Growth Opportunity Analysis of Health, Wellness, and

Wellbeing Technologies in Commercial Trucking R&D Expenditure on HWW to Quadruple for Global Truck OEMs

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May 2016

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Contents

Section Slide Number

Executive Summary 3

Research Scope, Objectives, Background, and Methodology 14

HWW in Truck Industry—Demand Analysis 18

HWW in Truck Industry—Technology Evolution 30

Profiles of Leading OEMs in HWW Technology Evolution 43

Key Conclusions and Future Outlook 51

Appendix 55

3

Executive Summary

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1

2

3

4

5

Key Markets: The United States, Europe, and Japan are emerging as the top 3 markets for heath,

wellness, and wellbeing (HWW) technology integration in heavy-duty trucks. By 2025 Japan is expected

to become the largest hyper-aged society, with nearly 30% of its population over the age of 65.

HWW Technologies: HWW-related R&D is expected to reach 3.5% of total R&D expenditure by 2025

from 1% currently. Brought-in devices and cloud-enabled services are expected to experience short-term

rapid growth; proliferation of wearable devices, smartphones, and cloud-based solutions will be key.

Digitization: Healthcare digitization, emergence of mobile apps, and HWW integration in next-generation

trucks for health monitoring and prognosis will gain strong footholds in the industry. Mobile driver health

monitoring and acceptance of HWW technologies will be vital to growth of the HWW market.

Features: Features such as glucose level/fatigue monitoring will rise in precedence and will become

standardized features by 2025 in Europe and North America. Focus will center on non-critical features

such as seating systems, cabin interiors, and human-machine interface (HMI) in the short term.

Convergence: Industry challenges such as driver shortage and low retention will push fleets and original

equipment manufacturers (OEMs) to work with healthcare and medical device companies on integrating

HWW technologies into trucks.

Executive Summary—Key Findings

Source: Frost & Sullivan

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Executive Summary—Commercial Vehicle Driver Age and Health

Statistics

Source: Journal of the American Association of Occupational Health Nurses; Frost & Sullivan

Persistent shortage

of truck drivers; about

200,000 US job

vacancies

Truck and bus drivers

have the lowest

overall health ratings,

which lead to early

retirement.

Average life

expectancy is 61

years.

Diabetes is 50%

higher in this driver

population than the

national average.

87% of drivers suffer

from pre-

hypertension/

hypertension,

compared with the

national rate of 58%.

75% of drivers are

overweight or

morbidly obese.

8% of these drivers

exercise regularly,

compared with the

national rate of 49%

(30 minutes, 3 times

a week).

HWW Technologies in Truck Market: Commercial Vehicle Drivers Age and Health Statistics,

North America, 2015–2022

HWW Features

Medication

compliance

with

glucose

monitors

Monitoring

blood

pressure

with devices

embedded

in seats

Monitor driver

fatigue using

a pulse

oximeter

Voluntary

health and

wellness

programs

for drivers

Customized

seat belt

extenders

for obese

drivers

Ample leg

space, relaxed

posture, and

exercise while

traveling

HWW Features

Increasing average driver age is accelerating OEM focus towards HWW technologies.

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Executive Summary—HWW Focal Points for Truck Design

HWW Technologies in Truck Market: Key Features List, Global, 2015–2022

• Palm and facial temperature

monitoring

• Muscle therapy

• Erratic driving pattern recognition

• Driver drowsiness detection

• Fatigue monitoring

• Stress level monitoring

• Pollen/allergen level monitoring

• Drunk-driving prevention

• Heart rate monitoring

• Blood pressure monitoring

• Breathing rate monitoring

• Glucose level monitoring

• Comfort/ease of access/egress

• Outside ambient air quality

monitoring

• In-cabin ambient temperature

monitoring

• In-cabin ambient lighting monitor

• Driver workload estimation Soul

Body

Mind

Source: Frost & Sullivan

HMI, connectivity, and comfort and convenience will feature in the short to medium term while HWW services such as health

monitoring will feature in the medium to long term.

HWW technology in trucks will target the driver’s body, mind, and soul creating opportunities for disparate market participant

groups in the commercial vehicle and healthcare industries.

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Executive Summary—HWW Applications and Services for Trucks

Truck Health Monitoring

Features Autonomous and Cloud-

based Medical Services

Automatic

notification to

emergency

medical services

Diagnostic

dashboard

doctor providing

remote

healthcare

services

Activation of

autonomous

driving in the

event of driver

incapacity

Data collected is transmitted

in real time via Bluetooth or

Wi-Fi to a remote computer.

