Telematics systems are quickly becoming indispensable in the construction industry, with more than 6.8 million active systems installed worldwide. According to Berg Insight, this number is expected to nearly double to 12.1 million units by 2028, representing a robust 12% compound annual growth rate for the sector.
These figures include telematics solutions offered by construction equipment manufacturers (OEMs), whether developed in-house or in partnership with third-party vendors.
A global adoption surge
Telematics adoption is booming worldwide, with Europe expected to have approximately 900,000 active systems by 2023. North America has surpassed Europe in terms of overall market size, but more than half of all global installations are in emerging markets, underscoring the rapid adoption in regions collectively referred to as the rest of the world.
Telematics becoming standard
Telematics systems combine hardware, software, and connectivity to monitor machines, optimize operations, and reduce costs. They are becoming standard on new construction equipment, especially on heavier machines, with compact equipment catching up.
Rickard Andersson, Principal Analyst at Berg Insight, points out that these systems are changing the construction landscape. Telematics provides fleet managers and operators with critical insights to improve machine utilization, predict maintenance, improve safety, and reduce costs.
Industry leader in telematics
Caterpillar leads the construction equipment telematics market with more than 1 million connected machines worldwide. Known for its dominance in North America and Europe, Caterpillar continues to set the standard both as a telematics provider and as the world's largest construction equipment manufacturer.
Caterpillar is followed by China's SANY and Japan's Komatsu, which have built extensive telematics fleets in their home markets. Komatsu also has a strong presence in North America, Europe, and China. Other notable players include Volvo Construction Equipment, XCMG, Zoomlion, Hitachi Construction Machinery, and JCB, each with active telematics fleets in the hundreds of thousands.
American manufacturers Deere & Company, HD Hyundai, and Doosan Bobcat have also made progress, surpassing 100,000 active installations.
Rising stars in construction telematics
Emerging OEMs are carving out niches in this growing market. Companies such as Liebherr, Terex, JLG Industries, CNH Industrial, and Tadano have established fleets in the tens of thousands, signaling increased competition and innovation in telematics.
The future of construction telematics
The growing reliance on telematics reflects a larger shift toward digitization and data-driven decision-making in the construction industry. As the market evolves, OEMs face increasing expectations to deliver advanced solutions, whether by enhancing in-house capabilities or partnering with specialized providers.
Telematics systems are poised to redefine construction operations, driving improvements in efficiency, sustainability, and productivity. With more than 12 million systems expected to be in use by 2028, telematics is not just a tool-it's a cornerstone of the construction industry's future.
For OEMs, staying ahead means integrating cutting-edge telematics systems to strengthen customer relationships and gain a competitive edge in an increasingly data-centric world.