The Global Off-Highway Vehicle Telematics Market

The Global Off-Highway Vehicle Telematics Market is acomprehensive report from Berg Insight analysing the latestdevelopments on the market for telematics solutions used in theconstruction, mining, agriculture and forestry sectors.

This strategic research report from Berg Insight provides youwith 210 pages of unique business intelligence, including 5-yearindustry forecasts, expert commentary and real-life case studieson which to base your business decisions.

Highlights from this report:

Insights from 30 executive interviews with market-leadingcompanies.
Overview of the construction, mining, agriculture and forestrysectors.
Profiles of more than 30 equipment OEMs and their telematicsofferings.
Comprehensive overview of the off-highway vehicle telematicsvalue chain and key applications.
Summary of the latest industry trends and developments.
Market forecasts lasting until 2023.

This report answers the following questions:

Which are the main telematics systems offered by off-highwayvehicle manufacturers?
Which are the key off-highway vehicle telematics applications?
What business models are used by OEMs offering telematics?
Which equipment manufacturers have developed theirtelematics offerings in-house?
Which OEM telematics offerings are powered by telematicspartners?
How are aftermarket providers approaching the off-highwayvehicle telematics market?
How does the off-highway vehicle telematics market comparewith other commercial vehicle telematics markets?
How will the off-highway vehicle telematics market evolve in thefuture?

Executive summary

Berg Insight’s definition of the off-highway vehicle market includes various equipment such asspecialised heavy machinery, lighter equipment and other vehicles used in the construction,mining, agriculture and forestry sectors. Off-highway vehicle telematics refers to telematicshardware and associated software solutions deployed for remote monitoring andmanagement of fleets of machinery and equipment used in these sectors. Early initiativesamong the heavy equipment OEMs started to emerge already in the 1990s and manymanufacturers followed suit in the 2000s. Today, most equipment manufacturers haveintroduced some type of telematics offerings for their customers, either as a result of in-housedevelopment or through collaborative efforts involving third-party technology partnerspowering telematics solutions commonly under the OEMs’ brands. A wide range ofaftermarket providers have entered the off-highway vehicle telematics space, offeringsolutions for various assets including multi-brand equipment fleets. Solutions available on themarket enable the delivery of vehicle management, operator management and safetymanagement applications linking off-highway machines and enterprise IT systems.

Berg Insight estimates that the global installed base of active off-highway vehicle telematicssystems reached 3.3 million units in 2018. This includes connected units deployed on variousoff-highway vehicles across the construction, mining, agriculture and forestry sectors. Theconstruction sector accounts for the largest share, driven by OEM telematics systems offeredby heavy equipment manufacturers. Agriculture and mining moreover each account for asimilar number of connected units deployed on machines and vehicles used in agriculturaland mining operations respectively. The remainder is represented by the forestry sectorincluding telematics systems fitted to various forestry equipment. Growing at a compoundannual growth rate (CAGR) of 17.8 percent, the active installed base of off-highway vehicletelematics systems across all sectors is forecasted to reach 7.5 million units worldwide in2023. The North American market is estimated to be slightly larger than the European. TheRest of World is moreover estimated to represent more than half of the global installed baseof off-highway vehicle telematics systems.

The top-10 equipment manufacturers offering telematics together account for more than 70percent of the total number of off-highway vehicle telematics systems in use across theconstruction, mining, agriculture and forestry sectors globally. Berg Insight ranks Caterpillarand Komatsu as the leading off-highway vehicle telematics providers. Caterpillar is well on itsway to achieve its target of 1 million connected assets this year. Other major manufacturerswith installed bases of more than 100,000 units include Hitachi Construction Machinery, JCB,Deere & Company and Volvo Construction Equipment. Additional players having installedbases of off-highway vehicle telematics units in the tens of thousands include DoosanInfracore, Liebherr, CNH Industrial, CLAAS Group and Hyundai Construction Equipment.The aftermarket for off-highway vehicle telematics is expected to shrink as the equipmentmanufacturers continue to introduce standard fitment on additional machine models and atthe same time increase the length of free software subscriptions. Arguments such as theOEMs’ weak spot being the inability to adequately serve the needs of mixed multi-brand fleetsare becoming less valid thanks to initiatives such as the AEMP telematics standard whichmakes it possible for a fleet operator to collect data from different brands and manage it all inits software interface of choice. There are however promising opportunities for telematicsplayers that partner with the OEMs, either as end-to-end full-service providers or – in manycases maybe more realistically – working alongside OEM personnel to optimise thetelematics functionality. In addition to the standard-fitted systems and time-limitedsubscriptions commonly included for free, the telematics players can also benefit fromupselling of more advanced functionality. There are already several notable examples ofpartner-powered and co-developed offerings in the equipment OEM telematics space. In linewith trends noted in adjacent markets such as fleet management for commercial vehicles,Berg Insight anticipates that the partner strategy will continue to grow in popularity among theequipment manufacturers at the expense of in-house telematics development efforts. This canespecially be the case for equipment manufacturers that do not yet offer OEM telematics totheir customers. An increasing number of players such as vendors focused on on-roadvehicle fleet management are moreover expected to diversify into telematics for various offhighwayvehicles driven by the popularisation of the Internet of Transportation Things (IoTT).This enables customers to monitor and manage a wide range of diverse assets on the sameplatform.

