2010-2014 us heavy truck fleet managers have spoken
TRANSCRIPT
2010-2014 Trend Analysis of US HD Fleet Managers’ Preferences
Towards Advanced Truck Technologies Total Cost of Ownership and Downtime Reduction Driving Technology Adoption
NE6D-18
May 2015
BRIEF SUMMARY
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Contents
Section Slide Number
Executive Summary 5
Trend Analysis of Powertrain Technologies 11
Influential Factors of Powertrain Technologies Purchase Process 13
Most Prevalently Used Powertrain Technologies 14
Likelihood to consider Automatic/Semi-Automatic Transmissions 15
Engine Downsizing Trends 16
Decision Making Process for Engine Purchases 17
Anticipated Usage Pattern Changes 18
Importance of Natural Gas Powertrain Technologies-Year-to-Year
Comparison 19
Expected Time Period to Recover Price Premium of Hybrid Trucks 20
Most Important Attributes of Advanced Engine Oil Lubricants 21
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Section Slide Number
Most Important Attribute in Lubricants Designed for Vehicles with
Emissions After Treatment Devices 22
Trend Analysis of Safety Technologies 24
Influential Factors of Advanced Safety Technologies Purchase
Process 26
Most Prevalently Used Advanced Safety Technologies 27
Active Chassis Control Systems Preferences 28
Relative Importance of Advanced Safety Technology Options for
Heavy Duty Vehicles 29
Influential Factors for Improving ROI of Safety Systems 31
Influential Factors of the Fleet Safety Systems Suppliers Selection
Process 32
Contents
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Contents
Section Slide Number
Trend Analysis of Telematics Technologies 34
Influential Factors of Telematics Technologies Purchase Process 36
Most Prevalently Used Telematics Technologies 37
Driver Performance Monitoring 38
Highest Monthly Subscription Fee per Truck Willing to Pay for
Telematics Services 39
Interest in Prognostics Displayed by Fleets 40
Interest in Integrating Remote/Prognostics Data 41
Conclusions and Future Outlook 43
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Source: Frost & Sullivan
Powertrain Technology Summary
Warranty and
fuel
efficiency Most influential
factors in powertrain
technology purchase
process currently
(2014)
Semi/fully
automatic
transmissions Currently one of the
most desired and
important advanced
powertrain technology
among surveyed fleet
managers
23% Estimated
future
growth rate
in 2015
Convenience
of servicing Primary reason for
selecting OEM
nameplate engines
62% Percent of fleet
managers not
expected to
change their
OEM nameplate
purchase
patterns in 2014
Advanced
synthetic oils Fleets opting for
advanced synthetic
oils owing to
protection of
equipment, reducing
maintenance needs,
and higher fuel
efficiency (2010-
2014)
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Source: Frost & Sullivan
Advanced Safety Technology Summary
Inducing
Safe Driving
Practices Most influential
factor in advanced
safety technology
purchase process
Tire Related
Safety
Systems Gaining
significant
increase in fleet
manager interest
Stability
Control
Systems Consistently
most important
advanced safety
technology in
fleets 12%
Estimated
future
growth rate
for ESC in
2015
32% Fleet
managers
expect to use
trailer tire
inflation
systems in
2015
Integrated
Safety
Systems Expected to gain
maximum traction
among fleets in
coming years
Data
Analytics Key factor in
selection of safety
system suppliers
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Source: Frost & Sullivan
Telematics Technology Summary
Improving
regulatory
compliance Most influential factor
in telematics
technology purchase
process
Driver
performance
monitoring Currently the most
prevalently used and
most important
telematics technology
in fleets
26% Mean percent
currently using
prognostics in
fleet in 2014
$19.40 Mean monthly
telematics
subscription fee
willing to pay
per truck (2014)
55% Percent interested
in integrating
remote/ prognostic
data with
maintenance
management
system and parts
inventories (2014)
52% Percent of fleet
managers
consider engine
related prognostic
data most
valuable(2014)
29% Estimated
future
growth rate
in 2015
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Source: Frost & Sullivan
• TCO and downtime reduction, and
regulation compliance emerging
as dominant forces influencing
fleet managers’ desirability and
willingness to pay for advanced
truck technologies.
• Fleet managers are anticipating
continuing fuel price volatility and
exacerbating driver shortage. This
is leading fleet managers in
spec’ing technologies that reduce
fuel cost and enhance drivability
and safety of trucks
• Compliance, Safety and
Accountability (CSA) 2010
mandate is not only driving
stability system and collision
mitigation system installations, but
also telematics adoption. This is
further catalyzed by HOS and e-
log regulations.
• In the post EPA-2010 era fleets
are showing interest in
investing in technologies that
despite featuring higher upfront
cost can reduce lifecycle cost
• Price sensitivity analysis
shows rising demand for AMTs,
TPMS, prognostics, synthetic
lubricants, collision mitigation
systems are examples of
technologies being preferred by
fleets to reduce TCO despite
their higher upfront cost.
• Fleet managers of medium-
sized for-hire fleets and large
sized private are most reliant
on advanced truck
technologies and are also
found more willing to invest in
truck technologies that offer
more than a single value
proposition
Recent Preferences
• Among advanced safety
technologies, active chassis
control systems such as ESC,
collision mitigation systems and
RSC are finding increasing
traction among fleet managers.