Health Monitoring

Systems

Seats that monitor

health signs such as

pulse, blood pressure,

stress, and blood sugar

for signs of incipient

diabetes

Voice-controlled

air pollution,

asthma alert,

and pollen alert

apps

Steering wheel

that detects the

driver’s pulse,

oxygen saturation,

and perspiration

HWW Technologies in Truck Market: Upcoming Convergence of HWW Applications and Services in

Trucks, Global, 2015–2022

Image Source: Ford; Pollen.com

Source: Frost & Sullivan

Growth of mobile driver health monitoring and driver health prognostics enabled by Wi-Fi or data connectivity will be vital to

disparate market participants such as OEMs and healthcare companies owing to potential revenue streams generated.

Slide 7

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Executive Summary—First Wave of HWW Proliferation

HWW Technologies in Truck Market: First Wave of Proliferation, Global, 2015–2022

Measure &

Monitor

App-based

wellness features

• Location services (allergen warning)

• Glucose level monitoring

• Blood pressure monitoring

• Heart rate monitoring

• Drunk-driving prevention

• Mood-based suggestions

• Driver workload estimator

• Driver drowsiness

detection

General wellbeing

features Interior-based

health features

• Ergonomic seating and

control placement

• Customizable rear seats

for exercise

Source: Frost & Sullivan

HWW features in the truck industry are expected to measure and monitor drivers to provide early detection of ailments and

assistance in emergencies.

Soul Mind Body

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HWW in Trucks—Current and Future Trends

Ergonomics

Cockpit/dashboard: Buttons and controls within arm reach and intuitive displays to minimize

driver distraction, easy climb in and climb out

Driver seat: Ample leg space, relaxed posture, and good road visibility position, improved

cushion for superior suspension; climate control and adjustments options (belt height,

shoulder, cushion, and swivel angle), sensors tracking body temperature, pain, stress,

sensors in headrest capturing brain electrical activity, head motion

Drivability

Steering system: Easy maneuverability (power steering), ergonomically angled, adjustable

steering column, multifunctional steering wheel with buttons within the reach of fingers,

sensors measuring sweat, heart rate, body temperature using conductive pads embedded

in steering wheel, optical sensors track driver drowsiness and inattentiveness

Transmission system: Effortless gear shifts and clutch control (automatic/semi-automatic),

ergonomically placed gear lever (mounting on steering column)

In-seat Wellbeing

Clean air: Climate control (manual/automatic), multiple air condition/heating vents, fresh air

management

Noise and vibration: Insulated cabin to provide stress-free driving environment

Accessory proximity: Easily reachable racks/compartments (coffee mug, water bottles,

magazines, and documents) and door buttons (power windows, fuel tank open-close)

Human-machine Interface

Information and entertainment system control: Digital and analog displays providing time-

and machine-critical information, navigation and driving assistance features positioned

prominently, minimal instrument cluster with multiscreen display capability, condensation-

free display panels, steering wheel control and wireless connectivity for easy and safe

operation, high resolution display screen and camera

Truck technologies have long been innovating to address the need for ergonomic seating, reachable consoles, steering

controls, and in-vehicle assisted HWW features.

Image source: MAN; Daimler; Western Star; Source: Frost & Sullivan

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Living Space

Interior design: Best-in-class interiors—color harmony, dynamic styling, high-quality

materials, and rich finishing, complementing needs of duty cycle

Space: Free moving space and ample headroom, leveled flooring, easily

washable/cleanable floor mat

Resting

Seating systems: Reconfigurable swiveling seats, level control, reduced vibration, power-

operated front seats with ventilation, reclining, massaging chairs, cushioned leg rest,

lockable storage box for added security

Recreation

Entertainment: Radio, TV, Wi-Fi connectivity for communication, Internet browsing

Temperature and ambience: Auxiliary air-conditioning to eliminate need of running engine,

warm relaxing light, night lighting with option for dimming, environment sensors for

measuring air and temperature

Storage

Luggage: Compartments to keep personal belongings of driver required for duration of travel

Health and wellness: Refrigerators to preserve food, water, beverages, and medicines,

tables and holders to keep mugs, bottles, and beverage cans, easily accessible tools and

first-aid kit

Time spent in trucks is being considered an extension of living at home concerning elements of comfort, relaxation, and wellness

such as provisions for exercise, relaxed posture, and a purified environment.

HWW In Trucks—Current and Future Trends (continued)

Image source: Western Star; Bose; Source: Frost & Sullivan

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Sc

en

ari

o 1

OEMs Wearables

Companies

Wellness/Training

Programs

Healthcare IT Healthcare Companies

Fleets

• OEMs will partner with healthcare and wearables companies to provide embedded or wearable

devices in trucks.

• Health wellness programs will be offered to fleets as well in order to aid drivers in improving health.

• Customized trucks will be offered to fleets catering to drivers’ specifications for improving the work

environment.

