Global Connected Truck Market 2024-2031

Global Connected Truck Market 2024-2031

Global Connected Truck Market Size, Share & Trends Analysis Report by Communication Type (Vehicle to Vehicle (V2V), Vehicle to Cloud (V2C), and Vehicle to Infrastructure (V2I)), and by Vehicle Type (Light Commercial Vehicle (LCVs) and Heavy Commercial Vehicle (HCVs)) Forecast Period (2024-2031)

Global connected truck market is anticipated to grow at a CAGR of 16.5% during the forecast period (2024-2031). Connected trucks are revolutionizing the transportation industry by integrating various technologies such as telematics, global positioning system (GPS), cellular connectivity, and sensors. These capabilities offer numerous benefits, from enhanced fleet management and improved safety to real-time communication and compliance with regulations.

Source: OMR Analysis

Market Dynamics

The Growth And Expansion Of E-Commerce

E-commerce is the biggest user of these connected trucks as it has increased customer expectations for fast and even same-day delivery. Transportation networks must constantly adapt to shorter transit times and innovative delivery methods. And is expected to continue its expansion, driven by technological advancements, mobile-first experiences, and personalized offerings. E-commerce is on the rise owing to several factors which include-

Warehouses are diversifying in size and location, with micro-fulfillment centers closer to customers for faster delivery.

Businesses are increasingly outsourcing logistics to specialized providers for expertise and scalability.

Supply chains are adopting eco-friendly practices like electric vehicles to reduce their environmental impact.

Technological Advancement and Operational Benefits

Improved affordability and reliability of connectivity solutions like 5G networks and low-power wide-area networks (LPWAN) are making connected trucks more accessible to a wider range of companies. Additionally, Developments in sensors and artificial intelligence (AI) enable advanced features like predictive maintenance, automated route optimization, and autonomous driving, further enhancing efficiency and safety. For instance, in May 2023, Daimler Truck Holding AG, Mitsubishi Fuso Truck and Bus Corp, Hino Motors Ltd., and Toyota Motor Corp, concluded a Memorandum of Understanding (MoU) on accelerating the development of advanced technologies and merging MFTBC and Hino.

Market Segmentation

Our in-depth analysis of the global connected truck market includes the following segments by communication type and vehicle type:

Based on communication type, the market is sub-segmented into V2V, V2C, and V2I.

Based on the vehicle type, the market is divided into LCVs and HCVs.

Vehicle to Vehicle is Projected to Emerge as the Largest Segment

Among the end-users, the V2V sub-segment is expected to grow significantly in the forecasting period. This technology enables vehicles to create ad-hoc wireless networks on the go and transfer data through an ad-hoc mesh network. Through V2V communication, each vehicle transmits traffic and road conditions, vehicle position and speed, route direction, and loss of stability and brakes. Several companies, including Tesla, Toyota, and others, have made significant investments in vehicle-to-vehicle communication research & development. For instance, in June 2023, General Motors plans to invest more than $1 billion in two Flint, Michigan, manufacturing plants for the production of the next-generation internal combustion engine heavy-duty trucks.

Regional Outlook

The global connected truck market is further segmented based on geography including North America (the US, and Canada), Europe (UK, Italy, Spain, Germany, France, and the Rest of Europe), Asia-Pacific (India, China, Japan, South Korea, and Rest of Asia), and the Rest of the World (the Middle East & Africa, and Latin America).

North America Holds Major Market Share

The higher adoption rate of smart trucks in developed countries of North America, such as the US, Canada, and others coupled with advanced infrastructure.

Increasing demand for efficient logistics and transportation services due to the expanding commercial sector.

Europe is the Fastest Growing Connected truck Market

The European region is the fastest-growing connected truck market and is expected to grow further a growing awareness and regulations of road safety and the early adoption of ADAS features are attributed to the high adoption of smart trucks in Europe. Additionally, strict government norms related to road safety and comfort will propel the demand for smart trucks in this region. Hence, many organizations are investing in the market. For instance, in October 2022, Amazon Inc. announced that it will invest more than $974.8 million over the next five years in electric vans, trucks, and low-emission package hubs across Europe, accelerating its drive to achieve net-zero carbon. The retailer said the investment was also aimed at spurring innovation across the transportation industry and encouraging more public charging infrastructure for electric vehicles (EVs). The US online retailer said the investment would help its electric van fleet in Europe more than triple from 3,000 vehicles to more than 10,000 by 2025.

Market Players Outlook

The major companies serving the global connected truck market include Robert Bosch GmbH, Continental AG, Denso Corp., Aptiv Global Operations Ltd, ZF Friedrichshafen AG, NXP Semiconductors NV, Magna International Inc., and Sierra Wireless among others. The market players are increasingly focusing on business expansion and product development by applying strategies such as collaborations, mergers, and acquisitions to stay competitive in the market. For instance,

In November 2023, Einride launched full-time operations with its autonomous vehicle, in partnership with GE Appliances, in the integration of autonomous transportation supporting full-time commercial flows. The daily transport of finished goods takes place between GE Appliances’ manufacturing facility and warehouse in Selmer, Tennessee, Monday through Thursday, enabling up to seven shuttles a day, producing zero tailpipe emissions through the autonomous operation and showcasing how Einride’s freight capacity as a service (FaaS) model can be enabled with autonomous vehicles. This long-term deployment follows previous pilots done in collaboration with GE Appliances, first in a gated environment at the company’s Appliance Park headquarters in 2021, followed by the first public road pilot in the US for a purpose-built autonomous, electric truck without a driver on board in Selmer in 2022.

In April 2023, Aurora Innovation, the self-driving technology startup and one of the original engineers of the Google Self-Driving Car Project that became Waymo, plans to launch a service that offers access to fully automated semi-trailer trucks in 2024.

The Report Covers

Market value data analysis of 2023 and forecast to 2031.

Annualized market revenues ($ million) for each market segment.

Country-wise analysis of major geographical regions.

Key companies operating in the global connected truck market. Based on the availability of data, information related to new product launches, and relevant news is also available in the report.

Analysis of business strategies by identifying the key market segments positioned for strong growth in the future.

Analysis of market-entry and market expansion strategies.

Competitive strategies by identifying ‘who-stands-where’ in the market.