Strategic partnerships between OEMs and LSPs are critical to remain competitive and garner growth opportunities in evolving market, finds Frost & Sullivan's Mobility team
SANTA CLARA, California, Aug. 15, 2017 /PRNewswire/ -- Connected trucks will be integral to future logistics and freight operations as smart trucks will be a necessity in smart cities. By 2020, 35 million trucks are expected to be connected with digital freight solutions and autonomous technologies, transforming the trucking industry into a smarter, efficient and more productive sector. The unaddressed challenge of under-utilized truck capacity will provide original equipment manufacturers (OEMs) and telematics service providers (TSPs) the opportunity to invest or partner with freight aggregation companies and become one-stop solution providers for fleet operators.
Frost & Sullivan's recent analysis, Developments in the Global Connected Truck Market Shaping the Future of Logistics, finds the market is projected to grow at a CAGR of 40.9 percent, garnering $20.5 billion by 2020. The study examines key trends in the connected truck market that will influence the future of logistics including Uber for Trucks, Internet of Things (IoT) in Trucks, Artificial Intelligence, Autonomous Technologies, and 3D Printing.
To access more information on this analysis, please visit: https://goo.gl/MHFrfR
"The logistics industry is expanding to include unconventional players, resulting in innovative and unique value-added services," said Frost & Sullivan Mobility Senior Analyst Krishna Chaithanya Bathala. "As logistics service providers (LSPs) shift from mere outsourced logistics to more non-asset-based and end-to-end, integrated, demand-driven logistics, with an extensive e-business focus on all logistics operations, technologies such as real-time data, sensorization and intelligent autonomous machines, will accelerate the transformation of the logistics and supply chain industry."
Telematics will be the key driver for supply chain automation. Value-added services, such as real-time traffic, tolling, routing and scheduling, parking, freight aggregation, as well as weigh station bypass, are gradually becoming mainstream telematics services. To leverage the emerging opportunities, TSPs and OEMs must:
- Develop a brand-agnostic open platform: A single holistic platform with core fleet management solutions (FMS), value-added services, and back-office management software, such as transport management systems (TMS) and enterprise resource planning (ERP), will enhance operational efficiencies.
- Optimize first-mover advantage: Quickly identifying and implementing new services and solutions through collaborations with start-ups will generate value addition for customers.
- Develop a cloud-based logistics control tower: A central hub for the entire ecosystem can capture data across various stages of the supply chain and offer stakeholder-specific dashboards for custom viewership.
- Ensure data security: Partnering with network and data security vendors will enable end-to-end data encryption.
"By 2020, IoT use cases characterized by advanced machine-to-machine capabilities and sensor fusion will make the traditional supply chain models redundant," added Bathala. "The shift away from vehicle-centric platforms to IoT-based platforms that connect vehicles, warehouses, and infrastructure, is expanding opportunities for key ecosystem participants, such as Trimble, Geotab, Verizon Telematics, TomTom Telematics, Omnitracs, Daimler's FleetBoard and RIO from Volkswagon Truck and Bus, which have developed innovative technology platforms, business models, and unique service offerings."
Developments in the Global Connected Truck Market Shaping the Future of Logistics, is part of Frost & Sullivan's Mobility Growth Partnership Subscription.
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Developments in the Global Connected Truck Market Shaping the Future of Logistics
Corporate Communications – North America
SOURCE Frost & Sullivan