1. U.S. Fleet Manager’s Desirability and
Willingness to Pay for Advanced
Heavy-Duty Truck Technologies
September 2010
N828-18

2. 2N828-18
Executive Summary
• There is a common theme to the voice of all the fleet managers surveyed in this study: Give us technologies that can help
reduce operating expenses and we are willing to purchase it, even if it means paying a higher up-front price.
• The fact that technologies such as SCR, hybrid trucks, advanced lubricants, automatic/automated transmissions, remote
diagnostics and prognostics, navigation based fuel efficiency optimization, TPMS, and ESC are receiving high degree of
familiarity, desirability, and interest from fleet managers proves that the advanced truck technologies market is expected to
drive most revenue growth opportunities for OEMs and system suppliers alike.
• In each category and in each segment, the level of familiarity with advanced truck technologies experienced an increase
across the board compared to 2009 levels. This is a good indication as it signals that fleet managers are shedding the typical
psychological inertia that was restraining faster penetration of advanced technologies in the U.S. trucking industry.
• The recent fuel price volatility, strengthening regulatory environment, and applicability of advanced truck technologies in
enhancing fleet’s fuel efficiency, reducing emissions, increasing safety, and improving mobile resource efficiency have all
contributed to the higher levels of traction these technologies are achieving among fleet managers.
• Many of the responses related to advanced technologies and benefits desired by the fleet managers are offering embedded
clues related to service related revenue potential that still remains largely untapped. Fleet managers are seeking less data and
more actionable information, less downtime and more time and mission critical support, less reliance on factors that feature
high degrees of variables and more reliance on active systems.
• Fleet managers use their own set of metrics in choosing one technology over another, and in many cases these metrics are
not only related to ROI and payback, but also factors such as reliability, lifecycle costs, innovative technologies, regulation
compliance support, brand and reputation of the technology provider, etc.
• Among powertrain technologies, SCR, automated/automatic transmissions, and advanced lubes are ranked as the highest in
terms of purchase intentions (with 50 percent, 41 percent, and 34 percent of surveyed fleet managers showing active purchase
intentions), while reliability, fuel-efficiency, and reduced maintenance requirements are ranked as the most desired benefits.
• Among telematics technologies remote diagnostics/prognostics and critical event/safety event alerts emerged as the two
technologies that featured 100 percent of fleet managers’ interest (active and passive combined). For all other technologies
fleet managers report “No Interest” except for these two technologies. Operating cost savings, regulation compliance support,
and safety and security of mobile resources are the most desired benefits from telematics technologies.

3. 3N828-18
Executive Summary
• Braking distance regulation compliance technologies, tire-pressure monitoring, and blind spot detection systems receive the
highest purchase intention rankings (44 percent, 38 percent, and 22 percent of fleet managers show active interest,
respectively). Inducing safe driving practices, delivery of tangible ROI and payback, driver retention, and help with CSA 2010
regulation compliance emerges as the most desired benefits. In choosing safety technologies, reduced maintenance
requirement is a key consideration, while in choosing a supplier of safety systems the support/responsiveness of the supplier,
and its image as a leading innovator are key considerations.
• Not considering TPMS, among safety systems the ESC/driver drowsiness/distraction warning/GPS based safety alert
combination, receives the highest level of demand (63 percent). Among telematics technologies, the most preferred service
bundle (61 percent) includes back office automation, voice communication, and critical safety alert applications. Among safety
technologies, integrated safety technologies such as automated collision mitigation systems and among telematics
technologies prognostics are the ones to watch, as these are on track for rapid growth in demand and market penetration.
• While fleet managers are most likely to use diesel powered APUs (39 percent), 30 percent of surveyed fleet managers report
intention to use battery powered APUs to meet anti-idling regulations. The demand for battery-powered APUs is expected to
rise over the next 12 months.
• It is interesting to note that 48 percent of surveyed fleet managers are willing to consider hybrid heavy-duty trucks at a price
premium of $40,000 over the price of a conventional truck. However, it is also noteworthy that two-thirds seek a payback
within four years.
• Nearly all (99 percent) surveyed are managers of Class 6-8 truck fleets. Nearly half (47 percent) of fleet managers belong to
private fleets, while 46 percent belong to for-hire fleets. 25 percent of the fleet managers are CEO/COO/President/Owner of
the fleets, and 55 percent report that they will be making purchase decisions within the next 6 months.

