Automated Truck Market

Market Outlook for Automated Truck

According to Fact.MR, automated trucks demand is slated to touch an impressive valuation of nearly US$ 1.5 Bn by 2031 up from US$ 210 Mn 2020. The market is expected to grow 7x during the forthcoming forecast period. Extensive reliance on automation to streamline transport and logistics and efforts to mitigate road accidents is increasing popularity of automated trucks. End users are inclining towards light detection and ranging (LiDAR) equipped trucks, attributed to their exhaustive coverage of corner cases during driving.

Key Points Covered in Automated Truck Industry Survey:

• Market Estimates and Forecasts (2016-2031)
• Key Drivers and Restraints Shaping Market Growth
• Segment-wise, Country-wise, and Region-wise Analysis
• Competition Mapping and Benchmarking
• Brand Share and Market Share Analysis
• Key Product Innovations and Regulatory Climate
• Assessment by Product Grade / Purity / Formulation Standards
• Assessment of Import Price, Bulk Price, Contractual Price, Producer / Distributor Price
• Certifications and Compliance Requirements
• COVID-19 Impact on the automated truck  Industry and How to Navigate
• Recommendation on Key Winning Strategies

Consumption Analysis of Automated Trucks from 2016-2020 Vs Market Outlook for 2021 to 2031

As per Fact.MR – a market research and competitive intelligence provider- from 2016 to 2020, the global market for automated trucks expanded at a high CAGR, reaching US$ 210 Mn by the end of the historical period. Surging emphasis on improving road safety by reducing the incidence of accidents due to human error is facilitating adoption of automated systems in trucks.

Deployment of key hardware components such as LiDAR, infrared radars, advanced movement sensors, cameras, and complicated algorithms that facilitate autonomous operations are acquiring center stage. During the COVID-19 pandemic, the market exhibited robust potential, as emphasis on social distancing spurred extensive research on doling out trucks which would require minimal human intervention in forthcoming years.

According to market projections put forward by Fact.MR, the automated trucks industry is expected to surge at an impressive 22% CAGR from 2021 to 2031, reaching US$ 1.5 Bn by the end of the aforementioned forecast period.

Why is a Dearth of Human Drivers Spurring Automated Trucks Adoption?

According to the American Trucking Association (ATA), the transportation industry needs to hire over 60,000 drivers nationwide to meet the growing demand. This shortage is forecasted to increase 160,000 by 2028, notwithstanding the impact of COVID-19. 

The situation is the same in most of the world’s rich and developed countries, with the trucking industries in northern Europe, Australia, New Zealand, the United Arab Emirates, Saudi Arabia, Oman, and Qatar all facing driver shortages. Looking at this scenario, the initiatives undertaken by original equipment manufacturers (OEM) and governments to develop automated trucks will bode well for the market.

Governments are looking to make these advancements available at an affordable price, which will pave way for continued expansion of the market through the assessment period. In February 2021, Scania announced that it is to run self-driving trucks transporting goods on the E4 motorway between Södertälje and Jönköping in Sweden, the first in Europe. The permission has been granted by the Swedish Transport Agency, in collaboration with TuSimple, a key partner in Scania’s and TRATON group’s investment in Level4 autonomous vehicles. 

How are Increasing Environmental Concerns Fueling Automated Truck Demand?

Reduced impact on the environment is another reason driving the demand for automated truck. According to the Geography of Transport Systems, the share of transportation in global CO2 emissions is increasing. 22% of these emissions are attributed to the transport sector, with 25% for advanced economies such as the United States.

With features like low RPM runs, speed governance, automated manual transmission, and much more, automated trucks can help in maintaining fuel economy, leading to a better driving experience and lesser emissions.

How is the Growing E-Commerce Industry Augmenting Growth?

As customer habits shift towards online purchasing, their expectations for rapid shipping and delivery around the world will also rise. Shipping companies are actively looking up to autonomous technology to meet and ship the rising demand for goods. 

In the conventional human driver system, there is a restriction on the number of working hours. An automated truck does not face this and thus increases the shipping volumes, as compared to those delivered by a truck driven manually by a driver. 

According to World Economic Forum, China’s e-commerce market is the largest in the world, with a volume of nearly US$ 1.94 trillion. E-commerce in the U.S is also at an all-time high with retail revenues forecasted to reach $565 billion by 2023. Consequently, automated trucks manufacturers will likely gain major momentum across these regions.

Why are Opportunities Aplenty across Asia?

Asia accounts for the lion’s share in the automated trucks industry. The region is projected to witness high demand for cab-integrated truck type during the forecast period. The market is driven by rising R&D activities by prominent automotive manufacturers. Consistently expanding infrastructure for the implementation of electric vehicles is forecast to aid in the growth of automated trucks in the region.

Moreover, the wide adoption of ADAS technology is promoting the growth of the automated truck market in the Asia Pacific. For instance, Plus announced the launch of China’s first intelligent truck, FAW J7+, powered by its self-driving technology.