Among driver information warning
systems tire pressure monitoring
systems and trailer tire inflation
systems, and blind spot detection
and lane departure warning
systems emerging as most
preferred technologies.
• Integrated safety systems
encompassing features such as
stability control and collision
mitigation are expected to
experience considerable
penetration owing to their ability
of delivering multi-dimensional
safety benefits.
Safety Technologies Top-of-mind Issues
Executive Summary
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Source: Frost & Sullivan
• Semi- and fully-automatic
transmissions, natural gas
powertrain, and synthetic motor oils
have experienced rising desirability
among surveyed fleet managers
over 2010-2014 period
• Most fleet managers have reported
preference towards a mixed-
sourcing approach for engines
spec’ing both OEM engines and
independent vendor engines for
their new trucks. While preference
for OEM nameplate engines has
increased over 2010-2014 period
brand image of suppliers such as
Cummins and Eaton has ensured
fleet managers’ continued
preference for their products.
• Warranty support and reliability
have topped the list as most
influential factors while choosing
powertrain technologies
• Rise in adoption of prognostics
as a telematics application
underscores its importance
among fleets. Approximately
55% of fleets are willing to
integrate prognostics data with
inventory management and
maintenance systems,
underlining the vitality of the
service and growing adoption.
• Analysis of telematics services
and price sensitivities reveal
that telematics suppliers need
to focus on bundling their
technologies better in order to
cater to the optimal price points
preferred by fleet managers
• Survey results from 2010-2014
show rising preference for this
technology as a tool for
enhancing mobile resource (i.e.
truck and driver) productivity
enhancement
Telematics Technologies
• Based on 2010-2014 surveys and
trends emanating from these
surveys it can be inferred that fleets
will choose technologies and
providers that not only offer
products but also solutions.
• Fleets will continue preferring
powertrain technologies that
provide fuel efficiency benefits, high
degree of reliability and strong
warranty and convenience of
servicing
• Fleets will increasingly demand
safety and telematics technologies
that not only provide intended
benefits but also data for analysis
and training
• Technologies such as AMTs,
collision mitigation systems, stability
control systems, natural gas
powertrain, prognostics will
experience rising spec’ing demand
from fleet managers
Future Preferences Powertrain Technologies
Executive Summary
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Objectives
The objective of the studies was to continue this research with
an expanded scope and as a year-over-year analysis that
measures and analyzes the current levels and changes in the
familiarity, desirability, and willingness to pay for advanced
truck technologies.
Scope
The scope is to offer strategic understanding of emerging
trends with respect to powertrain, safety and telematics
derived from Frost and Sullivan’s survey of top 100 fleet
managers spanning private and for-hire fleets.
Background Frost & Sullivan’s 2010, 2012 and 2014 customer research studies focused on the top 100 fleet managers, titled “US
Fleet Managers’ Desirability and Willingness to Pay for Advanced Technologies” offer key strategic insights into the voice of the most influential group of commercial truck
buyers in the U.S.
Aims:
• Provide actionable insights
into the purchase decisions of
fleet managers at a time
when the industry is slowly
recovering from recession
• Offer insights by application
for which the truck is used,
thereby directly focusing on
the key demands and
willingness to pay with
respect to new technologies
• Offer insights by technology
area such as powertrain,
safety, telematics, and
regulation compliance
technologies
• Offer year-over-year tracking
analysis where applicable
This study aims to offer strategic analysis of developing trends in US HD fleet managers’ desirability and
willingness to pay for advanced truck technologies based on surveys conducted over 2010-2014 period.
Source: Frost & Sullivan
Research Background
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Geographic Coverage: United States
Fleet Managers Focus
• Frost & Sullivan’s voice-of-customer research
targets key decision makers that manage
fleets’ purchasing decisions or influence them.
• The key driver behind surveying fleet
managers was to understand the factors they
use to choose in-vehicle technologies for the
new trucks that they are willing to purchase,
and obtain their opinions.
• Analysis from this survey allows Frost &
Sullivan to deliver time- and mission-critical
information and analysis regarding the success
potential of various advanced technologies,
identify the technologies that have the highest
chance of success, and eliminate the ones that
have the least resonance among surveyed
fleet managers.
Fleet Segment Coverage
1.Class 6 (GVWR 19,501 to 26,000 lbs)
2.Class 7 (GVWR 26,001 to 33,000 lbs)
3.Heavy Duty Class 8 (> GVWR 33,000 lbs)
Duty Cycle:
• On-Highway
• Vocational
Fleet Type:
• Private
• For-Hire
Source: Frost & Sullivan
Research Scope and Structure of the Study Fleet Managers of Top-100 U.S. Private and For-Hire Fleets of Class 6-8 Trucks (Primarily Class 8 Truck Fleets) Applied in On-
Highway and Vocational Applications Were Surveyed By Frost & Sullivan in 2010, 2012, and 2014. This study is built on
customer research surveys and corresponding findings focused on familiarity, desirability, and willingness to pay for advanced
truck technologies
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Source: Frost & Sullivan
Market Engineering Methodology
One of Frost & Sullivan’s core
deliverables is its Market Engineering
studies. They are based on our
proprietary Market Engineering
Methodology. This approach, developed
across the 50 years of experience
assessing global markets, applies
engineering rigor to the often nebulous
art of market forecasting and
interpretation.
A detailed description of the
methodology can be found here.
Source: Frost & Sullivan