Download - Commercial Trucking Outlook 2017
EmergingBusiness
Opportunity
TechnologyAdvancements
0
100,000
200,000
300,000
400,000
500,000
600,000
700,000
800,000
900,000
1,000,000
NorthAmerica
SouthAmerica
Europe China India Russia Next 11 RoW
Uni
ts
MCV HCV
2016 Key Highlights 2017 Top PredictionsGlobal Medium Duty (MD)-Heavy Duty (HD) truck sales recovered by 5% over2015 levels driven by demand recovery in China, India and Europe. VW’s equitystake in Navistar marked the group’s entry into North America
Global Medium and Heavy Truck MarketForecast 2017
Levels of Automation In 2017 OEM Focus Will be Primarily on Platooning and Level 3 Automation
What are the Services Mobile Apps can Offer?Big Data and applications such as traffic prediction, sensors and terrain/weathermapping, ITS through mobile integration and social media integration will makedecision making faster and proactive rather than reactive.
Truc
k of
the
Fut
ure
Platooning
CV Market: Levels of Automation, Global, 2016–2030+2030+
2015
Enabling Technology: NoneDriver Involvement: Very highVocational Application:Long haul, regional, vocational
Enabling Technology: V2X: V2V+ V2I, DSRC, integrated safetysystems (ISS), cameras, sensors, ACC Driver Involvement: Moderate VocationalApplication: Long haul, regional, vocational
Enabling Technology:Electric power steering(EPS), electric brakingsystems (EBS), electronicthrottle control, ACC, ADASDriver Involvement: HighVocational Application Longhaul, regional, vocational
Enabling Technology: Inter-sectionassist, redundancy back-up forconnectivity, self-driving capability untildriver takes over controlDriver Involvement: Moderate-low Vocational Application:Long haul, regional, vocational
Enabling Technology:Multiple redundancies(hardware) and artificialintelligence (software) DriverInvolvement: NoneVocational Application:Long haul, regional, vocational
2018
$5,000
Incremental Costs
$15,000
$25,000
Driver HygieneOccupation
Support
“Green”
Eco-friendly•
Fuel-efficient•
Connected•Business-ready•
Crash-free•Driver-friendly•Autonomous•
“Smart” “Safe”
Cost Optimization
Asset Monitoring
3PL/ Brokerages
LoadboardsOn-demand(Uber of Trucks)
$30,000+
1
2
3
4
2022
2028
Driver UtilityApps
Fleet OptimizationApps
FreightMobility
Apps
Global MD-HD truck market is expected to absorb 90,000 additionalunits in 2017; MCV’s share will increase by 2% on account of slumpingdemand in HD-heavy markets such as North America and Europe
Digitization Enabling Industry Evolution towards Service/Solution ModelConfluence of technologies in the Industry Providing Platform for Various Stake Holders to Build Service and Solution Based Revenue Models
Why Digital Freight BrokerageFreight brokerage can be automated using digital technologies thereby driving greater transparency betweenshippers-carriers and supporting d-hoc and planned freight demands at lower brokerage rates
Trucking Challenges Propelling Digitalization
Capacity underutilization, escalating operationalcosts, driver retention and rising GHG regulationsare the key challenges that fleet managers faceglobally that can be addressed by digital technologies.
Key Challenges for Trucking Industry,
Global, 2017
Shipper calls and/orfaxes shipmentdetails to freightbroker
Traditional
FreightBroker
Automated
FreightBroker
Freight broker negotiatesrates before callingpotential carriers in theirnetwork to find a match
Carrier negotiatestransport rates withbroker
Carrier is notified ofload match digitally,freight rates are fixed(5%-10%)
Increases Efficiency / Shortens Supply Chain
Reduction in Cost / Increase in Profitability
Automated solutionautomates the loadmatching process andfinds the best carrier
Shipper enters loaddetails into digitalplatform
Global MD-HD Truck PowertrainTechnology ForecastDiesel expected regain some of the lost market share to alternativeswith diesel truck sales accounting for 94.6 percent of total sales in 2017as opposed to 93.1 percent in 2016
CV Market: Medium and Heavy Trucks-Unit Shipment, Global, 2016 and 2017 CV Market: Powertrain Technology Split by Region, Global, 2017
Powertrain Split (%)0.0
94.6 1.9 0.6 2.9
100.03.2% YoY Growth 2016 Regional Shares
Next 11 includes the following countries: Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan,the Philippines, Turkey, South Korea, Vietnam, and Bangladesh.
MCV: 6T to 16THCV: 16T and above
GasolineHEVNGDiesel
2.78 MILLION
2016
62%
38%
2.87 MILLION
2017
60%
40%
As sales increases by 90,000 units in 2017, industry will increasingly focus onoffering integrated service based solutions to fleets and owner-operators tomaintain and grow margins
Recovery in China and India was Overshadowed by Weakness in the AmericasTruck sales recovery in China, India and Europe propelled global truck sales by 5 percent;Truck demand hit historical lows in South America as economic environment remainsprecarious in Brazil
Value Truck Platforms Attracting Maximum Traction GloballyMore than 60% of new platform development in the next 2–3 years is expected to be inthe value trucks segment. This is largely driven by the growing demand for value trucks inemerging markets, especially China and India. A majority of the trucks built on suchplatforms is expected to fall in the price range of $65,000–$86,000
Freight Mobility
Connectivity Technologies
Online Mobile Ecosystem
Big Data/IOT
Autonomous Technologies
Core TruckingIndustry Challenges
Digital Transformation
Telematics/FMS
Trucking Apps
Freight Mobility
Autonomous Trucking
Business Model Change: Truck as a Service
Automated freight brokers are able to take lower commissions (5%-10%) than traditional brokers (15%-20%) due to the usage ofalgorithms which streamline the process and pass on the savings
Autonomous Trucking
Co
nflu
ence
of
Tech
nolo
gies
Truck as a Service
FleetOperations
FreightEfficiency
CO2/GHGChallenges
DriverManagement
Trucking Apps