Connected Truck Market Size, Share & Industry Analysis, By Communication Type (Vehicle to Vehicle (V2V), Vehicle to Cloud (V2C), Vehicle to Infrastructure (V2I)), By Vehicle Type (Light Commercial Vehicle, Heavy Commercial Vehicle), and Regional Forecasts, 2021-2028

The global connected truck market size was valued at USD 17.90 billion in 2020 and is projected to grow from USD 20.45 billion in 2021 to USD 58.90 billion by 2028, exhibiting a CAGR of 16.3% during the forecast period of 2021-2028. The global impact of COVID-19 has been unprecedented and staggering, with connected trucks witnessing a negative impact on demand across all regions amid the pandemic. According to our findings, the global market will decline by -4.96% in 2020, compared to the average year-on-year growth from 2017 to 2019. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

A connected truck is equipped with various sensors and modern technologies, such as a fleet management system (FMS) and an advanced driver assist system (ADAS), which display vehicle improvements, driver-support systems, fuel management, and other information on the screen. Connectivity aids in the direction of their fleets and decreases vehicle downtime. One of the main causes of demand is the growing preference for effective transportation services worldwide. Connected truck technology and electrification are two of the most important trends transforming the trucking industry. Rising digitalization and integration of advanced technologies in the trucking industry are expected to fuel the demand for smart trucks during the forecast period.

Through internet connectivity, smart trucks interact and share data with other vehicles, increasing road safety and productivity. Moreover, these trucks can be easily tracked, with access to real-time insights into their operating condition, allowing the owner to efficiently manage logistics and transportation activities. Also, changing government road safety standards increases the demand for smart trucks in the logistics and transportation sectors. For instance, the European Union adopted new norms and regulations in March 2019 to implement Cooperative Intelligent Transport Systems (C-ITS) on European roads. C-ITS deployment will allow vehicles to communicate with other vehicles, road infrastructure, and other road users for safer road transport.

COVID-19 IMPACT

Decline in Automotive Production and Vehicle Sales to Hamper Growth

The pandemic of COVID-19 caused a global economic crash. Lockdowns imposed in many regions of the world to stop the virus from spreading caused supply chain delays and the temporary shutdown of many production sites.

The epidemic of COVID-19 has a significant impact on the demand for connected trucks. Due to worldwide shutdown prohibitions, new vehicle manufacture and sales, including these type of trucks, have been halted. Due to supply chain disruptions, the raw materials needed to manufacture various vehicle parts were unavailable, causing manufacturing delays. As a result, the manufacturing economy has experienced a rapid decline. However, the sector anticipates a revenue recovery following the COVID-19 epidemic, thanks to a growing global trend toward cleaner mobility.

Although the duration of the pandemic is difficult to predict, the launch of COVID-19 vaccines in early 2021 is projected to boost the automotive sector.

LATEST TRENDS

Growing Demand and Use of Telematics in Commercial Vehicle Market to Foster Market Development  

Telematics plays a vital role in developing unique solutions for efficient supply chain logistics and fleet management. Telematics offers transparency and real-time data to optimize procedures and processes, maintain product integrity, optimize shelf life, and reduce losses and insurance risks throughout the supply chain. Telematics is becoming a critical component in business logistics and supply chains as it addresses the vital challenges of security and regulatory compliance, driver monitoring, insurance, and infrastructure.

Live traffic updates, intelligent routing and tracking, fast roadside assistance in accidents or breakdowns, automated toll transactions, and insurance telematics are all examples of telematics solutions. As a result, they are crucial for improving fleet operating key performance metrics, including fuel cost reduction, resource optimization, and real-time connectivity. Companies are investing a considerable amount of money in enhancing telematics technology. For instance, Tech Mahindra has already developed a solution in the past few years with a compelling ecosystem of Machine-to-Machine (M2M) partners, significant experience in industry verticals, excellent technical capabilities, and reusable platforms used for deployment in logistics, automobiles, asset tracking, & other industries. Similarly, in June 2020, Ford Commercial Solutions introduced Ford Telematics, a web-based software platform and subscription service that provides fleet managers access to connected vehicles' data. Such players' active involvement with lead the market growth.

