July 19, 2024
Off-highway Vehicle Telematics Market

Off-highway Vehicle (OHV) Telematics Market is Estimated To Witness High Growth Owing To Increasing Demand For Fleet Management

The Off-highway Vehicle (OHV) Telematics Market is estimated to be valued at US$ 488.3 Mn in 2023 and is expected to exhibit a CAGR of 16% over the forecast period from 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:
Off-highway Vehicle (OHV) Telematics include GPS/GNSS and other devices installed in off-highway vehicles that communicate data in real-time via cellular, satellite, or other networks. These devices help fleet managers track important parameters like location, engine hours, fuel usage, idle time etc. This improves efficiency, saves costs and enhances safety.

Market key trends:
One of the major trends in the OHV telematics market is the increasing demand for fleet management solutions. As the number of off-highway fleets is rising, fleet managers are under pressure to optimize machine utilization and monitor operator behavior. Telematics systems help achieve these objectives by offering insights into machine health, fuel usage, geofencing and theft recovery. They enable remote diagnostics and preventive maintenance as well. Moreover, growing awareness about safety and security is also driving the adoption of OHV telematics globally.

Porter’s Analysis

Threat of new entrants: The high capital requirements and technological expertise pose barriers for new players to enter this niche market.

Bargaining power of buyers: Large fleet owners have significant bargaining power over OHV telematics service providers owing to their high purchase volumes.

Bargaining power of suppliers: Suppliers have marginal bargaining power given the availability of alternative component suppliers in the market.

Threat of new substitutes: Alternatives like fleet management systems offer some level of competition however OHV telematics have distinguishable advantages.

Competitive rivalry: Intense competition exists among the established players to gain higher market share.

SWOT Analysis

Strengths: Real-time vehicle tracking and performance monitoring increase operational efficiency. Ability to improve driver safety through driver behavior data analytics.

Weaknesses: High initial installation and service costs. Compatibility and connectivity issues in remote areas.

Opportunities: Growing adoption in construction and mining industries driven by regulatory compliance. Potential in emerging markets with increasing urbanization and infrastructure growth.

Threats: Macroeconomic slowdowns can reduce capex spends of end-use industries on non-essential technologies. Cybersecurity threats to stolen vehicle tracking data.

Key Takeaways

The Global Off-Highway Vehicle (OHV) Telematics Market is expected to witness high growth, exhibiting CAGR of 16% over the forecast period, due to increasing demand for operational efficiency and fleet management in construction and mining industries.

Regionally, North America dominated the global market in 2023, accounting for over 35% of the global OHV telematics revenue. Europe is expected to grow at fastest rate due to stringent vehicle tracking regulations. Asia Pacific offers lucrative opportunities with rapid industrialization in China, India, and Southeast Asia.

Key players operating in the Off-highway 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, Stoneridge, Inc., Trackunit. Players are focused on developing telematics devices for off-road environments and offer value-added services like remote diagnostics, fuel usage reports etc.

1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it