Connected Truck Market - Growth, Trends, Covid-19 Impact, and Forecasts (2023 - 2028)
The connected truck market was valued at USD 20.94 billion in the base year, and it is projected to reach USD 53.72 billion in the next five years, registering a CAGR of 17% in terms of revenue.
Manufacturing shutdowns, lockdowns, and trade restrictions during the COVID-19 pandemic negatively affected the connected truck industry. Furthermore, the fall in automotive production and lack of labor significantly impacted the market. As automotive manufacturers resumed operations due to steadily rising automobile sales in countries with a limited number of COVID-19 cases, the market is likely to recover in the next few years. Furthermore, the manufacturers are implementing contingency plans to mitigate future business uncertainties to retain continuity with clients in the critical sectors of the automobile industry.
Over the medium term, the rise of the e-commerce industry and the application of IoT in the trucking industry to monitor fleets remotely for the sake of performance, predictive maintenance, and fuel efficiency 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 wages of drivers, 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 artificial intelligence, autonomous technologies, 3D printing, and their impact and value proposition to the global logistics industry.
The increasing use of telematics in trucks is also one of the significant trends in the market. Within the next five years, more than 35 million trucks globally are expected to be connected.
Key players in the market are forming new partnerships and launching new products to cater to the increasing demand for connected trucks. For instance,
Key HighlightsNorth America is identified as the largest market for connected trucks in the world due to a variety of factors like well-developed internet connectivity, growing usage of IoT and telematics in commercial fleets, and the rising digitization of logistics companies.
Europe is the fastest growing market for connected trucks due to the increasing application of IoT and telematics to monitor the fleets by fleet owners remotely.
Connected Truck Market TrendsGrowing Demand and Use of Telematics in the Commercial Vehicle Market to Drive the Connected Truck 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.
The growing e-commerce sector, owing to the COVID-19 pandemic and the increase in online shopping, also significantly contributed to the growing demand for connected trucks. According to some estimates e-commerce industry in 2021 reached total sales of USD 5.2 trillion, posting a Y-o-Y increase of 22.66% over 2020. Many e-commerce companies have in-house logistics operations and are ordering large fleets of connected trucks. This enables them to monitor connected trucks remotely for the purposes of safety, fleet performance, fuel efficiency, the behavior of drivers, and predictive maintenance.
For instance,
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 connected trucks 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 next few years.
For instance,
Based on all the above factors, the growing usage of telematics and the large fleet orders from e-commerce companies are expected to drive the growth of the connected trucks market over the next five years.
North America and Europe are Playing Key Role in 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 next five years 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 telecom companies across North America are partnering with leading connected truck companies truck to expand their product portfolios. For instance,
The demand for connected trucks in Asia-Pacific is anticipated to grow rapidly over the next five years as OEMs and technology manufacturers are developing various connected vehicle solutions, owing to the increase in the use of telematics and fleet management solutions for connected commercial vehicles 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.
For instance,
Initiatives toward the predictive technology sector, such as implementing telematics and advanced driver assistance system in light and heavy commercial vehicles, are likely to contribute to the growth of the market over the next five years.
Connected Truck Market Competitive AnalysisThe connected truck market is majorly dominated by a few global players, which include Daimler Truck SE, Traton SE, Tata Motors Ltd, Volvo Trucks Corporation, and PACCAR. These players also engage in joint ventures, mergers and acquisitions, new product launches, and product development to expand their brand portfolios and cement their market positions.
For instance,
Learn how to effectively navigate the market research process to help guide your organization on the journey to success.
Download eBook