What is vertical integration?

Vertical integration describes how Caterpillar uses the size and strength of our enterprise to ensure optimal product performance and quality in every customer application. Caterpillar is fortunate to have complete component product lines which gives us complete design control over our own engines, transmissions, hydraulics, electronics and machines.  As a result, we can choose where to invest in differentiation and how best to integrate these components into systems to deliver greater value to our customers.

Designing with the end in mind.

• Next generation powertrains 
• Hybrid 
• Autonomy
• Alternative fuels 
• Engine emissions and efficiency 

Customer-focused Research Portfolio

Next generation powertrains

Powertrain research is focused on understanding customer applications and developing technologies to enable Caterpillar machines to perform better in a cost effective manner. 

Powertrains provide and transmit the power required to propel machines from place to place.  Primary power is normally provided by an internal combustion engine followed by a variety of "power transmitters" constituting the drivetrain. These may include planetary or countershaft mechanical transmissions, continuously variable transmissions, hydraulic pumps and motors, electric generators and motors, differentials, axles, and final drives.  How we configure these components is determined by how the machine will be used and what the customer requires for his or her business success.  These requirements inform powertrain research - how can we minimize the cost of performing the work by reducing efficiency losses while improving reliability, durability and performance?  

Hybrid 

Caterpillar is actively involved in the research and development of numerous technologies to convert fuel into energy more efficiently and with less impact on the environment. Our commitment is to match technologies to customer value. Our broad technology portfolio, coupled with our wide range of application experience, enables Caterpillar to select and develop the optimal technologies for each of our machines and applications.

The term “hybrid” can be used or defined in different ways. Caterpillar's definition of a hybrid machine is one that's equipped with devices used to collect, store, and release energy to perform work during machine operation. Caterpillar will include hybrid elements in machines where it is evident those elements are the most efficient and effective means of improving value to our customers. We are working on hybrid components today but are not announcing production timetables.

Caterpillar is exploring various components for integration into a hybrid system. We will select from this component portfolio to create systems that are tailored for specific machines.

Autonomy

What better way to improve safety or address a shortage of operators than to design an autonomous machine.  Caterpillar has been engaged in the research and development of autonomous technology for several years because of the unparalleled benefits it offers our customers both at the machine and the worksite level.

Autonomy involves more than machine design. The technology labeled "Automation" includes multiple building blocks including the study of perception, positioning, planning, machine control, monitoring and communication.  The challenge for research engineers has been to evolve each of these discrete technologies and to bring them together to create an autonomous vehicle. Caterpillar has partnered with the best minds in academics and industry to meet this challenge, with exciting results.  Caterpillar-sponsored teams won first and third place in the 2007 DARPA (Defense Advanced Research Projects Agency) Urban Challenge autonomous vehicle competition.  And, Caterpillar has an active new product introduction program to bring autonomy to mining customers. 

Alternative fuels 

Caterpillar is committed to supporting the growth of  alternative fuels, including natural gas, biofuels and energy-from-waste fuels, in support of our goal to reduce our customers’ CO₂ emissions by 20 percent by 2020. Caterpillar engines currently can burn diesel, natural gas and up to 20% biodiesel. The focus of our alternative fuels research is to understand fuel characteristics, how to tailor our reciprocating engines to burn different fuels, and how to ensure the resultant products meet our customers expectations and our commitment to sustainability. 

Caterpillar researchers partner with universities, consortiums such as the Energy Technologies Institute, and fuel companies to surface ideas and identify means of concurrently evolving alternative fuels and the machines that burn them.  

Engine Emissions and Efficiency 

The diesel powerplant is inherently efficient in turning chemical energy into flywheel work.  This is why Caterpillar believes it is part of a sustainable future.  Engine research at Caterpillar is focused on increasing the efficiency of the diesel engine even further to address robustness to fuel variations, low emissions, fuel efficiency, low product cost, suitability to world markets, durability and reliability. 

Caterpillar researchers continue to evolve the basic building blocks of ACERT technology: combustion processes, fuel systems, air systems, electronics and aftertreatment, while pursuing the increased value opportunities that come with integration of these elements into system solutions.  In addition, Caterpillar continues to design and develop advanced engines including higher cylinder pressures, increased engine rating capability, and lower cost.