TMCnet News
Frost & Sullivan: Latin America to Strike Annual Sales of 200,000 Commercial Vehicles by 2023SANTA CLARA, Calif., Jan. 11, 2018 /CNW/ -- Digital transformation and connectivity are reshaping the future of logistics and the trucking industry. Demand for greater transparency, speed, and truck capacity optimization, as well as higher logistics costs in Latin America (LATAM), ushered in a range of digital freight brokerage solutions in both mature and emerging markets. Non-telematics participants such as private security companies and tier-1 suppliers—for example, engine and transmission system suppliers Paccar and Cummins—are venturing into the commercial vehicle telematics market and will strengthen their position in the next three years. Frost & Sullivan's recent analysis, Latin American Commercial Vehicles Market, Forecast to 2023, evaluates the number of transformative shifts, driven by social, economic, and technology disruptions, impacting the region's logistics, primary economic activities, new regulations aiding CV fleet renewal, new business models being adopted by OEMs and Tier 1 providers, as well as technology innovations reshaping the logistics industry. Notwithstanding the existing market challenges, Frost & Sullivan expects Latin America to record annual sales of more than 200,000 units by 2023. For further information on this analysis, please visit: http://frost.ly/23l "Mexico, Brazil, Chile, Colombia and Argentina will draw attention to advanced services such as driver behavior management, video safety, and prognostics, mostly for big fleets in emerging regions like Peru and small fleets in the whole LATAM region. We also expect a shift from basic to mid-tier services," said Hernan Cavarra, Mobility Industry Analyst at Frost & Sullivan. Low oil, mining ore, and commodities prices are affecting the heavy-duty truck commercial vehicles (HDT CV) market, a trend expected to continue until 2019 when recovery is likely, mainly in Brazil, the most important HDT market in the region. On the other hand, lack of proper infrastructure and low internet network penetration region-wide are restraints for the development of truck digitization and connectivity.The lack of infrastructure also affects the broad penetration of alternative fuels and powertrains, such as natural gas and hybrid vehicles, which, in the medium term, are more focused on niche market segments. Although the HDT CV market is experiencing a downturn in most markets, the MCV 6 to 10 MT sub-segment is gaining traction in the region since in many areas these trucks are replacing LCV for urban trucking and distribution. A rapidly evolving logistics requirement driven by eRetailing creates opportunities for OEMs to focus on vehicle platforms that encompass new body designs with superior volume benefits and payload as well as cab-over, better turning radius, and technology availability. In addition, OEMs can leverage the expertise of start-ups to cut down on time to market for cutting-edge concepts. "Truck digitization will offer new business opportunities for key OEMs in the region. OEMs such as Daimler Trucks, Volkswagen Trucks (MAN & Scania), and Volvo Trucks are expected to invest heavily in telematics solutions oriented toward the further development of the truck-as-a-service (TaaS) model," said Cavarra. The key mobile freight brokering start-ups that are paving the way for cost savings and disrupting regional logistics are:
Latin American Commercial Vehicles Market, Forecast to 2023 is part of Frost & Sullivan's Mobility Growth Partnership Services program. About Frost & Sullivan Latin American Commercial Vehicles Market, Forecast to 2023 Contact:
View original content:http://www.prnewswire.com/news-releases/frost--sullivan-latin-america-to-strike-annual-sales-of-200000-commercial-vehicles-by-2023-300580263.html SOURCE Frost & Sullivan |