The connected truck market is anticipated to register a CAGR of over 17.3% during the forecast period (2020 – 2025).
- Currently, connecting machine without a human interface is the latest technology trend. The demand for the Internet of Things (IoT) is majorly growing in the trucking industry.
- The rise in digitization and increase in value-added integration are likely to boost the growth of the connected trucks market. Through connected truck technology, fleet operators are anticipating to optimize factors, such as fuel, maintenance, and driver wages, which together contribute more than 60% of the total cost of ownership.
- By the end of the forecast period, more than 35 million trucks globally are expected to be connected. Nearly 40% of fleet managers 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 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.
Key Market Trends
Growing Demand and Use of Telematics in the Commercial Vehicle Market
Telematics 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 risk 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 breakdown, 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 amount of money in making the telematics technology more advance. For instance; Tech Mahindra’s telematics solutions are built with a compelling ecosystem of partners in the Machine –Machine (M2M) space, strong experience in industry verticals, deep technical skills, and reusable platforms for deployment in logistics, automobiles, asset tracking, and other industries.
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 Growth
Geographically, 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 the connected trucks. Connected trucks in the developed regions are anticipated to register a significant growth over the forecast period, due to higher adoption rate and improved infrastructure. Awareness on 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.
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 connected truck market is majorly dominated by 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.
Scania Connected Services announced that it already has 20,000 connected vehicles in Brazil, since the launch of its service in January 2017, including 18,800 trucks and 1,200 buses. The company is planning to reach 28,000 connected vehicles in the country by the end of 2019.
In January 2019, Volvo Trucks announced that Volvo Trucks’ electric, connected, and autonomous vehicle, Vera, may become a part of integrated solution to transport goods from a logistics center to a port terminal in Gothenburg, Sweden.
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