Evolution from traditional brokering to automated platforms boosts prospects of ecosystem partners, finds Frost & Sullivan's Mobility team
SANTA CLARA, California, Jan. 20, 2017 /PRNewswire/ -- With smart cities growing all over the world, connected trucks is rising in the mobility industry and will have an important role to play in future logistics and freight operations. By 2020, 35 million trucks will be connected globally, attracting attention from major original equipment manufacturers (OEMs). As a result, OEMs are seeking investment opportunities in digital freight brokering companies that have automated search engines and transaction platforms. In due course, digital freight solutions and autonomous technologies will transform the trucking industry into a more efficient and productive sector.
Frost & Sullivan's latest analysis, Start-ups Disrupting Global Connected Truck Market, 2016-2017, highlights the importance of start-ups and how they will complement OEMs, Telematics Service Providers (TSPs), and other value chain partners. Furthermore, it will uncover key attributes of start-ups, reasons for investing, modes of funding, key criteria for choosing a start-up with examples and case studies.
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"Depending on the nature of the technology, market majors can lower R&D expenditure by investing in or partnering with start-ups," said Frost & Sullivan Mobility Research Analyst Krishna Chaithanya Bathala. "OEMs and telematics service providers can also reduce product development time and time to market by acquiring off-the-shelf technologies and products from start-ups, and position themselves as one-stop shops for fleet operators."
While the connected truck market is showing signs of exceptional growth, truck fleet owners are still concerned about fundamental issues such as underutilized capacity and empty backhauls. In response, many technology start-ups have emerged with novel fleet management solutions which could generate $23 billion by 2025.
"Significantly, the connected truck market is gradually breaking out of the hold of traditional freight brokers to adopt digital load boards and, more recently, automated platforms, causing total market disruption," noted Bathala. "Telematics is the backbone in this transition, efficiently connecting shippers and carriers based on real-time location and load capacity status of trucks. Start-ups that are both market and technology savvy will be best poised to succeed in this extremely lucrative market."
Start-ups Disrupting Global Connected Truck Market, 2016–2017 is part of Frost & Sullivan's Automotive & Transportation Growth Partnership Subscription. Related topics covered in the subscription include Powertrain and EV, LED PMA Policy, Hybrid-Electric Truck and Bus, Real Driving Emissions, RDE, and e-Hailing.
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Start-ups Disrupting Global Connected Truck Market, 2016–2017
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SOURCE Frost & Sullivan