Executive summary
1 The global off-highway vehicle market
1.1 Introduction
1.1.1 Off-highway vehicle manufacturers
1.2 The construction sector
1.2.1 Construction equipment
1.3 The mining sector
1.3.1 Mining equipment
1.4 The agricultural sector
1.4.1 Agricultural equipment
1.5 The forestry sector
1.5.1 Forestry equipment
2 Off-highway vehicle telematics technologies and solutions
2.1 Introduction
2.2 Off-highway vehicle telematics infrastructure
2.2.1 Vehicle segment
2.2.2 Positioning segment
2.2.3 Network segment
2.2.4 Backoffice segment
2.2.5 OEM/dealer segment
2.3 Off-highway vehicle management
2.3.1 Machine location tracking and status monitoring
2.3.2 Security tracking and intervention
2.3.3 Remote diagnostics, preventive maintenance and machine health prognostics34
2.3.4 Precision agriculture
2.4 Equipment operator management
2.4.1 Collection of operator-related data
2.4.2 Interaction with operators in the field
2.5 Safety management
2.5.1 Proximity detection and collision avoidance systems
2.5.2 Video-based monitoring solutions
2.5.3 Fatigue and distraction monitoring
2.6 Business models
3 Market forecasts and trends
3.1 Market analysis
3.1.1 Installed based and forecast
3.1.2 Regional markets
3.1.3 Vendor market shares
3.2 Market drivers and barriers
3.2.1 Macroeconomic environment
3.2.2 Regulatory environment
3.2.3 Competitive environment
3.2.4 Technology environment
3.3 Value chain analysis
3.3.1 Equipment industry players
3.3.2 Telematics industry players
3.3.3 Telecom industry players
3.3.4 IT and other industry players
3.4 Market trends
4 Construction and mining equipment manufacturers
4.1 Caterpillar
4.2 CNH Industrial
4.3 Deere & Company
4.4 Doosan
4.5 Epiroc
4.6 Hitachi Construction Machinery
4.7 Hyundai Construction Equipment
4.8 JCB
4.9 Komatsu
4.10 Liebherr
4.11 Sandvik
4.12 Volvo CE
4.13 Other manufacturers
4.13.1 Bell Equipment
4.13.2 BOMAG
4.13.3 JLG Industries
4.13.4 Kobelco
4.13.5 Kubota
4.13.6 Link-Belt and LBX (Sumitomo)
4.13.7 LiuGong
4.13.8 Mahindra & Mahindra
4.13.9 Manitowoc
4.13.10 Mecalac
4.13.11 SANY
4.13.12 Tadano
4.13.13 Takeuchi
4.13.14 Terex
4.13.15 Wacker Neuson
5 Agriculture and forestry equipment manufacturers
5.1 AGCO
5.2 CLAAS Group
5.3 CNH Industrial
5.4 Deere & Company
5.5 Krone
5.6 Kubota
5.7 Mahindra & Mahindra
5.8 Ponsse
5.9 SDF
5.10 Tigercat
List of Figures
Figure 1.1: Equipment OEMs and associated sectors
Figure 1.2: Construction spending by market (World 2018)
Figure 1.3: Sales of construction equipment (World 2010–2018)
Figure 1.4: Construction equipment sales by region (World 2018)
Figure 1.5: Examples of construction equipment types
Figure 1.6: Leading construction equipment manufacturers by market share (2017–2018)
Figure 1.7: Total minerals production by groups of commodities (1984–2016)
Figure 1.8: Examples of equipment used in the mining industry
Figure 1.9: Examples of underground mining equipment
Figure 1.10: The agribusiness value chain
Figure 1.11: Major crop production statistics (World 2017)
Figure 1.12: Examples of agricultural equipment
Figure 1.13: Agricultural tractor sales by region (World 2017)
Figure 1.14: Global production of forest products (2017)
Figure 1.15: Examples of forestry equipment
Figure 2.1: Off-highway vehicle telematics infrastructure overview
Figure 2.2: Examples of off-highway vehicle telematics hardware
Figure 2.3: Top mobile network operators by subscriber base (World Q1-2017)
Figure 2.4: Schematic off-highway vehicle telematics backoffice segment
Figure 2.5: Collision avoidance system display unit
