The global commercial vehicles market is undergoing a significant transformation owing to various factors; the advent of new technologies like autonomous vehicles, powertrains and greater connectivity between vehicles; greater emphasis on sustainable and clean mobility; and new fleet technologies that are impacting the heavy vehicles market.
In this blog, we explore these factors in more detail, and map out what the future of commercial vehicles is likely to look like.
Technology is Driving Change Across Classes
The impact of autonomous vehicles, advanced powertrains and heightened connectivity is not just limited to a single class of vehicles; it ripples across light motor and heavy vehicles, and it’s reshaping the dynamics of transportation
When it comes to light motor vehicles, Advanced driver-assistance systems (ADAS), for instance, is becoming increasingly common, leading to safer roads and reduced accidents. ADAS was first introduced 50 years ago post the adoption of anti-lock brakes. Later, it encompassed traction control and electronic stability control, blind spot information systems, and more.
Over the years, the technology has proven to provide higher passenger safety, optimise path planning, and reduce the chances for human error, thus leading to lesser road fatalities. A recent study by Roland Berger reveals that ADAS will become a common feature in every new vehicle by 2025.
Electronic powertrains, on the other hand, are also gaining traction as the demand for electric vehicles goes up. They carry several benefits, including lower operating costs than gasoline vehicles, lesser emissions than internal combustion vehicles, better performance thanks to instant torque, and higher efficiency which can contribute to reducing energy consumption. According to the International Energy Agency (IEA), sale of electric vehicles is set to reach 14 million by the end of 2023. And, by 2030, the average share of electric cars in total sales across China, the EU and the United States is set to grow to around 60%.
When it comes to heavy vehicles, autonomous trucks are streamlining logistics, promising greater efficiency and cost-effectiveness. The integration of advanced powertrains, including electric and hybrid options, is not only curbing emissions but also revolutionising long-haul transportation.
Connectivity is playing a pivotal role in heavy vehicles by enabling fleet managers to monitor real-time data on fuel consumption, route optimisation, and maintenance needs. With the heavy-duty truck market expected to grow at a CAGR of 4.1% by 2027, these technological advancements are steering the industry toward a future where sustainability, safety, and efficiency coalesce.
Voting for Green Mobility
The demand for sustainable mobility from consumers, Governments and regulatory bodies is also reshaping the commercial vehicle landscape in recent times.
Earlier, we saw how technology is enabling green mobility. But, beyond that, there is a growing awareness to reduce emissions which directly impact climate change.
Governments globally are tightening emission standards, prompting a shift towards cleaner and greener propulsion technologies. Consequently, cities are witnessing more eco-friendly commercial fleets on roads, which are contributing to improved air quality and reduced environmental impact.
The emphasis on sustainable mobility is also reshaping operational practices within businesses. Logistics companies and fleet managers are adopting several eco-conscious strategies to reduce emissions.
A Merit expert explains, “On one hand, they’re adopting more hybrid and electric vehicles, optimising size of fleets and routes to reduce fuel consumption and emissions, and using alternative fuels like hydrogen, natural gas and biodiesel. On the other hand, they’re running eco-driving training programs to help fleet drivers operate their vehicles in a more fuel-efficient and environment-friendly manner.”
For example, adopting practices like maintaining steady speed, avoiding sudden braking, reducing idling time, and better route optimisation has shown to reduce annual fuel consumption by 5-30%.
Lastly, consumers are increasingly favoring businesses adopting sustainable mobility practices. A report by Deloitte reveals that 40% of UK consumers choose brands that follow environmentally sustainable practices and values, a number that has increased from 6% in 2020. The report goes on to indicate how the number of consumers opting for low carbon emission vehicles or shared modes of transport has increased to 30% compared to 19% in 2020. It’s safe to say that the discerning modern consumer is becoming more inclined towards environmentally responsible services, positioning companies with eco-friendly fleets at a competitive advantage.
Preparing for a Sustainable Revolution
As technology propels commercial vehicles into an era of autonomy, sustainable powertrains, and seamless connectivity, the future promises a landscape where safety, efficiency, and environmental consciousness converge. With governments, businesses, and consumers championing eco-friendly solutions, the global commercial vehicle arena is poised for a transformative journey towards a greener, smarter, and more sustainable future.
Key Takeaways
- Impact on Light Motor Vehicles: The adoption of Advanced Driver-Assistance Systems (ADAS) is making roads safer, reducing accidents, and proving to be a pivotal advancement in passenger safety. Simultaneously, the surge in electronic powertrains, driven by the demand for electric vehicles, is contributing to lower operating costs, reduced emissions, and improved overall efficiency.
- Revolutionising Heavy Vehicles: In heavy vehicles, the advent of autonomous trucks, advanced powertrains (including electric and hybrid options), and enhanced connectivity is streamlining logistics, promising greater efficiency, cost-effectiveness, and emissions reduction. The heavy-duty truck market is projected to grow significantly by 2027.
- Green Mobility Movement: The global demand for sustainable mobility is influencing commercial vehicle landscapes. Governments and regulatory bodies are tightening emission standards, prompting a shift towards cleaner propulsion technologies. The rise of eco-friendly commercial fleets is contributing to improved air quality, aligning with global efforts to combat climate change.
- Consumer Preference for Sustainability: A notable shift in consumer behavior towards sustainable practices is observed, with a growing number favoring businesses adopting eco-friendly mobility solutions. Reports indicate a substantial increase in consumers choosing brands with environmentally sustainable practices, underlining the competitive advantage for companies with eco-friendly fleets.
Merit’s Expertise in Data Aggregation & Harvesting for the Global Automotive Sector
Merit Data and Technology excels in aggregating and harvesting automotive data using AI, ML, and human expertise. Our capabilities include:
- Crafting end-to-end data pipelines and scalable data warehouses
- Designing compliant governance solutions for seamless integration
- Utilising high-volume, high-velocity data tools for nuanced insights
- Extracting retail product attributes and audience data
- Aggregating industry-specific data points for informed decision-making
Trusted by leading automotive brands, Merit drives innovation and efficiency by delivering refined, actionable insights.
Related Case Studies
-
01 /
A Hybrid Solution for Automotive Data Processing at Scale
Automotive products needed millions of price points and specification details to be tracked for a large range of vehicles.
-
02 /
Automotive Data Aggregation Using Cutting Edge Tech Tools
An award-winning automotive client whose product allows the valuation of vehicles anywhere in the world and tracks millions of price points and specification details across a large range of vehicles.