IoT research: Installed base of construction equipment OEM telematics systems sees rapid growth

Berg Insight, an IoT market research provider, has in a new market research project found that the global installed base of active construction equipment (CE) OEM telematics systems reached 6.2 million units in 2022. Growing at a compound annual growth rate (CAGR) of 12.0 percent, the active installed base is forecasted to reach 11.0 million units worldwide in 2027. 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 2022. The North American market is estimated to be somewhat larger than the European. The Rest of World moreover 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”, said Rickard Andersson, Principal Analyst, Berg Insight. OEM telematics systems are today commonly factory-installed as standard at least for heavier machines and increasingly also for compact equipment. “Berg Insight ranks Caterpillar as the clear leader in terms of the number of construction equipment OEM telematics systems deployed worldwide”, continued Mr. Andersson. He adds that Caterpillar – which is also by far the leading construction equipment manufacturer by market share – has well over 1 million connected assets in the construction equipment segment specifically.