4. 4N828-18
Familiarity with Powertrain Technologies: Most Fleet Managers Reported
Highest Degree of Familiarity With AMTs/ATs
46%
37%
36%
34%
34%
17%
14%
12%
5%
50%
49%
52%
51%
49%
42%
43%
43%
36%
10%
5%
9%
17%
27%
16%
29%
6%
7%
7%
13%
8%
17%
18%
12%
9%
13%
13%
0% 20% 40% 60% 80% 100%
Automated manual/Fully-automatic
Auxiliary Power Unit
Cooled Exhaust Gas Recirculation
Selective-Catalytic Reduction (SCR)
Biodiesel
Compressed Natural Gas
Navigation-based Fuel Consumption
Diesel-Electric Hybrid Trucks
Diesel-Hydraulic Hybrid Trucks
Familiarity with Powertrain Technologies (N=101)
Very Familiar Somewhat Familiar Neither Familiar Nor Unfamiliar Somewhat Unfamiliar Very Unfamiliar
Q1: How familiar are you with the following advanced powertrain technologies?
Key Take Away: Nearly all respondents are very/somewhat familiar with automated manual or fully automatic technologies, whereas
sixty percent are unfamiliar with diesel-hydraulic hybrid trucks. The slightly higher percent of familiarity with cooled EGR technology
compared to the SCR technology, is likely due to respondents associating cooled-EGR as the baseline EGR technology which came
into the market in 2007.
Source: Frost & Sullivan
Note: Proportions less than five not shown numerically in chart.

5. 5N828-18
Importance of Powertrain Technologies
Note: Proportions less than five not shown numerically in chart.
26%
19%
26%
16%
14%
12%
12%
9%
52%
44%
47%
48%
42%
29%
42%
36%
18%
24%
17%
23%
26%
29%
35%
28%
5%
9%
7%
10%
7%
14%
10%
6%
5%
12%
21%
5%
14%
0% 20% 40% 60% 80% 100%
Advanced Engine OilLubes
AuxiliaryPower Unit
Selective-Catalytic Reduction
Cooled Exhaust Gas Recirculation
Biodiesel
Compressed Natural Gas
Navigation-based Fuel Consumption Optimization
Hybrid Trucks
Importance of PowertrainTechnologies
(N=101)
Very Important Somewhat Important Neither Important Nor Unimportant Somewhat Unimportant Not-at-All Important
Q7: Please rate the level of importance of the following powertrain technologies in terms of
applying them to enhance operations and reduce the operating costs of your fleet.
Key Take Away: Advanced engine oil lubes, selective-catalytic reduction and cooled exhaust gas recirculation are rated the most
important technologies to enhance operations and reduce operating costs.
Source: Frost & Sullivan

6. 6N828-18
Familiarity with Telematics Enabled Services: Fleet Managers Most Familiar
With Stolen Vehicle Tracking and Geofencing
Note: Proportions less than five not shown numerically in chart.
Q6: How familiar are you with the following telematics technologies (telecommunication
technologies that link the vehicle to the fleet management hub)??
Note: Voice Communication Technologies applies to both the Location and Tracking Categories and Mobile Resource Productivity Enhancement Technologies categories.
Thus, to prevent duplicate reporting, Voice Communication Technologies is shown individually (not grouped).
26%
14%
24%
23%
16%
13%
12%
18%
13%
40%
37%
44%
59%
43%
47%
54%
47%
49%
21%
36%
23%
11%
28%
28%
24%
25%
28%
9%
8%
6%
6%
9%
8%
5%
8%
5%
5%
5%
5%
3%
0% 20% 40% 60% 80% 100%
Back-Office Automation-Dispatching
Critical Event/Safety System InterventionAlert
Geofencing
Stolen Vehicle Tracking
Navigation Aided Fuel-efficiency Optimization
Real-time Traffic and Dynamic Navigation
Voice Communication
Remote Diagnostics andPrognostics
Accident ReconstructionAnalysis Data
Familiarity with Telematics Technologies (N=101)
Very Familiar Somewhat Familiar Neither Familiar Nor Unfamiliar Somewhat Unfamiliar Very Unfamiliar
Key Take Away: Back-office automation, geofencing, and stolen vehicle tracking are telematics enabled services boast the highest
degree of familiarity. Interestingly, almost one in every five fleet managers report a high degree of familiarity with remote diagnostics
and prognostics.
Source: Frost & Sullivan
Note: Proportions less than five not shown numerically in chart.

