The improved economic environment in developing and developed economies is restoring business confidence and pushing up the global sales volumes of medium- and heavy-duty trucks, according to market research company Frost & Sullivan.
Truck buyers are particularly looking for medium- and heavy-duty trucks with advanced telematics solutions, green powertrain technologies, and safety enhancement technologies, such as stability control systems. Trucks with connectivity technologies that facilitate vehicle-to-infrastructure, vehicle-to-vehicle, and related communications, in turn enhancing vehicle uptime, driver satisfaction, fleet efficiency, and safety are also gaining traction. In particular, this year will see a rising proliferation and offering of prognostics solutions that reduce vehicle down time and enhance mobile resource productivity.
According to a recent Frost & Sullivan Market Insight, Overview of the Global Medium-Heavy Duty Truck Market in 2014, the sale of medium- and heavy-duty, which stood at 2.76 million units in 2013, is expected to go up to 2.87 million units by the end of 2014.
"The market will experience introduction of several global engine platforms and at least 15 new truck models," said Sandeep Kar, Global Director of Automotive & Transportation Research at Frost & Sullivan. "With a change in truck sale models from transactional to relational formats, the market is expected to see a rise in investments in multiplexing technologies that facilitate the integration of soft technologies in trucks. Soft technologies and service/maintenance based solutions will drive greater revenue opportunities for truck makers in coming years."
Connectivity enabled through telematics is fast emerging as a major focal point for OEMs in differentiating their trucks from competitors. This along with driver health, wellness, and wellbeing focused technologies will create foundations for long-term structural changes in truck design and development.
Diesel is expected to dominate the global medium-heavy truck market – 97 percent of units that will be sold in 2014 are expected to run on diesel. Thus, truck original equipment manufacturers (OEMs) in developed and developing economies are concentrating efforts on rolling out diesel engines with improved fuel efficiency, power density, and emission reduction capabilities. At the same time, engine sizes are increasing in developing markets while developed markets are experiencing engine downsizing in the heavy-duty truck segment.
In addition, truck OEMs are focusing on developing value trucks that are priced 30 percent lower than premium trucks and 15 to 20 percent higher than low-cost trucks. These trucks are already making inroads in markets such as China, India and Russia, and are anticipated to grow at a rapid rate over this year. Although value trucks deliver better fuel economy, safety, comfort, convenience and lower total cost of ownership than low-cost trucks, the latter will continue to witness strong demand for the next 10 to 15 years. Moreover, rise in urban logistics and bricks-and-clicks sales models will lead OEMs towards developing and delivering city logistics enabling medium-heavy duty trucks featuring smaller powertrain footprint, faster loading/unloading access, and better connectivity with fleet hubs and infrastructure. Several city logistics focused truck variants will be in development and advanced introduction phase this year.