This document provides an executive summary and implications from a 2012 survey of US heavy-duty fleet managers on their desirability and willingness to pay for advanced truck technologies. Some key findings include: 1) Fleet managers are showing high interest in technologies that can help reduce total operating costs and extend vehicle lifespan. They prefer technologies like prognostics that provide cost savings over multiple years. 2) Factors like rising fuel prices, tighter regulations, and a driver shortage are driving interest in technologies that improve efficiency, safety and data analytics. 3) Telematics is emerging as an important enabler of benefits across powertrain, safety and other systems by providing real-time vehicle data and performance insights.

1. 2012 U.S. Fleet Manager’s Desirability and
Willingness to Pay for Advanced
Heavy-Duty Truck Technologies
Table of Contents
&
Executive Summary
February 2012

2. Contents
Section
Slide Numbers
Research Objectives, Method Details, and Demographics
4
Executive Summary and Implications
14
Powertrain Technologies
18
Telematics Technologies
42
Advanced Safety Technologies
60
Regulatory Compliance Technologies
90
Maximum Difference Scaling (MaxDiff)
96
Brand Perceptions – Fleet Managers’ Ratings of Truck OEMs,
107
Safety Systems Suppliers, and Telematics Service Providers
The Frost & Sullivan Story
119
2

3. RESEARCH OBJECTIVES, METHOD DETAILS, AND
DEMOGRAPHICS
3

4. Research Objectives
The overall objective of this research was to understand Heavy-Duty Fleet
Managers in terms of advanced technologies available for their fleets.
Specifically, we sought to:
– Measure the awareness of the various powertrain, safety, and telematics advanced
technologies surveyed.
– Assess which powertrain, safety, and telematics advance technologies are
currently being utilized.
– Determine what features are most important among the various powertrain, safety,
and telematics advanced technologies surveyed.
– Measure future purchase intentions of the various powertrain, safety, and
telematics advanced technologies surveyed.
– Determine the impact that pending regulations have on the adoption of various
powertrain, safety, and telematics advanced technologies.
Source: Frost & Sullivan analysis.
4

5. Methods
Methodology: A dual methodology was utilized to contact a particularly difficult-to-reach
target respondent: First, recruitment was conducted via a telephone screening process;
secondly, a web-based survey was sent to qualified respondents for their completion.
Sample: In total, 100 U.S. Heavy-Duty Fleet Managers were surveyed (from a list of top100 fleets in U.S. from both private and for-hire segments). Specifically, we targeted
Heavy-Duty Fleet Managers who:
• Are part of the vehicle (for heavy-duty trucks) purchase making process;
• Are expecting to purchase additional vehicles for their fleet within the next two years;
• Have at least class 6, 7, and 8 vehicles in their fleet.
Additional demographic details of the sample are presented in the following slides.
Fieldwork: The survey was conducted during October 2011–February 2012.
Reporting notes: Due to rounding errors, percentages in charts and tables, may not
sum to 100.
Source: Frost & Sullivan analysis.
5

6. Demographics: Truck Detail
Type of Fleet Trucks
(United States), 2010 and 2012
Class of Trucks
(United States), 2010 and 2012
94%
99%
Tractor
Class 6 to 8
95%
2010
2010
59%
2012
100%
Straight
2012
41%
Class 1 to 3
53%
36%
4%
Other
36%
Class 4 to 5
12%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
32%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
S6. What types of trucks does your fleet currently utilize? (Multiple response)
S5. Which of the following classes of vehicles do you currently have in use in your entire fleet? (Multiple
response)
Source: Frost & Sullivan analysis.
6

7. Demographics: Types of Trailers
Types of Trailers (United States), 2010 and 2012
57%
Dry vans
74%
47%
Flatbeds
2010
42%
32%
Tankers
32%
2012
28%
Specialty trailers
25%
23%
Utility trailers
Other
25%
16%
35%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
S6A. What types of trailers does your fleet currently utilize? (Multiple response)
Source: Frost & Sullivan analysis.
7

8. Demographics: Types of Fleets Represented
Types of Fleet (Private/Hired)
(United States), 2010 and 2012
Type of Fleet
(United States), 2010 and 2012
46%
61%
For hire
62%
On highway
86%
2010
2012
47%
Private
2010
2012
32%
39%
7%
Government/public
fleet
Vocational
14%
6%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
S9. Is your fleet primarily
S10. Is your fleet primarily?
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
Source: Frost & Sullivan analysis.
8

9. Demographics: Respondent Titles and Years in Current
Role
Title of Respondents
(United States), 2010 and 2012
Time in Current Role
(United States), 2010 and 2012
69%
2010
Fleet manager
56%
2012
25%
Less than 2 years
2010
2012
33%
11%
14%
3-5 years
13%
Maintenance/service manager
27%
16%
6-10 years
16%
4%
CEO/COO/President/Owner
9%
11-15 years
7%
14%
2%
Safety manager
4%
16-20 years
0%
Other
4%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
S1. Which of the following best describes your current title?
D3. Approximately how long have you been a (RESTORE S1 RESPONSE)?
More than 20 years
12%
16%
18%
30%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
Source: Frost & Sullivan analysis.
9

