Digital Transformation In The Trucking Industry

Fleet Complete’s Chief Strategy Officer Sandeep Kar was invited by HDMA to give an exclusive talk at the IAA Commercial Vehicles 2018 in Hannover, Germany. During the 27th Annual Breakfast & Briefing event, he will talk about the State-of-the-art and Growth Opportunities for the HD Industry Participants in Connected Commercial Vehicle Ecosystems.

What is changing the very foundations of the trucking industry today? Digitization. It is creating tectonic changes in the way stakeholders derive and deliver value in the industry. Three technology trends can be seen as focal points: electric mobility, autonomous mobility, and connected mobility.

The Rise of the Urban Middle Class

The rise of the global urban middle class is a trend that transcends boundaries. In the next 10-20 years, global economic growth will be driven by countries, in which the majority of the population resides in urban areas. In this era of predictable shipping and guaranteed deliveries, connected truck technologies will no longer be an option but a reality. City trucks, used for urban pick-up and delivery, will gain significant surge in demand.

Gaining Momentum: Electric Powertrain Adoption

Another trend in trucking – The rising momentum in the electric powertrain adoption. This will have an impact on all corners of the commercial vehicle industry. Not only will these systems reduce the carbon footprint and operating cost, but also create the foundation for integrating several distributed electronics systems in trucks to increase safety, cleaner operation, and connectivity. Trucks built on hybrid and electric powertrain systems will also reduce service, maintenance, and other lifecycle costs.

The Golden Era of Trucking is Now

After decades of incremental advancements in technologies that enabled truck makers to differentiate their products from competitors – powertrain, chassis, safety, telematics – the global commercial vehicle industry is finally changing its focus from products to services. From now until 2025 and beyond, the rising prominence of the product-as-a-service business model will help drive greater effectiveness and efficiencies across the board. This new reality will bring the spotlight back into the fundamentals of trucking: human interaction, it’s role in the economic growth, interactivity with other vehicles and more.

As the industry goes through this transition from products to services, another transition will start making its presence felt, one that takes the focus from services to solutions. This is when the focus will shift from owning relationships to owning interactions. One thing is for sure: This industry that evolved constantly and considerably over the past 50-100 years is now at an inflection point.

About Sandeep Kar

Sandeep Kar is a global thought leader in commercial vehicle industry. He leads corporate strategy at Fleet Complete with a mission of developing the company as a leading global provider of IoT solutions for the widest array of commercial vehicle industry eco-system partners. Sandeep works closely with automotive OEMs, suppliers, regulators, legislators, financial industry, and fleets in developing strategic partnerships.