7. 7N828-18
Importance of Telematics Technologies to Enhance Operations and
Reduce Operating Costs: Overall 6 out of 10 Fleet Managers Consider
Telematics Enabled Services and Applications Important For Operations Enhancement
and Operating Cost Reduction
Q9: Please rate the level of importance of the following telematics technologies (telecommunication technologies that link the
vehicle to the fleet management hub) in terms of applying them to enhance operations and reduce operating costs of your fleet.
27%
11%
23%
21%
20%
17%
16%
7%
19%
18%
48%
64%
50%
55%
44%
48%
50%
53%
52%
41%
22%
17%
19%
19%
31%
26%
27%
29%
21%
31%
5%
6%
5%
5%
5%
6%
6%
0% 20% 40% 60% 80% 100%
On-board Telematics Hardware, as opposed to…
Critical Event/Safety System Intervention Alert
Back-Office Automation
Remote Diagnostics and Prognostics
Voice Communication
Stolen Vehicle Tracking
Navigation Aided Fuel-efficiency Optimization
Real-time Traffic and Dynamic Navigation
Accident Reconstruction Analysis Data
Geofencing
Importance of Telematics Technologies (N=101)
Very Important Somewhat Important Neither Important Nor Unimportant Somewhat Unimportant Not-at-All Important
Note: Voice Communication Technologies applies to both the Location and Tracking Categories and Mobile Resource Productivity Enhancement Technologies
categories. Thus, to prevent duplicate reporting, Voice Communication Technologies is shown individually (not grouped).
Key Take Away: On-board telematics hardware is considered as a more important technology than hand-held device for enhancing
mobile resource productivity. Of all services, back-office automation, remote diagnostics and prognostics, voice communications, and
accident reconstruction data analysis are considered very important for operating cost reduction and operations enhancement.
Source: Frost & Sullivan
Note: Proportions less than five not shown numerically in chart.

8. 8N828-18
Advanced Safety Technologies Currently Used: TPMS Is the Most Widely
Used Advanced Safety Technology Among Tractor-Trailer Fleets, While Straight Truck
Fleets Reported Highest Degree of Usage of Disc-Drum Combination
Note: Multiple mention question.
Q5L: Please select the following advanced safety technologies that are currently used in your fleet.
Key Take Away: Tire Pressure Monitoring System is mostly often used by respondents for advanced safety technologies. Disc
brake-drum brake combination and tire inflation systems are also emerging as widely used technologies. Among all active chassis
control technologies, ESC is the most widely used safety technology among largest Class 6-8 truck fleets in U.S.
Source: Frost & Sullivan
44%
41%
37%
34%
31%
28%
21%
18%
15%
13%
11%
15%
42%
49%
17%
29%
19%
32%
25%
15%
15%
14%
17%
19%
43%
39%
39%
34%
33%
28%
21%
19%
16%
13%
11%
16%
0% 20% 40% 60%
Tire Pressure Monitoring System
Disc Brakes and Larger Drum Brakes
Trailer Tire Inflation System
Tractor/Truck Based Electronic Stability Control
Tractor-Based Roll Stability Control
GPS Based Safety Warning System
Blind Spot Detection System
Trailer-Based Roll Stability Control
Lane Keeping Assist
Automatic Collision Mitigation System Featuring…
Driver Drowsiness/ Distraction Warning
None of the above
Advanced Safety Technologies Currently Used
Total Sample (N=100) Straight (N=59) Tractor (N=94)

