The latest Commercial Vehicle Dealer Digest by ACT Research reveals that despite strong demand for forward-looking medium and heavy-duty automobiles, industry capacity is still range-bound by multiple supply chain constraints, according to a report on monitordaily.com. ACT Research president and senior analyst Kenny Vieth said, “Ripples caused by the COVID-19 impact on economic relationships are still being experienced in the form of unlocalized restraints. Sadly, these constraints are beyond the commercial vehicle industry’s ability to resolve.” Vieth adds that the surge in demand for goods, such as steel and semiconductors in the pandemic era resulted in shortages in a world dependent on interrelated manufacturing supply chains.
Due to the impact of semiconductor shortages on commercial vehicle production, among other shortages, the build rates in the industry have become stagnant. There’s a likelihood the sector will start the first quarter of 2022 with unfinished units from 2021. If you have built and unbuilt units, you’ll need to make some adjustments to ensure your 2021-2022 output aligns with reported data. Below are key factors driving demand for commercial vehicles.
Infrastructure Development And Increased Industrialization
Urbanization, industrialization, and rapid infrastructure development are key factors driving the demand for transportation worldwide. Also, as the industrial sector expands in developing regions, so is the number of commuters. Typically, increased employment opportunities across various sectors like mining, construction, and manufacturing influence the demand for public transportation.
Adoption Of Advanced Tech
Adopting innovative technologies like advanced driver assistance systems (ADAS) is another aspect driving growth in the commercial vehicle sector. Popular ADAS systems in light and heavy-duty vehicles include automatic emergency braking systems, lane departure warning systems, blind-spot detection, adaptive cruise control, and driver monitoring system. Additionally, telematics and connectivity are transforming truck operations dramatically. As a result, automakers feel compelled to integrate multiple connectivity systems in vehicles, as they guarantee improved security and minimize unauthorized vehicle entry.
Besides improving automobile security, telematics detects a wide range of vehicle malfunctions before they occur. That way, you can stay up to date with fleet maintenance, which is key to reducing road accident risks and legal implications. Remember, when commercial vehicles are involved in an accident, one of the aspects a commercial vehicle accident attorney will look at is automobile malfunction. According to legal professionals, drivers and fleet owners are responsible for maintaining commercial vehicles. Failure to do so, both parties can be held accountable for an accident.
Increased Use Of Cloud-Based Systems In Commercial Vehicles
Cloud computing is gaining popularity in the commercial vehicle industry, and for good reasons. Typically, cloud computing plays a significant role in the production of vehicles. Its applications also range from design to management and operation of various systems. It’s worth noting that there are numerous benefits of cloud-based systems in commercial vehicles. These perks include risk reduction, improved security, cost savings, safety, and supporting IoT (the Internet of Things). Thanks to cloud computing, communicating with automobiles in remote locations and retrieving stored data has become less stressful.
As the global economy picks up, the commercial vehicle industry is witnessing a strong demand for medium and heavy-duty automobiles. Some of the factors driving commercial vehicle market growth include adopting innovative vehicle tech, increased use of cloud-based technologies, industrialization, and infrastructure development. However, strained supply chains seem to present challenges for automakers.