Telematics, digital retailing to drive commercial vehicle market recovery
SANTA CLARA, Calif. — Frost & Sullivan’s recent analysis, COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry, shows that digital and connectivity services will influence market recovery post-COVID-19 as telematics services, automated digital freight brokerage solutions, and digital retailing are expected to thrive.
The global commercial vehicle market is expected to decline by 29 per cent in 2020, and the recovery will be slow, with production volumes anticipated to reach pre-COVID-19 levels after 2024.
“The impact of the COVID-19 pandemic has forced companies and original equipment manufacturers (OEMs) to rethink business strategies with a greater emphasis on risk mitigation, operational flexibility, and innovative customer interaction and service measures,” said Marshall Martin, Industry Analyst, Automotive & Transportation at Frost & Sullivan. “With people staying indoors due to voluntary confinement or the imposed lockdown still in various regions, last-mile delivery of essential goods and services has experienced an uptick. The result is greater utilization of existing fleets and the realignment of fleet usage according to demand.”
To mitigate risks while navigating the uncertainties posed by the impact of COVID-19, market players can pursue the following growth opportunities for each segment:
- Truck Digital Services Market: Digital freight brokerage and business analytics companies should leverage the current scenario as offline platforms are difficult to access.
- Connected Truck Telematics: Monitoring services, contactless delivery, digital PoD, and need-based services such as eCall, biometrics, and associated services will lead to greater market opportunity.
- Fleet Leasing Market: Alternate powertrain truck leasing agreements will provide opportunities as fleets can mitigate higher upfront costs, technology upgrades, and residual value risk in a nascent market.
- Electric Truck Market: Fleets should capitalize on government incentives and subsidies for electric vehicle purchases.
COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry is the latest addition to Frost & Sullivan’s Automotive & Transportation research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.