World News: 09:20 GMT Thursday 12th July 2018. [Research and Markets via Globe Newswire via SPi World News]
Dublin, July 12, 2018 (GLOBE NEWSWIRE) -- The report has been added to offering.
The Global Medium and Heavy Truck market has been in Top Gear as of late with steady demand growth trend across most key markets, led by North America & Europe, with high capacity utilization and profitability driving momentum for fleet renewal & expansion activities. The North American Class 6-8 truck market has been on a strong upswing, since the dismal demand contraction of 2016, with the U.S. economy gaining growth momentum and supply side constraints shooting freight rates up as strong & sustained freight demand is met by capacity shortfalls. The overall macroeconomic environment, too, has been favorable with robust utilization and profitability across operators boosting fleet renewals and expansions at an accelerated pace. North America has traditionally been one of the biggest markets globally, along with Europe, for medium and heavy duty trucks, classified under Class 6-8. The North American Class 6-8 truck market has been on a strong footing in 2017 and the projections for 2018 point towards a robust double digit growth rate with a buoyant economy, strong housing starts and growth as well as positive developments in e-commerce and construction activity. Further, the proposed infrastructure development bill, outlining massive planned investments worth $1.5 trillion towards infrastructure repair and rebuilding, are likely to have tremendous potential for the industry over medium term once the modalities are thoroughly fine-tuned and if it gets the green light from the Congressional leaders.The industry OEMs are busy ramping up production rates to meet robust demand levels across most markets while fine tuning their supply chains to operate efficiently in top gear. The OEMs are also renewing their product portfolios in alignment with the market upturn through new product introductions incorporating cutting edge technologies and features focused on enhanced performance as well as productivity while optimizing the total cost of ownership. The focus on services business growth and portfolio expansion has also been growing across OEMs as soaring fleet utilization levels spur demand for maintenance, repair and overhaul activities. The trucking industry continues to be at the forefront of a technology led transformation phase marked by confounding uncertainties and disruptions which are likely to be sustained over medium term. The focus on CASE (Connected, Autonomous, Shared & Services and Electric) technologies continues to be at the core of this trend with OEMs continuing to integrate an array of sensors, equipment & technologies on-board truck models with digitalization forming the backbone of this technology led trucking revolution. The battle for electric trucks is getting fierce with the world's top 2 largest truck manufacturers, namely, Daimler & Volvo lining up electric versions of their flagship truck models to take on recent industry incumbents & start-ups head-on with the duo planning start of commercial, full scale production of electric trucks from 2021. Daimler unveiled the electric version of its existing market leader in the Class 8 segment, eCascadia. Volvo has rapidly unveiled its contenders for the electric medium duty truck segment, with the new electric FL and FE models for Europe. The VW Group, too, has been structuring & shaping its trucking business steadily as evinced by the introduction of its manufacturer agnostic RIO digital brand, aimed at the transport & logistics sectors, towards the end of 2017, plans to expand stakes in Navistar going forward and for capital markets listing over near term. The industry supply chain, too, has been gearing up for the electric bandwagon with suppliers outlining & fine tuning their business strategies for EVs and setting up new units to execute them. Electrification, in commercial vehicles, thus, is reaching the inflexion point now. The current phase of trucking industry's development and its likely evolution over medium term is going to be defined and shaped by technology which has been rapidly evolving and is poised to disrupt markets at a lightning pace. The industry OEMs & players; which are able to adopt & incorporate right technologies for right applications to deliver overall value to customers, end users & stakeholders while creating significant competitive advantages for themselves by leveraging this technology led differentiation; will be at the forefront of this one of the most disruptive phases for the industry going forward which is likely to be marked by the introduction of a number of technology enabled entirely new business models and concepts.The rising crude oil prices, which have crossed the $70 per barrel mark as of-late, translate clearly into an increase in operating costs and direct impact on profitability for fleet operators, which, however, is also likely to provide further impetus to the electrification trend. The pressure on oil prices is likely to remain over near term with exports from Iran likely to dip post the nuclear deal fallout with the Trump led U.S., and despite the recent supply side easing signals by the OPEC. Rising oil prices along with higher input costs in a tightening monetary policy environment with a trade war on may create some difficulties for the industry going forward. The breakout of the U.S. initiated trade war marked by imposition of import tariffs, strained trade & political relations with traditional NATO allies and Trump's likely pull out from NAFTA going forward could completely derail the ongoing global economic recovery over near term, the signs of which are being reflected in the movements of global financial & foreign exchange markets and the onset of a weakness in manufacturing sentiment across key markets with growing environmental uncertainty & instability on the policy front. Against this backdrop, the report provides a holistic analysis on the North American Class 6-8 Truck market with focus on a blend of quantitative & qualitative analysis. The analysis follows a three tiered methodology with Tier 1 focusing on analysis market dynamics & competitive landscape while Tier 2 focuses on OEMs Strategy Focus as well as Key Strategies & Plans. Tier 3 focuses on Market Analysis and projected demand growth evolution for the NAFTA market over medium term which covers analysis of key market & technological trends, issues & challenges, market developments & potential growth opportunities which could be leveraged by the industry value chain. 1. Economic Growth & Sustained Freight Activity Driving up Truck Demand across North America & Europe2. Electrification nearing the Inflexion Point with Traditional OEMs rolling out Electric Versions of Conventional Truck Platforms3. Increasing trend towards Downshifting of Engine Horsepower 4. Platooning/networked convoys & Autonomous Trucking inching closer towards becoming operational realities for the logistics sector5. Analysis of Daimler's Strategies for Global Truck Market Leadership and Strategies & Plans for the Electric Commercial Vehicles Portfolio 6. Detailed Analysis of Volvo's Growth Strategies & Plans for the North American Market as a Key Growth Pivot7. Insights into VW's Plans & Careful Shaping up of its Trucks Business 8. Increasing Capacity Utilization driving up Services Revenues across OEMs9. Rising Oil Prices to put Strain on Profitability levels across fleet operators while simultaneously catalyzing Electrification 10. Trump initiated Trade War runs the risk of escalating into a Global Trade War bringing the world economy to the brink of another economic recession
Section - 2: Competitive Landscape - North American Class 6-8 Truck Market - Market Share for OEMs Section - 3: Key Industry OEMs - Snapshot & Product Portfolio
Section - 4: Financial Performance Analysis - Key Industry OEMs1. Revenue Base & Growth Trend2. Revenues Split by Key Segments3. Revenues Split by Key Geographic Markets & Regions4. Gross Earnings & Margin Trend5. Operating Earnings & Operating Margin Trend6. Return on Sales Trend7. Profitability Growth Trend8. Cash Flow from Operations9. R&D Expenditure Trend10. CAPEX Trend11. Order Intake & Truck Deliveries TrendSection - 5: OEM Strategies & Plans - Comprehensive Analysis of Strategies & Plans for Key Industry OEMs - Daimler, Volvo, PACCAR, Navistar
Section - 6: SWOT Analysis - On Key Industry OEMs
Section - 8: Key Issues, Challenges & Risk FactorsSection - 9: North American Class 6-8 Truck Market - Force Field Analysis - Analysis of Driving & Restraining Forces and their Overall Dynamics
Section - 10: Strategic Market Outlook through 2026
For more information about this report visit
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Related Topics: Trucks
Globe Newswire: 09:20 GMT Thursday 12th July 2018
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