9. 9N828-18
44%
39%
26%
23%
23%
20%
19%
18%
15%
14%
11%
54%
52%
52%
65%
57%
59%
50%
53%
51%
51%
56%
8%
16%
10%
14%
15%
27%
24%
22%
29%
25%
7% 5%
0% 20% 40% 60% 80% 100%
Tire Pressure Monitoring System
Trailer Tire Inflation System
Tractor-Based Roll Stability Control
Disc Brakes and Larger Drum Brakes
Blind Spot Detection System
Tractor/Truck Based Electronic Stability Control
Trailer-Based Roll Stability Control
GPS Based Safety Warning System
Automatic Collision Mitigation System
Driver Drowsiness/ Distraction
Lane Keeping Assist
Familiarity with Advanced Safety Technologies
(N=101)
Very Familiar Somewhat Familiar Neither Familiar Nor Unfamiliar Somewhat Unfamiliar Very Unfamiliar
Familiarity with Advanced Safety Technologies: Tire-Based Safety
Technologies Show a Higher Degree of Familiarity Owing to Fuel-Efficiency
Enhancement Value Proposition in Addition to Safety/Stability Enhancement Potential
Q5: How familiar are you with the following advanced safety technologies?
Key Take Away: Almost half of respondents are very familiar with Tire Pressure Monitoring System with advanced safety
technologies, higher than any other competing safety technology.
Source: Frost & Sullivan
Note: Proportions less than five not shown numerically in chart.

10. 10N828-18
Comparative Analysis by Truck Types: TPMS and Advanced Braking Technologies
Score Highest In Terms of Familiarity Among Fleet Managers
Q5L: Please select the following advanced safety technologies that are currently used in your
fleet?
Key Take Away: Almost half of respondents are very/somewhat familiar with Tire Pressure Monitoring System. The fuel-efficiency
benefit associated with this technology is perceived to be a leading reason for this.
Source: Frost & Sullivan
44%
41%
37%
34%
31%
28%
21%
18%
15%
13%
11%
15%
42%
49%
17%
29%
19%
32%
25%
15%
15%
14%
17%
19%
43%
39%
39%
34%
33%
28%
21%
19%
16%
13%
11%
16%
0% 20% 40% 60%
Tire Pressure Monitoring System
Disc Brakes and Larger Drum Brakes
Trailer Tire Inflation System
Tractor/Truck Based Electronic Stability Control
Tractor-Based Roll Stability Control
GPS Based Safety Warning System (Speed, ramp …
Blind Spot Detection System
Trailer-Based Roll Stability Control
Lane Keeping Assist
Automatic Collision Mitigation System Featuring…
Driver Drowsiness/ Distraction Warning
None of the above
Comparative Analysis by Truck Types: Familiarity of Advanced Safety
Technologies % Very/Somewhat Familiar
Total Sample (N=100) Straight (N=59) Tractor (N=94)

11. 11N828-18
30%
30%
26%
25%
24%
22%
20%
16%
14%
14%
10%
42%
46%
59%
55%
51%
51%
58%
50%
58%
53%
52%
24%
19%
12%
17%
20%
17%
15%
29%
24%
29%
33%
7%
6%
0% 20% 40% 60% 80% 100%
Tractor/Truck Based Electronic Stability Control
Tractor-Based Roll Stability Control
Tire Pressure Monitoring System
Disc Brakes and Larger Drum Brakes
Trailer Tire Inflation System
Trailer-Based Roll Stability Control
Driver Drowsiness/ Distraction Warning
GPS Based Safety Warning System
Blind Spot Detection System
Automatic CollisionMitigationSystem
Lane Keeping Assist
Importance of Advanced Safety Technologies to Enhance Operations and
Reduce Operating Costs (N=101)
Very Important Somewhat Important Neither Important Nor Unimportant Somewhat Unimportant Not-at-All Important
Importance of Advanced Safety Technologies to Enhance Operations
and Reduce Operating Costs: ESC and RSC Are Considered Important Safety
Technologies as These Offer Active Control and Protection Against Dangerous
Instabilities
Note: Proportions less than five not shown numerically in chart.
Q8: Please rate the level of importance of the following safety technologies in terms of applying them to enhance
operations, reduce operating costs, and improve overall safety of your fleet.
Key Take Away: Thirty-percent of respondents rated that it is very important to enhance and reduce Tractor/Truck Based Electronic
Stability Control and Tractor-Based Electronic Stability Control operating cost. However, while considering the safety technologies
chosen as either very important or somewhat important, 85 percent of all fleet managers ranked TPMS as an important safety
technology for reducing operating costs which is higher than any other technology listed.
Source: Frost & Sullivan

