Michael Lefebvre, manager of global marketing and product strategy for John Deere Power Systems.John Deere Power Systems
1. What challenges most affected the mobile OEM landscape in 2024?
2024 was another year where OEMs were working hard to strike the balance between providing what their customers want and need now against preparing for the future. We’re in a dynamic environment where customer demands and technological advancements are pushing the industry in many directions simultaneously. OEMs must carefully assess the potential of each power source — from optimizing traditional internal combustion engines to exploring the possibilities of electrification, renewable fuels, and even hybrid solutions.
At John Deere, we’re closely watching developments across this spectrum and investing in and prioritizing solutions that make the most sense for our customers. The past several years have reinforced our stance that the path to a sustainable future will not rely on one single solution. Adding to this complexity is the regulatory landscape itself as emissions regulations tighten globally. With governments worldwide signaling a continued push for lower emissions, manufacturers are carefully weighing the costs and benefits of various solutions. In the meantime, OEMs are faced with the difficult task of engineering machines that comply with these evolving standards while maintaining performance expectations and managing costs.
While supply chain disruptions have somewhat subsided, OEMs continue to work against lingering challenges. Sourcing critical components and long lead times remain a concern and have required proactive supply chain management and strong relationships with key suppliers. It also was another year where equipment manufacturers had to be flexible and forward-thinking. The industry is changing rapidly with many new technologies coming online. It’s clear we have to do more than react to these changes; we have to anticipate what our customers will need in the future.
End users want machines that are more powerful and efficient, and we're seeing a real shift in how those machines are powered. Battery electric, new types of fuel, and even better diesel engines are all important pieces of the larger puzzle. This creates a complex power landscape with lots of different choices, but it's also really exciting because it pushes us to innovate. Personally, I'm energized by this challenge. We've built a talented team to evaluate all these different power options and figure out which ones will best serve our customers. We're embracing these changes and developing a wide range of advanced technologies to meet the needs of today and create a more sustainable and productive tomorrow.
2. What are your predictions for the mobile OEM landscape in 2025?
2025 promises to be another dynamic year for the mobile OEM landscape. The industry won't be defined by a "one size fits all" approach to power, but rather by a diverse array of solutions. We anticipate increased adoption of hybrid systems and battery electric solutions, all while advancements in internal combustion engines continue. OEMs will need to offer a range of options to meet the needs of various applications and customer preferences. While solutions like battery electric and hybridization will play a key role in lighter-duty equipment segments, we know there is still a long life ahead for diesel engine technology, especially for heavy-duty off-highway applications like those found in the construction industry.
That’s why John Deere is developing more choices to meet the unique needs of the off-highway equipment industry, including renewable fuels, battery and hybrid electric, and advancements to internal combustion engines. I think emissions regulations will continue to be a major driver of change in the mobile OEM landscape in the year ahead. Emissions are a factor that OEMs and end users are rightfully paying attention to. A related factor I think OEMs care even more strongly about is fuel efficiency. While meeting emissions regulations is essential, fuel efficiency delivers significant benefits to both our customers and the environment. It reduces operating costs for equipment owners and contributes to a more sustainable future. This is a key consideration as we develop and refine our power solutions.
As the industry prepares for the next iteration of emissions standards with U.S. Tier 5 and EU Stage VI, John Deere is optimizing our engine technologies now. We're focused on developing solutions that not only meet these stringent standards but also create new value for customers. This includes a new engine architecture that enables broader integration of renewable fuels and facilitates the adoption of such new technologies as electric drivetrains. By anticipating the challenges and opportunities associated with future emissions regulations, we aim to minimize disruption and help our customers navigate this transition while maintaining their competitive edge. Alongside these powertrain advancements, I also think we’ll see continued growth in connectivity and telematics. Smart technologies will become increasingly integrated into machines, enabling greater machine-to-machine communication, remote diagnostics, and even autonomous operation.
The path forward for mobile OEMs will include challenges and opportunities. Evolving emissions regulations, advancements in technology, and shifting customer expectations are driving the industry toward a future defined by diversification, sustainability, and connectivity. By developing a diverse portfolio of innovative power solutions and embracing the advancements that are driving the industry forward, we're committed to helping our customers navigate this evolving landscape and creating a more sustainable, productive future for our industry.
3. In what area(s) do you see the most potential for acceleration or advancement in 2025?
I see significant potential for acceleration and advancement in optimizing the efficiency of diesel engines in 2025. This isn't just about reducing fuel consumption and emissions; it's about maximizing the value that diesel engines provide. By making these engines more efficient, we can lower operating costs for our customers and improve overall productivity. This means refining every aspect of the engine, from the combustion process itself to the integration of advanced technologies like turbocharging and fuel injection systems. We'll also see a greater emphasis on right-sizing engines to ensure that they're perfectly matched to the application, further enhancing efficiency and performance.
We're entering an era where different powertrain technologies will complement and enhance each other, and optimizing the efficiency of diesel engines is crucial to this integrated approach. This means pushing the boundaries of combustion technology, exploring new ways to minimize energy loss, and developing engines that seamlessly integrate with hybrid systems and other advanced power solutions. It's about recognizing sustainability isn't an "either/or" proposition; it's about finding the best possible combination of technologies to meet the diverse needs of our customers and the environment. By focusing on efficiency, we can make sure diesel engines continue to play a vital role in this evolving power landscape.
