The installed base of construction equipment OEM telematics systems will top 12 million units worldwide by 2028, according to Berg Insight.

The market research project found the global installed base of active construction equipment (CE) OEM telematics systems reached 6.8 million units in 2023. With a CAGR of 12 per cent, the active installed base is forecasted to reach 12.1 million units worldwide in 2028.

This includes all CE telematics systems marketed by construction equipment OEMs, either developed in-house or provided by the CE manufacturers in partnership with third-party telematics players.

The European market accounted for around 0.9 million active construction equipment OEM telematics systems at the end of 2023. The North American market is estimated to be somewhat larger than the European. The rest of world represents more than half of the global installed base of CE telematics systems provided by construction equipment OEMs.

Most major construction equipment OEMs have introduced telematics offerings for their customers either independently or in collaboration with telematics partners.

“OEM telematics systems are today commonly factory-installed as standard at least for heavier machines and increasingly also for compact equipment,” said Rickard Andersson, principal analyst at Berg Insight.

The report ranks Caterpillar as the leading construction equipment OEM in terms of the number of CE telematics systems deployed worldwide.

“Caterpillar, which is also by far the leading construction equipment manufacturer by market share, has well over one million connected assets in the construction equipment segment specifically,” said Andersson.

Based in the USA, Caterpillar’s largest markets for its telematics offerings are North America and Europe.

“The runners-up are Sany and Komatsu based in China and Japan, respectively, both major players on the respective domestic markets,” said Andersson, adding that Komatsu also had relatively large shares of its telematics units in North America, China and Europe.

Other major players with several hundred thousand active CE telematics units include Sweden-based Volvo Construction Equipment, XCMG and Zoomlion in China, Japan-based Hitachi Construction Machinery and JCB headquartered in the UK. Deere, HD Hyundai and Doosan Bobcat are also estimated to have reached the milestone of 100,000 units.

“Additional players having estimated installed bases of construction equipment telematics units in the tens of thousands include Liebherr, Terex, JLG Industries, CNH Industrial and Tadano,” said Andersson.

To see the report brochure, go to media.berginsight.com/2024/12/10204622/bi-ce7-ps.pdf.