Technological, demographic, environmental, and geopolitical shifts are altering the commercial truck market globally. Integration of digital technologies primarily for resource management and total cost optimization will result in the evolution of truck technology from basic telematics services to advanced traffic modeling, weather prediction, and social media analytics. Autonomous driving technologies are gaining traction and are expected to garner significant OEM support to reach scalability by 2025, when level 3 autonomous trucks are expected to reach the market. Significant portion of global truck market growth in the next decade will come from Next 11, ASEAN, Middle East, and African countries. Africa’s truck market will be buoyed by the establishment of the African corridor, expansion of free trade agreements within the continent, and better utilization of natural resources. In conjunction with the growth of emerging markets, value trucks will be the fastest- growing segment in the next decade — nearly tripling in volume to account for 31% of total truck sales globally by 2025. Demand for this segment will be driven by fleet modernization efforts in China and India, which are the dominant low-cost truck markets. More global platforms are expected as global OEMs look to expand in Asian markets.

1. Eight Transformational Trends Influencing the Global
Trucking Industry’s Growth Trajectory
Green, Safe, Connected, and Smart Technologies Enabling Transition from
Product- to Service-Based Business Model
K0C4-18
August 2016
Brief Summary

2. 2K0C4-18
Contents
Section Slide Number
Executive Summary 3
Research Scope, Objectives, Background, and Methodology 7
Definitions and Segmentation 14
Top 8 Transformational Shifts Shaping the Future of Commercial Trucking 16
Conclusions 58
Appendix 64

3. Return to contents
3K0C4-18
Executive Summary

4. 4K0C4-18
Digital
Transformation
Autonomous
Trucking
Source: Frost & Sullivan
Rise of Value
Trucks
1
Urban Trucking
5
2 3
Dealership
Evolution
8
Rise of Asian
OEMs
7
Beyond BRIC
6
Platformization
4
Executive Summary—Top 8 Transformational Shifts Shaping the
Future of Commercial Trucking

5. 5K0C4-18
Demand Generator
Create
Shipment
Navigation
Resource
Management
Transportation
Management
Logistics
Management
Returns
Management
Loading/
Unloading
Quality
Management
Inventory
Management
Yard
Management
Last-Mile
Delivery
P
Mediator Freight Forwarder Delivery of Freight
Fast Ship
Pack
Shipments
Loading/
Unloading
Document
Management
Schedule &
Manage Pickups
Mobile-Based
Brokering
Payment –
Generate Bills
Load Boards
Get Rates and
Transit Time
SAP
SAP
SAP
Executive Summary—Industry Transformation
The freight mobility industry is experiencing transformation across all verticals, creating new revenue streams
and opportunities.
Source: Frost & Sullivan

6. 6K0C4-18
1
2
3
4
5
Value trucks will be the fastest-growing price segment in the next decade, expected to nearly
triple in volume to account for 31% of total truck sales globally by 2025. Demand for this
segment will be driven by fleet modernization efforts in China and India, which are the dominant
low-cost truck markets.
Key global OEMs have 48 heavy-duty and 43 medium-duty truck platforms. More global
platforms are expected in the next decade as OEMs look to expand in Asian markets.
Autonomous driving technologies are gaining traction and are expected to garner considerable
OEM support to reach significant scalability by 2025, the year in which level 3 autonomous
trucks are expected to enter the market.
Integration of digital technologies primarily for resource management and total cost optimization
will result in the evolution of truck technology from basic telematics services to advanced traffic
modeling, weather prediction, and social media analytics.
Transformational Shifts: Top 5 Insights, Global, 2015–2025
A significant portion of global truck market growth in the next decade will come from the Next 11,
ASEAN, and Middle East and Africa regions. Africa’s truck market is expected to grow at a 6.4%
CAGR to cross 174,000 annual sales in 2025 buoyed by the establishment of the African
corridor, expansion of free trade agreements within the continent, and better use of natural
resources.
Executive Summary—Top 5 Insights
Technological, demographic, environmental, and geopolitical shifts are altering the commercial truck market
globally.
Source: Frost & Sullivan

7. Return to contents
7K0C4-18
Research Scope, Objectives, Background, and
Methodology

8. 8K0C4-18
Research Scope
Commercial trucks with GVWR 6 tons and aboveVehicle Type
2016–2025Forecast Period
2015–2025Study Period
2015Base Year
Global
• North America consists of the United States and Canada
• South America includes all countries of Latin America except
Mexico
• Europe consists of the 28 countries of the European Union
• China
• India
• Russia
• Next 11 (Egypt, Indonesia, Iran, Mexico, Nigeria, Pakistan,
Philippines, Turkey, South Korea, Vietnam, and Bangladesh)
• Rest of World (RoW)
Geographical Scope
Source: Frost & Sullivan

9. 9K0C4-18
Research Aims and Objectives
Aim
• To identify and understand the key trends altering the commercial truck landscape.
Objectives
• To provide insights and likely key new technologies for 2015–2025.
• To outline market dynamics, key trends, market drivers and restraints, and industry challenges.
• To compare and analyze the influence of major trends in the commercial truck market globally.
• To provide strategic recommendations and conclusions for OEMs, Tier I suppliers, and fleet owners
based on Frost & Sullivan analysis.
• To analyze competitive factors, competitor market shares, and product portfolios and capabilities.
• To develop an actionable set of recommendations for market growth and sustenance.
Source: Frost & Sullivan