10. Demographics: Scope of Responsibility
Scope of Influence on Fleet Purchase
(United States), 2010 and 2012
Degree of Involvement in Fleet
(United States), 2010 and 2012
77%
67%
Recommend/Influence purchase
One of 2 or 3 fleet purchase
decision makers
89%
2010
77%
2010
2012
55%
2012
Specify fleet equipment
79%
19%
One of many fleet purchase
decision makers
16%
60%
Purchase fleet vehicles
58%
14%
2%
Other
3%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
Sole decision maker
7%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
S2. What is your role in the purchase decision process of vehicles for use in your fleet? Specifically, for which of the following are you
responsible? (Multiple response)
Source: Frost & Sullivan analysis.
S3. How involved are you in the purchase decision process of vehicles for use in your fleet?
10

11. Demographics: Timeframe of Future Vehicle Purchase
Intentions
Timeframe of Future Vehicle Purchase Intentions
(United States), 2010 and 2012
55%
Within the Next 6 Months
63%
2010
32%
2012
Next 6 to 12 Months
28%
13%
Next 1 to 2 Years
9%
Base: All 2010 respondents (n=101), all 2012 respondents (n=100).
S4. When do you expect to purchase additional vehicles or replace existing vehicles in your fleet?
Source: Frost & Sullivan analysis.
11

12. EXECUTIVE SUMMARY AND IMPLICATIONS
12

13. Executive Summary
• The 2012 HD fleet managers survey reveals decisive change in preference for technologies that
reduce total cost of ownership of truck. As fleets are tending to keep trucks for longer periods of time,
technologies that reduce lifecycle cost are being increasingly preferred by truck fleets. The choice of
prognostics as the most preferred technology in an advanced technology bundle offered by truck
OEMs underlines this trend.
• The high ratings obtained by technologies such as SCR, advanced engine oils and semi/full
automatic transmissions reveal that fleet managers are looking at technologies that deliver more than
one major value proposition. All three technologies have experienced improvements in their
contribution to fuel efficiency enhancement, but also offer lifecycle/operating cost reduction potential.
• Fleet managers are anticipating rising fuel price volatility and exacerbating driver shortage issue.
Fleet managers are also operating under severe financial stress and running on lower levels of
human capital. Fleets managers are therefore showing preference for technologies that deliver time
and mission critical information, data and analysis for facilitating decision making.
• CSA 2010 and braking distance regulation is forcing fleet managers to invest in technologies that not
only induce safe driving practices but also technologies which can be used to actively intervene to
enhance truck safety. Fleets are also opting for technologies that can be used to reduce maintenance
and service costs, train drivers and technicians, and reduce fuel related costs.
• Price sensitivity analysis reveals results that show that fleets are willing to invest in an advanced
technology, despite its higher price premium, if they are convinced that the technology can help
reduce operating cost, induce safe driving practices, and maximize vehicle uptime.
• Data and information (both real-time and recorded) associated with various truck technologies can be
leveraged in creating training, prognostics, and other types of revenue streams for OEMs and
suppliers. Fleet managers are showing increasing hunger for effective utilization of information
related to their mobile resources: drivers and vehicles.
Source: Frost & Sullivan analysis.
13

14. Implications
• Advanced technology development and marketing must center around reducing operating expenses
of fleet managers are facing challenges such as fuel price volatility, a strengthening regulatory
environment, and shortage of skilled drivers and technicians.
• The higher degree of cognizance for several advanced soft technologies, especially in the safety and
telematics space, implies that OEMs and suppliers must work closely with telematics service
providers, information and communication service providers, data analytics providers, infrastructure
planners, and government arms.
• Consistent with the 2010 study, managers of the largest private and for-hire heavy-duty fleets in U.S.
are willing to pay higher price premiums for advanced technologies if they see potential in the
technologies in reducing operating expenses. This implies, fleet operating expense and lifecycle cost
reduction must be key focal points for R&D teams in developing new commercial vehicle industry
focused technologies. Marketing teams should underline these value propositions to fleet managers
to effectively market and sell these technologies.
• The proliferation of connectivity-enabled technologies, especially technologies such as prognostics
which impacts all adjacent powertrain, chassis, safety, and other technologies, implies tremendous
revenue growth opportunities for OEMs, suppliers, aftermarket service providers, and fleets alike.
The rising interest in this technology implies that mobile resource connectivity for vehicle operations,
service, and maintenance will drive growth opportunities for a wide spectrum of market participant
groups.
• The highest ranking technologies in terms of perceived value and interest are offering OEMs
affirmation of their vertical integration strategies and offering suppliers ideas to focus on developing
virtual integration relationships with OEMs by investing in some of these technologies and developing
strong expertise in developing and marketing the technologies.
Source: Frost & Sullivan analysis.
14

15. Executive Summary: CEO Perspective
1
Fleet managers are showing high degree of
interest in technologies that can help reduce
operating expenses and total cost of
ownership
2
Fuel price volatility, driver shortage,
regulation compliance, downtime reduction,
and data analytics are driving preferences
3
Telematics is emerging as a key enabler of
several benefits and applications desired by
fleet managers
4
With fleets keeping trucks for longer periods
of time, technologies that improve uptime
and reduce lifecycle costs are welcome
5
Creating electronic interfaces for truck
systems/components for integration with
vehicle’s communication infrastructure is
seen as a key strategy imperative
Source: Frost & Sullivan analysis.
15

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with the Frost & Sullivan Decision Support Databases, have been instrumental in the
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We also certify that no part of our analyst compensation was, is or will be, directly or
indirectly, related to the specific recommendations or views expressed in this service.
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