Asia is on track to fast recovery due to COVID-19 response, says Frost & Sullivan
SANTA CLARA, Calif., Oct. 13, 2020 /PRNewsCentre/ — Frost & Sullivan’s recent analysis, COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry, shows that digital and connectivity services will significantly influence market recovery post-COVID-19 as telematics services, automated digital freight brokerage solutions, and digital retailing are expected to thrive. The global commercial vehicle market is expected to decline by 29% in 2020, and the recovery will be slow, with production volumes anticipated to reach pre-COVID-19 levels after 2024.
COVID-19 impact on commercial vehicle industry
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"The impact of the COVID-19 pandemic has forced companies and original equipment manufacturers (OEMs) to rethink business strategies with a greater emphasis on risk mitigation, operational flexibility, and innovative customer interaction and service measures," said Marshall Martin, Industry Analyst, Automotive & Transportation at Frost & Sullivan. "With people staying indoors due to voluntary confinement or the imposed lockdown still in various regions, last-mile delivery of essential goods and services has experienced an uptick. The result is greater utilization of existing fleets and the realignment of fleet usage according to demand."
Martin added: "Most countries resumed partial vehicle production by June, and a full recovery in production capacity is likely to take effect only during the fourth quarter of 2020. Asian countries such as China, India, and Japan, which accounted for more than 50% of global commercial vehicle production in 2019, are expected to recover faster than countries in the west, such as the United States and Germany, which are expected to recover only by late-Q4 2020.
To mitigate risks while navigating the uncertainties posed by the impact of COVID-19, market players can pursue the following growth opportunities for each segment:
COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry is the latest addition to Frost & Sullivan’s Automotive & Transportation research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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COVID-19 Growth Impact Assessment for the Commercial Vehicle Industry
SOURCE: Frost & Sullivan