Figure 3.1: Installed base by sector (World 2018–2023)
Figure 3.2: Installed base by region (World 2018–2023)
Figure 3.3: Top-10 manufacturers by off-highway vehicle telematics units (Q4-2018)
Figure 3.4: Mixed fleet telematics example enabled by ISO 15143-3 (AEMP 2.0) standard
Figure 3.5: Equipment OEM systems and associated telematics partners
Figure 3.6: Leica MCH100 Machine Monitoring device used for iCON telematics
Figure 3.7: Overview of the EquipmentShare Track mixed-fleet solution
Figure 3.8: Mobile operators by cellular IoT subscriber base (World Q4-2018)
Figure 3.9: ORBCOMM’s rugged PT 7000 device for heavy equipment telematics
Figure 3.10: ORBCOMM’s FleetEdge web application for heavy equipment management
Figure 3.11: Overview of AT&T Asset Management – Operations Center
Figure 3.12: Hardware used for AT&T Asset Management for equipment and machinery
Figure 4.1: Cat Product Link remote monitoring hardware device
Figure 4.2: VisionLink Unified Fleet interface
Figure 4.3: Overview of the Cat MineStar functionality
Figure 4.4: CASE SiteWatch web-based backoffice interface
Figure 4.5: Overview of John Deere WorkSight Technologies including JDLink
Figure 4.6: JDLink Dashboard web-based telematics user interface
Figure 4.7: Overview of John Deere’s dual approach to machine health monitoring
Figure 4.8: Schematic overview and functionality of DoosanCONNECT
Figure 4.9: Certiq telematics web portal
Figure 4.10: Epiroc’s Rig Control System (RCS)
Figure 4.11: Schematic overview of Hitachi Construction Machinery’s Global e-Service
Figure 4.12: Hitachi Construction Machinery’s ConSite Pocket app
Figure 4.13: Hitachi Construction Machinery’s Solution Linkage ICT/IoT-based solutions
Figure 4.14: Overview of Autonomous Haulage System (AHS)
Figure 4.15: Hyundai Construction Equipment’s Hi-MATE user interface
Figure 4.16: Hi-MATE Android app
Figure 4.17: JCB LiveLink machine capability matrix
Figure 4.18: Schematic overview of JCB LiveLink options for various equipment
Figure 4.19: Models and features of Komatsu’s remote monitoring system KOMTRAX
Figure 4.20: Schematic overview of Komatsu’s KOMTRAX machine tracking system
Figure 4.21: Komatsu’s KOMTRAX Plus mining equipment management system
Figure 4.22: Komatsu Forest’s MaxiFleet user interface
Figure 4.23: Komatsu Forest’s MaxiFleet agreement levels
Figure 4.24: MineWare’s mRoc Desktop
Figure 4.25: Schematic overview of Liebherr’s LiDAT fleet & plant management system
Figure 4.26: LiDAT packages and features
Figure 4.27: Sandvik’s OptiMine analytics and process optimisation suite
Figure 4.28: Sandvik’s AutoMine Lite for loading and hauling
Figure 4.29: Example of Volvo CE’s Fuel Report
Figure 4.30: Bell Equipment’s Fleetm@tic fleet management interface
Figure 4.31: BOMAG TELEMATIC web interface and iOS app interface
Figure 4.32: JLG’s ClearSky fleet management platform interfaces
Figure 4.33: Schematic overview of Kobelco’s KOMEXS remote monitoring system
Figure 4.34: Link-Belt Telematics portal – A1A Software’s iCraneTrax
Figure 4.35: LBX Company’s RemoteCARE telematics app
Figure 4.36: Manitowoc’s CraneSTAR powered by A1A Software’s iCraneTrax
Figure 4.37: Schematic overview of Tadano’s Hello-Net
Figure 4.38: Customised web portal for Terex powered by ORBCOMM
Figure 4.39: Genie’s telematics-ready connector and telematics device connector
Figure 5.1: Overivew of John Deere ForestSight Technologies including JDLink
Figure 5.2: John Deere’s TimberMatic Maps operator interface
Figure 5.3: Tigercat RemoteLog web interface

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