"Catapult Your Business to Fore, Gain Competitive Advantage "
The global material handling equipment (MHE) telematics market size was valued at USD 5.43 billion in 2023. The market is projected to grow from USD 6.16 billion in 2024 to USD 22.21 billion by 2032, exhibiting a CAGR of 17.4% during the forecast period.
Telematics is a field that combines telecommunications, vehicular technologies, electrical engineering, and computer science. Telematics devices are often installed on machinery and vehicles, including cars, industrial trucks, and powered access equipment. The material handling equipment (MHE) telematics enables warehouse managers to improve safety, enhance productivity, and meet regulatory compliance requirements.
Forklift telematics helps the industrial fleet to run as efficiently and effectively as possible. Telematics systems use GPS technology, wireless connectivity, and telemetry, offering significant advantages for MHEs. This system can trace the location of individual trucks, determine which operators have accessed equipment, monitor operator behavior, such as speed and movement patterns, and provide information on maintenance and servicing requirements.
The material handling equipment (MHE) telematics market growth is mainly driven by rapid technological advancements, expansion of the industrial fleet, and increasing adoption of automation in material handling processes. According to the 2023 survey conducted by BlueBiotics, a vehicle automation company, around 91% of respondents were planning to extend their autonomous mobile robots (AMRs) or automated guided vehicles (AGVs). Telematics systems are increasingly used in AGVs for predictive maintenance, real-time monitoring, and enhanced navigation. The data from the telematics system can help to detect potential issues with components before they lead to breakdowns. This enables businesses to perform maintenance proactively and avoid unnecessary downtime.
The COVID-19 pandemic had a negative impact on the global market for material handling equipment (MHE) telematics. The outbreak significantly reduced the investment in construction projects due to poor business sentiments. This, in turn, limited the deployment of MHEs.
Growth of E-commerce and Logistics Sectors to Augment the Market Growth
The global e-commerce industry is anticipated to grow rapidly during the forecast period. According to the India Brand Equity Foundation, The e-commerce industry in India is expected to reach USD 300 billion by 2030. As per the Eurostat, the proportion of e-shoppers increased from 55% in 2012 to 75% in 2022 in the European Union (EU). As the e-commerce industry continues to grow globally, the MHE industry is also expected to progress significantly to improve the supply chain. Fleet services are increasingly exploring material handling equipment (MHE) telematics solutions for fleet management.
In addition, the robust growth of the logistics sector is further anticipated to fuel the market growth. The growth of e-commerce and the retail sectors is augmenting demand for more efficient logistics services. The demand for MHE is directly related to the growth of the logistics sector. Companies are increasingly integrating telematics systems with MHE to increase warehouse efficiency and productivity.
Request a Free sample to learn more about this report.
Rapid Technological Advancements in Material Handling Equipment (MHE) Telematics to Drive Market Growth
The telematics industry has evolved significantly over the last several years on account of the increased demand for cutting-edge telemetry solutions that offer enhanced safety, increased efficiency, and reduced expenses. One of the key drivers in telematics is the Internet of Things (IoT). IoT enables the re-engineering of the complete supply chain process by intelligently connecting the physical world with the digital world.
Fleet managers are increasingly exploring new strategies and techniques to monitor the productivity of their fleet and manage operations remotely. The advancements in telematics software enable industrial fleet managers to communicate in real-time with drivers and manage their fleets using a computer or via an app on their smartphones. Fleet managers are using GPS technology to perform real-time diagnostics. It enables them to track the location of drivers via a customizable dashboard and ensure drivers follow safety practices. All such technological advancements in material handling equipment (MHE) telematics are driving increased efficiency, productivity, and cost savings in material handling operations.
High Initial Investment Coupled with Integration Complexities to Limit Market Growth
High initial investment is expected to limit the market growth in a short-term period. The cost of the telematics systems depends on the size of the fleet as well as customization requirements. Integrating material handling equipment (MHE) telematics solutions with fleet management tools needs a significant upfront investment. Apart from installment costs, a regular monthly or annual subscription fee is also required. This factor is expected to deter price-sensitive businesses from adopting telematics in their MHE fleet.
In addition, integrating telematics systems with a company's existing fleet management systems and other IT infrastructure can be complex and time-consuming. Hence, ensuring flawless data flow and compatibility between the telematics system and other important business applications is a key challenge.
Increasing Importance of Predictive Analytics to Fuel Segment Growth
Based on the equipment type, the market is segmented into forklifts, cranes, Automated Guided Vehicles (AGVs), and others.
The Automated Guided Vehicles (AGVs) segment is predicted to grow with the highest CAGR during the forecast period. Telematics plays an important role in AGV deployments by providing important data and control to improve productivity, efficiency, and reliability. The real-time insights and predictive capabilities of telematics are crucial for successful warehouse automation. Telematics allows real-time monitoring of various AGV parameters, such as equipment performance, battery health, and error codes. This enables predictive maintenance, and the AGV can be serviced before a breakdown occurs.
The forklifts segment will hold the highest material handling equipment (MHE) telematics market share during the forecast period as the utilization of forklifts continues to rise globally. Telematics helps fleet managers with detailed analysis of forklift usage and location. Thus, facilitating optimized routing, scheduling, and utilization of the fleet.
Rising Demand for Real-time Fleet Management to Augment Segment Growth for Fleet Management
Based on the solution, the market is divided into asset tracking, fleet management, predictive maintenance, and operational analytics.
