High Adoption of Telematics and Digital Retailing to Drive the Recovery of Global Commercial Vehicle Market Post-COVID-19

Commercial vehicle market in Asia is on track to fast recovery due to COVID-19 response,says Frost & Sullivan

SANTA CLARA,Calif.,Oct. 13,2020 --Frost & Sullivan's recent analysis,COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry,shows that digital and connectivity services will significantly influence market recovery post-COVID-19 as telematics services,automated digital freight brokerage solutions,and digital retailing are expected to thrive. The global commercial vehicle market is expected to decline by 29% in 2020,and the recovery will be slow,with production volumes anticipated to reach pre-COVID-19 levels after 2024.

COVID-19 impact on commercial vehicle industry

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"The impact of the COVID-19 pandemic has forced companies and original equipment manufacturers (OEMs) to rethink business strategies with a greater emphasis on risk mitigation,operational flexibility,and innovative customer interaction and service measures," said Marshall Martin,Industry Analyst,Automotive & Transportation at Frost & Sullivan. "With people staying indoors due to voluntary confinement or the imposed lockdown still in various regions,last-mile delivery of essential goods and services has experienced an uptick. The result is greater utilization of existing fleets and the realignment of fleet usage according to demand."

Martin added: "Most countries resumed partial vehicle production by June,and a full recovery in production capacity is likely to take effect only during the fourth quarter of 2020. Asian countries such as China,India,and Japan,which accounted for more than 50% of global commercial vehicle production in 2019,are expected to recover faster than countries in the west,such as the United States and Germany,which are expected to recover only by late-Q4 2020.

To mitigate risks while navigating the uncertainties posed by the impact of COVID-19,market players can pursue the following growth opportunities for each segment:

Truck Digital Services Market: Digital freight brokerage and business analytics companies should leverage the current scenario as offline platforms are difficult to access.

Connected Truck Telematics: Monitoring services,contactless delivery,digital PoD,and need-based services such as eCall,biometrics,and associated services will lead to greater market opportunity.

Fleet Leasing Market: Alternate powertrain truck leasing agreements will provide opportunities as fleets can mitigate higher upfront costs,technology upgrades,and residual value risk in a nascent market.

Electric Truck Market: Fleets should capitalize on government incentives and subsidies for electric vehicle purchases.

COVID-19 Growth Impact Assessment for the Commercial Vehicle Industryis the latest addition to Frost & Sullivan's Automotive & Transportation research and analyses available through the Frost & Sullivan Leadership Council,which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.

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COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry

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