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I AgreeAnalysis of Automated Truck market covering 30 + countries including analysis of US, Canada, UK, Germany, France, Nordics, GCC countries, Japan, Korea and many more
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.
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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.
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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.
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.
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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.
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.
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.
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.
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.
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.
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.
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 |
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Key Countries Covered |
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Key Market Segments Covered |
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Key Companies Profiled |
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Pricing |
Available upon Request |
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According to Fact.MR, the automated truck market was valued at US$ 210 Mn in 2020
As of 2031, the global automated truck industry is expected to reach US$ 1.5 Bn
According to Fact.MR, the global automated truck industry is expected to register a 22% CAGR
Fact.MR anticipates that the global boost in E-commerce will add to the demand
Increased efforts to mitigate road accidents due to human error is spurring demand for automated trucks
Automated trucks will be most prominent across logistics, generating 33% of total revenue
The U.S market appears highly lucrative, expected to surge at a whopping 15% CAGR
The UK is anticipated to witness significant growth, capturing around 35% of the market revenue
Asia is projected to be highly lucrative during the forecast period.
Uber Technologies Inc., Daimler AG and Ford Motor Co. are some prominent automotive truck manufacturers