KEY COMPETITORS Urbanization Regulatory Environment Volatile Fuel Prices Driver Shortage HEALTH, WELLNES AND WELLBEING CONNECTIVITY AND CONVERGENCE Expansion of Mega Corridors Customization http://www.frost.com/k057 +1.877.GoFROST (463.7678) [email protected] THE LAST WORD Level 3 autonomous trucks will reach ~3,500 units in 2025, enabled by the convergence of advanced safety technologies and sub-systems while Level 4 autonomous trucks will enter the market after 2035. The advent of autonomous driving technologies and vehicles will usher new value chain partners such as IT companies, cybersecurity companies and algorithm-based developers in the trucking industry. Tier I suppliers/new autonomous entrants (Otto) will enter the retrofit market for autonomous driving technologies to develop solutions with IT software companies, safety and connectivity system suppliers. AUTOMATED MOBILITY SIGNIFIES THE NEXT FRONTIER OF COMPETITION KEY QUESTIONS THIS WILL ANSWER What trends (e.g., regulatory, economic, and operational) are affecting the market? What technologies will be key to developing a fully autonomous truck (level 3 and above)? What are the strategic approaches of OEMs and Tier I suppliers to the potential application of autonomous driving technologies in the trucking industry? AUTONOMOUS TRUCK FOUNDATION TECHNOLOGIES USHERING NEW ERA IN COMMERCIAL TRUCKING None Electric-hydraulic power steering (EHPS) Electric braking system (EBS) Electronic throttle control Adaptive cruise control (ACC) Advanced driver assistance system (ADAS) Vehicle to everything (V2X) Dedicated short-range communication (DSRC) Integrated safety systems (ISS) Cameras Sensors Intersection assist Redundancy backup for connectivity Self-driving capability until driver takes over control Multiple redundancies (hardware) AI (software) ~2025-2028 ~2019-2022 ~2015-2020 Today ~2035+ LEVEL 3 TRUCK PLATOONING LEVEL 2 LEVEL 1 LEVEL 4 $0 $5,000- $10,000 $5,000- $10,000 $20,000- $25,000 $30,000 DEGREE OF AUTOMATION KEY MEGA TRENDS NORTH AMERICA REST OF THE WORLD EUROPE RUSSIA CHINA JAPAN AUSTRALIA In 2035, an estimated 179,473 level 3 autonomous-enabled trucks will be commercially sold for on-road applications globally, up from 8,310 units in 2025. GLOBAL AUTOMATED TRUCK ADOPTION 3 7 2 5 6 4 1 TOTAL MARKET, 2035 Automated Truck Adoption, Global, 2035 # Ranking by government support of autonomous commercial vehicle technology LEVEL 2 LEVEL 4 LEVEL 3 Source: Frost & Sullivan