Fast-growing demand for transportation efficiency and increasingly stringent environmental protection regulations have made it essential for the global commercial vehicle sector to adopt a digital transition strategy. Market research reports showed that the growing prevalence of electric vehicles (EVs), and increasing demand from logistics and infrastructure investments all contributed to the growth of the global commercial vehicle market to US$877.05 billion in 2023. The market is expected to grow to US$952.5 billion with a compound annual growth rate (CAGR) of 8.6% in 2024, surpassing the US$1.11 trillion mark in 2032. At the IAA Transportation 2024 trade show held in Germany in September 2024, Scania unveiled an innovative preventive maintenance system while Volvo demonstrated a variety of vehicle power systems based on advanced technologies such as electric batteries and hydrogen energy. Similar technologies could also be found at the booths of other leading commercial vehicle vendors. Inelastic demand for electrification and smart technology in logistic vehicles is clearly starting to emerge.
Carota indicated that it observed several trends in the market based on recent developments in smart technology commercial vehicles. The first of these is the rapidly growing field of smart fleet management. The explosion in a number of commercial vehicles has compelled the logistics industry to optimize its operating efficiency, leading to the development of smart fleet management systems. Advanced hardware and software integration systems running default algorithms and machine learning can be used to continuously improve fleet efficiency on the cloud side and the vehicle side. Such systems must integrate real-time key indicators such as vehicle positioning, energy consumption, and driving conditions, or even support smart pre-dispatching. Such systems must provide managers with all the data and video in real time to support quality decision-making.
The next trend is the application of OTA technology, where its ability to update software and firmware remotely greatly reduces servicing/maintenance costs and downtime. OTA has already become a key function in commercial vehicle systems where it not only offers improved vehicle performance but also patches security vulnerabilities on time to ensure optimal vehicle performance at all times. The third trend is the demand for high-performance transportation. The vibrant growth of e-commerce poses many challenges for the logistics industry. Vendors must improve their vehicle load factor, reduce empty loads, and lower operating costs. Such challenges are also spurring the rapid development of innovative logistic solutions such as smart warehousing and route optimization algorithms.
In response to these trends and challenges in smart technology for commercial vehicles, Carota proposed a series of innovative solutions at IAA Transportation 2024. The Carota fleet management system incorporates advanced AI technology to assist logistics operators with optimizing their route planning and dispatch times. Driver safety is also improved. According to Carota, the system not only analyzes traffic conditions and vehicle data in real-time but also predicts potential problems and suggests solutions to help operators improve their transportation efficiency and lower operating costs.
Carota's industry-leading OTA technology and remote diagnostics service can identify potential problems remotely, and onboard system software and firmware can then be quickly and reliably updated. For large fleets, the technology effectively shortens vehicle servicing times and ensures the availability of onboard systems. Carota's OTA is also highly secure and effectively protects against malicious attacks and data theft.
The same OTA technology also has extensive applications for the smart cockpit. The integration of high-definition displays, voice control, and gesture recognition technology greatly enhances the driving experience. The smart dashboard which displays key vehicle performance metrics can also assist drivers in making safe and effective driving decisions.
In addition to its in-house solutions, Carota also demonstrated its smart products in conjunction with Qualcomm, MOVON AI, AU Optronics, ADLINK, and other partners in IAA TRANSPORTATION 2024. In particular, the IoT Aware Tracker from Qualcomm is a tracking device with a wide range of sensing functions for monitoring transportation trajectory, temperature, humidity, pressure, and ambient lighting of the cargo and cargo space during transportation. All data is synchronized with the Carota fleet management platform to provide administrators with a visualization of its real-time data, cloud analysis, and insight reports. The cargo is tracked, and a completed set of transportation records is maintained.
The MOVON AI-driven driver safety and monitoring system integrates advanced computer graphics processing technology. Driving conditions and driver behavior with data privacy protection are both tracked to prevent fatigue driving and reckless driving and establish a safe, comfortable driving environment. The smart cockpit for commercial vehicles and cabin control unit from AUO integrates a hidden camera, IR sensor, ambient lighting sensor, climate control system, and large embedded touchscreen display to create seamless multi-display applications in vehicle cockpits, real-time navigation, scenario-based safety, multimedia entertainment, interactive gaming, and video conferencing. The solution's lightweight and high performance can be used to improve human-machine interactions and boost the passenger experience.
In summary, the smart mobility solution from Carota can help the logistics industry resolve its current pain points. Carota's fleet management can improve operational efficiency and reduce the empty load rate of vehicles through precise route planning and timely dispatching. OTA technology can leverage vehicle software updates and optimization of charging strategies for EVs to maximize battery efficiency, reduce carbon emissions, and realize the goal of sustainable development. Carota is now actively working with automakers, Tier-1 suppliers, and the Information communications technology (ICT) industry to promote smart mobility for the future. An open model for cooperation will hopefully help build a complete ecosystem for smart transportation that will not only satisfy the requirements of both logistics and cargo customers, but also spearhead the industry's push towards a new, smarter, and more sustainable future.
Carota's booth showcases commercial smart mobility solutions in IAA Transportation 2024