connected truck trends · fuel, driver wages, maintenance, and tires together hold about 62% of the...

“We Accelerate Growth”1

Craig Parker, Research Director – Africa & Middle East

Connected Truck Trends

2

Connected Truck

Session Agenda

1. Numbers and Trends

2. Connected Truck:

Transformational Shifts

and Disruptors

2018

Numbers and Trends

4

Regional connected truck outlookKey global drivers are OEM impact, impending regulations, telematics awareness and technological

advancement

5

India and LATAM to emerge as key markets with South Africa deepening

advanced services

6

Among other telematics services that dominate the South African market,

driver behavior, stolen vehicle recovery, and fuel monitoring top the chart

7

Cartrack has gradually increased its overall percentage composition in

fleet management from less than 35% in 2012 to more than 61% in 2017

8

Improved contributions from portable solutions such as plug and play and

OBD II dongles will boost telematics adoption in the LCV segment

2018

Connected Truck:

Transformational Shifts and

Disruptors

10

Types of telematics solutions

11

Types of business models

12

What is Connected Truck?Fuel, driver wages, maintenance, and tires together hold about 62% of the total cost of fleet operation; a

‘Connected Truck’ plays a huge role in significantly optimizing these factors.

Benefits After Effective Deployment of Fleet Management System

10-15%Increase in

Productivity

10-15%

Overtime

Reduction

20-25%

Reduction in

Fuel Expenses

5-10%

Reduction in

Total Miles

20-30 minutes

Day/Driver

Labour Savings

15-20%

Increase in

Vehicle Utilization

20-30%

Reduction in

Vehicle Idle Time

Oth

ers

(Tax

, In

tere

st)

22%

Dri

ver

wag

es

30%

Fu

el

26%

Ma

inte

nance

Tire

s

Insu

rance

De

pre

cia

tion

5% 1% 6% 10%

13

Eco-system partnersAll value chain partners (from OEM to tire / component manufacturers) are assessing to offer their own

FMS solution; Consolidation drives this trend

IT Specialist -

Software and

Application

Providers

14

Future Opportunity

FuelMgt.

DriverMgt.

VehicleManagement

DriverBehaviour &

Driver Training

Be

ne

fits

to

OEM

or

Val

ue

C

hai

n P

artn

ers

Rev

en

ue

Ge

ne

rato

r

OrderManagementWarranty

Optimisation

PreventiveMaintenance

Advanced DriverAssistance System

Integration

Automated Driving/ Platooning

Dealer / ServiceMaximization

Be

ne

fits

to

Cu

sto

me

r

15

Potentially disruptive business models

16

Potentially disruptive business models

17

A growing number of component suppliers, including transmission, wheel-

end, automotive systems, safety, and tire manufacturers, are expected to

make inroads with their respective telematics solutions

18

Top Trends Driving the Connected Truck Telematics Market Notable market consolidations are highly likely in 2018; open telematics and the impact of security and

privacy regulations may become influential drivers for 2018

19

Trend 1—Entry of Non-traditional Telematics CompaniesSuppliers of components such as safety systems, powertrain, vehicle control systems, engines, and tires

are expected to introduce telematics systems to initiate intelligent and smart aggregates

20

Trend 2—Telematics will Shape the Future of Smart Cities Developed cities will look for partners that can provide real-time smart insights; Los Angeles’ Vision Zero

initiative targets zero traffic deaths by 2025 using the data-driven approach

21

Trend 3—Open Platform Telematics; Disruption within the Value Chain Significant disruption that drives telematics suppliers, OEMs, and even tier 1 suppliers, who will

introduce their own open architecture platforms – RIO (Volkswagen), Cummins, and Daimler Fleetboard

22

Trend 4—Platooning Gears Up for Commercial Applications Peloton, an on-highway platooning enabler, is likely to look for multiple partnerships in addition to the

existing one with Omnitracs; other companies like TuSimple and Embark will also follow this trend

2018

Truck-as-a-Service

24

Digitization Enabling Service/Solution Model EvolutionConfluence of technologies in the industry providing platform for various stakeholders to build service

and solution-based revenue models

25

Leveraging Big Data and Digital TechnologiesOEMs are leveraging Big Data and Digital technologies to transition from focusing on just product or

service development to cater to the overall customer experience

2018

Electric Truck

27

Over the last year, OEM activity in full-electric powertrain solutions for medium-

heavy duty trucks has risen rapidly with Daimler AG commercially launching its MD

eCanter in US, EU and Japan

28

Electric Driveline—Architectures in ConsiderationeAxle is gaining traction in heavy-duty trucking applications. Dana and Meritor are incumbents working on the eAxle

product offering. Bosch is trying to gain foothold in the CV market through its partnership with Nikola Motor

29

Change is coming soon

30

Contact Details for more information…

CRAIG PARKER

Research Director – Africa & Middle East

Tel : + 27 (0)21 680 3292

Email : Craig.Parker@frost.com

www.frost.com

PETER DE BEER

Relationship Manager Africa Mobility

Tel : +27 (0) 21 680 3572

Email : Peter.debeer@frost.com

www.frost.com