Frost & Sullivan Analyzes Impact on Commercial Vehicles
Collaboration between automotive OEMs and technology developers is expected to become more active.

As the adoption of new technologies such as AI, IoT, telematics, data analytics, and blockchain increases in commercial vehicles, collaboration between automotive OEMs and technology developers is being promoted.
Commercial vehicle OEMs and Tier 1 suppliers are expected to increase their investment in innovative technologies that can reduce supply chain complexity while increasing efficiency.

According to the '2018–2025 Global Logistics Supply Chain Trends and Challenges and Their Impact on Commercial Vehicles' report published by global market research firm Frost & Sullivan, the transportation industry, which is at the core of the logistics supply chain, is undergoing significant changes driven by technologies such as AI, IoT, telematics, data analytics, and blockchain. The report indicates that collaborations with technology providers and M&A activities have become active to secure market dominance.

This report contains an investigation into new business models, key megatrends that will impact the global freight transportation industry, and the influence of major technology firms, startups, and key technologies entering and investing in the market on the relevant industry.

Factors that commercial vehicle OEMs and logistics service providers should consider to increase growth opportunities include ▲ development of a connected supply chain ecosystem ▲ online digital platforms and connectionFocus on the Long-Term Load (LTL) method due to the emergence of driving devices ▲ transition to demand-driven logistics models, outsourcing, and one-stop solutions ▲ redesign of vehicle bodies and seats due to improvements in telematics and the increase in autonomous vehicles ▲ solving issues such as last-mile delivery through the introduction of delivery bots that can increase cost efficiency while reducing regulatory requirements ▲ development of urban trucks with improved mobility.

Sim Jin-han, Director of Frost & Sullivan Korea, stated, “As the use of telematics and IoT in commercial vehicles surges, vast amounts of data are being generated, and this data needs to be effectively utilized through big data analysis.” He added, “Driven by the trend of technological convergence, we will encourage commercial vehicle OEMs to develop business models such as digital freight brokerage services and Truck-as-a-Service, while also assisting them in focusing on truck leasing, financing, used truck sales, and rack trailer integration.”

He added, “As the use of electric vehicles is expected to rise globally due to increasing urban and emission regulations, interest in last-mile delivery is also growing. While heavy commercial vehicle OEMs such as Volvo, Scania, and Daimler are investing heavily in electric and fuel cell powertrain innovation, light commercial vehicle OEMs are collaborating with technology firms and logistics companies to drive innovation in urban delivery.”