DRIVING FACTORS

Low Operational Cost and Rising Demand for Advanced Technologies to Set a Positive Trend for Market Growth

Fleets that use telematics have experienced an increase in productivity. Fleets without access to telematics data to enhance efficiency might spend up to 12% more on labor. Based on vehicle usage data, a smart telematics system provides a thorough productivity study of the whole fleet, allowing managers to determine whether the employees are spending their time effectively or not. Fuel expenses are a significant portion of the company budget. While the company may not control the fuel price, one may optimize the drivers' routes to decrease fuel use by adopting GPS monitoring or engine usage data. Furthermore, in June 2021, IVECO unveiled the IVECO S-Way, a 100% connected vehicle mainly built to increase efficiency and exceptional value to fleet owners.

The connected truck market is being driven by an increase in demand for technologically advanced systems in heavy trucks. Lane keeps assist system (LKAS), blind spot detection (BSD), lane departure warning LDW, and emergency brake assist (EBA) are among the elements of the smart truck that ensure the safety of drivers, pedestrians, and other vehicles. This is creating a demand for this type of trucks. The market is also driven by government regulations on worldwide safety concerns for heavy commercial vehicles. As a result, this market is expected to witness growth during the forecast period.

RESTRAINING FACTORS

Limited Network Infrastructure to Hamper the Market's Growth   

A lack of network infrastructure is a major stumbling block to the market's growth. While growing prices are the primary disadvantage of this industry, they negatively influence its growth. Moreover, other factors such as expensive installation costs and complicated setup have hampered the connected truck market growth. As a result, these problems are limiting the expansion of the market.

SEGMENTATION

By Communication Type Analysis

Vehicle to Vehicle (V2V) Segment to Dominate Market as Technology Helps Vehicles Creating On-The-Go Wireless Networks

Depending on communication type, the market is bifurcated into Vehicle to Vehicle (V2V), Vehicle to Cloud (V2C), and Vehicle to Infrastructure (V2I).

The V2V segment led the market, accounting for more than 40% of total sales in 2020. 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. According to Toyota research, V2V technology can minimize accidents by 70% to 80%. Furthermore, this technology significantly influences traffic congestion and carbon emissions.

The V2C segment is expected to occupy the second-largest position in the market over the projected period. The increasing need for advanced infotainment systems and the need for advanced driving assistance systems (ADAS), telematics, & in-car networking are expected to boost the use of V2C services. The V2C segment contributed to a 29.66% market share in 2020.

In 2020, demand for V2I was moderate; however, it is predicted to gain momentum and increase at the quickest CAGR throughout the projection period. V2I category will contribute to 27.65% of the market in 2020. The segment would show lucrative opportunities shortly due to government spending on the development of digital road infrastructure and stringent government rules related to road safety. Hence, it will help to boost the V2I segment

By Vehicle Type Analysis

Light Commercial Vehicle Segment Account for Highest Market Share Owing to High Production of LCV Trucks and Vehicles in Logistics and Transportation

The market is classified as vehicle type light commercial vehicle and heavy commercial vehicle by vehicle type.

The light commercial vehicle segment contributed to the largest connected truck market share in the global market. The light commercial vehicle segment accounted for 74.47% in 2021. Light commercial vehicles are growing at a considerable CAGR. The segment will dominate the market during the projected period due to increased demand for these vehicles in developing markets. End-user demand for safety and comfort features has grown parallel with the rise in light commercial vehicle production. According to the European Union Manufacturers Association, registrations of light commercial vehicles with connected technology increased by 8.2% in the region. Similarly, the manufacture of these vehicles is expanding throughout North America. Furthermore, developing nations such as China and India have had substantial economic growth, thereby increasing the demand for commercial vehicles with connected devices to improve fleet safety and lower operating costs.