10. 10K0C4-18
Key Questions this Study will Answer
What are the key trends shaping the future of the commercial truck market?
How will truck features evolve by 2025? What will be the key technologies?
What will be the product focus of key OEMs in each region?
What will be the technology strategy for truck OEMs across regions?
What is the projected volume of truck sales across key regions in 2025?
What are the drivers and restraints of the global commercial truck market?
Source: Frost & Sullivan

11. 11K0C4-18
Research Background
This research builds on content from Frost & Sullivan’s recently published studies in the area of business
strategy and innovation:
K046-18 2025 Vision of Transformations in Global Medium-Duty Truck Market (2016)
NF9E-18 Executive Analysis of the Global Medium and Heavy Duty Truck Transmissions Market (2016)
NEC5-18 Strategic Outlook for Autonomous Heavy-duty Trucks (2015)
NF51-18 Executive Outlook of Hyundai’s Global Commercial Vehicle Market Activities (2015)
NF8D-18 Executive Analysis of Medium-Duty and Heavy-Duty Value Truck Market in Select Emerging
Economies (2015)
NFAB-01 Executive Profiles of Key Truck Telematics Vendors—PART 1(2015)
P895-18 Strategic Analysis of Chinese Light, Medium, and Heavy-Duty Commercial Truck Market (2015)
ND32-18 Strategic Analysis of Global City Truck Market (2014)
NC9A-18 Commercial Vehicles 2020 Vision (2014)
NE67-18 Executive Impact Analysis of Big Data in the Trucking Industry (2014)
This study is supplemented by ongoing interactions with vehicle manufacturers and suppliers in the area of
business strategy and innovation.
Source: Frost & Sullivan

12. 12K0C4-18
Research Methodology
Research Methodology: Frost & Sullivan’s research services are based on secondary and primary
research data.
Secondary Research: Extraction of information from reports and project material in the
Frost & Sullivan database, and data and information gathered from technical papers, specialty magazines,
seminars, and Internet research.
Primary Research: More than 15 interviews were conducted over the phone by senior consultants and
industry analysts with original equipment suppliers, regulatory authorities, and distributors. Primary research
accounts for 80% of the total research.
Note on Images: Images have been used with permission of the copyright holder.
Source: Frost & Sullivan

13. 13K0C4-18
Key OEMs Compared in this Study
Group Commercial Vehicle OEMs
Daimler
Mercedes-Benz, Freightliner,
Western Star, Mitsubishi Fuso,
Thomas Built, Bharat Benz,
Setra
Volvo
Volvo, UD, Renault, Mack,
Eicher
Volkswagen
Volkswagen Commercial
Vehicles, MAN, Scania, SEAT
BAIC Foton Motor
Navistar
Navistar, IC Bus, SST Truck
Company
Hyundai Motor
Group (HMG)
Hyundai, Kia, Sichuan
Hyundai Motor Company
Group Commercial Vehicle OEMs
Isuzu Isuzu
Dongfeng DFM, Dongfeng Peugeot-Citreon
Paccar DAF, Kenworth, Peterbilt
Ford Ford
Tata Tata Motors
CNH Iveco, Iveco Astra, Heuliez Bus
Toyota Toyota, Daihatsu, Hino
CNHTC Sinotruck
FAW FAW
The following OEM groups are compared in this study:
Source: Frost & Sullivan

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14K0C4-18
Definitions and Segmentation

15. 15K0C4-18
Reference
Vehicle
Classification Definition GVWR Typical Applications
MD
Medium-duty
truck
All types of midsize
trucks
Class 47
GVWR >6 tons
and < 16 tons
Home delivery, logistics, parcel
delivery, utilities, waste and recycle
collection, refuse, truck tractor
HD Heavy-duty truck All types of large trucks
Class 8
GVWR >16 tons
Line-haul freight, refuse collection,
mining and construction, and other
vocations that demand high GVWR
trucks
Commercial Vehicle Definitions and Vehicle Segmentation
Trucks are classified as light, medium, or heavy based on a combination of GVWR and vocation. This study
addresses the MD and HD truck segments only.
Commercial Vehicle Market: Definitions and Segmentation, Global, 2015
Source: Frost & Sullivan

16. 16K0C4-18
Legal Disclaimer
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17. Return to contents
17K0C4-18
Appendix

18. 18K0C4-18
A/C Air Conditioning HD Heavy Duty
ABS Antilock Braking System HP Horsepower
ASEAN Association of South East Asian Nations ISS Integrated Safety System
CAGR Compound Annual Growth Rate ITS Intelligent Transportation System
CV Commercial Vehicle MD Medium Duty
EBS Electronic Braking System NAFTA North American Free Trade Agreement
EGR Exhaust Gas Recirculation OEM Original Equipment Manufacturer
ESC Electronic Stability Control RoW Rest of World
EU European Union TCO Total Cost of Ownership
FMS Fleet Management System TFTA Tripartite Free Trade Area
GCC Gulf Cooperation Council V2V Vehicle to Vehicle
GVWR Gross Vehicle Weight Ratio V2X Vehicle to Everything
Abbreviations and Acronyms Used
Source: Frost & Sullivan