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The truck-as-a-service market is estimated to grow at a CAGR of 17.76% between 2022 and 2027. The size of the market is forecast to increase by USD 18,499.77 million. The growth of the market depends on several factors, including the digital transformation in the trucking industry, the growth of the e-commerce industry, and the increasing implementation of IoT in trucking.
This report extensively covers market segmentation by service (digital freight brokerage, telematics, data analytics, and truck platooning), end-user (chemicals, pharmaceutical and healthcare, FMCG, food and beverages, and others), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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Technavio categorizes the global truck-as-a-service market as a part of the global trucking market within the global transportation market. The parent global trucking market covers companies engaged in goods and passenger land transportation, including vehicle rental and taxi companies. Our research report has extensively covered external factors influencing the parent market growth during the forecast period.
The digital transformation in the trucking industry is notably driving the market growth, although factors such as a shortage of truck drivers may impede the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
Key Truck-as-a-Service Market Driver
The digital transformation in the trucking industry is notably driving the truck-as-a-service market growth. 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.
Truck manufacturers are continuously focusing on leveraging technologies. Many of the OEMs of trucks, such as Daimler, 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 the condition of cargo in the trucks. The implementation of telematics provides various benefits, such as shorter standby times, less wear on the vehicle, vital status monitoring of the driver, fewer accidents, optimized routing, and increased capacity utilization.
Autonomous trucking is an emerging concept that 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 Trend
The adoption of blockchain in trucking is a major trend in the truck-as-a-service market. Earlier, the traditional trucking practices included many manual processes such as paperwork filing and manually logging miles and hours driven. Such activities are usually time-consuming. This has led to the adoption of technologies such as blockchain. The blockchain is a shared ledger technology that is used to record digital transactions. It can help businesses solve complex problems. The use of blockchain in trucking helps streamline freight transactions by improving the visibility, security, and accuracy of data. In trucking, blockchain technology ensures better asset utilization and helps the industry more accurately forecast and predict volumes. It also helps enhance payment transactions and possibly eliminate the middleman in the trucking business.
It also helps prevent fraudulent activities in freight management. It helps manage some of the major elements of the trucking business, such as document transfers, freight contracts, driver security, parts management, and asset tracking. Some of the major vendors that provide truck-as-a-service are focusing on implementing blockchain. In addition, the Blockchain in Trucking Alliance (BITA) incorporated the BITA Standards Council (BSC) in March 2022. The council produces, publishes, and certifies open-source standards to facilitate global commerce, initially with a focus on blockchain-enabled technologies in the transportation and logistics industries. Thus, the rise in the adoption of blockchain in trucking operations is likely to fuel market growth during the forecast period.
Key Truck-as-a-Service Market Challenge
Shortage of truck drivers is a major challenge impeding the truck-as-a-service market growth. Most of the drivers in the trucking industry are retiring, and most people are unwilling to take up this profession. For instance, the number of truck drivers is likely to reduce to half by 2023 as compared to 2019. There is a shortage of drivers, mainly due to the low remunerations for drivers in most urban and semi-urban markets in various countries. In addition, 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. 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. This leads to physical and mental stress for drivers and results in mental fogginess, poor judgment, and forgetfulness, which can eventually make drivers more prone to accidents.
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 fewer movement of goods, which, in turn, limits companies from selling more. 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 during the forecast period.
Key Truck-as-a-Service Market Customer Landscape
The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Truck-as-a-Service Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo - The company operates under multiple segments including trucks, and buses among others, with a high focus on trucks. The company under this segment?focuses on manufacturing, development, and sales of trucks. The company's key offerings include trucks as a service.
The report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The 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.
