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The Truck-as-a-Service (TaaS) Market size is forecast to increase by USD 13.87 billion, at a CAGR of 4.09% between 2023 and 2028. The growth of the market depends on several factors such as the digital transformation in the trucking industry, the growth of the e-commerce industry, and the increasing implementation of IoT in trucking.
The report offers extensive research analysis on the Truck-as-a-Service (TaaS) Market, with a categorization based on Service, including rental services, telematics and analytics, and truck platooning. It further segments the market by Application, encompassing chemicals, pharmaceutical and healthcare, FMCG, food and beverages, and others. Additionally, the report provides Region segmentation, covering APAC, Europe, North America, the Middle East and Africa, and South America. Market size, historical data (2018-2022), and future projections are presented in terms of value (in USD billion) for all the mentioned segments.
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Our researchers analyzed the data with 2023 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.
One of the key factors driving the truck-as-a-service market growth is the digital transformation in the trucking industry. There has been a significant digital transformation in the trucking industry globally as OEMs and technology suppliers are recalibrating their business strategies. In addition, the intense competition is forcing fleet operators to increase their efficiency and reduce costs. Furthermore, 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.
Moreover, truck manufacturers are continuously focusing on leveraging technologies. In addition, 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. Furthermore, 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. Hence, such factors are positively impacting the truck-as-a-service market. Therefore, it is expected to drive the market growth during the forecast period.
A key factor shaping the truck-as-a-service market growth is the demand for truck rental services. Truck rental services are considered a ideal solution, particularly for commercial operations that are seasonal in nature. In addition, fleet operators are embracing the trend of renting trucks for executing urgent transportation operations instead of purchasing whole truck fleets. Furthermore, truck rental services will have minimal impact on the used trucks market as the latter are available at lower prices, which makes buying used trucks a viable solution instead of renting them.
Moreover, the truck rental business is expanding across developed as well as developing regions. For example, in November 2022, Flex Fleet Rental announced the beginning of its business operations in Canada. In addition, in November 2022, Penske Truck Leasing opened its first full-service rental and leasing the Leadership in Energy and Environmental Design (LEED)-certified facility in Ohio. Hence, such factors are positively impacting the truck-as-a-service market. Therefore, it is expected to drive the market growth during the forecast period.
An increase in operational costs for fleet operators is one of the key challenges hindering the truck-as-a-service market growth. The fluctuations in crude oil prices are one of the major cost determinants for the increase in transportation costs, which reduces the profitability of fleet operators. For example, crude oil prices in India increased by about 30% from January 2022 to May 2023.
Moreover, the prices of fuels, such as diesel and petrol, are increasing owing to the rise in crude oil prices. For example, in the US, the average cost of a gallon of diesel fuel in June 2021 was around USD 3.61. In addition, a trailer truck can use diesel on an average of 20,000 gallons a year, costing around USD60,000 as fuel cost per year. Therefore, as fuel prices increase, fleet operators increasingly charge customers to maintain profits. Hence, such factors are negatively impacting the truck-as-a-service market. Therefore, it is expected to hinder the market growth during the forecast period.
The market research 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
Companies 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 offers truck as a services such as Groundbreaking connected solutions, vehicle service, driver support, volvo connect, and others.
The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:
Qualitative and quantitative analysis of companies 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 companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.
The rental services segment is estimated to witness significant growth during the forecast period. Rental services are a major segment in the global truck-as-a-service market as they provide flexible and cost-effective solutions to a wide variety of customers. In addition, truck rentals are especially attractive to businesses that experience seasonal changes or sudden fluctuations in demand for their products. Furthermore, truck rentals come in great utilization either for a short-term solution to transport goods, manage logistics during peak season, or need a quick fix for a project.
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The rental services segment was the largest segment and was valued at USD 36.38 billion in 2018. Moreover, individuals and small businesses also benefit from truck rentals because they do not have to worry about owning and maintaining their own trucks. In addition, some of the leading global truck rental companies include industry leaders such as Tata Motors Ltd, Fleet Complete, and Ashok Leyland Ltd., among others. Furthermore, these companies have become highly popular by offering a wide range of trucks, from light duty to heavy duty, along with flexible rental terms and conditions. Hence, such factors are fuelling the growth of this segment which in turn will drive the market growth during the forecast period.
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North America is estimated to contribute 44% 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. Some of the main countries contributing to the market growth in North America include the US and Canada. In addition, the e-commerce industry in the US has been growing. For example, e-commerce sales account for around 8% of overall retail sales in the US. In addition, products such as food beverages, and electronics are increasingly sold through e-commerce channels. Furthermore, the demand for last-mile delivery and next- and same-day services is increasing. Therefore, this has resulted in a rise in the need for trucks for the fast delivery of goods, thereby fueling the market growth in the region. Hence, such factors are driving the market growth in North America during the forecast period.
The truck-as-a-service market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2018 to 2028.
Truck-as-a-Service Market Scope |
|
Report Coverage |
Details |
Page number |
177 |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 4.09% |
Market Growth 2024-2028 |
USD 13.87 billion |
Market structure |
Fragmented |
YoY growth 2023-2024(%) |
3.67 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 44% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Ashok Leyland Ltd., Continental AG, Convoy Inc., Fleet Advantage LLC, Fleet Complete, Ford Motor Co., Inseego Corp., Mercedes Benz Group AG, Microlise Group Plc, PACCAR Inc., Robert Bosch GmbH, Tata Motors Ltd., Total Transportation Services, Toyota Motor Corp., Trimble Inc., Uber Technologies Inc., Volkswagen AG, Volta Trucks, and Werner Enterprises Inc. |
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 |
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. |
We can help! Our analysts can customize this market research report to meet your requirements.
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