According to two new reports out of the Frost & Sullivan research vaults, the Connectged transportation marketplace is on the verge of a series of disruptions. The first report calls out the evolving trucking industry, and the second, a slew of up-and-coming startups ready to rule the world.
The 2017 Outlook of Global MD and HD Trucks Market, recent research from the firm’s Automotive & Transportation Growth Partnership Service program, seems to indicate that, despite continued economic uncertainty and fuel price volatility, market digitization and electronics-enabled business models will guide global commercial vehicle executives strategic choices.
“Aging driver population, asset management and the demand for greater visibility in freight movement create a market pull for digitization of services,” said Bharani Lakshminarasimhan, Mobility Program Manager. “Connected truck technologies, digital freight brokering, Big Data/Internet of Things, and health, wellness, and wellbeing (HWW) technologies will emerge as key digitization imperatives.”
Upcoming market developments predicted in the report include:
• More than 60 percent new platform development in the value trucks segment in the next two to three years
• Steadily increasing share of advanced powertrain technologies, such as natural gas and hybrid electric
• Rise in adoption of telematics, platooning, and freight aggregation; by 2020, all foundation technologies will be ready for the advent of autonomous trucks
• Focus on in-cabin technologies, including Health Wellness and Wellbeing (HWW), video safety, fleet management services (FMS), utilities, and digital freight brokering
“Given the speed and rate of market transformation, most growth opportunities in 2017 will be enabled through ecosystem partnerships and acquisition/development of disruptive technologies,” said Lakshminarasimhan. “Leading OEMs, such as Daimler, Volvo, Ford, Hino and Ashok Leyland, will proactively invest in or partner with start-ups in the digital freight brokering, Big Data, and cyber security markets.”
In the second report, Digital Transformation of the Automotive Industry, another addition to Frost & Sullivan's Future of Mobility Growth Partnership Service, the analysts examined business activities, process improvements, and the development of competencies and business models for startups across five pillars: connected supply chain; Industrial IoT (IIoT)/Industry 4.0; connected and autonomous cars; digital retailing; and mobility-as-a-service (MaaS).
“New business models will consider data, connectivity and customer centricity along with cybersecurity,” said Sriram Venkatraman, Senior Consultant, Frost & Sullivan Mobility. “By 2020, Chief Digital Officers will steer the strategic and digital initiatives of OEMs across luxury and economy brands.”
Some of the predicted upcoming market developments include:
• IT spend will increase from $37.95 billion in 2015 to reach $168.8 billion in 2025, exhibiting a compound annual growth rate of 16.1 percent
• Investment will focus on electric vehicles, new mobility services, multi-modality, artificial intelligence, and autonomous vehicles
• Security across both horizontal and vertical business layers will be enhanced as businesses integrate IoT and big data analytics
• Country-specific, digital retailing strategy for new/used cars in addition to aftermarket and servicing will emerge
Edited by
Ken Briodagh