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The digital freight brokerage segment shows a gradual increase in the market share of USD 2,991.58 million in 2017 and continued to grow until 2021. Nowadays, consumers prefer digital channels to purchase goods from OEMs owing to the quick and ease of transaction and saving in brokerage money. It is also difficult to analyze the delays or issues associated with a shipment while booking through a traditional broker. However, using the digital freight booking system, the brokerage has a detailed record of every load, thereby providing transparency in bookings. Empty miles account for more than one-fourth of all trips made by commercial trucks globally. Empty miles usually occur due to the empty-back hauls caused by the inherent opacity and slow traditional road-freight brokerage processes. This, in turn, leads to fuel waste, wasted driver hours, non-productive emissions, and a rise in operational costs. Digital freight brokerage can solve the problem of empty miles as it offers automated on-demand solutions. Furthermore, frequently delayed payments, lack of instant load and rate visibility, and operating cash crunches are major concerns in the global traditional freight brokerage market. This is creating a huge opportunity for digital freight brokerage solutions, as they enable faster brokerage and instant electronic upload of proof of delivery as well as electronic payment terms. These applications of digital freight brokerage will drive the segment during the forecast period.
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North America is estimated to contribute 38% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is expected to account for the largest share of the global truck-as-a-service market during the forecast period. The US and Canada are the major revenue contributors in the region. Products such as food and beverages and electronics are increasingly sold through e-commerce channels. The demand for last-mile delivery and next- and same-day services is increasing. This has resulted in a rise in the need for trucks for the fast delivery of goods, thereby fueling the market growth in North America.
Furthermore, truck rentals are increasing in the US. This is attributed to the increasing demand for truck rental services from both businesses and households. Businesses rent and lease trucks from industry companies for the shipment of freight to downstream customers as well as for the transport of goods and materials within and between work sites. These factors are likely to fuel market growth in the region during the forecast period. In addition, many vendors are focusing on partnerships to improve their service in North America. Such partnerships are likely to boost the truck-as-a-service market growth in the region.
The outbreak of COVID-19 negatively affected the regional market in 2020 due to nationwide lockdowns and disruptions in the supply chain. However, in 2021, the regional market witnessed recovery due to the stimulus packages provided by the governments of several countries to businesses for infrastructure development activities. This led to the resumption of manufacturing operations across different industries. Improving conditions across the industrial sector augmented the demand for transportation, offering growth opportunities for the truck-as-a-service market in the region in 2021 and 2022. Hence, such factors are expected to drive the growth of the regional truck-as-a-service market during the forecast period.
The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. The market has been segmented by Service (Digital freight brokerage, Telematics, Data analytics, and Truck platooning), End-user (Chemicals, Pharmaceutical and healthcare, FMCG, Food and beverages, and Others), and Geography (North America, Europe, APAC, Middle East and Africa, and South America).
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Truck-as-a-Service Market Scope |
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Report Coverage |
Details |
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Page number |
180 |
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Base year |
2022 |
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Historic period |
2017-2021 |
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Forecast period |
2023-2027 |
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Growth momentum & CAGR |
Accelerate at a CAGR of 17.76% |
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Market growth 2023-2027 |
USD 18,499.77 million |
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Market structure |
Fragmented |
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YoY growth 2022-2023(%) |
15.96 |
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Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
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Performing market contribution |
North America at 38% |
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Key countries |
US, Canada, China, Germany, and UK |
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Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
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Key companies profiled |
AB Volvo, Ashok Leyland Ltd, Continental AG, Convoy Inc., Daimler AG, Fleet Advantage LLC, Fleet Complete, Ford Motor Co., Hino Motors Ltd., Inseego Corp., Michelin Group, Microlise Group Plc, PACCAR Inc., Robert Bosch GmbH, Tata Motors Ltd., Total Transportation Services, Trimble Inc., Uber Technologies Inc, Volkswagen AG, and Volta Trucks |
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Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, Market condition analysis for the forecast period |
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Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
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1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation by Service
7 Market Segmentation by End-user
8 Customer Landscape
9 Geographic Landscape
10 Drivers, Challenges, and Trends
11 Vendor Landscape
12 Vendor Analysis
13 Appendix
Research Framework
Technavio presents a detailed picture of the market by way of study, synthesis, and summation of data from multiple sources. The analysts have presented the various facets of the market with a particular focus on identifying the key industry influencers. The data thus presented is comprehensive, reliable, and the result of extensive research, both primary and secondary.
INFORMATION SOURCES
Primary sources
Secondary sources
DATA ANALYSIS
Data Synthesis
Data Validation
REPORT WRITING
Qualitative
Quantitative
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