12. 12N828-18
Efforts to Meet EPA 2010 Regulatory Requirements: For EPA 2010
compliance, the preference for SCR mirrors market reality; for CSA 2010 compliance,
most fleet managers are planning to use data from safety systems to improve fleet and
drivers’ safety performance
Q10: Does your fleet plan to meet the EPA 2010
regulations through the use of SCR (Selective-Catalytic
Reduction) technology??
Key Take Away: Nearly seventy percent of respondents are likely to use SCR to meet EPA regulations, and over half of
respondents are likely to use data from advanced safety systems.
Source: Frost & Sullivan
Q11: Does your fleet plan to use data from advanced safety systems to
help improve your fleet’s performance and driver performance under
CSA 2010 regime?
Yes
56%
No
27%
Don't
Know
17%
Usage of Data Advanced Safety
Systems
(N=101)
Yes
68%
No
23%
Don't
Know
9%
Use of SCR to meet EPA 2010
Regulations
(N=101)

13. 13N828-18
47%
47%
6%
0% 20% 40% 60%
Bendix
MeritorWABCO
Other
Primary Supplier of Advanced Safety Systems
(N=101)
Primary Supplier of Advanced Safety Systems: Bendix and MeritorWABCO
enjoy similar penetration among surveyed fleets
Q27: Which supplier of advanced active safety systems do you primarily use?
Key Take Away: Bendix and MeritorWABCO are the most-used brands of advanced safety systems among respondents. This
indicates that these companies are offering disparate and competing technologies that are finding traction among fleet managers. It
also validates findings from Frost & Sullivan’s industry research that these two companies are the leading suppliers of advanced
safety technologies in the Class 6-8 truck market.
Source: Frost & Sullivan

14. 14N828-18
25%
17%
10%
10%
5%
5%
4%
4%
21%
0% 10% 20% 30%
Qualcomm
PeopleNet
Geologic
Tripmaster
PHH Arval
XATA
Cadec
Trimble-@Road
Other
Primary Supplier of Advanced Telematics Services
(N=101)
Primary Supplier of Advanced Telematics Services: Qualcomm is the primary
supplier of advanced telematics services to the largest Class 6-8 truck fleets in the U.S.; PeopleNet
is quickly narrowing the gap
Q29: Which supplier of advanced telematics services do you primarily use?
Key Take Away: One-fourth of respondents use the advanced telematics services of Qualcomm.
Source: Frost & Sullivan

15. 15N828-18
29%
21%
14%
13%
11%
11%
2%
0% 10% 20% 30%
Freightliner
Navistar/International
Kenworth
Peterbilt
Mack
Volvo
Other
Primary Manufacturer of Trucks Used in Fleet
(N=101)
Primary Manufacturer of Trucks Used in Fleets: Nearly one out of three
surveyed fleet managers rank Freightliner as the primary truck nameplate in their fleets
Q31: Which truck manufacturer do you primarily use in your fleet?
Key Take Away: Freightliner is the most-used truck brand, followed by Navistar/International. This shows that managers of the
largest fleets in the U.S. have been choosing Freightliner trucks more than any other brand of Class 6-8 trucks.
Source: Frost & Sullivan

16. 16N828-18
Demographics: Truck Detail
94%
59%
4%
0% 20% 40% 60% 80% 100%
Tractor
Straight
Other
Types of Fleet Trucks
(N=101)
99%
41%
36%
0% 20% 40% 60% 80% 100%
Class 6 to 8
Class 1 to 3
Class 4 to 5
Class of Trucks
(N=101)
S6: What types of trucks does your fleet currently utilize? S5: Which of the following classes of vehicles do you currently have
in use in your entire fleet?
Source: Frost & Sullivan
Note: Multiple mention question. Note: Multiple mention question.

