The “Global Off-Highway Vehicle (OHV) Telematics Market”, By End-use Application (Construction, Agriculture and Mining) by Technology (Cellular and Satellite), by Sales Channel (OEM and Aftermarket), and by Region (North America, Europe, Asia Pacific, and Latin America, Middle East & Africa) - Global Forecast to 2027”, is expected to be valued at US$ 311.4 Million by 2027, witnessing a CAGR of 10.1 % during the forecast period (2019-2027), as highlighted in a report published by Coherent Market Insights.
Telematics is a type of advanced technology used in sending, receiving, and storing information. It is majorly used in computer science, electric engineering, road transport, and road safety. It includes different technologies such as integrated telecommunications and informatics, global navigation satellite systems, and use of road vehicles with telematics. Moreover, off-highway vehicle (OHV) telematics is the integrated use of information and communication technology. OVH telematics finds applications in various sectors including agriculture, mining, constructions, etc.
The global off-highway Vehicle (OHV) telematics market is estimated to account for US$ 116.3 Mn in terms of value in 2019 and is expected to grow at a CAGR of 13.3% during the forecasted period 2019-27.
Rising demand for precision agriculture is expected to boost the global off-highway vehicle (OHV) telematics market growth over the forecast period
According to Coherent Market Insights’ analysis, global agriculture industry is expected to witness significant growth during the forecast period, owing to increasing population and increasing mechanization in the agriculture sector. However, rising commodity prices, high input costs, and maintaining profitable production yield are major concerns for farmers across the globe. Precision agriculture allows farmers to augment profitability and productivity per acre of field. Moreover, it is environment-friendly, sustainable, and offers proper utilization and management resources. According to a survey conducted by the department of agriculture economics at the University of Nebraska, U.S., in 2015, over 70% of farmers adopted precision agriculture techniques. Yield monitor, yield maps and GPS guidance systems were the most common means, with over 80% adoption rates. Hence, these factors are expected to drive the global off-highway vehicle (OHV) telematics market growth in the near future.
Growing emphasis on operational excellence in mining industry can provide major growth opportunities
Majority of mining companies are struggling to recalibrate their market position, owing to low commodity prices, low investment, and declining demand. Economic rebalancing in China caused exceptional disruption in the global mining industry, with commodity prices recovering at a sluggish rate. Thus, mining industries are expected to lay emphasis on reduction in operational costs and augment overall productivity. Furthermore, mining industries are adopting novel solutions such as enhanced drilling systems, automation, and telematics solutions to reduce capital investments, minimize manpower, etc. Telematics system provides coverage of hours of operations, work is done in particular period and fuel consumption, allowing users to take proper actions to enhance operations.
Lack of proper standardization of telematics systems is expected to hinder the global off-highway vehicle (OHV) telematics market growth during the forecast period
The telematics market is highly fragmented, typically into original equipment manufacturer and aftermarket sales channels. As result of this, customized telematics products and services are developed, which results in the lack of compatibility of devices with all vehicles. Moreover, various telematics services and products are available at differing qualities and prices. Lack of standardization is typically hindering customer that are looking to switch service providers due to compatibility issues. Furthermore, standardization would facilitate the development of common architecture, decide number of data points and develop web and mobile application interfaces for more effective and user-friendly consumer interaction. Hence, these factors are expected to restrict growth of the global off-highway vehicle (OHV) telematics market in the near future.
Telematics solutions providers are offering perpetual license or subscription-based service to consumers. Perpetual license includes a major upfront cost and no further costs for hardware and software. On the contrary, monthly subscription-based service would enable customers to pay for hardware upfront and pay monthly subscription fees for the software. This contract also includes extra charges for customization, installation, and software upgrades. Currently, major players in the market are offering lucrative models and services at reduced costs. For instance, in 2012, Omnitracs offered its telematics product MCP50 at US$ 799 with monthly subscription charges of US$ 19.50. Presently, Omnitracs offers the same product at US$ 799 and with 5-year contract fee of US$ 22.95.
Major companies in end-use industries such as mining and construction in Western Europe and North America prefer off-highway vehicles equipped with telematics systems since it allows effective management and timely servicing of vehicles without needing to outsource the same to an individual service provider. As a result of this, key players are introducing such vehicles, in order to augment their market share in these regions. Moreover, regulatory bodies and associations such as the Association of Equipment Management Professionals (AEMP) are laying emphasis on developing standards for telematics, in order to ensure consistent quality of product offerings.
Key players operating in the global off-high vehicle (OHV) telematics market are TomTom International BV, Zonar Systems Inc., Harman International Industries Inc., Bridgestone Europe NV/SA, Trackunit A/S, ORBCOMM Inc., Omnitracs LLC, Topcon Corporation, Navman Wireless, Wacker Neuson SE, and MiX Telematics Limited.