Frost & Sullivan: Green, Safe and Connected Medium-Heavy Duty Trucks to Find Widespread Acceptance in 2014
Mountain View, Calif. - The improved economic environment in developing and developed economies is restoring business confidence and pushing up the global sales volumes of medium-heavy duty trucks. Truck buyers are particularly looking for medium-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-heavy duty trucks, 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, 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.
"Both trends of connectivity and a focus on technologies dealing with driver health, wellness and wellbeing will permeate in force to developing markets by the end of this decade," added Kar.
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 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.
"While diesel retains its status as the industry's de facto fuel, natural gas-fueled trucks will account for roughly one percent of total medium-heavy truck sales this year," said Kar.
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.
"Truck OEMs are launching digital e-retailing initiatives, such as Web site-based sales optimization, integration of digital marketing within existing dealership models, off-shore digitization and lead generation through predictive analytics to gain more touch points with truck buyers and influence their purchase decisions," noted Kar. "They are also looking to adopt new technologies that can reduce operating expenses, as this will help them expand their customer base globally."
More Industry

Pennsylvania Dealership Under New Retailers
The sale of the Chrysler Dodge Jeep Ram store puts a family auto group on a leaner path as first-time dealers take the helm.
Read More →
Battery Storage Takes Priority Over EVs
U.S. automakers are prioritizing battery energy stationary storage over electric-vehicle production as the consumer demand for EVs lags the rest of the world.
Read More →
Auto Dealers Feel Better But Not Great
A second-quarter Cox Automotive poll of franchised retailers and independents found better views of the current market after a good spring but anticipation of third-quarter storminess.
Read More →
New-Vehicle Sales Picture Relative
A May forecast is complicated by last spring’s trade tariff effects on auto retail. Despite continued hard realities, many consumers took advantage of ways to bite the bullet.
Read More →
Auto Group Acquires Third Nissan Rooftop
Iowa-based Coleman Automotive Group recently acquired its seventh dealership, McGrath Nissan, which it renamed Nissan of Elgin.
Read More →
April Less Affordable
Based on prices, reduced incentives and slower household income growth, consumers found it more challenging to buy new last month, Cox Automotive reported.
Read More →
Building an Extraordinary F&I Agency
Work to determine your specialized talent, because that fact will determine everything about your agency’s future.
Read More →
Recipe for Compliance
The secret to both amazing barbecue and compliance is the same: understanding the basics and committing to a process.
Read More →
EVs Getting More Attractive
A growing percentage of U.S. consumers are open to switching and fewer are adverse to the idea, according to a recently completed survey. That’s despite the end of a tax break.
Read More →
EV Sales Drop in April Following Surge
North American electric-vehicle sales were down 28% year-over-year, a sharp contrast from global EV sales growth of 6%.
Read More →