With technology disrupting so many different aspects of the trucking sector, it is no surprise that the aftermarket segment would not be spared. Whether we are talking about electric vehicles, connectivity, telematics, autonomous systems, e-commerce, and so much more \u2013 these are all factors that will impact the transportation sector in the future.<\/p>\n\n\n\n
With technology disrupting so many different aspects of the trucking sector, it is no surprise that the aftermarket segment would not be spared. Whether we are talking about electric vehicles, connectivity, telematics, autonomous systems, e-commerce, and so much more \u2013 these are all factors that will impact the transportation sector in the future.<\/p>\n\n\n\n
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One of the technological factors that will present the\nfirst, and most immediate challenge to the trucking sector will be advanced\ndriver-assisted systems (ADAS). In the current market, ADAS is currently\nincluded in around half of all production Class 8 commercial motor vehicles.\nWith that adoption rate only expected to grow, OEMs will need to ensure their\nworkers are properly trained on maintaining and servicing these systems. <\/p>\n\n\n\n
ADAS and the\nAftermarket<\/strong><\/p>\n\n\n\n Now many are wondering what is next for ADAS adoption. Many\nindustry insiders believe the next level will be electronic steering. Consider\nthat nearly a third of all accidents involving large big rigs are a result of\nunsafe lane changes and it isn\u2019t hard to see how increased adoption of\nsteer-assist systems will become more widespread. The trucking industry has\nmoved from warning the truck driver about an issue to providing ways to\nactively assist them. <\/p>\n\n\n\n While ADAS will make a big impact on the aftermarket,\nservice and maintenance of braking and steering systems will continue to be the\ncore foundation of aftermarket focus. Combining the needs for vehicle ADAS\nretrofits alongside routine maintenance needs will create a far better pipeline\nfor fleets. And although ADAS systems add complexity to vehicle maintenance needs,\nthe systems in use today are largely standardized, which takes the headache\nfrom fleet technicians who are trying to adapt to managing new technologies. <\/p>\n\n\n\n Vehicle electrification will be the next brave new\naftermarket world. While diesel engines still have the highest level of\npenetration, alternative-fueled vehicles are making a big push into the market.\nFortunately, the OEM market will likely consist of a mix of differently-powered\nvehicles, as opposed to be existing in an either\/or paradigm. <\/p>\n\n\n\n One thing to consider is that over half of all transit buses\nin the United States are already electric-powered. Yet, further adoption will\nneed some help from the aftermarket. One of the big barriers to full-on\nelectric adoption is still the infrastructure\nproblem<\/a>. For truck drivers on irregular or long-haul routes, will there be\nenough charging infrastructure to prevent downtime. Furthermore, even with\ncharging stations in the right places, how long can a trucking company afford\nto have the truck down charging. <\/p>\n\n\n\n These are critical questions that fleets will be asking. Can\nthey get the same amount of work done regardless of the powertrain? The last\nthing a motor carrier wants to do is end up with all sorts of conflicting\nprocesses in the shop. While the industry is on the lookout for diesel\ntechnicians, how will their skills translate for different powertrains?<\/p>\n\n\n\n Another key area where the aftermarket finds itself in a\nmajor change of phase is in the area of connectivity. Sensors and computational\nsystems allow fleets to equip themselves with predictive analytics. It is now\npossible to understand the correlation between a truck\u2019s behavior and a particular\noutcome. The use of connectivity and telematics provides fleets with a wealth\nof data that sometimes can be transmitted back to the OEM for future design\nimprovements. <\/p>\n\n\n\n Still, these issues raise the question of who owns the data.\nWhile much of the data can be sent back to OEMs in many cases, data can be both\npublic, private, or proprietary. The hope is that companies do a better job at\nsharing data, as this is better for the industry as a whole. <\/p>\n\n\n\n For the most part, fleets are generally under the impression\nthat the data they generate is owned by them. As a result, suppliers would\nbenefit from fleet-level partnerships that allow them to access the data fleets\nare producing.