Digital transformation changes connected truck ecosystem: Frost & Sullivan
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.