Connected Services for Commercial Vehicles Market: Introduction
- Connected services have been a crucial indicator of technological growth in several brands. These features have expanded the horizon of improvement for ease of use and operations. Brands, globally, are investing heavily to incorporate connected services in their offerings.
- Connected services can play a crucial role in commercial vehicles to track, manage, and detect distance travelled as well as vehicle status. Increase in adoption of EVs in commercial vehicles is likely to drive the ability of connected vehicle services to track the battery availability, range achievable, and closest charging stations in case of emergency.
- Introduction of connected services is estimated to be a next big thing for commercial vehicles as well as the logistics industry. This could help eliminate various undeterminable factors that basic GPS location is unable to handle.
Key Drivers of Connected Services for Commercial Vehicles Market
- Data and knowledge are driving factors for any business in today’s world. Getting instant data is very important for better planning and timely delivery of orders. Implementation of JIT and Kanban at every stage in the manufacturing industry and the ever increasing demand for timely logistics due to growth of e-commerce industry is posing a challenge for the logistics industry.
- Transport companies fear falling behind in digitalization. This is an important step for any industry, as any delay in the delivery causes losses for both carrier as well as the receiver.
- Acute insolence to automated driving continues as the technology is still in the development stages; therefore, it is highly dependent on humans causing delays and several uncontrolled parameters. Connected services help predict as well as find options to minimize the impact.
Opportunities of Connected Services for Commercial Vehicles Market
- The automobile industry is undergoing major technological reform, not just in drivetrain technology but overall vehicle control systems. Increasing integration of smart features in passenger vehicles has also prompted the demand for such features in commercial vehicles, which currently are using manual systems to fetch data that could be outdated or may not be accurate. Developments in real-time data technology have meant even commercial vehicles are becoming smart to receive updates from the central control unit for all onboard features.
- Vehicle health status, speed, real time fuel consumption, Fuel on board as well as features such as load characteristics are very important when it comes to new requirements
- This also provides an opportunity to track driving characteristics of the driver as well as if the drivers are well-rested and breaks have been taken during the route. This is also expected to help observe if the driver was drowsy or driving under influence. This could be a major breakthrough in the smart system for connected services for commercial vehicles.
- These systems are likely to help reduce unauthorized use of vehicles and track maintenance schedules as well as warn the system for early signs of vehicle parts fatigue and help avoid sudden breakdowns, thereby increasing the reliability and reducing the overall cost incurred due to vehicle breakdowns.
Challenges of Connected Services for Commercial Vehicles Market
- The logistics industry already operates on slim margins considering the costs incurred and investment required for setup of business. These would not only drive the equipment cost but also the operation cost, as most services are likely to be subscription based, which in turn is estimated to increase recurring costs.
- Supporting hardware is expected to be a key aspect in the proper operation of the overall system. This is especially a challenge in developing countries where vehicles are not as advance as in most developed countries, where it is mandatory to have sophisticated onboard diagnostics systems.
- Currently, considering the impact of the COVID-19 pandemic, the semi-conductor supply is heavily impacting the automobile market, largely by increasing the cost of equipment
Connected Services for Commercial Vehicles Market, Geography
- Few countries in Asia Pacific and several in Africa may find it difficult to adopt connected services in commercial vehicles, as most commercial vehicles used in these countries are basic and not very advanced in terms of technological options onboard. However, these countries are witnessing significant upgrade in technology due to the new safety norms enacted by their respective governments.
- On the other hand, countries in Europe and North America would be able to easily adopt these technologies, as they have sophisticated vehicles and would not require many upgrades for incorporation of such systems
Key Players Operating for Connected Services for Commercial Vehicles Market
- Continental AG
- Daimler AG
- AB Volvo
- Tata Motors Ltd.
- Mahindra & Mahindra Ltd.
- Robert Bosch Gmbh
- Eicher Motors
- Ford Motor Company
- Paccar Inc.
- Caterpillar Inc.
- Nissan Motor Co., Ltd.
- Hyundai Motors
Connected Services for Commercial Vehicles Market, by Vehicle Type
- Small Commercial Vehicles
- Medium Commercial Vehicles
- Heavy Commercial Vehicles
Connected Services for Commercial Vehicles Market, by Information Provided
- GPS Location
- Vehicle Health Status
- Detect early signs of equipment and vehicle fatigue
- Monitors performance based on fuel and/or oil consumption
- Control Idling
- Speeding
- Unauthorized Use
- Maintenance Schedules
Connected Services for Commercial Vehicles Market, by Use
- Free
- Paid
- One Time
- Subscription Based
Connected Services for Commercial Vehicles Market, by Sales Channel
Connected Services for Commercial Vehicles Market, by Region
- North America
- Europe
- Germany
- UK
- France
- Russia
- Spain
- Sweden
- Rest of Europe
- Asia Pacific
- China
- India
- Japan
- ASEAN
- Rest of APAC
- Latin America
- Brazil
- Mexico
- Rest of Latin America
- Middle East & Africa
- GCC Countries
- Turkey
- South Africa
- Rest of Middle East & Africa
