5 Years Forward: What Will the Truck Market Look Like?

Truck Market 2020

According to a 2014 report by consulting firm, Strategy&, big changes will take place in the trucking industry over the next five years.

Countries throughout the world and industries of all varieties are using the year 2020 as their target year for a wide array of goals and benchmarks. So what does the year 2020 (only 5 years away) look like for the global trucking market? A 2014 report by Strategy& (formerly Booz & Co.), The truck industry in 2020: How to move in moving markets, follows the global trends and makes informed predictions of the events and numbers to come:

Trends:

  • A growing middle class in emerging nations will drive consumption and shipping volumes
  • Urban access restrictions will lead to new truck concepts
  • Increasingly strict emission limits will drive powertrain development
  • Focus on GHG targets will emphasize fuel economy and alternative power sources
  • Connected trucks provide digital tools for drivers and fleet managers

Sales and Markets:

  • In North America, Europe, and Japan will remain subdued
  • Mexico will be the one bright spot in North America
  • Growth in South Korea, Taiwan, and Singapore is limited due to overstretched infrastructure
  • Developing countries have great potential but political turmoil makes it difficult to predict
  • Indonesia continues to be one of the biggest truck markets

Production and Manufacturing:

  • Production in NAFTA and in Western and Central Europe will increase on average by 4.8% annually
  • In Japan, Korea, and Taiwan, the rate of increase is expected to be just 0.6%
  • Volume of trucks produced in Mexico expected to increase by more than 50%
  • BRIC nations (Brazil, Russia, India, and China) together will grow by 3.6% annually

The report covers other issues, including Innovation (in the environmental, safety, and Internet sectors) and Customers and Products, and lists the Strategic Implications for OEMs. Among these implications:

  • Changes in the global truck market will be driven by a large number of emerging sales markets
  • In new growth markets, low-budget trucks will become the preferred product
  • Tougher emission standards in Western countries and those on the threshold of full development will increase the demand for low-emission technologies
  • OEMs will need to fulfill the demand for more price-competitive trucks while keeping productions costs in line

As we indicated earlier, however, the world is tumultuous, and geopolitical issues, from terrorism to incursions to global weather events can change these predictions. 2020 may just be five years away, but in today’s world, nothing is a 100% sure bet.

View Strategy&’s full report: The truck industry in 2020: How to move in moving markets.

 

This article was originally posted on the NationaLease Website

Patrick Moynahan

About Patrick Moynahan

Patrick Moynahan is Marketing Director for AmeriQuest Business Services and oversees marketing for AmeriQuest and its additional brands.

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