4. What will be the biggest challenge for OEMs and the industry in general in 2025?
In 2025, the biggest challenge for OEMs and the industry will be balancing the immediate needs of customers with the long-term vision of this diversifying power landscape. It's a complex juggling act. On one hand, we need to continue delivering the reliable, high-performing diesel solutions our customers depend on today. On the other hand, we must strategically invest in the technologies that will shape the future, whether that's electrification, hybrid solutions, renewable fuels, or advancements in existing internal combustion engines. We're committed to doing both.
We believe in a future where multiple powertrain technologies coexist, each playing a vital role in meeting the diverse needs of our customers. This means not only optimizing our existing diesel engines for maximum efficiency and sustainability but also strategically investing in the development and deployment of new technologies. This balancing act requires careful consideration and a deep understanding of our customers' needs. We're actively engaging with our customers, listening to their challenges, and working collaboratively to find solutions that deliver value today while paving the way for a more sustainable and productive tomorrow. It's about making smart investments in the technologies that make the most sense for our customers so they have the power solutions they need to thrive in an ever-evolving world.
5. What factors should engineers and their companies consider when making decisions in the mobile OEM space in 2025?
In 2025, making informed decisions in the mobile OEM space will require engineers and their companies to adopt a multifaceted perspective. Today’s industry is a complex ecosystem where technological advancements, customer needs, and sustainability goals intersect. It will be essential to carefully consider the specific requirements of the application. Factors like duty cycle, operating environment, and power demands will heavily influence the suitability of different powertrain technologies. For example, a compact excavator operating in a confined urban environment may be ideally suited for electrification, while a large tractor working long hours in the field might benefit from a hybrid solution that combines a diesel engine with electric power. When it comes to these emerging technologies, it's crucial to assess their maturity and the availability of supporting infrastructure.
While electrification holds immense potential, widespread adoption depends on the availability of robust charging infrastructure and a skilled workforce capable of maintaining and repairing electric vehicles. Similarly, the viability of renewable fuels hinges on their accessibility and the development of a reliable distribution network. We're actively investing in accelerating the maturity of these technologies and ensuring their seamless integration into the off-highway sector. Beyond these considerations, deeply understanding customer needs will be critical. This goes far beyond simply gathering feedback. It requires a proactive approach to anticipate future needs and understand the evolving landscape in which our customers operate.
6. Please highlight a recently introduced product from your company that meets a specific, pressing need in the mobile OEM space, and describe briefly how the product is uniquely designed to meet that need.
In the off-highway industry, maximizing uptime is everything. Any unplanned downtime translates to lost productivity and revenue for our customers. That's why we've been heavily investing in solutions that leverage the growing trend of connectivity and telematics to revolutionize off-highway equipment maintenance. Today's machines are more connected than ever, generating large amounts of data that can be harnessed to optimize performance, predict potential issues, and ultimately keep machines running smoothly.
One solution that embodies this is John Deere Connected Support, a remote monitoring and diagnostics services solution. John Deere Connected Support features a suite of tools that enable a proactive approach to anticipating and preventing machine downtime. This results in increased productivity for our customers and ensures that John Deere-powered OEM equipment is kept in peak operating condition. With a vast network of over a half million connected machines worldwide, we can harness aggregated engine data to provide predictive alerts. These alerts combine engine data, diagnostic analytics, and actionable solutions to address potential issues before they impact our customers' operations. By sharing this information with the customer's chosen John Deere service dealer, we empower them to take preventative action — minimizing downtime and maximizing productivity.
Through John Deere Connected Support, we’re also able to perform remote diagnostics, giving our service technicians direct access to a machine's data without needing to be on-site. This significantly speeds up troubleshooting because technicians can pinpoint the exact problem and determine the necessary repairs. In many cases, issues can be resolved through software updates or adjustments, eliminating the need for a physical service visit altogether.
It goes beyond just faster repairs, though. Using remote diagnostics can ensure that technicians arrive on-site fully prepared with the right parts and tools, which further streamlines the maintenance process. This data also provides valuable insights into the types of equipment operating in a specific territory, allowing dealers to optimize their parts inventory so they have the right components in stock to support their customers. Ultimately, it's about leveraging the power of connectivity to maximize uptime and keep our customers' machines running at peak performance.
7. What are some of your company's priorities in 2025 with regard to electrification, automation, innovation, emission reduction and/or other emerging trends?
As the off-highway industry transforms, John Deere remains focused on meeting the evolving needs of our customers. Our priorities in 2025 demonstrate our commitment to providing future-proof solutions that not only meet the demands of today but also anticipate the challenges and opportunities of tomorrow. We recognize that the future of power is not defined by a single solution, but rather by a diverse and adaptable portfolio.
That's why we're investing in a range of technologies, from optimizing the efficiency and performance of our internal combustion engines to exploring the potential of electrification and hybrid systems. Our newest engines — the JD4, JD9, JD14, and JD18 — are being designed to integrate with other emerging technologies like hybridization and renewable fuels. This is a priority for us because we know providing a well-rounded approach to power is the best way we can support our customers now and in the future. We're also dedicated to researching and developing solutions that leverage renewable fuels because we recognize the important role they will play in a sustainable future.
Beyond specific technologies, our focus remains on innovation and customer value. We're investing heavily in research and development, exploring new ideas, and actively engaging with our customers to understand their needs. It's about anticipating the challenges and opportunities that lie ahead and ensuring that John Deere continues to deliver innovative, customer-driven solutions that address the evolving needs of the off-highway industry.