The fleet management segment is predicted to hold the highest market share during the forecast period. Telematics offers real-time information about MHE location and their performance. This helps fleet managers to optimize routes, improve efficiency, and minimize fuel consumption. By getting real-time information, fleet managers can cut the operational costs of fleets as well as improve safety and compliance.
The predictive maintenance segment is expected to grow with the highest CAGR during the forecast period as telematics enables adherence to stringent compliance around fleet operations. The real-time data enables predictive maintenance, which reduces unnecessary downtime and disruptions and improves fleet reliability and productivity.
To know how our report can help streamline your business, Speak to Analyst
Growing Need for Enhanced Efficiency in Logistics & Warehousing to Boost Segment Growth
Based on the end-use industry, the market is divided into manufacturing, logistics & warehousing, automotive, construction, and others.
The logistics & warehousing segment is expected to hold the highest market share during the forecast period. Telematics systems are playing a crucial role in enhancing logistics & warehouse operations. Telematics systems offer an in-depth view of the complete logistics network and can determine bottlenecks and inefficiencies in the supply chain. Hence, the adoption of material handling equipment (MHE) telematics in logistics & warehousing operations is increasing rapidly as it offers substantial improvements in safety, efficiency, and customer satisfaction.
The manufacturing segment is expected to grow with the highest CAGR during the forecast period as telematics helps manufacturers comply with various safety regulations and minimize the risk of accidents. In addition, telematics can offer data on operator performance, facilitating incentive programs to increase productivity.
Geographically, the market is studied across five major regions, including North America, South America, Europe, the Middle East & Africa, and Asia Pacific. They are further categorized into countries.
Europe Material Handling Equipment (MHE) Telematics Market Size, 2023 (USD Billion)
To get more information on the regional analysis of this market, Request a Free sample
Europe accounted for the largest market share in 2023 owing to supportive government initiatives and investments, technological advancements, increasing adoption of automation, and stringent regulatory compliance as well as safety standards. The increasing automation in this region across various end-user industries, such as manufacturing and warehousing & logistics, propels the demand for telematics systems to monitor and optimize MHEs. Europe consists of some of the most automated economies in the world, including Germany, Italy, France, and the U.K. According to the Make UK and Infor survey, around 67% of manufacturers in the U.K. have invested in automation in 2023. Nearly 61% of respondents invest in automation to increase productivity and 31% in supply-chain optimization.
To know how our report can help streamline your business, Speak to Analyst
Asia Pacific is expected to show the highest CAGR during the forecast period, driven by the presence of rapidly growing economies, tremendous growth in the e-commerce sector, and evolving safety standards. China leads this region due to the significant industrialization that leads to the expansion of the logistics sector, which in turn fuels the demand for MHE with integrated telematics systems.
The market in North America is primarily driven by automation in the manufacturing sector, innovation in IoT hardware, supportive government policies, and the presence of major players in this region. The U.S. leads the region on account of the strict regulations regarding workplace safety that push businesses to adopt telematics solutions.
In the Middle East & Africa region, the shift toward automation is anticipated to offer ample growth opportunities.
In South America, the growing awareness regarding operational efficiency and cost reduction increased the adoption of MHE equipped with telematics systems.
Key Players Focused on Strengthening their Market Positions with Continuous Developments
The global market for material handling equipment (MHE) telematics is consolidated by leading players such as Powerfleet, Toyota Industries Corporation, Motion2AI, Inc., Crown Equipment Corporation, Apex MHC, Telenor, Hyster-Yale Materials Handling, Inc., Clear Telematics, and Abbey Attachments, among others. These companies in the market are expanding their operations by adopting strategies such as mergers, acquisitions, product launches, collaborations, and partnerships. The key market players are increasingly forming alliances with technology companies to utilize advanced technologies, such as cloud computing and cybersecurity to strengthen the secutiry and functionality of telematics systems. For instance,
The market report for material handling equipment (MHE) telematics offers qualitative and quantitative insights into the market and a detailed analysis of the size & growth rate for all possible segments. It also provides an elaborative analysis of market dynamics, emerging trends, and the competitive landscape. The report offers key insights, such as the implementation of automation in specific market segments, recent industry developments, such as partnerships, mergers, funding, acquisitions, consolidated SWOT analysis of key players, business strategies of leading market players, macro & micro economic indicators, and major industry trends. This detailed analysis provides a comprehensive view of the market and its potential for growth and development.
To gain extensive insights into the market, Request for Customization
ATTRIBUTE | DETAILS |
Study Period | 2019 – 2032 |
Base Year | 2023 |
Estimated Year | 2024 |
Forecast Period | 2024 – 2032 |
Historical Period | 2019 – 2022 |
Growth Rate | CAGR of 17.4% from 2024 to 2032 |
Unit | Value (USD Billion) |
Segmentation | By Equipment Type
By Solution
By End-use Industry
By Region
|
According to Fortune Business Insights, the global market is predicted to reach USD 22.21 billion by 2032.
In 2023, the market value stood at USD 5.43 billion.
The market is projected to record a CAGR of 17.4% during the forecast period.
The forklift is the leading equipment type segment in the market.
Rapid technological advancements, increasing automation across the manufacturing sector, and growth of the e-commerce sector drive the market growth.
Some of the top players in the market are Powerfleet, Toyota Industries Corporation, Motion2AI, Inc., Crown Equipment Corporation, and Apex MHC.
Asia Pacific is expected to show the highest CAGR due to the rapid industrialization across this region during the forecast period.
By solution, the predictive maintenance segment is expected to show the highest CAGR during the forecast period.
US +1 833 909 2966 ( Toll Free )