Truck-as-a-Service (TaaS) Market Size - By Service (Telematics, Digital Freight Brokerage, Digital Retailing, Truck Platooning, Blockchain Technologies, Business Analytics), End-user Industry & Global Forecast, 2023 – 2032

Truck-as-a-Service (TaaS) Industry Analysis

Truck-as-a-Service Market size was valued at USD 23.3 billion in 2022 and is estimated to register a CAGR of 24.8% between 2023 and 2032, driven by increasing usage trucking services by small business to transport goods. Instead of investing in the purchasing & maintenance of a fleet of trucks, they can collaborate with a truck-as-a-service provider to access trucks when needed, thereby reducing upfront capital expenses and lowering the ongoing maintenance costs. Truck-as-a-service helps to reduce the operational & maintenance costs of owning and running trucks as well as optimize the utilization & efficiency of vehicles.
 

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For instance, Flexport, a modern international freight forwarder, provides a platform that offers flexibility in shipping options, allowing businesses to choose from a range of trucking services based on their specific needs. This helps companies optimize costs by selecting the most cost-effective transportation options.

Digitization in the transportation and e-commerce sectors is also estimated to augment the truck-as-a-service market demand. The rising consumer preference for online shopping, rapid urbanization, and the changing supply chain dynamics are projected to fuel the market growth. For instance, e-commerce giants such as Amazon have transformed the retail landscape and placed a premium on fast, reliable, and cost-effective last-mile delivery. To meet this demand, Amazon has heavily invested in its delivery network and partnered with truck-as-a-service providers for additional capacity during peak seasons. In August 2023, Amazon partnered with Eicher Motors and Buses to deploy electric trucks for the delivery of various goods across India.
 

The truck-as-a-service market has significant growth potential; however, it also faces several challenges & constraints that can impact its development & adoption. One of the major challenges in the trucking industry is the regulatory hurdles. The industry is subject to strict regulatory requirements including driver licensing, vehicle inspections, and safety regulations. Truck-as-a-service providers must ensure that their vehicles & drivers adhere to these regulations, which vary by region and lead to complexities in managing operations. Another significant factor restraining market growth is the shortage of qualified & experienced truck drivers. Truck-as-a-service providers struggle to find & retain skilled drivers, thereby impacting service quality and leading to increased labor costs.
 

COVID-19 Impact

The COVID-19 pandemic had a negative impact on the truck-as-a-service market. The major challenges faced by this market during the pandemic were disruptions in supply chains, the reduced demand for freight transportation, driver shortages & labor issues, economic uncertainties, and regulatory uncertainties. However, the digital transformation of the trucking industry, the integration of IoT-based devices, and the rising adoption of alternative fuel vehicles including fuel cell electric vehicle and battery electric vehicle are some of the factors that can boost market size.
 

Truck-as-a-Service (TaaS) Market Trends

Fleet modernization is a significant opportunity that can propel the truck-as-a-service industry growth. Many traditional trucking fleets consist of older vehicles that do not meet the emissions regulations, lack advanced technologies, and account for higher maintenance costs. However, truck-as-a-service providers can leverage this opportunity by providing access to modern, fuel-efficient, and technologically advanced trucks as per a flexible & subscription-based model. This enables businesses to upgrade their fleets without the need for heavy upfront investments, thereby allowing them to reduce operating costs and stay competitive in an evolving industry landscape.
 

Truck-as-a-Service (TaaS) Service Segmentation

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The telematics segment held over 61% of the truck-as-a-service market share in 2022, due to its transformative impact on trucking operations, fleet management, and customer satisfaction. Telematics technology provides real-time data & insights that enable truck-as-a-service providers to optimize their services, enhance operational efficiency, ensure regulatory compliance, and improve the overall customer experience.
 

Truck-as-a-Service (TaaS) End-user Industry Segmentation

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The FMCG segment accounted for 25% of the truck-as-a-service market share in 2022. FMCG industries require timely & reliable transportation services to deliver perishable goods, such as groceries and food products, to retailers and consumers. Ensuring product freshness and minimizing delivery times are critical, making FMCG a key player in the market. Many FMCG products have short shelf lives or near expiration dates. The delivery of these goods to retailers, restaurants, and consumers within a specific timeframe is critical.
 

Truck-as-a-service providers enable efficient route planning and timely deliveries, thereby reducing the risk of product spoilage & wastage. The consumer expectation of fast & convenient deliveries has also significantly increased. FMCG companies must meet these expectations to remain competitive. Truck-as-a-service providers enable businesses to offer efficient delivery options, thereby enhancing customer satisfaction.
 

Truck-as-a-Service (TaaS) Regional Analysis

The North America TaaS market recorded around 34% of the revenue share in 2022, attributed to its vast geographical expanse, well-developed transportation infrastructure, a strong logistics industry, and the presence of leading technology & e-commerce companies. North America spans a vast geographic area, encompassing multiple countries with diverse industries and supply chains. The high volume of cross-border trade between the U.S. and Canada creates a significant demand for efficient & flexible transportation solutions.
 

The exponential growth in e-commerce has led to the increased demand for last-mile delivery services. North America has a well-developed transportation infrastructure, which includes an extensive road network, ports, railroads, and air cargo facilities. Such infrastructure solutions enable the efficient movement of goods across the continent, which is directly slated to propel the market growth.
 

Truck-as-a-Service (TaaS) Industry Leaders

Major companies operating in the truck-as-a-service market are Robert Bosch GmbH, Volta Trucks, Continental AG, Daimler AG, Fleet Advantage, Hino Motors, Inseego Corporation, MAN Trucks, Navistar International, PACCAR Inc., Scania AB, Tata Motors, Traton SE, Trimble Inc., and Truckky. These companies are majorly focusing on launching new truck-as-a-service solutions for different end-user industries.
 

Truck-as-a-Service (TaaS) Industry News

• In March 2023, CloudTruck partnered with Roady’s, Avibra, Expedia, and Hotels.com to deliver cost-saving solutions such as more fuel savings, insurance, wellbeing & financial coverage at no-cost, as well as discounts for overnight accommodations.
   

This truck-as-a-service (TaaS) market research report includes in-depth coverage of the industry with estimates & forecast in terms of revenue (USD Million) from 2018 to 2032, for the following segments:

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Market, By Service

• Telematics
• Digital freight brokerage
• Digital retailing
• Truck platooning
• Blockchain technologies
• Business analytics

Market, By End-user Industry

• Automotive & transportation
• Manufacturing
• Retail
• FMCG
• Chemicals
• Pharmaceuticals & healthcare
• Hi-tech industry products
• Food & beverage
• Others

The above information has been provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ 
• Latin America
  • Brazil
  • Mexico
• MEA
  • South Africa
  • UAE
  • Saudi Arabia