Country-Wise Analysis

What is the Demand Outlook for Automated Trucks in the U.S?

The U.S is projected to be a highly lucrative market as the region maintains international dominance in defense systems. ATA analyzed that trucks move roughly 72.5% of the nation's freight by weight.

The U.S. government has been making high investments for enhancements in the development of automated truck technology which is further supporting the market growth in the country. A CAGR of 15% is projected for the U.S market.

Companies like Tesla, Uber, Cruise, and Waymo are making promising efforts to commercially deploy automated technology in trucks and leave a profound impact on the transportation of goods. Additionally, presence of several strong startups like Embark Trucks has pushed towards the adoption of automated trucks in the region. 

Why is U.K a Highly Promising Landscape?

In April 2021, the U.K government announced that "self-driving" vehicles could be allowed on U.K roads by the end of this year. The Department for Transport said automated lane-keeping systems (ALKS) would be the first type of self-driving to get legalized. The technology controls the position and speed of a car in a single lane and it will be limited to 37mph (60km/h). 

After the confirmation, the country has been running trials for the deployment. UK’s leading players, Oxbotica and TRL have piloted the use of the first Code of Practice for the safe and cost-effective deployment of autonomous vehicles in unstructured off-highway environments, with a live trial conducted in a quarry using a number of off-road vehicles. Based on these developments, the market in the U.K is expected to hold nearly 35% of the revenue.

Category-Wise Insights

Why are LiDAR Equipped Automated Trucks Sought After?

By sensor, the LiDAR segment is currently leading the market. The segment will lead due to multiple advantages such as lightweight, long-range detection, the capability to operate even in unfavorable environmental conditions such as fog, rain, and snow, and flexible mounting. A CAGR of 10% is projected for this segment.

In July 2020, Bosch introduced a new sensor that can measure the distance between target objects by illuminating them with laser light and measuring the reflected pulses. The LiDAR can detect a range of 250 meters and recognize up to 24 objects at the same time. 

Why is Logistics Expected to be the Primary End User of Automated Trucks?

The logistics segment is forecast to hold dominance in the global market during the forecast period. Growth is driven by the efforts of mining companies to expand their output capacities to accommodate surging demand for minerals from the manufacturing sector. 

The rise in e-commerce activities and the resulting demand for logistics however might affect growth witnessed in the mining segment. According to Fact.MR, around 33% of the revenue will be generated by the logistics industry.

Competitive Landscape

The penetration of digital technology has marked the entry of many startups and newcomers to the market. These players focus on adopting various strategies to expand product offerings and strengthen geographic presence. With the advancement in technology, new players are expected to enter the market.

• In May 2021, TuSimple – a provider of autonomous freight semi-truck solutions – announced that their technology will be operational by 2024. For the same, over 5,700 vehicles have been reserved by sophisticated shippers or carriers in just the first four months, which makes TuSimple’s timeline look more realistic.  
• In May 2021, it announced the completion of a Silk Road expedition by the autonomous truck powered by the company’s supervised autonomous driving system, PlusDrive. The 4,000-mile long-haul round trip journey was between Suzhou, the silk capital of the world, and Dunhuang, a major historical city on the ancient Silk Road at the edge of the Gobi Desert. 

Report Scope

Attribute	Details
Market size value in 2020	USD 210 Million
Market forecast value in 2031	USD 1.5 Billion
Growth Rate	CAGR of 22% from 2021 to 2031
Forecast Period	2021-2031
Historical Data Available for	2016-2020
Market Analysis	US$ Mn for Value & ‘000 Units for Volume
Key Regions Covered	North America Latin America Europe East Asia South Asia Oceania Middle East & Africa
Key Countries Covered	U.S Canada Brazil Mexico Argentina Chile Peru Germany U.K France Italy Spain BENELUX China Japan South Korea India ASEAN Australia New Zealand GCC South Africa Turkey Iran Israel
Key Market Segments Covered	Truck Type End Use Industry Class Sensor Autonomy Level Region
Key Companies Profiled	Uber Technologies Inc. Daimler AG Ford Motor Co. AB Volvo BMW AG Tesla Inc. Google Inc. IVICO DAF Scania Slazenger
Pricing	Available upon Request

Key Segments Covered

• Truck Type

  • Cab-Integrated Automotive Truck
  • Cabless Automotive Truck

• End Use Industry

  • Automotive Trucks for Mining
  • Automotive Trucks for Logistics

• Class

  • Class 8 & Class 9 Automotive Trucks
  • Ultra-Class Automotive Trucks

• Sensor

  • LiDAR Automotive Trucks
  • RADAR Automotive Trucks
  • Camera-based Automotive Trucks
  • Other Sensor-based Automotive Trucks

• Autonomy Level

  • Level 3 Automotive Truck
  • Level 4 Automotive Truck
  • Level 5 Automotive Truck