Dig­i­tal trans­for­ma­tion changes con­nected truck ecosys­tem: Frost & Sul­li­van

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Con­nected Truck Ser­vices, Pow­ered by Dig­i­tal Trans­for­ma­tion, are es­ti­mated to gen­er­ate $5.41 bil­lion in rev­enues in 2017, says Frost & Sul­li­van. A study ti­tled `Global Con­nected Truck Telem­at­ics Outlook, 2017’, re­leased as part of Frost & Sul­li­van’s Au­to­mo­tive & Trans­porta­tion Growth Part­ner­ship Sub­scrip­tion, finds that by 2025, glob­ally, 63.5 mil­lion trucks will be con­nected. Emerg­ing mar­kets such as China and In­dia will record a high telem­at­ics growth rate in 2017, closely fol­lowed by South­ern Europe and North Amer­ica.

As the freight in­dus­try leaves be­hind tra­di­tional bro­ker­ing prac­tices to adopt dig­i­tal and au­to­mated plat­forms, the con­nected truck telem­at­ics mar­ket is go­ing through a pe­riod of in­tense evo­lu­tion. Dig­i­tal freight match­ing so­lu­tions will bring about vis­i­bil­ity in a dis­parate land­scape, give rise to a truck-as-a-ser­vice (TaaS) busi­ness model, and drive nu­mer­ous part­ner­ships. It is vi­tal to be aware of key mar­ket de­vel­op­ments, prime movers, and the op­por­tu­ni­ties avail­able to con­nected truck ven­dors in the orig­i­nal equip­ment (OE) and af­ter­mar­ket.

Sev­eral main­te­nance man­age­ment ser­vice, com­pli­ance and safety so­lu­tion providers have suc­cess­fully ven­tured into core telem­at­ics to cre­ate a niche. Fleet man­age­ment sys­tem providers will grad­u­ally evolve into one-stop so­lu­tion providers of freight match­ing, video safety, tolling, fuel man­age­ment, weigh-sta­tion by­pass, and truck-stop so­lu­tions through al­liances with dig­i­tal so­lu­tion ven­dors.

The study aims to an­a­lyse and fore­cast the global con­nected truck (com­mer­cial ve­hi­cle telem­at­ics) mar­ket outlook for 2017. The ma­jor fo­cus is on mar­ket trends and trans­for­ma­tional shifts (truck digi­ti­sa­tion; Tier I pro­gres­sion from a prod­uct to a truck ser­vices provider; af­ter­mar­ket tech­nol­ogy en­ablers inch­ing to­wards an au­tonomous truck­ing era; truck­ing apps un­wind­ing rev­enue op­por­tu­ni­ties; dis­rup­tion from dig­i­tal freight bro­kers; busi­ness and tech­nol­ogy driv­ers for lo­gis­tics in­no­va­tion; reg­u­la­tions/man­dates; and re­gional trends (Europe, North Amer­ica, Latin Amer­ica, China, Repub­lic of South Africa, In­dia, Rus­sia, Tur­key, Aus­tralia, and Ja­pan) in ser­vices, so­lu­tions, and tech­nolo­gies for spe­cific seg­ments such as light com­mer­cial ve­hi­cles, medium com­mer­cial ve­hi­cles, and heavy com­mer­cial ve­hi­cles.

The mar­ket is in­un­dated with innovations, and many start-ups are tar­get­ing their R&D ef­forts at re­solv­ing the is­sue of un­der-utilised truck ca­pac­ity. Fol­low­ing the res­o­lu­tion of this chal­lenge, telem­at­ics can ef­fi­ciently con­nect ship­pers and car­ri­ers based on real-time lo­ca­tion and load ca­pac­ity sta­tus of trucks.

“Ap­ply­ing open plat­form tech­nol­ogy—an up­shot of au­tonomous mo­bil­ity tri­als—eas­ier ac­cess to smart­phones and cut­ting-edge tech­nol­ogy will be the key driv­ers for the con­nected truck ecosys­tem in 2017,” noted the an­a­lyst. “The grow­ing im­por­tance of telem­at­ics and dig­i­tal so­lu­tions will even­tu­ally change OEMs’ fo­cus from truck-as-a-prod­uct to TaaS.”

Other topics cov­ered un­der this sub­scrip­tion in­clude au­to­mo­tive key­less ac­cess sys­tems, 48v power-net, bio­met­rics, con­nected cars, con­nected truck dash­board and e-hail­ing. All stud­ies in the sub­scrip­tion pro­vide de­tailed mar­ket op­por­tu­ni­ties and in­dus­try trends eval­u­ated fol­low­ing ex­ten­sive in­ter­views with mar­ket par­tic­i­pants.

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