Connected trucks will help reduce operating costs through several avenues including telematics, remote diagnostics/prognostics, truck platooning, and self-driving trucks, an industry expert said.

“Over the next 5-10 years, explosive growth in the amount of data being collected and analyzed will transform the global commercial vehicle industry,” said Vitali Bielski, a mobility senior consultant at Frost & Sullivan, a growth partnership company.

“Changes in the way cargo is delivered, such as Uber for trucks, will also fuel higher levels of connectivity.”

Bielski was commenting on the recent whitepaper titled “Global Connected Truck Telematics Trends” from Frost & Sullivan’s Mobility practice. The study examines the global connected trucks market with strong focus on telematics and FMS trends and the potential effects of connectivity on fleet maintenance. It also explores areas of opportunity in the Gulf Cooperation Council (GCC) countries.

Consolidation, digitization efforts, and the rising importance of value-added integration will boost growth in the telematics market, with fleets adopting telematics as both a management tool and a revenue generator.

Key market developments for 2017 will include:

•    Robust truck digitization strategies by players such as Daimler Trucks and Volvo Trucks as they follow MAN RIO’s lead;
•    Technological integration through open software architecture to broaden product portfolio, enhance functional capability, and scalability;
•    Global expansion by established telematics service providers (TSPs), such as Verizon, TomTom Telematics, Omnitracs, and Trimble, as they look at alternate revenue opportunities including app-based ecosystems, digital freight brokering, and video safety;
•    Entry of more Tier I suppliers into the connected truck space, behind Goodyear, Knorr-Bremse, Continental, ZF, Wabco, Michelin, and Pirelli;
•    Continuing market consolidation as global TSPs look to establish subscriber bases in potential areas;
•    Expanding presence of established telematics vendors in Latin America, India and China, as the North America and Western Europe markets mature;
•    Significant potential in Southeast Europe (e.g., Romania, Bulgaria, Slovenia, Slovakia, Hungary and Austria), and Southeast Asia (e.g., Indonesia, Malaysia, Singapore, Thailand and Vietnam)

“Through connected truck technology, fleet operators will be able to optimize factors such as fuel, maintenance, and driver wages, which together contribute more than 60 percent of the total cost of ownership,” noted Bielski.

“In the GCC alone, parts costs (including lubricants and tires) of a heavy commercial vehicle can exceed $3,000 per year. Usage of predictive maintenance can reduce this by nearly 20 percent. Combined with the potential to reduce traffic and heavy vehicle related causalities, this will open up opportunities for local and foreign players in the region.” – TradeArabia News Service