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Connected Trucks Market size is expected to churn out gains through 2027, driven by the rising trend of digitization and implementation and use of IoT in the automotive industry. Moreover, a significant surge in value-added integration of cutting-edge technologies in vehicles would further boost the industry progression. According to a 2020 survey by Capgemini, it was revealed that the majority of fleet managers, trucks drivers, and dispatchers in the United States and China have deployed connected services in their trucks, currently at 58% and 57% respectively. Meanwhile, 44% of the trucks in Germany currently include connectivity packages.
Ongoing research and development activities in the field of autonomous and zero-emission vehicle and investments by various organizations are expected to drive the growth of connected trucks market in the near future. Citing an instance, the U.S DOE recently announced funding $60 million for 24 research and development projects for reducing CO2 emissions from light- and heavy-duty trucks.
Based on the vehicle type, the light commercial trucks segment is projected to expand at a significant CAGR, owing to the surging demand for these trucks in various emerging economies. With a prolific surge in light commercial vehicle production, the demand for comfort and safety features has subsequently increased among the end-users. According to reports, the light commercial vehicle registrations across the region rose to 45.9% during January-April 2021. Likewise, the production of these trucks increased considerably in North America and Asia Pacific, in turn augmenting the business space for connected trucks market. Besides, a considerable rise in digital services in fleets and expanding vehicle to cloud communication has increased the demand for connected devices.
In terms of the communication type, vehicle to vehicle communication segment would record substantial gains through the coming years as the technology helps automobiles for spontaneous wireless networks on the go. Each vehicle sends reports of road conditions and traffic, speed and vehicle position, loss of stability, and route direction through V2V communication. The technology has a major influence on carbon emissions and congestion. These factors are expected to fuel the market progression over the analysis time period.
Considering the range type, the connected truck market is characterized by long range connected trucks. The growth across the segment is expected to come from the product’s ability to offer better safety of both the driver and the vehicle.
Geographically, North America connected trucks market would account for a notable share in the coming years. This can be ascribed to the higher adoption rate, expansion of automotive sector, and improved infrastructure across the region. Besides, awareness of safety while driving and implementation of safety regulations by the various central governments is empowering the automotive industry, thus propelling the product demand through 2027.
The global connected trucks industry is highly concentrated which boasts of the presence of leading companies in the space including Daimler AG, Continental AG, General Motors Group, Aptiv PLC, Ford Motor Company, Denso Corporation, and Volvo Group, amongst others.
These market vendors have been working effortlessly to implement industry strategies like acquisition, collaboration, product launches, and more, to gain a competitive edge in the industry.
For instance, Daimler Trucks North America (DTNA), in May 2020, inked a strategic partnership with Platform Science for on-vehicle mobile applications providing advanced fleet management software solutions.
In another instance, in July 2020, Volvo Eicher Commercial Vehicles Ltd (VECV) launched connected vehicle solutions for its BS 6 trucks and buses.
Coronavirus pandemic had a negative impact on the global connected trucks industry during 2020. This can be reasoned to a decline in the sales of automobiles worldwide. Moreover, a downfall in the production of vehicles, movement restrictions, and disruption in supply chains and raw material supply would further disturb the growth of connected trucks market.
By Component Type, 2014-2025 (USD Million)
By Vehicle Type, 2014-2025 (USD Million)
By Communication Type, 2014-2025 (USD Million)
By Services Type, 2014-2025 (USD Million)
By Range Type, 2014-2025 (USD Million)
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