Opportunities for Passive Components in Heavy Trucks and Tractors: 2007-2010

Opportunities for Passive Components in Heavy Trucks and Tractors: 2007-2010

Innovation and government regulations have rapidly expanded the transportation market for heavy-duty passive electronic components.

Global Class 7 and 8 Truck Production Statistics (On and Off-road):

Global production volumes for Class 7 and Class 8 trucks sharply expanded in the calendar year 2006, repeating a second calendar year of global expansion for trucks and tractors with a curb weight of 26,001 pounds or more.

Global production volumes for these Class 7 and 8 trucks totaled approximately 1.64 million units in 2006 (CY ending Dec. 31), which is about twice as many heavy duty trucks and tractors produced in 2003 (830,000 units estimated).

Production of On-Road Class 7 and 8 Trucks, which includes the massive production of Class 8 Long Haul Trucks, totaled approximately 1.3 million units worldwide in 2006.

Global production of Class 7 and 8 Trucks and Tractors for Off-Road applications totaled an estimated 340,000 units for 2006.

It is important to note that both on-road and off-road production of Class 7 and Class 8 trucks and tractors was at twice the historical rate for 2006.

Why Global Production for Class 7 and 8 Trucks Expanded So Rapidly:

Changing the engine design for Class 7 and 8 trucks has been one of the primary mandates of the heavy vehicle industry since 2000. These heavy vehicles, with an operating weight of 26,001 pounds or more, account for twice as much gasoline consumption as all other trucks (Class 3 to 7) combined.

Moreover, the heavy use of Class 8 trucks for hauling freight and fuel worldwide makes their cost-effectiveness a competitive advantage to the global supply chain for all products.

Thus, demand for heavy-duty trucks and tractors expanded with the rapid roll-out of new energy efficient vehicle designs with emission ratings designed to meet new U.S. Federal highway mandates implemented in 2007.

Engine Innovation for Class 7 and 8 Trucks:

The rapid expansion of global heavy truck and tractor production in 2005 and again in 2006 was initiated by new innovative engine designs that were more fuel efficient. These new engines were part of a greater plan of technology implementation that will continue to 2010. Heavy engine manufacturers for Class 7 and 8 trucks include Caterpillar, Cummins, International, Detroit Diesel, Mercedes, and Mack.

Because so much of the required industry goals set forth in mandates in 2000 centered around the drivetrain and the engine, the most dramatic innovations have been and will continue to be the electrification of the powertrain. Early success in heavy duty engine design affected growth in the large volume long haul trucking industries where it was designed to make the greatest environmental impact. Due to the use of these engines in like-industries, most notable the off-road truck and tractor business; as well as heavy duty ocean-going vessel engines and portable and stationary power generation equipment markets worldwide were affected as well.

The Large Class 7 and 8 On-Road Truck Manufacturers:

The fragmented nature of the Class 7 and 8 on-road truck business is quite apparent and there are a large number of global manufacturers. There is only very little crossover between manufacturers of on-road Class 8 trucks and the lighter Class 7 trucks. On-road class trucks are generally 26,001 pounds in curb weight; while the Class 7 trucks are primarily short haul delivery, municipality and government trucks with a curb weight between 10,001 and 26,000 pounds.

Major global manufacturers of heavy duty on-road Class 8 trucks include Freightliner, International, Kenworth, Mack, Peterbilt, and Volvo.

Major manufacturers of heavy duty Class 7 trucks, which includes transit busses, government vehicles, refuse trucks, fire trucks and concrete mixers, include manufacturers such as Oshkosh, E-One, KME, ALF, Rosebauer, Advance, Continental, Hell, Faun, Farid, and many others.

The Large Class 7 and 8 Off-Road Truck Manufacturers:

Major vendors of off-road heavy duty Class 7 and 8 trucks and tractors include Caterpillar, John Deere, Komatsu, Sumitomo, Samsung, JCB, Larsen and other smaller manufacturers around the globe.

The off-road truck and tractor business is truly a customer-driven market segment, where manufacturers offer application-specific work vehicles that are variations on tractors, backhoes, loaders, planers and pavers are used in a variety of end-use markets, including heavy construction, forestry, farming, mining, and oil and gas exploration.

Technology Goals in Class 7 and 8 Trucks to 2010:

In 2007 and 2008 it is anticipated that even more efficient drivetrains and powerplants will be developed for Class 7 and 8 trucks and this should drive demand for innovative passive component suppliers who can work closely with engineers on a variety of low volume production runs.

The primary motivating factor will be to reduce the current consumption of fuel in Class 7 and 8 trucks, which continues to be the primary focal point of heavy industry development.

This is because Class 7 and 8 vehicles consume twice as much gasoline as all other trucks >10,000 pounds combined.

The primary focus of these anticipated developments will be for capacitors, resistors and inductors used in auxiliary power systems and for the integrated communications modules.

The three primary 10-year goals of the Class 7 and 8 trucking industry that have been partially achieved to date by the adoption of electronic solutions are as follows:*

Reduce the Loss of Energy that is Wasted in the Drivetrain by 50%

• Drivetrain Efficiency—Develop technology to reduce drivetrain energy losses from 9kWh to 6kWh by 2003, to 5 kWh by 2006, and to 4.5kWh by 2009. More efficient drivetrains are being developed for Class 7 and 8 trucks that employ hybrid electric drivetrain solutions.
  • Passive Components Used In Hybrid Electric DriveTrains Include DC Link Capacitors, Power Wirewound Inductors, and Wirewound Braking Resistors.