• Actionable data from built-in devices or through wearables will be monitored and leveraged to send

timely alerts to aid in mobile health for fleets. Such services will open up a new revenue stream for

truck manufacturers.

Truck HWW Ecosystem—Scenario 1

Source: Frost & Sullivan

Truck manufacturers will collaborate with the healthcare industry and third-party device manufacturers to introduce HWW

technologies in trucks as added features; Platformization of such technologies is expected to result in rapid adoption.

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Truck HWW Ecosystem—Scenario 2

Fleets Healthcare Companies

Wearables

Companies

Healthcare IT

Wellness/training Programs

Sc

en

ari

o 2

• Wellness programs designed to train drivers on health and wellness will be proactively adopted by fleets

in order to improve drivers’ health.

• Interventions for periodic monitoring of drivers’ specific health conditions will be adopted by fleets to

keep drivers’ health in check.

• Fleets will also opt for its truck drivers to use wearables and will leverage smartphones that are brought

in by drivers in order to monitor their health.

• Information from apps that are specifically designed to leverage information about driver

health/wellbeing and information from wearables will be monitored by fleets to send alerts to drivers

whenever necessary.

Source: Frost & Sullivan

Proactive methods by fleets to improve drivers’ health will result in the proliferation of HWW technologies through peripheral

integration and in continuous monitoring to improve the drivers’ work environment.

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Profiles of Leading OEMs in HWW Technology Evolution

Source: Frost & Sullivan

HWW Technologies in Truck Market: OEM Activities, Global, 2015–2022

Daimler Group

• Daimler is focussing on enhancing ergonomics in

cabins by improving visibility and strategically-placed

door handles.

• Inclusion of an exercise setup in cabin allows drivers

to work out in the truck.

• Driver health monitoring equipment such as sleep apnea will be

integrated in trucks, stoking mobile driver health monitoring.

• Automated information systems that provide real-time information on

driver health, and improvement of connectivity to aid in connected

technologies will feature in these trucks.

Navistar

• HWW is being improved by addition of high-visibility

displays with prioritized information on collision

avoidance and cruise control.

• Features such as interior lighting and cabin interiors

being redesigned for office use, entertainment, and

lifestyle are also being concentrated upon.

• OnCommand Connection which links truck to service network and

devices for personal use will be leveraged to link health apps and

integrate monitoring equipment in the vehicle.

• Diamond Logic electrical system that allows plug and play of any

device will be tapped into in order to make it a value add for fleets,

offering growth opportunities for health monitoring device companies.

PACCAR

• Broader windshields and optimal placement of

pedals and gauges are among the areas PACCAR is

focussing on currently.

• In order to reduce shoulder injuries for drivers, force

required to open hoods on their trucks is reduced;

information centres with instant feedback have also

been incorporated in their trucks.

• Driver performance centres, which currently display real-time truck

information in addition to fuel economy, will be altered to portray

information on driver health and related data.

• Pop-up diagnostic alerts to alert drivers from safety systems and truck

information will be utilized in notifying and forewarning them on health

diagnostics, in addition to driver health prognostics.

Volvo Group

• Volvo is focussing on cab interiors – panoramic

windshields, lessening noise, and providing thermal

insulation, heated and contoured cushions – in order

to provide drivers a better working environment.

• Hoods and fifth wheels that require lesser effort to

open and unlatch, respectively, are designed in

order to reduce driver injury.

• With connectivity and intelligent technologies becoming progressively

important to new and experienced drivers alike, more power outlets

are being expected to be integrated in their trucks and thus aid drivers.

• Volvo’s driver information displays which can be customized to

present data on fuel efficiency, trip mileage, and battery voltage, will

be modified to prioritize alerts on mobile driver health monitoring.

OEM Current 2015–2022

In the long-term, the HWW market is expected to emerge as a platform that drives OEMs to integrate and enable

platformization of HWW technologies by 2025, in light of increasing focus on driver retention and connected trucks.

VW Group • Scania is focussing on features such as improved

visibility and interior lighting inside the cabs to

provide good visibility and a pleasant working

environment for the drivers.

• Wearables for driver performance monitoring and driver health

monitoring will become increasingly prevalent in the trucking industry

in the medium to long-term; the inclusion of Scania Watch to aid the

driver will have positive implications for integration of wearables inside

the cabin.

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One of Frost & Sullivan’s core deliverables

is its Market Engineering studies. They

are based on our proprietary Market

Engineering Methodology. This approach,

developed across the 50 years of

experience assessing global markets,

applies engineering rigor to the often

nebulous art of market forecasting and

interpretation.

A detailed description of the methodology

can be found here.

Market Engineering Methodology

Source: Frost & Sullivan