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Autonomous Truck Market worth over $2.5 Bn by 2028
- Published Date: April 5, 2022
Autonomous Truck Market size is estimated to cross USD 2.5 billion by 2028, according to a new research report by Global Market Insights Inc.
The growing trend of vehicle safety and stringent government regulations to reduce road accidents are supporting the autonomous truck industry growth. The rising adoption of automation technologies coupled with investments in research initiatives is poised to boost the demand for autonomous trucks. Growing emphasis on safe & secure driving features with enhanced traffic control is fostering market statistics.
One of the major factors limiting the market demand is the high initial cost of an autonomous truck. Self-driving trucks are incorporated with sophisticated hardware & software, such as LIDAR, ADAS, sensors, cameras, processing unit, and V2X equipment, which contribute to higher vehicle costs. Furthermore, the limited availability of skilled operators for aftersales services, such as parts replacements and other digital settings, is challenging market growth.
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The COVID-19 pandemic adversely impacted the autonomous vehicle market owing to stringent lockdown measures and travel restrictions. The temporary shutdown of automotive manufacturing units supported the autonomous truck market revenue. Perpetuated lockdowns delayed technological innovations in autonomous truck developments, which led to a decline in deliveries. However, the industry statistics improved in 2021 with increasing private and public sector investments in autonomous driving. The demand for autonomous trucks also improved with emergence of new self-driving technology startups.
Rising demand for Level 1 autonomy in developing countries
The level-1 autonomous truck segment in Asia Pacific held a market share of approximately 60% in 2021. Level 1 autonomy is popular in countries including Australia, Vietnam, and Thailand. High automation levels can pose severe threats to their economic growth and increase unemployment levels.
Browse key industry insights spread across 170 pages with 149 market data tables and 21 figures & charts from the report, “Autonomous Truck Market Size By Level of Autonomy (Level 1, Level 2, Level 3, Level 4), By Fuel (Diesel, Alternative Fuels), By Application (Last Mile Delivery, Freight Transport), COVID-19 Impact Analysis, Regional Outlook, Growth Potential, Competitive Market Share & Forecast, 2022 - 2028,” in detail along with the table of contents:
High demand for electric propulsion in autonomous trucks
The North America alternative fuels segment is anticipated to register about 24% CAGR through 2028. The positive industry growth can be attributed to enhanced efficiency, lower maintenance costs, and significantly reduced emission levels. Companies are developing electric autonomous trucks equipped with high-tech safety features to capture higher market shares.
Increasing popularity of autonomous vehicles in Asia Pacific
The Asia Pacific autonomous truck market is expected to account for more than USD 1 billion by 2028. Increasing initiatives by OEMs, research institutions, and governments to develop autonomous vehicles are creating a positive market outlook in the region.
The governments of various countries, such as South Korea, Japan, and China, are providing financial assistance to autonomous vehicle technology providers to improve the efficiency of driverless vehicles. For instance, in January 2021, the Government of South Korea invested around USD 1 billion to fuel the development of level 4 self-driving technology in the country.
Shifting consumer focus toward driverless vehicles is encouraging manufacturers to unveil their self-driving truck models and subsequently achieve higher profitability in this potential market. Companies, such as Evocargo and Kodiak Robotics, Inc., are developing new self-driving truck models to attract potential business clients.
The key players operating in the autonomous truck market include Iveco, S.p.A, TuSimple, Inc., AB Volvo, Navistar International, Inc., PlusAI, Inc., Daimler AG, Kodiak Robotics, Inc., Scania AB, Dongfeng Motors, Inceptio Technology, Inc., Paccar, Inc., Hino Trucks, Embark Trucks, Inc., Sino Truck, and MAN Trucks. Industry players are highly emphasizing on collaborations with other OEMs to improve their service offerings.