17. 17N828-18
47%
46%
7%
Type of Fleet (Private/Hired)
(N=101)
Private For Hire Other
39%
61%
Type of Fleet
(N=101)
Vocational On-highway
S9: Is your fleet primarily… S10: Is your fleet primarily…
Demographics: Types of Fleets Represented
Source: Frost & Sullivan

18. 18N828-18
Demographics: Title of Respondents
69%
2%
25%
4%
Title of Respondents
(N=101)
Fleet Manager Safety Manager Maintenance/Service Manger CEO/ COO/ President/ Owner
Note: “Other” includes General Manager/VPs/President, Logistics Manager, etc.
S1: Which of the following best describes your current title?
Source: Frost & Sullivan

19. 19
About Frost & Sullivan

20. 20N828-18
Frost & Sullivan Research: Providing a Complete Information Picture
This research was conducted utilizing the expertise of two teams within Frost & Sullivan: Customer
Research and Automotive & Transportation (A&T).
The two teams worked together to develop the survey instrument. Customer Research then managed the
fieldwork and performed much of the data analysis seen throughout this document. The teams then
collaborated once again to properly analyze the results.
Since the teams have differing areas of expertise, Customer Research knowing the demand side of
research and the A&T Practice knowing the supply side of research, we were able to combine both
perspectives throughout, thus providing a complete information picture.

21. 21N828-18
Who is Frost & Sullivan
The Growth Consulting Company
• Founded in 1961, Frost & Sullivan has over 45 years of assisting clients with their decision-making and
growth issues.
• Over 1,700 Growth Consultants and Industry Analysts across 32 global locations.
• Over 10,000 clients worldwide – emerging companies, the global 1000 and the investment community.
• Developers of the Growth Excellence Matrix – industry leading growth positioning tool for corporate
executives.
• Developers of T.E.A.M. Methodology, proprietary process to ensure that clients receive a 360o
perspective of technology, markets and growth opportunities.
• Three core services: Growth Partnership Services, Growth Consulting and Career Best Practices.

22. 22N828-18
What Makes Us Unique
Exclusively Focused on Growth
Global thought leader exclusively focused on
addressing client growth strategies and plans –
Team actively engaged in researching and
developing of growth models that enable clients
to achieve aggressive growth objectives.
Industry Breadth
Cover the broad spectrum of industries and
technologies to provide clients with the ability to
look outside the box and discover new and
innovative ideas.
Global Perspective
32 global offices ensure that clients receive a
global coverage/perspective based on regional
expertise.
360o Perspective
Proprietary T.E.A.M.TM Methodology integrates all
6 critical research methodologies to significantly
enhance the accuracy of decision making and lower the
risk of implementing growth strategies.
Growth Monitoring
Continuously monitor changing technology,
markets and economics and proactively address clients
growth initiatives and position.
Trusted Partner
Working closely with client Growth Teams –
helping them generate new growth initiatives and
leverage all of Frost & Sullivan assets to accelerate
their growth.

23. 23N828-18
T.E.A.M. Methodology
Frost & Sullivan’s proprietary T.E.A.M. methodology ensures that clients have complete “360 Degree
Perspective” from which to drive decision-making. Technical, Econometric, Application, and Market
information ensures that clients have a comprehensive view of industries, markets and technology.
Technical Real-time intelligence on technology, including emerging technologies, new R&D
breakthroughs, technology forecasting, impact analysis, groundbreaking research,
and licensing opportunities.
Econometric In-depth qualitative and quantitative research focused on timely and critical global,
regional, and country specific trends, including the political, demographic, and
socioeconomic landscapes.
Application Insightful strategies, networking opportunities, and best practices that can be applied
for enhanced market growth; interactions between the client, peers, and Frost &
Sullivan representatives that result in added value and effectiveness.
Market Global and regional market analysis, including drivers and restraints, market trends,
regulatory changes, competitive insights, growth forecasts, industry challenges,
strategic recommendations, and end-user perspectives.

24. 24N828-18
Global Perspective
Founded in 1961
Over 1,700 Consultants / Analysts across 31 global locations
10,000+ clients worldwide including emerging companies, the global 1000, and the investment
community