Reduce the Heat that is Wasted in the Engine by 41%

• Waste Heat—Develop technology to reduce engine waste heat from 240kWh to 220kWh by 2002, to 175kWh by 2006, and to 141kWh by 2009
  • Passive Components consumed in the engine compartment in Class 7 and 8 trucks will be subjected to extremely high temperatures. For off-road Class 8 truck applications, these passive components will also be subjected to high vibration frequencies as well.

Reduce the Rolling Resistance by 40%

• Rolling Resistance—Develop tire technology to reduce rolling resistance energy loss from 70kWh to 60kWh by 2003, to 50kWh by 2005, and to 40kWh by 2008 .
  • Rolling resistance is being reduced by the development of new tires with less drag; but their inflation is now being monitored by electronic tire pressure monitoring systems, which are capacitor, resistor and inductor intensive in their design.

*To reduce loss, the energy must be maintained in the system. This is achieved through innovation and new electronic technology.

Solutions Involving Capacitors, Resistors, Inductors:

The electronic solutions that are being implemented to help achieve the ambitious efficiency goals set forth by the heavy truck and tractor industry are as follows:

New Powerplant Designs:

• One solution that is in the continued process of implementation is the development of a more efficient total systems design that employs energy load leveling in addition to the traditional method (Battery and internal engine). The goals have been ambitious and involve the development of technology to reduce auxiliary load energy losses from 15kWh to 12.5kWh by 2003, to 10kWh by 2006, and to 7.5kWh by 2009.
• The electronic solution for auxiliary load development can be accomplished by using a battery or a capacitor. Batteries are better suited for supplying auxiliary power over a long time (30 minutes or more - lighting for example). Capacitors are best suited for burst power applications - microseconds to minutes such as for driving up a hill. The most noted application is the use of the DC link capacitor, which may be polypropylene, carbon or aluminum electrolytic in type. Other components employed here include power wirewound inductors and metal oxide varistors. Other high energy density films, such as Siloxane are being evaluated for DC link applications ate this time. PPS films are also being suggested for this application because of their high heat handling capabilities.

New Braking Systems:

The development of new braking systems for Class 7 and 8 On-road and Off-road trucks has been a priority of the industry since 2000, when 10-year goals were developed for reducing the rolling resistance while enhancing the overall safety and efficiency of braking a vehicle with a curb weight of 26,001 pounds or more. The primary goals set forth here were to develop and demonstrate electronic braking systems, rollover avoidance, and collision avoidance systems. Braking systems also had the added requirement of recouping braking energy.

Passive Components are consumed in the following systems related to these initiatives as follows:

• Electronic Braking Systems require wirewound resistors for braking energy recoup; EDLC and power film capacitors for energy recoup. Most Class 7 and 8 trucks employ a nickel chromium wirewound solution for recouping braking energy. Capacitors have been used for this application in Japan.
• Rollover Avoidance Systems employ dynamic actuation technology that uses piezo electric actuators and a variety of load and pressure sensors to sense the vehicles relative center of gravity and positioning.
• Collision Avoidance Systems employ Infrared Detector Technology and standard radar circuits to sense the positioning and proximity of people, vehicles and the road itself. Electronic braking, rollover avoidance and collision avoidance systems also require MLCC, tantalum chips, aluminum, DC Film chips, thick film chip resistors, wirewound and metal film resistors, and ferrite bead inductors, and varistors for bypass, decoupling, filtering and circuit protection applications.

New Communications Systems:

The heavy truck and tractor industry has also developed vehicle intelligence and communication systems which includes the combination of multiple internal and external data into a core on-board computer to create a concentric system. It is primarily for self diagnostics and internal monitoring, but also to include external communications systems, GPS, satellite monitoring, refrigeration monitoring and many other industry specific products that would be targeted towards forestry, farming, boating and mining. Such concentric systems require components for harsh environments that would include high frequency ceramic capacitor and LTCC based antenna systems for high heat, extreme cold, and ultra-vibration frequencies.

The Significance of the Timeline for Implementation to 2010:

Major goals were set forth by the Class 7 and 8 Truck industries in 2000 (21st Century Truck Program) with respect to increasing engine efficiency over time. The major improvements were implemented well before the 2007 deadlines and this drove new truck demand in 2005 and 2006, as did higher fuel prices as customers looked to more fuel efficient designs for the future and to remain competitive within their respective industries; which was diverse - affecting a broad number of value-added and application specific industries around the globe, including freight, oil and gas exploration, mining, forestry, farming, and construction. More engine improvements are expected to be implemented by CY 2009, and the movement in the industry, especially in electrification of the power train and the recoup of previously lost energy have had a direct impact on the passive component industry, especially for power capacitors and braking resistors.

Growth Market Summary for Passive Components in Class 7 and 8 Trucks to 2010:

Growth prospects for the following for use in Class 7 and 8 trucks should be good to 2010:

• DC Link/Rail Capacitors;
• Wirewound Braking Resistors;
• Wirewound Power Inductors
• MOV Arresters
• Infrared Detector Modules
• LTCC Antenna Modules
• High Frequency Passives For Internal Communications and Monitoring Packages.

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