The latest report from Technavio, the market research analysts, predict that there would be a growth of over 7 percent CAGR in the global commercial vehicle market.
Market experts and analysts at Technavio have highlighted three major market drivers which would contribute primarily to the growth of the market for the global commercial vehicle connectors market.
The report identifies increasing electronic applications in commercial vehicles and the enhanced awareness on emission control, driving the adoption of quick connectors being the two major factors that would drive the market. The third factor identified is the greater degree of adoption of commercial vehicle telematics that is helping to pave the path for high-speed, high-frequency connectors, according to the report.
In recent years, the passenger car segment has seen the growing importance of electrification of mechanical components. The same trend is being witnessed in the commercial vehicles segment which is also fast adapting and adopting use of advanced assistance systems. And hence, globally, there is growing demand for fleet management solutions, according to the report. There is growing demand for navigation, safety, comfort, and content among commercial vehicles which is resulting in adoption of electrical distribution systems. Also, the growing requirement for telematics and infotainment system equipment in commercial vehicles has resulted in growth in demand for high-speed wiring, connectors, and other electronic technologies.
According to Keerthi Balu, a lead analyst at Technavio for automotive electronics research, “The growing electronic applications are enabling developments in new components to meet the demand for connected commercial vehicles. Technologies such as copper connectivity solutions are being widely recognized due to lower weight and increased in-vehicle connectivity options. Technology from consumer electronics is allowing the OEMs to imply advance technologies in the commercial vehicles and thus influencing the market.”
There is a growing focus on the aspect of reduction of emission and enhancement of fuel efficiency which has led to enhancement in the adoption rate of technologies which decreases the size of engines. The emergence and the adoption of connectors that are specific for these applications is crucially dependent on the alterations and developments in design structure.
New markets for commercial vehicle telematics has been created by increase in the number of production centers and the fragmentation of logistics driven by need of global trade activities. The enhanced costs of manufacturing in developed economies has made it necessary to break up supply chains into multiple stages. For example, many companies have outsourced production tasks to China where the related costs a lower compared to the home countries of such companies. Therefore, this price pressure has necessitated he reduction in costs of transportation of assembled goods between supply points which in turn has increased the demand for commercial vehicle telematics systems.
“To enable continuous tracking and asset management, the business-driven M2M services are being globalized in a seamless and cost-conscious manner. M2M networks enable organizations to track their transport modes. To gain real-time visibility into global supply chains, value-added customer services, and telehealth delivery, the global M2M connectivity requires effective management of wireless technologies. The growing popularity of these wireless technologies in commercial vehicles is the crucial driver for the adoption of connectors in a wider application,” says Keerthi.
(Adapted from Businesswire.com)