Global Material Handling Equipment (MHE) Telematics Market Size, Trend & Opportunity Analysis Report, By Equipment Type (Forklifts, Cranes, Automated Guided Vehicles (AGVs), and Others), By Solution (Asset Tracking, Fleet Management, Predictive Maintenanc

The global material handling equipment (MHE) telematics market size was valued at USD 6.16 billion in 2024. The market is projected to grow from USD 7.05 billion in 2025 to USD 36.28 billion by 2035, exhibiting a CAGR of 17.8% during the forecast period. Europe dominated the global market with a share of 39.44% in 2024. Telematics, a multidisciplinary field integrating telecommunications, vehicular t technologies, electrical engineering, and computer science, plays a pivotal role in modern industrial operations. In the context of MHE, telematics systems are typically installed in equipment such as forklifts, industrial trucks, and powered access tools. These systems allow warehouse and fleet managers to enhance safety, streamline productivity, ensure compliance with regulations, and effectively manage assets. Forklift Telematics in particular has become a cornerstone for managing industrial fleets. Using GPS, wireless connectivity, and telemetry, these systems offer real-time tracking of vehicle location, monitor operator behaviour (e.g., speed and movement), and provide alerts for maintenance and servicing. This results in more efficient operations, better equipment utilization, and longer equipment life cycles.

The market's growth is largely fuelled by the rapid adoption of automation, technological innovations, and the expansion of industrial fleets. According to a 2024 survey by BlueBiotics, a vehicle automation company, nearly 91% of respondents indicated plans to extend their use of Autonomous Mobile Robots (AMRs) or Automated Guided Vehicles (AGVs). Telematics systems play a critical role in AGVs by enabling predictive maintenance, real-time diagnostics, and enhanced navigation capabilities.

Recent Developments in the Industry

In December 2024, Mahindra unveiled its new CEV5 range of construction equipment at the Bauma Conexpo 2024 exhibition. This latest offering includes upgraded RoadMaster and EarthMaster models that meet CEV5 compliance, featuring advanced telematics systems and enhanced operator cabins.

In October 2024, ZAPI GROUP announced the acquisition of UBIQUICOM, a prominent Real-Time Locating Systems (RTLS) provider for manufacturing, transportation, and logistics. This strategic acquisition enhances ZAPI for improved access to robust automation solutions that promote efficiency and safety in material handling operations.

Market Dynamics

Growth Drivers of the MHE Telematics Market

The Material Handling Equipment (MHE) Telematics market is primarily driven by rapid advancements in IoT, GPS, and connectivity technologies. These systems offer real-time equipment monitoring, predictive maintenance alerts, and enhanced visibility across industrial operations. The growing demand for automation in logistics and warehousing—particularly through autonomous mobile robots (AMRs) and automated guided vehicles (AGVs)—is further propelling telematics adoption. Additionally, the focus on improving fleet safety and operational efficiency encourages fleet managers to invest in smart systems that monitor operator behaviour, reduce downtime, and ensure regulatory compliance.

Restraints Impacting Market Growth

Despite its potential, the high initial cost of deploying telematics solutions poses a significant barrier, especially for small and medium-sized enterprises. Implementation involves not just the purchase of hardware and software, but also installation charges and ongoing subscription fees. Furthermore, integrating telematics systems into existing fleet management tools and IT infrastructure can be technically challenging and time-consuming. These integration complexities may discourage companies with limited technical resources or budgets from adopting the technology.

Attractive Opportunities in the Market

Integration with AI and Machine Learning: There is significant opportunity to enhance telematics systems using AI to enable predictive maintenance, fault detection, and intelligent route optimization.
Automation Trend in Warehousing: Increasing use of automated guided vehicles (AGVs) and autonomous mobile robots (AMRs) presents opportunities for advanced telematics to support navigation and diagnostics.
Government Support for Smart Infrastructure: Policies supporting smart logistics, digital transformation, and industrial automation will further boost adoption of MHE telematics solutions.
Custom Analytics and Insights: Businesses are seeking advanced analytics from telematics data for decision-making, creating demand for customizable, insight-driven platforms.
Sustainability and ESG Compliance: Companies are under pressure to reduce emissions and meet environmental goals. Telematics can help monitor fuel usage and equipment efficiency, making it a valuable tool for sustainability reporting.

Smart Telematics and IoT Integration Usher in a New Era for the Global MHE Market

The global Material Handling Equipment (MHE) Telematics Market is witnessing a technological revolution, driven by the growing adoption of IoT and advanced telematics solutions. These innovations are transforming traditional material handling operations into intelligent, data-driven systems. Real-time equipment monitoring, predictive maintenance, and AI-based performance analytics are enabling companies to optimize fleet efficiency and reduce operational costs.

With industries increasingly relying on automated warehouses and logistics hubs, telematics systems are playing a vital role in ensuring seamless operations. Connected forklifts, AGVs, and cranes are now monitored remotely through centralized platforms, helping fleet managers track performance, improve safety standards, and make real-time decisions. This digital shift is reshaping how material handling systems are managed across manufacturing, logistics, retail, and distribution sectors.

