According to our latest market study on "Off-Highway Vehicle Telematics Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Connectivity Type, Application, Technology, and Geography," the market is expected to grow from US$ 781.00 million in 2021 to reach US$ 1,166.96 million by 2028; it is expected to grow at a CAGR of 5.9% from 2021 to 2028.
The construction industry's rapid digital transformation urges the adoption of new technologies that offer new prospects for the off-highway vehicle telematics market. Construction equipment telematics helps companies track their equipment's location and performance, monitor asset utilization, and verify that the assets are effectively used. If equipment is underutilized, it might be moved to another required location, which is how telematics improves overall efficiency. Furthermore, the rising construction activity in both private and public sectors enhances market growth. Several infrastructure-related projects are underway or planned in India, the Philippines, the UAE, Saudi Arabia, Egypt, Nigeria, and the US. For instance, the Government of India allotted a budget of US$ 1.12 billion for the current fiscal year as part of the "One Hundred Smart Cities" program in the Union Budget of 2014–2015.
Moreover, the government plans to invest US$ 650 billion in various infrastructural projects throughout the country over the next 20 years. Various infrastructure projects in the Middle East are in process, including Jeddah Economic City (Saudi Arabia), Masdar City (UAE), and Dubailand (UAE). The rapid rise in infrastructure projects increases demand for construction equipment.
Impact of COVID-19 Pandemic on Global Off-Highway Vehicle Telematics Market
North America is one of the leading regions in developing and adopting new technologies due to favorable government policies that boost innovation and strengthen infrastructure capabilities. Due to the rise in demand for automobiles, favorable government policies, and ever-increasing investments in advanced technologies, the region has a large requirement for off-highway vehicle telematics. Hence, any adverse impact on the growth of the industrial sector hampers the region's economic growth. At present, the US is the world's worst-affected country due to the COVID-19 pandemic. The off-highway vehicle telematics market's reliance on manufacturing players, such as automobile companies and automobile component manufacturers, has been highlighted by the recent pause in manufacturing units due to the COVID-19 pandemic. Before the COVID-19 pandemic, the automobile sector faced challenges such as electric mobility, driverless cars, automated factories, and ridesharing. The automobile industry is suffering a major setback because of severe restrictions on travel, the closing of international manufacturing, declining sales of cars, and large layoffs. The overall demand for off-highway vehicle telematics will increase once the industries attain normal operational conditions.
Key Findings of Study:
The global off-highway vehicle telematics market is segmented into connectivity, application, technology, and geography. Based on connectivity, the global off-highway vehicle telematics market is segmented into cellular-based OHV telematics and satellite-based OHV telematics. In 2020, the cellular-based OHV telematics segment held the larger market share. In terms of application, the off-highway vehicle telematics market is segmented into construction industry OHV telematics, agriculture industry OHV telematics, mining industry OHV telematics, and others. In 2020, the construction industry OHV telematics segment accounted for the largest market share. Based on technology, the off-highway vehicle telematics market is segmented into LTE-M, NB-IoT, Sigfox, and others. In 2020, the LTE-M segment accounted for the largest market share.
