COVID-19 and Regulations Continue to Influence Commercial Vehicle Engine Demand

According to the recently released N.A. Commercial Vehicle On-Highway Engine OUTLOOK, published by ACT Research and Rhein Associates, the US economy continues to improve, despite setbacks with increased COVID cases across the country. Additionally, the report noted that legislation toward zero emissions continues to grow, and both factors are influencing engine demand, as well as the commercial vehicle markets in general.

The NA On-Highway Engine OUTLOOK published by ACT Research and Rhein Associates highlights power-source activity for commercial vehicle GVWs 5-8, including five-year forecasts of engines volumes and product trends. The Engine Outlook ties to the detailed NA CV vehicle forecasts published monthly by ACT in the NA Commercial Vehicle OUTLOOK. This report benefits businesses and manufacturers in the commercial vehicle engine production supply chain, and any company following the investment value of engine OEMs and their suppliers.

Kenny Vieth, President and Senior Analyst at ACT Research, noted, “The trucking industry has rebounded strongly, with spot freight rates at record highs and increased new truck order intake leading to raised 2020 industry outlooks for the medium and heavy-duty segments.” He added, “More home deliveries because of COVID are further influencing the trucking industry, amplifying the shift to reduced-distance routes and increasing last mile deliveries.”

Andrew Wrobel, Senior Powertrain Analyst at Rhein Associates, commented, “On the regulation side, California’s Governor issued an executive order to require new passenger vehicle sales be zero-emission by 2035. For commercial vehicles, drayage trucks will follow the 2035 timeframe, while medium and heavy trucks will need to be zero emissions by 2045.” He also noted, “The order also requires state agencies to accelerate development of affordable fueling and charging options.”

When asked about alternative fuels, Wrobel commented, “The outlook for natural gas powered Class 8 vehicles shows limited growth from today’s low market share levels, and despite the current pandemic, electric vehicle product development and new introductions continue. That said, each alternative fuel has its place. Truck fleets remain the primary users of natural gas engines, with refuse the leading vocational application, while medium-duty applications are identified as a primary adopting group of electric commercial vehicles because of their urban applications, with limited daily mileage and most returning to base overnight for easier recharge. School buses are also good candidates for alternative fuels, from propane to natural gas to electric.”

Rhein Associates is a leader in North American commercial vehicle and off-highway powertrain forecasting. Rhein Associates is renowned for providing the industry with accurate, thorough and relevant databases, analysis and insight, by analysts that are involved and connected in the industry. Our data covers both on-road commercial vehicle as well as the off-highway, marine, industrial, agricultural and electrification sectors. Rhein Associates publishes The Rhein Report ,providing weekly and monthly analysis of the market through news and analysis The powertrain forecast database covers OEM, Engine Model and Specifications from 2010 through 2030 for both on-highway and off-highway applications. More information can be found at http://www.rheinassociates.com/

ACT Research is recognized as the leading publisher of commercial vehicle truck, trailer, and bus industry data, market analysis and forecasts for the North America and China markets. ACT’s analytical services are used by all major North American truck and trailer manufacturers and their suppliers, as well as banking and investment companies. ACT Research is a contributor to the Blue Chip Economic Indicators and a member of the Wall Street Journal Economic Forecast Panel. ACT Research executives have received peer recognition, including election to the Board of Directors of the National Association for Business Economics, appointment as Consulting Economist to the National Private Truck Council, and the 2019 Lawrence R. Klein Award for Blue Chip Economic Indicators’ Most Accurate Economic Forecast over a four-year period. ACT Research senior staff members have earned accolades including Chicago Federal Reserve Automotive Outlook Symposium Best Overall Forecast, Wall Street Journal Top Economic Outlook, and USA Today Top 10 Economic Forecasters. More information can be found at www.actresearch.net.

ACT’s 64th Seminar is scheduled for February 23-25, 2021. Focused on the continuous evolution and advancement of power and energy changes in the transportation and commercial vehicle markets, OUTLOOK Seminar 64 will feature key industry leaders such as Ryan Reed of Wabash National, John Bennett from Meritor, Lance Riegel of Marvin Johnson, and Dominick Beckman from Hino Motors. Look for more details on this event over the coming months and save the date for February’s event. Click here for seminar information