trends

The Excavators Segment Dominated the Construction Machinery Telematics Market

The excavator segment of the market studied was valued at USD 2.87 billion in 2019.

  • Recently, comfort features from full-size machines are also seeping down into compact excavators. One of the major technologies that is making a leap in compact excavators are telematics. As a result, telematics systems are becoming more popular, among both the owner-operators and large fleet managers.
  • In the last decade, full-sized excavators adopted new technologies and features, such as telematics, which made them more productive and fuel efficient. The telematics technology provides fleet management, remote diagnostics, GPS tracking, and even safety. At present, most of the telematics users are operators of large-scale excavator fleets that rely on this data, in order to help manage their equipment and businesses more efficiently. One of the major advantage of using telematics in excavators is efficient active allocation. For instance, the generated data after analysis shows if an excavator is idling at site for too long and if other sites can utilize the idle equipment.
  • The companies are also launching new telematics technologies in their machineries. For instance, In May 2018, Doosan launched DoosanCONNECT, a new telematics management system for its crawler excavators (capacity greater than 10 metric ton), wheel loaders, material handlers, log loaders, and articulated dumptrucks (ADTs). The introduction of the new telematics system helped the company in increasing its presence, especially in the European and North American markets, as the web-based asset-management system now covers 60,000 of the company’s excavators, wheel loaders, and ADTs. In 2018, Komatsu started introducing “Intelligent Machine Control” concept to its lineup of excavators and bulldozers. The tool helps equipment to level, grade, and excavate to bulk out and trim complex 3D designs with high precision. Komatsu also introduced KOMATRAX with remote monitoring capabilities in the same year.

The Asia-Pacific Region is Expected to Continue to Capture a Major Share in the Future

Some of the major factors that may aid in driving the market studied are growing construction industry in the region, availability of a large number of heavy equipment, and the rising consumer base of mobile devices.

China produces about 30-40% of global demand for construction machinery, and local gaint Sany holds a 20-30% share in that market. Moreover during the first half of the year, excavator sales of the 25 local manufacturers jumped 24.8% from last year to 155,893, while foreign sales went up 17.8% year on year to 14,532. The market for excavators and other types of construction machinery is anticipated to strengthen in China over the forecast period. Government spending on technological development projects is the key reason for healthy sales of construction machinery telematics in recent years. In April 2020, the Chinese Ministry of Ecology and Environment (MEE) has published a draft of regulation for heavy-duty vehicle telematics (remote OBD, OBD III), which will be applicable to all China VI and China V heavy duty (HD) vehicles. Also these regulation defines three data platforms, data communication protocol between the platforms, and data security.

In India, significant allocation for the infrastructure sector in the 12th Five Year Plan and investment of USD 1 trillion are expected to create huge demand for construction equipment. The Indian government is further expected to increase its spending on public infrastructure, in order to meet its ambitious development plans. Furthermore, the government plans to create 100 smart cities, which is expected to boost the construction activity in the country and also increases the demand for construction machinery. Construction machinery contributes around 7% to 8% of country's GDP, and is expected to employ more than 3 million people in the country. It also accounts for more than 60% of the total infrastructural investment.


Competitive Landscape

Some of the major players dominating the market studied are Caterpillar, Komatsu, Hitachi, Hyundai, and Volvo Construction Equipment. Caterpillar Inc. captured the largest share of nearly 20%-30% of the market studied in 2019, and half the sales came from outside North America, majorly from Europe.

The construction machinery telematics market is becoming highly competitive, as the new companies are entering the market with the latest technological advancements in the telematics market.

Table of Contents


    1. 1.1 Study Assumptions

    2. 1.2 Scope of the Study




    1. 4.1 Market Drivers

    2. 4.2 Market Challenges

    3. 4.3 Industry Attractiveness - Porter's Five Forces Analysis

      1. 4.3.1 Bargaining Power of Suppliers

      2. 4.3.2 Bargaining Power of Consumers

      3. 4.3.3 Threat of New Entrants

      4. 4.3.4 Threat of Substitute Products

      5. 4.3.5 Intensity of Competitive Rivalry


    1. 5.1 By Machinery Type

      1. 5.1.1 Crane

      2. 5.1.2 Excavator

      3. 5.1.3 Telescopic Handling

      4. 5.1.4 Loader and Backhoe

      5. 5.1.5 Other Machinery Types

    2. 5.2 By Sales Channel Type

      1. 5.2.1 OEM

      2. 5.2.2 Aftermarket

    3. 5.3 By Telematic Feature

      1. 5.3.1 Tracking

      2. 5.3.2 Diagnostic

      3. 5.3.3 Other Telematics Features (Fleet or Asset Management, etc.)

    4. 5.4 Geography

      1. 5.4.1 North America

        1. United States

        2. Canada

        3. Rest of North America

      2. 5.4.2 Europe

        1. Germany

        2. United Kingdom

        3. France

        4. Italy

        5. Rest of Europe

      3. 5.4.3 Asia-Pacific

        1. China

        2. India

        3. Japan

        4. Rest of Asia-Pacific

      4. 5.4.4 Rest of the World

        1. South America

        2. Middle-East & Africa


    1. 6.1 Vendor Market Share

    2. 6.2 Company Profiles

      1. 6.2.1 Komatsu Ltd

      2. 6.2.2 Caterpillar Inc.

      3. 6.2.3 Volvo Construction Equipment

      4. 6.2.4 JCB

      5. 6.2.5 Hitachi Construction Machinery Co. Ltd

      6. 6.2.6 CNH Industrial NV

      7. 6.2.7 Deere & Company

      8. 6.2.8 Hyundai Construction Equipment

      9. 6.2.9 Liebherr Group

      10. 6.2.10 Doosan Infracore Ltd

      11. 6.2.11 ACTIA Group

      12. 6.2.12 Geotab

      13. 6.2.13 Trimble Inc.

      14. 6.2.14 Orbcomm

      15. 6.2.15 Octo Telematics



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Frequently Asked Questions

The Construction Machinery Telematics Market market is studied from 2018 - 2026.

The Construction Machinery Telematics Market is growing at a CAGR of 11.97% over the next 5 years.

Asia Pacific is growing at the highest CAGR over 2021- 2026.

Asia Pacific holds highest share in 2020.

Caterpillar Inc., Komatsu Ltd, Hyundai Construction Equipment, Hitachi Construction Machinery Co. Ltd, Volvo Construction Equipment are the major companies operating in Construction Machinery Telematics Market.

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