Truck-as-a-Service Market by Service and Geography - Forecast and Analysis 2021-2025

The truck-as-a-service market share is expected to increase by USD 24.92 billion from 2020 to 2025, and the market’s growth momentum will accelerate at a CAGR of 22.19%.

This truck-as-a-service market research report provides valuable insights on the post COVID-19 impact on the market, which will help companies evaluate their business approaches. Furthermore, this report extensively covers truck-as-a-service market segmentation by service (digital freight brokerage, telematics, data analytics, and truck platooning) and geography (North America, Europe, APAC, MEA, and South America). The truck-as-a-service market report also offers information on several market vendors, including AB Volvo, Daimler AG, Fleet Advantage LLC, Fleet Complete, Ford Motor Co., Hino Motors Ltd., Microlise Group Plc, Tata Motors Ltd., Trimble Inc., and Volkswagen AG among others.

What will the Truck-as-a-Service Market Size be During the Forecast Period?

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Truck-as-a-Service Market: Key Drivers and Challenges

Based on our research output, there has been a negative impact on the market growth during and post COVID-19 era. The digital transformation in the trucking industry is notably driving the truck-as-a-service market growth, although factors such as the shortage of truck drivers may impede the market growth. Our research analysts have studied the historical data and deduced the key market drivers and the COVID-19 pandemic impact on the truck-as-a-service industry. The holistic analysis of the drivers will help in deducing end goals and refining marketing strategies to gain a competitive edge.

Key Truck-as-a-Service Market Driver

One of the key factors driving growth in the truck-as-a-service market is the digital transformation in the trucking industry. The trucking industry is undergoing a continuous digital transformation globally as OEMs and technology suppliers are recalibrating their business strategies. The intense competition is forcing fleet operators to increase their efficiency and reduce costs. This has resulted in a shift from truck-as-a-product to truck-as-a-service business models, thereby leading to the implementation of connected truck-enabled services and platform-based production. Many of the OEMs of trucks such as Daimler, Volvo, Ford Motor, and Ashok Leyland are focusing on implementing technologies such as telematics and autonomous trucking. The telematics services in trucks provide real-time information about the condition of the vehicle, traffic, loading capacity, and condition of cargo in the trucks. Autonomous trucking is an emerging concept, which includes the use of self-driving vehicles for commercial uses. Truck platooning is also an emerging concept. It refers to the linking of two or more trucks through automatic braking and a dedicated radio frequency that allows the vehicles to communicate with each other. Platooning helps save fuel due to reduced aerodynamic drag as the vehicles travel in close proximity. Such implementation of various technologies in trucking services is likely to fuel the market growth during the forecast period.

Key Truck-as-a-Service Market Challenge

The shortage of truck drivers will be a major challenge for the truck-as-a-service market during the forecast period. Most of the drivers in the trucking industry are retiring, and most people are unwilling to take up this profession. There is a shortage of drivers, mainly due to the low remunerations for the drivers in most urban and semi-urban markets in various countries. The truck drivers are expected to work as many as 70 hours a week and stay away from home for weeks. The health-related fatalities for truck drivers are increasing, ranging from minor to major afflictions. Also, with the increasing pressure to deliver the freight to its destination as quickly as possible, drivers often skip sleep breaks, thereby leading to sleep deprivation. As the number of drivers decreases, there will be a reduction in the use of trucks for applications such as goods delivery. Hence, fleet operators cannot complete their delivery orders. The shortage of drivers leads to a delay in orders and makes goods more expensive as the freight rates increase. Thus, the end-users, such as fleet operators, will eventually reduce the use of truck services from OEMs as their profitability decreases. As the truck-as-service works on a pay-per-use model, the reduction in the use of truck services will negatively affect market growth.

This truck-as-a-service market analysis report also provides detailed information on other upcoming trends and challenges that will have a far-reaching effect on the market growth. The actionable insights on the trends and challenges will help companies evaluate and develop growth strategies for 2021-2025.

Who are the Major Truck-as-a-Service Market Vendors?

The report analyzes the market’s competitive landscape and offers information on several market vendors, including:

• AB Volvo
• Daimler AG
• Fleet Advantage LLC
• Fleet Complete
• Ford Motor Co.
• Hino Motors Ltd.
• Microlise Group Plc
• Tata Motors Ltd.
• Trimble Inc.
• Volkswagen AG

This statistical study of the truck-as-a-service market encompasses successful business strategies deployed by the key vendors. The truck-as-a-service market is fragmented and the vendors are deploying growth strategies such as focusing on M&A to compete in the market.

To make the most of the opportunities and recover from post COVID-19 impact, market vendors should focus more on the growth prospects in the fast-growing segments, while maintaining their positions in the slow-growing segments.

The truck-as-a-service market forecast report offers in-depth insights into key vendor profiles. The profiles include information on the production, sustainability, and prospects of the leading companies. 

Which are the Key Regions for Truck-as-a-Service Market?

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55% of the market’s growth will originate from North America during the forecast period. The US and Canada are the key markets for truck-as-a-service in North America. Market growth in North America will be faster than the growth of the market in other regions.

The increasing demand for last-mile delivery and next- and same-day services will facilitate the truck-as-a-service market growth in North America over the forecast period. This market research report entails detailed information on the competitive intelligence, marketing gaps, and regional opportunities in store for vendors, which will assist in creating efficient business plans.

What are the Revenue-generating Service Segments in the Truck-as-a-Service Market?

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The truck-as-a-service market share growth by the digital freight brokerage segment will be significant during the forecast period. The digital freight brokerage segment is expected to grow at a rapid pace during the forecast period owing to an increase in the use of smartphones and rising penetration of wireless connectivity and other digital platforms. Nowadays, consumers prefer digital channels to purchase goods from OEMs owing to the quick and ease of transaction and saving in brokerage money.

This report provides an accurate prediction of the contribution of all the segments to the growth of the truck-as-a-service market size and actionable market insights on post COVID-19 impact on each segment.

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What are the Key Data Covered in this Truck-as-a-Service Market Report?

• CAGR of the market during the forecast period 2021-2025
• Detailed information on factors that will drive truck-as-a-service market growth during the next five years
• Precise estimation of the truck-as-a-service market size and its contribution to the parent market
• Accurate predictions on upcoming trends and changes in consumer behavior
• The growth of the truck-as-a-service industry across North America, Europe, APAC, MEA, and South America
• A thorough analysis of the market’s competitive landscape and detailed information on vendors
• Comprehensive details of factors that will challenge the growth of truck-as-a-service market vendors

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