Advanced Fleet Automation and Predictive Insights Drive Growth in the MHE Telematics Market

The Material Handling Equipment (MHE) Telematics Market is rapidly expanding as industries seek smarter ways to manage their fleets and warehouse equipment. Cutting-edge telematics solutions—such as cloud-based dashboards, mobile apps, and GPS-enabled tracking—are equipping fleet managers with the tools to monitor performance, enforce safety protocols, and minimize downtime.

Telematics not only enables real-time communication between managers and operators but also provides predictive diagnostics that reduce maintenance costs and equipment failures. As the demand for scalable and efficient material handling solutions grows—especially in sectors like e-commerce, manufacturing, and food logistics—the integration of intelligent telematics platforms is becoming a key driver of market growth.

Digital Transformation of Material Handling Through Telematics Set to Revolutionize Industrial Operations

The global MHE telematics market is experiencing a paradigm shift as industries embrace digital transformation to improve productivity, safety, and cost-efficiency. Telematics technologies—powered by IoT, AI, and cloud computing—are enabling real-time equipment tracking, fleet diagnostics, and automated reporting, all of which are crucial in high-speed warehouse and logistics operations.

This transformation allows industrial operators to proactively manage equipment health, track location and usage patterns, and respond instantly to operational disruptions. The ability to integrate telematics systems with enterprise software enhances overall supply chain transparency and decision-making. As businesses prioritize lean operations and asset optimization, MHE telematics is fast becoming an indispensable tool in the modern industrial ecosystem.

Report Segmentation

By Equipment Type: Forklifts, Cranes, Automated Guided Vehicles (AGVs), Others

By Solution: Asset Tracking, Fleet Management, Predictive Maintenance, and Operational Analytics

By End-use: Manufacturing, Logistics & Warehousing, Automotive, Construction

By Region: North America (U.S., Canada, Mexico), Europe (UK, Germany, France, Spain, Italy, Rest of Europe), Asia Pacific (China, India, Japan, Australia, South Korea, Rest of Asia Pacific), LAMEA (Latin America, Middle East, and Africa)

Key market Players

Power fleet, Toyota Industries Corporation, Motion2AI, Inc., Crown Equipment Corporation, MHS Lift, Apex MHC, Telenor, Hyster-Yale Materials Handling, Inc., Clear Telematics, Abbey Attachments

Key Takeaways

Technological Advancements Fuel Market Growth-The integration of IoT, AI, and real-time data analytics is transforming traditional material handling operations into intelligent, automated, and highly efficient systems.
Smart Logistics and Automation are Game-Changers-Advanced telematics tools are enabling centralized monitoring, predictive maintenance, and remote fleet management, streamlining supply chain operations across industries.
Remote Access Improves Fleet Visibility and Safety-With the help of cloud-based platforms and mobile apps, fleet managers can track vehicle performance, location, and safety compliance in real-time—anytime, anywhere.
High Initial Investment May Limit Adoption-Upfront costs for telematics hardware, installation, and software subscriptions remain a concern for small and cost-sensitive enterprises, potentially slowing adoption in the short term.
Complex System Integration is a Key Challenge-Ensuring seamless compatibility between telematics systems and existing IT infrastructure poses implementation challenges, especially for businesses using legacy systems.
Booming E-commerce and Industrial Automation to Drive Demand-Rising demand from sectors such as e-commerce, logistics, manufacturing, and warehousing is accelerating the adoption of MHE telematics globally.

Regional Insights

North America Leads the MHE Telematics Market with Strong Technological Backbone and Industry Adoption

In 2024, North America dominated the global material handling equipment (MHE) telematics market, capturing a substantial 46.1% revenue share. This leadership position is largely attributed to the region’s advanced technological infrastructure, including robust IT systems and widespread high-speed internet connectivity, which support the seamless deployment of telematics solutions. Companies across the region are increasingly leveraging these technologies to boost operational efficiency, cut down on costs, and uphold stringent safety standards in their material handling operations. Furthermore, the strong presence of key industry players and consistent investments in research and development are further strengthening North America’s position at the forefront of the global MHE telematics market.

Asia Pacific Material Handling Equipment Telematics Market Trends

APAC material handling equipment telematics market is expected to grow at the fastest CAGR over the forecast period due to rapid industrialization and significant investments in infrastructure development across the region. Countries such as China and India are experiencing a surge in construction projects driven by government initiatives aimed at improving transportation networks and urban infrastructure. In addition, the booming e-commerce sector is fuelling the need for efficient logistics and supply chain management, further driving the adoption of telematics systems. These systems enable businesses to optimize their operations by providing real-time data on equipment performance and location tracking.

Europe Material Handling Equipment Telematics Market Trends

The Europe material handling equipment telematics market is expected to grow significantly over the forecast period, due to technological advancements in telematics systems, including GPS and IoT integration, enhance operational efficiency by enabling real-time data monitoring and predictive maintenance. This allows businesses to optimize their equipment usage and reduce downtime, which is crucial in competitive environments. For instance, automated guided vehicles (AGVs) equipped with telematics can predict maintenance needs, thus preventing costly breakdowns. Furthermore, stringent regulatory compliance regarding safety standards compels companies to adopt telematics solutions that ensure adherence while enhancing productivity.

