Connected Truck Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)
The connected truck market was valued at USD 20.94 Billion in 2021 and is projected to grow to USD 53.72 Billion by 2027, registering a CAGR of 17% in terms of revenue during the forecast period.
The COVID-19 pandemic had a massive impact on the market studied as lockdowns and trade restrictions have led to supply chain disruptions and a halt of vehicle production across the world. However, as restrictions eased, players started focusing on mitigating such risks and developments to create momentum in the market during the forecast period.
Over the medium term, The rise in digitization and increase in value-added integration is likely to boost the growth of the connected trucks market. Through connected truck technology, fleet operators are anticipating optimizing factors, such as fuel, maintenance, and driver wages, which together contribute more than 60% of the total cost of ownership.
Growing technological improvements are pushing fleet managers to believe that connected trucks are necessary, as different countries are making smart roads and smart cities. Some of the latest trends in the market are the Internet of Things in trucks, artificial intelligence, autonomous technologies, 3D printing, and its impact and value proposition to the global logistics industry.
The increasing use of telematics in the truck is also one of the significant trends in the market. By the end of the forecast period, more than 35 million trucks globally are expected to be connected.
Key Market TrendsGrowing Demand and Use of Telematics in the Commercial Vehicle MarketTelematics plays a significant role in developing unique solutions for efficient supply chain logistics and fleet management. Telematics provides real-time visibility and data to optimize procedures and processes, maintain product integrity, optimize shelf-life, and reduce losses and insurance risks across the supply chain.
Telematics is becoming a critical component in commercial logistics and supply chains because it addresses key challenges related to safety and regulatory compliance, driver monitoring, insurance, and infrastructure.
Telematics solutions integrate capabilities, like live traffic updates, smart routing and tracking, rapid roadside assistance in case of accidents or breakdowns, automatic toll transactions, and insurance telematics. Therefore, they are critical to optimizing the operational metrics of fleets, such as fuel cost reduction, resource optimization, and real-time connectivity.
Companies are spending huge amounts of money on making telematics technology more advanced and integrating telematics devices in commercial vehicles. For instance,
The automotive industry is projected to see an increase in the adoption of the connected truck, due to technological advancements in the automotive industry. Connected trucks are expected to play a significant role in the development of autonomous trucks, thereby providing opportunities for automotive manufacturers, even though the limited network infrastructure is expected to be a significant factor that is likely to hinder the connected truck market over the forecast period.
Developed Regions are Driving the Connected Truck Market GrowthGeographically, Europe and North America hold the major shares of the connected truck market, owing to the expansion of the automotive sector in these regions, leading to an increase in the number of connected trucks.
Connected trucks in the developed regions are anticipated to register significant growth over the forecast period, due to higher adoption rates and improved infrastructure. Awareness of safety while driving and government safety regulations are empowering the automotive industry, thereby driving the connected truck market in these regions during the forecast period. Major presence of vehicle parts manufacturers across Europe who is expanding their product portfolio by partnering with the vehicle manufacturer. For instance,
The demand for connected trucks in Asia-Pacific is anticipated to grow rapidly over the forecast, as the OEMs and technology manufacturers are developing various connected vehicle solutions, owing to which the use of telematics and fleet management solutions for connected commercial vehicles has increased in the region.
The Chinese government is focusing on several advanced vehicles technology, like ADAS features, along with electric mobility. With that, major automakers in the country are updating their portfolio with the introduction of the new level 2 and level 3 ADAS features.
Initiatives toward the predictive technology sector, such as implementing telematics and advanced driver assistance system in light and heavy commercial vehicleas likely to witness major growth for the market during the forecast period.
Competitive LandscapeThe connected truck market is majorly dominated by a few players, which include Robert Bosch GmbH, Continental AG, ZF Friedrichshafen, Daimler AG, Volvo, Delphi Technologies, and Denso Corporation. The companies are majorly focusing on inventing, developing, and marketing indispensable technological solutions, which are shaped by four major ideas: safety, environment, information, and affordability.
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook