Strong Demand From The Construction And Industrial Sectors Fuels Off-Highway Vehicle Telematics Market

Increasing awareness on the benefits of telematics, will give surge to the OHV telematics market, finds Frost & Sullivan.

The construction and industrial segments held the largest market shares in the off-highway vehicle (OHV) telematics market in 2013.BU complete card - 2014 - final Demand from the construction and industrial segments will continue to grow considerably, with the construction equipment rental market anticipated to increase from 13 to 15 percent over the next five years. OHV telematics for agricultural equipment will also gain momentum, as awareness and adoption rates begin to rise in the precision agriculture space.

New analysis from Frost & Sullivan, Analysis of the North American Off-highway Vehicle (OHV) Telematics Market, finds that 107,100 OHV vehicles installed telematics in 2013, and is projected to increase to 135,000 by 2015. A sudden spike in the volume of telematics-integrated vehicles is expected after 2015, due to the entry of rental equipment companies into the telematics market.

“Overall awareness on OHV telematics has increased significantly in recent years and these technologies are now perceived as the go-to solutions for improving the total cost of ownership,” said Frost & Sullivan Automotive & Transportation Research Analyst Gokulnath Raghavan.

Unfortunately, penetration rates have not reached an optimal level, partly due to the lack of training programs on the use of OHV telematics. The absence of return-on-investment justifications for heavy equipment fleet owners and lack of standardization of OHV telematics are also adversely affecting market development.

The Association of Equipment Management Professionals (AEMP) and Association of Equipment Manufacturers (AEM) have begun to standardize OHV telematics and provide necessary training to prospective OHV telematics customers. The challenge to install telematics for mixed fleets will also be addressed as original equipment manufacturers are partnering with third-party vendors.

Despite the initiatives from AEMP and AEM to standardize and educate customers on the benefits of telematics, external drivers in favor of government regulations dictating safety and security requirements are lacking. This, along with heavy equipment fleet owners’ preference for basic rather than high-end telematics services, is slowing down the pace of market growth.

“Once heavy equipment fleet owners fully understand the real-time benefits of telematics, they will consider installing advanced solutions,” stated Raghavan. “If OHV telematics vendors ensure their products enable easy access to data and support heavy equipment fleet owners by advocating specific telematics solutions depending on the application segment, adoption rates will strengthen.”

Analysis of the North American Off-highway Vehicle (OHV) Telematics Market is part of the Automotive & Transportation ( Growth Partnership Service program. Frost & Sullivan’s related studies include: Analysis of the European Off-highway Vehicle (OHV) Telematics Market, Analysis of the North American Advanced Features Market and Optional/Standard Strategy of OEMs, and Opportunity Analysis of Telematics in the North American Automotive Aftermarket. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today’s market participants.

Our “Growth Partnership” supports clients by addressing these opportunities and incorporating two key elements driving visionary innovation: The Integrated Value Proposition and The Partnership Infrastructure.

The Integrated Value Proposition provides support to our clients throughout all phases of their journey to visionary innovation including: research, analysis, strategy, vision, innovation and implementation.

The Partnership Infrastructure is entirely unique as it constructs the foundation upon which visionary innovation becomes possible. This includes our 360 degree research, comprehensive industry coverage, career best practices as well as our global footprint of more than 40 offices.

For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

To read today’s automotive/motorsports op-ed, news and information please visit PRRACEwire, or follow us on Twitter at PRRW – Twitter, or PRRACEwire.


Leave a Reply

Please log in using one of these methods to post your comment: Logo

You are commenting using your account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )


Connecting to %s