Report Aspects

Base Year: 2024
Historic Years: 2022, 2023, 2024
Forecast Period: 2025-2035
Report Pages: 293

Core Strategic Questions Answered in This Report

Q. What is the expected growth trajectory of the global Material Handling Equipment (MHE) Telematics Market from 2025 to 2035?

The global material handling equipment (MHE) telematics market is valued at USD 7.05 billion in 2025 and is projected to surge to USD 36.28 billion by 2035, growing at a robust compound annual growth rate (CAGR) of 17.8% during the forecast period. This strong trajectory is fuelled by the growing adoption of smart technologies across warehousing, logistics, and industrial sectors. Telematics—an interdisciplinary field combining telecommunications, vehicle technology, electrical engineering, and computer science—plays a critical role in modernizing material handling operations. In the context of MHE, telematics systems are commonly installed in forklifts, industrial trucks, and powered access equipment, allowing for intelligent tracking, monitoring, and management of industrial assets. These systems enable fleet and warehouse managers to enhance safety, improve operational efficiency, maintain regulatory compliance, and reduce maintenance costs. Through GPS tracking, wireless data transfer, and telemetry integration, operators can monitor equipment in real-time, analyse driver behaviour, and receive automated alerts for maintenance and servicing needs. Forklift telematics, in particular, has become a cornerstone of fleet optimization, helping businesses minimize downtime, prevent accidents, and increase equipment lifespan.

Q. What are the key factors driving the growth of the global Material Handling Equipment (MHE) Telematics Market?
Rising Demand for Automation and Digital Fleet Management: Industries such as logistics, warehousing, and manufacturing are increasingly adopting telematics to optimize equipment usage, reduce downtime, and streamline operations through real-time data tracking.
Integration of IoT and Predictive Analytics: The use of IoT-enabled sensors and cloud-based platforms enables predictive maintenance, safety monitoring, and performance tracking—reducing operational costs and enhancing productivity.
Growing Adoption of Smart Warehousing Solutions: The shift toward smart and connected warehouses is driving the implementation of MHE telematics systems that offer remote diagnostics, operator monitoring, and asset visibility.
Focus on Safety and Regulatory Compliance: Telematics helps organizations ensure compliance with safety standards by monitoring operator behaviour, equipment conditions, and implementing proactive alerts for unsafe actions or malfunctions.
Expansion of the E-commerce and Logistics Sector: The rapid growth of e-commerce has increased the demand for efficient material handling operations, leading to higher adoption of telematics in fleets of forklifts, AGVs, and other MHE.
Technological Advancements in Telematics Hardware and Software: Enhanced GPS tracking, mobile app integration, wireless communication, and user-friendly dashboards are making telematics more accessible and scalable for businesses of all sizes.

Q. What are the major challenges in the MHE Telematics Market?
High initial investment and installation costs
Integration complexity with legacy systems
Data security and privacy concerns
Limited awareness among small and medium enterprises (SMEs)

Q. Which regions currently lead the global Material Handling Equipment (MHE) Telematics Market in terms of market share?

Europe -Holding the largest market share of approximately 39.44%, Europe dominates due to its strict regulatory environment, focus on safety compliance, and rapid adoption of warehouse automation and telematics-integrated equipment such as forklifts and AGVs. North America – North America follows closely, driven by a strong industrial base, robust IT infrastructure, and high demand for real-time fleet monitoring and predictive maintenance. The U.S. is a major contributor to telematics innovation and deployment. Asia-Pacific – This region is experiencing the fastest growth owing to rising investments in smart warehouses, booming e-commerce, and expanding logistics networks in countries like China, India, and Japan.

Q. What emerging opportunities are anticipated in the global Material Handling Equipment (MHE) Telematics Market?

The MHE telematics market is seeing strong opportunities with the rise of smart warehouses, e-commerce logistics, and Industry 4.0 adoption. Integration of AI and IoT is enabling real-time fleet tracking, predictive maintenance, and improved safety. Growth in sustainable practices is also boosting demand for telematics in electric and hydrogen-powered equipment. Additionally, expanding automation in emerging markets offers a promising avenue for telematics providers worldwide.

Key Benefits for Stakeholders

The report offers a quantitative assessment of market segments, emerging trends, projections, and market dynamics for the period 2024 to 2035.
The report presents comprehensive market research, including insights into key growth drivers, challenges, and potential opportunities.
Porter's Five Forces analysis evaluates the influence of buyers and suppliers, helping stakeholders make strategic, profit-driven decisions and strengthen their supplier-buyer relationships.
A detailed examination of market segmentation helps identify existing and emerging opportunities.
Key countries within each region are analysed based on their revenue contributions to the overall market.
The positioning of market players enables effective benchmarking and provides clarity on their current standing within the industry.
The report covers regional and global market trends, major players, key segments, application areas, and strategies for market expansion. Show more