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Analysts: Demand growing for heavy-duty defense trucks in Africa, Middle East

SANTA CLARA, CA March 10, 2017 With the escalation of political tension and civil unrest in various parts of the world, defense budgets have received a boost. The evolving mission requirements and need for enhanced mission efficiencies are compelling manufacturers of heavy-duty (HD) defense trucks to incorporate digital technologies in their vehicles. Most of the technological advancements in trucks will be driven by manufacturers and tier-1 participants to reduce operational costs and improve fleet efficiency.

Frost & Sullivan analysis, Global HD Defense Trucks Market Trends, Forecasted to 2025, finds that APAC, Africa, and the Middle East will emerge as the top three regions for procurement of heavy-duty (HD) defense trucks. By 2025, the number of HD defense trucks in operation globally, is expected to rise by a compound annual rate (CAGR) of 1.0 percent.

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"For the next 10 years, defense truck makers are expected to focus on autonomy of trucks, connectivity, technologies for vehicle performance improvement, and leveraging data to reduce costs," said Frost & Sullivan Mobility Research Analyst Lakshmi Narayanan. "There will be a marked preference for Internet of Things technologies because of the rising need for greater fleet utilization and sharing of data to augment productivity. In addition, the value of connected devices in enhancing survivability and monitoring real-time information to gain actionable data, in turn, will create growth opportunities in cybersecurity and data analytics."

The digitization trend has fostered and will continue to enhance collaborations between defense and commercial stakeholders. For instance, prime contractors in the defense truck market will focus more on commercially sourcing components and subsystems, such as sensors, for integration into their vehicles.

"While procurement is expected to vary by region, Africa, Asia-Pacific and Middle East will emerge as key markets. Countries in North America and Europe will seek to modernize their fleet through upgrade and maintenance, without purchasing new trucks," noted Narayanan. "Companies like Altec, Emoss and BYD, are well positioned to make inroads into the HD electric-hybrid defense truck market. Meanwhile, commercial truck manufacturers will aim to exploit their technical and R&D capabilities to explore alternate mobility, as well as viable segments in the defense truck industry."

Global HD Defense Trucks Market Trends, Forecasted to 2025 is part of Frost & Sullivan's Mobility Growth Partnership Subscription that offers analyses on connected trucks, truck telematics, medium and heavy-duty trucks, truck steering systems, natural gas trucks, hybrid-electric trucks and buses, truck and trailer aerodynamics, and truck platooning, among other topics.

About Frost & Sullivan

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will make or break today's market participants. For more than 50 years, we have been developing growth strategies for the global 1000, emerging businesses, the public sector and the investment community. 


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