A total of 6.8 million construction machines with embedded connectivity will be sold during 2018-2025, according to the latest research from Counterpoint’s IoT Device Tracker Service. This would mean the global Internet of Things (IoT) Construction Equipment market will grow at 25% CAGR through 2025. Construction equipment includes off-road construction equipment like earth-movers (excavators and loaders), material handlers (cranes), off-road trucks, and machines used for activities like road construction and mining. In 2018, Caterpillar had the highest market share, followed by Komatsu and Hitachi. Caterpillar partnered with AT&T to provide 4G LTE connectivity to its customers across the globe. AT&T provides a global SIM Card in addition to IoT management services to track, manage, and deploy asset connectivity across 155 countries.

     Exhibit 1: IoT Construction Equipment Share by Brands in 2018E

Source: Global Cellular IoT Device Tracker 2018-2025

Construction equipment OEMs introduced embedded telematics systems using wireless cellular communication technology, either independently or in partnership with third-party aftermarket telematics players. Key aftermarket telematics players include Trimble, Telogis, Heavy Construction Systems Specialists, Orbcomm, Geotab, Zonar Systems, Teletrac, Navman Group, ACTIA Group, LoJack, The Morey Corporation, TelliQ, and others. Typically, OEMs are embedding heavy construction machines with a cellular modem, while access to services is complimentary for three to five years. Commenting on the findings of the study, Senior Analyst, Hanish Bhatia said, “Traditionally, satellite communication dominated this space, but OEMs have shifted to cellular connectivity in the past few years. OEMs are partnering with third-party aftermarket telematics firms, which provide end-to-end telematics solutions. Remote diagnostics, maintenance, fuel consumption, and other machine usage trends, remain the key application areas.” Adding his perspective, Research Analyst, Satyajit Sinha noted, “IoT connectivity is critical when it comes to heavy construction machinery. The technology helps fleet owners keep track of machine downtime, resulting in significant cost savings. Also, safety remains a key issue at construction sites and connectivity has helped companies minimize accidents. We expect most OEMs to adopt embedded cellular connectivity across their products by 2025.” The comprehensive and in-depth report on “Global IoT Construction Equipment Forecast: 2018-2025” is a part of our Counterpoint’s IoT (Internet of Things) Service. This report is available for download here. Background: Counterpoint Technology Market Research is a global research firm specializing in Technology products in the TMT industry. It services major technology firms and financial firms with a mix of monthly reports, customized projects and detailed analysis of the mobile and technology markets. Its key analysts are experts in the industry with an average tenure of 13 years in the high-tech industry. Analyst Contacts: Hanish Bhatia +91 9871849857 [email protected]  Satyajit Sinha [email protected]