Trucking into a new decade
The 2020s is going to be a decade of phenomenal truck technology disruption, and fleets that successfully adjust to the calls of the emerging just-in-time economy will thrive the spin.
We are on the threshold of a sheeny new decade, evoking both excitement and strangeness in our minds – a state of ‘tabula rasa’ nurturing new perspectives and broadening our horizons. In a global sense, the 2010s began with trucking logistics in its traditional state of affairs, but the decade did not pass by mundanely like before, but rather ending with a befuddled industry facing a plethora of technological disruptions and complex business models out of the quest for sustainability and just-in-time economy. The quests for emission reductions and ever-increasing pressures on fleets to meet customers’ demands are likely to dictate the maturation and expansion of trucking in the 2020s.
No doubt, the 2010s was a critical decade in automotive electrification, making seismic shifts towards progress in battery and alternative propulsion technologies and kindling prodigious interests among industry stakeholders, policymakers, and general masses on cleaner mobility. These developments in the passenger vehicle and bus segments will have a huge influence on the ontogeny of electric trucks in the next ten years. Perhaps, it was only in the last decade that new truck manufacturers and start-up companies started stepping into the trucking industry with battery-electric or hydrogen fuel cell trucks.
The latest is a Californian start-up ‘Neuron EV’ that unveiled its fully-electric semi-truck named ‘Torq’, joining the fray with the likes of Tesla, Nikola Motor Company, Einride, and so on in developing zero-emission trucks. We would have never imagined companies like Amazon or UPS taking leads in the impending e-truck revolution, with the former backing automaker Rivian and the latter partnering with start-up Tevva to bring electric delivery vans into their business operations. Google’s spinoff company Waymo is also working on e-trucks.
These are not some fantasy start-ups, rather have access to fresh cutting-edge knowledge and resource pool. So, if you are flabbergasted by the convincing signs that Tesla’s Cybertruck and Rivian R1T electric pickup trucks are to hit roads this decade, do watch out for some exciting production-ready electric semis as well from these quirky companies. Conventional truck giants like Daimler, Volvo Trucks, Volkswagen, Paccar, and Cummins among others are far-more conveniently placed in convincing their existing fleet customers to switch to electric. Predicting a number can be a bit of a gamble, but expert reports expect the global e-trucks market to climb at 30 per cent CAGR by 2026.
Battery-electrics aside, hybrid techs and alternative fuels are expected to push trucking as close as possible to cleaner credentials. This includes hydrogen fuel-cell technology – Hyundai FCEV 2030 Vision essentially includes heavy trucks and cryogenic nitrogen powered trailers for refrigeration, along with bio-LNG, propane autogas, and other biofuels. With increasing levels of electronics and emission after-treatment already going into diesel trucks, the room is further open for new technologies and innovations in making them cleaner and efficient even further.
On the other hand, trucking fleets find themselves in precarious spots in the new decade, thanks stern demand from their customers owing to their leaner inventory models across the supply chain these days, along with rising TCO, driver wages, cost of regulatory compliance, investments on modern equipment and electronics to stay competitive. They are unable to afford downtime and scheduled service breaks at dealerships, and have started to leverage digital technologies to gain some leverage. Truck makers are also introducing real-time systems for over-the-air engine diagnosis, updates, and preventive maintenance, along with the choice of speedy sourcing of spares online.
Fleets trying to use data and connected technologies to boost their bottom lines will continue to rise in the next ten years. Interestingly, rising TCO and maintenance constraints will also push them to explore electric trucks that are claimed to be cost-effective as well in the long-run. In other words, the trio of truck makers and new start-ups, logistic and supply chain giants and trucking fleets will be the face of the truck technology disruption in this decade.