The commercial transportation industry will continue to face significant semiconductor shortages through at least the end of 2021, according to ABI Research.
“Connectivity, security and integration are key elements of commercial transport today. Upwards of 17 compute modules are needed for a heavy-duty vehicle and everything from safety systems to engine control and telematics are impacted by these semiconductor delays,” says Susan Beardslee, principal analyst, supply chain management and logistics at ABI Research.
“Despite continued shortages and delays, suppliers may have options to pivot to alternative products, confirm true demand, and in some cases, pass on the costs of increased demand and need for flexibility. Where this is not possible, new contractual agreements and terms may be needed to redistribute risk, finance needed equipment and adopt more integrated, real-time supply chain solutions,” Beardslee adds.
From ABI Research:
- Order boards will soon extend to 2022.
- Telematics service providers must also confront demand stemming from 3G sunsets and the Canadian ELD Mandate.
- Telematics providers must determine how to address an estimated 650,000 devices remaining on 3G as of last quarter.