The heavy commercial truck segment witnessed high growth and low penetration in 2020. The heavy commercial truck segment represented 25.53 % of the market in 2020. The heavy commercial truck segment will expand during the forecast period, owing to increasing government regulation on comfort and safety norms for heavy commercial trucks

REGIONAL INSIGHTS

North America's market was worth USD 7.90 billion in 2020 and is expected to grow at a CAGR of 14.8% to USD 23.31 billion by 2028. The region is poised to bring the leading position in the global smart truck market. This market owing to the higher adoption rate of smart trucks in developed countries of North America, such as the U.S., Canada, and others, coupled with advanced infrastructure, which is the prominent driving factor for the market growth in the region. In addition, technological advancement and growing road safety concerns among the population are anticipated to accelerate the market growth over the projected timeframe. Moreover, increasing demand for efficient logistics and transportation services due to the expanding commercial sector will create lucrative revenue growth opportunities.

The market in Europe is anticipated to increase significantly. The boost in connected truck sales and the early adoption of ADAS features are attributed to the high adoption of smart trucks in Europe. Moreover, stringent government norms related to road safety and comfort will propel the demand for smart trucks in this region. Europe accounted for 29.10% market share in 2020.

Asia Pacific is projected to grow at a CAGR of 18.9 % over the forecasted period. The transforming automotive industry in APAC and increasing awareness about the benefits of smart type of trucks, including real-time tracking, road safety, and others, will drive the market growth during the forecast period. Moreover, the well-established manufacturing industry in APAC is fueling the demand for logistics and transportation services, which is anticipated to drive market growth in years to come.

The rest of the world contributed for 6.37% share of the total market due to lesser automotive OEMs, less technology adoption, and fewer presences of all kinds of vehicles. However, it is predicted to increase at a CAGR of 13.2% in the future. Additionally, the Middle East & Africa will show lucrative opportunities to grow connected truck telematics.

KEY INDUSTRY PLAYERS

Partnership from Leading Players and Strong Portfolio Operating in the Market to Brightens Its Market Prospects

The market is concentrated due to its robust product lines, the significant distribution network of a big corporation in developed and emerging nations, and strategic partnerships from substantial players.

The major players in the market are focussing their efforts on R&D and product-level strategies. For example, in September 2021, Volvo Autonomous Solutions and Aurora revealed their jointly developed on-highway autonomous truck USA prototype truck, long-haul VNL model, integrated with Aurora Driver technology. Volvo is considered an important step to launch fully connected commercially and autonomous class 8 trucks in North America.

LIST OF KEY COMPANIES PROFILED:

• Robert Bosch GmbH (Germany)


• Continental AG (Germany)


• ZF Friedrichshafen AG (Germany)


• Daimler AG (Germany)


• Volvo AB (Sweden)


• Delphi Technologies (U.K.)


• Denso Corporation (Japan)


• HARMAN International (U.S.)


• Sierra Wireless, Inc. (Canada)


• Magna International Inc. (Canada)

KEY INDUSTRY DEVELOPMENTS:

• September 2021 – Volvo Autonomous Solutions and Aurora revealed their jointly developed on-highway autonomous truck USA prototype truck, long-haul VNL model, integrated with Aurora Driver technology. Volvo is considered an important step to launch fully connected commercially and autonomous class 8 trucks in North America.


• June 2021- ZF Friedrichshafen AG and Goodyear formed a strategic partnership to develop a one-stop fleet management solution. Z.F.'s advanced Transics-branded Fleet Management Solutions are combined with Goodyear's high-performance tire portfolio and mobility solutions. They empower European fleets and trailer manufacturers with the tools they need to comply with the forthcoming E.U. General Safety Regulations. Vehicle safety and uptime, cargo security, and operating efficiency are improved.


• July 2020- Eicher announced to offer 100% commercial vehicles throughout its broad product portfolio. Its connected truck service Eicher Live will power its connected commercial vehicles.


• June 2021 - IVECO unveiled the IVECO S-Way, a 100% connected vehicle that is mainly built to offer increased efficiency and exceptional value to fleet owners.

REPORT COVERAGE

The research report provides a detailed connected truck market analysis and focuses on crucial aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights vital industry developments. In addition to the factors above, the report encompasses several factors contributing to the market's growth over recent years.

Report Scope & Segmentation