Tracking success: Why telematics is construction’s must-have technology

Partner Content produced by KHL Content Studio
26 March 2025
Today’s construction industry is driven as much by data as it is by the know-how of experienced construction professionals.

Most of the buzzwords hail from the digital world, and ‘artificial intelligence’ (AI) and the ‘Internet of Things’ (IoT) are now as meaningful to those in the industry as formwork and dozers.
Digital evolution is happening so fast we have almost reached the point at which technologies that have been with us for some time are taken for granted.
One such technology is telematics, which is now so ubiquitous as to be seen as part of the furniture across many types of construction equipment – even as the latest innovations are significantly aiding the efficient use of construction machinery.
In for the long haul
Initially used by the US Navy in the 1960s, to track submarines using GPS signals, it wasn’t until the 1990s – and the advent of cellular networks – that telematics systems became more sophisticated and accessible.
By the early 2000s, fleet management companies were using telematics to track their vehicles via the internet, while the likes of Caterpillar, Komatsu, Volvo and John Deere became early adopters as they started integrating the technology into their off-highway equipment.
Today, of course, telematics brings far more than asset tracking to the construction industry, and goes beyond even machine health analysis, with a range of efficiency and productivity benefits to boost a contractor’s bottom line.
Tak Sunagawa, Managing Director and CEO of JRC Mobility Germany GmbH, believes telematics has emerged as a truly transformative force in construction.
“What started as basic GPS navigation,” Tak says, “has now become an intricate system of data-driven technologies that improves safety and operational efficiency, through real-time data transmission. Such data will be valuable for our customers for efficient use of construction machinery.”

JRC Mobility Germany (JRCMG) is a recently-established subsidiary of the Japanese technology company, JRC Mobility. The new division is focused on delivering and testing telematics control units (TCUs), which, for the uninitiated, can be connected to the port of a machine and, by means of sensor technology, receive data from the vehicle’s internal systems.
Tak says JRCMG’s TCU is designed to work with the existing systems of off-highway mobile machines, managing communication between the vehicle and external networks through high-speed 5G communications.
Fuelling change
In large part, it is today’s superfast communication networks that have given telematics a new lease of life – and given construction businesses the ability not only to track assets in real time, but also to undertake rapid and remote diagnostic testing.
The capacity of telematics systems to connect so seamlessly with a machine is also promising an immediate effect on the bottom line, via a host of efficiency benefits – not least of which is reduced fuel usage.
Fuel can represent up to 50% of the total equipment operating costs on a project, and perhaps 10-15% of overall costs (making it one of the largest and least controlled expenses).
By utilising telematics, fleet managers are able to view a great deal of data that could impact fuel usage – including machine health, idling time and operating patterns – and by analysing this data, businesses can ensure work practices are optimised, as well as identifying operators who may need additional training in fuel-efficient practices.
Another significant benefit of telematics is the avoidance of unnecessary downtime – a pain point for so many construction businesses.
As Tak says, “Through real-time monitoring of machine health, preventative maintenance can be carried out, reducing the need for unscheduled maintenance or repairs, and for productivity to suffer while spare parts are sent for.”
Wide-ranging benefits
The routine maintenance and servicing of equipment is an important aspect of keeping a fleet running at optimum efficiency during a construction project.

Yet, before the development of telematics solutions, this need was primarily determined by either the number of hours for which a specific machine had been operating, or by it developing a fault.
Now construction businesses can use on-board diagnostics to gain a deep understanding of a machine’s health, using parameters such as fuel usage, oil pressure, engine and coolant temperature.
In short, telematics enhances visibility into equipment operations, leading to improved reliability, reduced downtime, and that all-important increased productivity.
According to Tak Sunagawa, some additional benefits of the TCU’s ability to send real-time data, may include:
- analysing driving patterns and vehicle performance, to optimise routes and therefore reduce fuel consumption
- improving safety, with additional warnings and emergency responses
- reducing operational costs through improved fleet management, which could potentially lead to lower insurance premiums
- improving the user experience. For example, machines connected with the external networks via the TCU can exchange information with external control centres.
The telematics market is already huge, with some estimates claiming that around half of all new heavy construction machines have a telematics system on board.
Conversely, that means around half of all new machines do not have telematics fitted – and, on many that do, they may be sitting idle or not being used to their full potential.
There could be many reasons for this, including concerns about the complexity of its implementation and the issue of cost management.
Connected and secure
Another challenge to be overcome is that of poor connectivity, which continues to be a problem for companies operating in remote areas. The rollout of 5G networks is moving ahead rapidly, reaching around half of the global population at the end of last year, but there is more work to be done.
And one more potential stumbling block for telematics is the issue of data security – something that is being understandably highlighted within today’s volatile geo-political landscape.

Tak believes construction manufacturers are as concerned about data security as their customers. Given the cost of integrating new telematics solutions into their products, they need to be sure that buyers have faith in them.
“In the telematics industry,” says Tak, “we are extremely conscious of the concerns of both manufacturers and end users and we aim to standardise our TCUs as much as possible from a cost perspective, while enhancing security aspects of the technology and give customers the highest assurances about their robustness.”
This is one reason, he says, for JRC Mobility’s decision to establish the new German subsidiary at this time, “to provide synergies between the proven technological developments of the Japanese company, such as connectivity and sensing products, and the robust testing experiences of the German division”.
As telematics and other digital systems continue to develop and evolve, their potential to boost productivity will increasingly be weighed against concerns about security.
Tak Sunagawa recognizes this, saying, “In order to save manpower, we will see a greater need for the autonomous operation of construction equipment.
“AI and IoT will also be an increasingly important part of the telematics solution. In my opinion, this is not something that should concern us – it will ultimately help make the construction industry more productive, more sustainable and more secure, and we will contribute a part of it.
“Our mission is to increase customer developments to a high level of maturity.”
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This article was produced by KHL Content Studio, in collaboration with experts from JRC Mobility Germany
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