<\/p>\n\n\n\n Under the Hood<\/strong><\/p>\n\n\n\n The advanced technological means by with trucking companies\nnow get the job done are not relegated solely to the digital realm. Some of the\nmore old-fashioned aspects of the trucking aftermarket sector are also facing\npressures. <\/p>\n\n\n\n Take downsized engines as one example. While downsized\nengines are increasingly popular to provide better fuel economy and lighter\nweight, they have a direct impact on other downstream components. Take\ntransmission OEMs as one example. Engine and transmission companies must\npartner up to prevent downstream problems from major component redesigns. <\/p>\n\n\n\n Of course, as all these changes make their way through the trucking space, this will have a major impact on the aftermarket and on how fleets prepare for vehicle maintenance and repair. As hardware and software systems become more complex, training will have to evolve. The general service network will have to widen to accommodate the new technologies. <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n As engine and drivetrain technologies evolve, the vehicle control architecture underpinning them needs to also change. Technicians are used to common diesel technologies, so how will they adapt, especially when they are searching for aftermarket components to complete their repairs?<\/p>\n\n\n\n All these factors are changing the way Class 6 \u2013 8 tractors\nare being built and maintained, but they are also changing the overall nature\nof the freight network. Trucking companies, suppliers, shippers, and OEMs are\nfacing a shift in forces that is upending the traditional business models that\nhave been in use for nearly a century. <\/p>\n\n\n\n Aftermarket\nDisruption<\/strong><\/p>\n\n\n\n While advancements in telematics and hardware changes are\ndisrupting the aftermarket segment, other challenges appear in the form of\nestablished players. Consider that e-commerce giants like Amazon are looking to\nsell fleet parts online in competition with traditional distributors and\ndealers, and it isn\u2019t hard to see why the aftermarket world could be in for a\nbig shakeup. <\/p>\n\n\n\n Many parts companies are now struggling with what they are\ncalling the \u201cAmazon effect.\u201d Amazon is now selling their product but is not\nbuying it directly from them. As a result, parts companies and aftermarket\npartners are trying to figure out where Amazon is getting the parts, as the\nbusiness model that runs through Amazon creates challenges where returns are\nconcerned.<\/p>\n\n\n\n As fleets adopt new vehicle technologies, shops will wind up\nusing a far lower number of parts. As traditional diesel powertrains evolve and\ndriver assistance systems reduce collisions, the number of aftermarket parts\nrequired by fleets will drop precipitously. <\/p>\n\n\n\n Take electric vehicles as one example. Electric tractors\nwill shift from the standard 12-volt system to as high as 800 volts. Even more,\ncurrent diesel-powered commercial motor vehicles utilize as many as 30,000\nparts in their operation. Electric vehicles by comparison utilize around 7,000\nparts, which represents a huge drop. Will this new paradigm put big operators\nout of business? Likely not. <\/p>\n\n\n\n Consider that emerging electric truck\nOEMs<\/a> like Tesla, Nikola, and Thor will have a need for aftermarkets of\ntheir own to keep their trucks operational. The real question is whether they\nwill partner with OEMs or try to create their own aftermarket channels. With\nTesla eschewing the standard dealer model for selling their cars, it could very\nwell be that they go after their own aftermarket for electric truck components.\nObviously, there must be a service network in place for these vehicles. These\ncompanies will have to figure out how they can meet the service needs of their\ncustomers. <\/p>\n\n\n\n The same can be said for the growth in the natural gas\nmarket. Yet, the internal combustion engine is not going anywhere any time\nsoon. Related parts companies will still be needed even as the market continues\nto shift away from diesel power and towards more renewable and sustainable fuel\nsources. <\/p>\n\n\n\n Yet, while the aftermarket sector faces growing disruption\non one front, there could be opportunity on another front. As the push towards\nautonomous and semi-autonomous vehicles continues, the aftermarket will be as\nmuch in needs as ever before. From road sensors to truck sensors to all sorts\nof underlying systems that make autonomous use possible, only the aftermarket\nwill be able to fill this need. <\/p>\n\n\n\n Fortunately, none of these developments spell the end of the aftermarket. As companies evolve to accommodate the current market environment, they will make shifts to adapt. Aftermarket suppliers will learn and adapt, perhaps even coopting<\/a> e-commerce sites that deal in aftermarket parts. Even new shopping methods will come into play, such as \u201comnichannel\u201d shopping, which represents customers ordering their parts online and then picking them up in a physical store. Will the aftermarket adopt such methodologies? In the push to counteract or coopt the e-commerce model, the answer is likely yes.<\/p>\n\n\n\n <\/p>\n\n\n\n <\/p>\n\n\n\n In the end, aftermarket providers need not fear change and\ndisruption. By learning how to embrace it and work with a changing environment,\nthey can ensure flexibility and continued success far into the future, no\nmatter what that future looks like for the transportation sector. Through work\nwith established players and better partnerships with suppliers and OEMs, the\naftermarket sector can remain strong for a long time to come. <\/p>\n","protected":false},"excerpt":{"rendered":"