Our solutions
Atlas Copco Rental
Solutions
Industries served
Compressors
Solutions
Products
Compressors
Industrial condensate treatment solutions range
Products
Industrial condensate treatment solutions range
Industrial condensate treatment solutions range
Industrial condensate treatment solutions range
Process gas and air equipment
Products
Process gas and air equipment
Process gas and air equipment
Process gas and air equipment
Industrial Tools & Solutions
Solutions
Industries Served
Industrial Tools & Solutions
Aerospace
Industries Served
Aerospace
Aerospace
Aerospace
Aerospace
Foundries & Metal Fabrication
Original equipment manufacturer
Industries Served
Original equipment manufacturer
Original equipment manufacturer
Original equipment manufacturer
Original equipment manufacturer
Industries Served
Industries Served
Products
Industrial Tools & Solutions
Air line accessories
Products
Air line accessories
Air line accessories
Air line accessories
Drilling solutions
Material removal tools
Products
Material removal tools
Material removal tools
Material removal tools
Material removal tools
Material removal tools
Material removal tools
Material removal tools
Material removal tools
Material removal tools
Service
Industrial Tools & Solutions
Atlas Copco service solutions
Service
Atlas Copco service solutions
Atlas Copco service solutions
Atlas Copco service solutions
Industrial Tools & Solutions
Vacuum solutions

Trends and challenges within transportations

Contact our expert!

Transportation industry trends

According to an analysis by B2B research company Markets and Markets, the top transportation industry trends for 2018 are an increasing demand for electric or fuel cell driven trucks, autonomous driving, electric/hybrid buses, truck platooning, and smart transportation solutions. These trends are in response to challenges facing truck and bus manufacturers from the external business environment

Truck and bus production ramping up

Of all the transportation segments, trucks and buses are the leaders when it comes to technological advances and investments from suppliers and original equipment manufacturers (OEMs). The increase in production is due to rising demand for freight and passenger transport.

According to an analysis by OICA publications and Markets and Markets, global truck production reached 4.02 million units in 2017, up from 3.60 million units in 2015. At the same time, global bus production increased to 429,838 units in 2018, up from 390,466 units in 2015.

Increase in shipping

An increase in shipping activities is forecast, which would boost the demand for trucking. This, eventually, would result in more revenue for fleet operators. However, the increased revenues will be accompanied by an expected driver shortage and higher wages and fuel prices. Fluctuating fuel prices, driver shortages, increases in trucking rates, and a possible lack of trucking capacity will be some of the important challenges the trucking industry will face in the coming years.

Demand for electric/hybrid vehicles to comply with emission

Battery electric trucks (BEB) and buses that can operate on alternative fuel (hybrid buses) are increasingly being developed to comply with global limits on CO2 emissions. Electrification of buses and trucks will involve changes in the structure design. Electric motors will be mounted in the wheels and connected to battery packs and/or fuel cell units integrated into the structure of the vehicle.

The global electric truck market is projected to account for 10–15% of truck sales in various regions, by 2025.

Safety demands driving the autonomous truck market

Increasing demands for safety are stimulating the global growth of the autonomous truck market. The market is expected to grow at a CAGR (Compound Annual Growth Rate) of 5.8% during the forecast period, 2018-2023, owing to the growing penetration of advanced technology in commercial vehicles.

The rate of occupant and pedestrian fatalities involving trucks has been a growing concern for automakers and governments across the globe. Human error has been the cause of about 90% of the total number of truck accidents during 2014-2017 and, thus, preventing human error while driving has become a prime focus for automakers.

ADAS features becoming mandatory

To reduce the possibilities of accidents due to human error, in many countries new trucks are being equipped with ADAS (Advanced Driver Assistance) features, such as lane warning systems and autonomous emergency braking.

The European Commission was the first to launch a rule under its general safety regulations 661/2009/EC in 2009, which made the two ADAS features mentioned above mandatory in all new commercial vehicles with effect from November 1, 2015.

Following in the footsteps of the European automotive industry other regions, such as North America and Asia, have adopted the same measures, resulting in a significant increase in the production of semi-autonomous trucks across the global market.

Trend

Description

Consequences for the truck manufacturer

Consequences for the production

Truck platooning

Connecting two or more trucks in a group with the help of connectivity technologies like autonomous driving, artificial intelligence, and support systems such as adaptive cruise control and lane keep assist

More truck variants entering into the production. Installation of sensors and modules including Software

Increased flexibility needed on how to produce trucks in one production line for different markets

Electric or fuel cell driven trucks

To meet the emission limits, there is a need for either advanced engine technologies or after-treatment devices

The truck design changes. Electric motors connected to wheels, battery packs and/or fuel cell units need to be integrated into the truck structure

Needs: Knowledge and equipment on how to build batteries and /or fuel cells. Flexibility to build all truck versions in one flexible production due to truck design changes

Electric / hybrid buses

The implementation of battery electric buses (BEB) and buses with alternative fuel (hybrid buses) will be needed to meet CO2 emission limits with increasing urbanization around the world

The bus design changes. Electric motors are connected to the wheels, battery packs and/or fuel cell units need to be integrated into the truck structure

Needs: Knowledge and equipment on how to build batteries and/or fuel cells. Flexibility to build all truck versions. New production equipment and processes to build newly designed structures

Intelligent transportation

The integrated mobility solution will include features like searching for a journey, mode of transport, checking the schedule, bookings, routing, and payment. In intelligent public transportation, the public transit systems would include CCTV cameras, GPS devices, digital displays, automated stop announcements, and
Wi-Fi devices

More truck variants entering the production. Installation of sensors, software and other components will increase complexity

Increased flexibility needed in order to produce different truck variants in one production line. Highly sophisticated production equipment needed

Autonomous and safe driving

Many truck and bus manufacturers are working towards autonomous truck and bus technologies, adding more technology into trucks

More truck variants entering the production. Installation of sensors, software and other components will increase complexity

Increased flexibility needed in order to produce different truck variants in one production line

Sensitive customers and competitive markets

Customers are more critical towards the total cost of ownership, including reliability, quality and efficiency of a truck or bus. Brand image and customer loyalty increasingly depend on the quality and performance of the aftersales support provided by a truck brand.

Advanced production methods are needed to increase quality, flexibility and productivity in a production line. Lean and ergonomic production lines support operator health and reduce operator sickness, work related disorders and stress. Less stressed operators will build better quality products

The operating margin of a company improves with the efficiency of production. Warranty & quality costs will decrease with an improved brand image as a the result