According to Vision Research Reports, the global automated truck market value is projected to reach around US$ 2 Bn by 2027, expanding at a CAGR of 55% during the forecast period 2020 to 2027.
Automated trucks can be safely driven with little or no assistance on roads. These trucks are driven according to the situation detected by the installed sensors, and their response to the situation on the basis of artificial intelligence and cloud stored data. Automated trucks are anticipated to notably impact the logistics and mining industries, owing to extensive utilization of automated haul trucks in mines and rising investments by key truck manufacturers and technology companies in the development of autonomous trucks for the logistics industry. Moreover, the rising inclination of the automotive industry toward vehicle connectivity and intelligent transportation has prompted manufacturers to focus on the development of autonomous trucks.
Key Drivers of the Automated Truck Market
Growth Factors for the Automated Truck Market
Automated trucks are self-driven trucks; however, there is a certain level of autonomy according to the required effort and assistance provided by the vehicle. The rising shortage of truck drivers in developed nations such as the U.S., Canada, and Japan is likely to boost the demand for automated trucks. Primarily, the mining and logistics industries are driving the demand for automated trucks. The high work capability of automated trucks in mines as well as the logistics industry is a key factor for the increased preference for automated trucks over manually-driven trucks. Active automated mines in Australia is an example of the high efficiency and work capability of automated trucks.
Challenges for Automated Truck Market
Automated Trucks Making Inroads, Disrupting the Conventional Truck Industry
Amid a sea full of trends driving innovation at top gear in the automotive industry, automated trucks are overtaking and speeding towards rapid adoption in end-use industries. The trend of electric vehicles has been turning the automated truck arena green, which makes it easier for manufacturers to move past the hurdles of environmental regulations.
Shortage of drivers, however, in developed countries, has offered a significant boost to the scramble of numerous industries towards automated trucks, which is likely to remain a crucial driver to their growing adoption rate. An acute rise in the sales of automated trucks requires a thorough assessment to gauge the growth prospects of the overall landscape.
Vision Research Reports (VRR), in its latest study, uncovers significant trends that provide the key indicators of the impending changes that are poised to supplement the evolution of the automated truck market, so as to assist stakeholders in devising sustainable growth strategies over the course of the forecast period.
Gains Likely from the Crossroads Where Productivity Meets Safety
Riding on the back of innovation, the automated truck industry has been, and will continue to witness major breakthroughs during the forecast period. As the logistics industry moves with the waves of automation and digitization, automated trucks are integral for expanding the industry’s competency to flex with the surging demand. In 2018, the sales of 93 automated trucks reached a closure, which corresponds to a value of US$ 104.1 Mn.
As numerous industries seek process efficiency with minimum human intervention, the adoption of automated trucks will remain high during the forecast period. Manufacturers rely on the development of automated trucks with enhanced productivity, optimized traffic management, reduced fuel consumption, and ensured safety.
With 5G technology speed, the computation of driving decisions in automated trucks will be almost instant, which will optimize the process efficiency for end-use industries. However, high infrastructural costs associated with the development of automated trucks are likely to create an entry barrier for new players in this market space.
Mining Industry to Lose Dominance as Demand for Automated Trucks Evolves in the Logistics Industry
The surging digital shopping behavior of consumers has increased the appetite for streamlined logistics among fleet management companies that seek reduced operational costs. As such, the logistics industry is running at the forefront of the adoption curve of automated trucks.
The mining industry is likely to remain an attractive end-use industry through 2019, as mining companies are deliberating efforts towards enhancing their output capacities to meet the surging demand for minerals from manufacturing industries. Post 2019, rapid rise is e-Commerce portals and their demand for logistics is likely to pale the market share of the mining industry, in terms of value.
Level 5 automated trucks remain highly preferable in the mining industry, as they function without any driver assistance, and operate with the help of cloud data and artificial intelligence. However, level 3 automated trucks will overtake the adoption rate of level 5 automated trucks, and account for ~ 40% of the total market share at the end of the forecast period, as truck platooning will form an integral part of automated trucks. Additionally, the high cost of level 5 automated trucks will divert sales to level 3 automated trucks.
Through to 2027, Asia Pacific is likely to remain a key automated truck market, as the demand for automated trucks for mining activities has been surging in Australia, and improved road infrastructures is likely to bump up their sales in the logistics industry as well. Furthermore, shortage in the number of drivers in developed regions such as the U.S. and Japan will remain a significant opportunity for the penetration of automated trucks in these regions.
Though the automated truck market has been witnessing unprecedented growth, protests by truck driver committees and organizations are likely to impede its smooth ride. However, proper education becomes necessary, as automated trucks will replace tasks, not jobs. This, when comprehended well, will weaken the opposition of drivers.
Automated Truck Market - Strategic Roadmap to Drive at an Accelerated Pace
Collaborate with Software Development Companies
Since a majority of operations of automated trucks rely on software for computing the shortest route and taking quick driving decisions, software forms an integral part of the landscape. Manufacturers can direct their focus on building partnerships with software development companies so as to be able to integrate new features in their trucks and achieve reduced time to market.
Increase Production of Level 3 Automated Trucks
In the long run, level 5 automated trucks are likely to witness a slowdown in their adoption rates, owing to stringent road safety regulations in the automotive industry. This means sales opportunities galore for level 4 and level 3 trucks, as they require a driver’s assistance, which narrows the chances of accidents. Manufacturers can capitalize on the growing demand for level 3 trucks in the logistics industry to gain multiple sales closures.
Capitalize on Shortage of Drivers in Developed Countries
Studies have found that, the U.S. is likely to fall short of 175,000 truck drivers by 2026. While in Japan, the gap between the required number of trucks and drivers is bridged by employing foreign labors. This shortfall of drivers in developed countries has offered a center stage to the automated trucks market. Since developed countries are likely to spectate high shipping activities with rising e-Commerce activities, manufacturers can bank on the opportunity generated in these regions by establishing partnerships with local manufacturers.
In terms of region, Asia Pacific dominated the global automated truck market due to the presence of considerably large mines in Australia, which has highly advanced operations across the globe. Rio Tinto has developed advanced mining operations in Australia, and included a large number of automated haul trucks in its operations. The logistics industry in China, Japan, and Singapore is also anticipated to witness high demand for automated trucks due to the presence of a large trucking industry in these countries. Japan is likely to adopt automated trucks at a rapid pace due to lack of working population in the country.
Europe and North America are also lucrative markets for automated trucks, as they have considerably large logistics & transport industries, which witness a high rate of adoption for new technologies. The presence of required infrastructure in North America and Europe is likely to play a key role in propelling the automated truck markets in these regions.
Key market players operating in the global automated truck market include
Key Questions Answered
The business asset analyzes the automated truck market in terms of volume (units) and value (US$ Mn). Authors of the report aim at elaborating on the current trends and future scope of the automated truck market, along with the portfolio and key strategies of market players, which will help readers devise sustainable growth strategies and make well-informed decisions in the automated truck market. Some of the key questions answered in the report are:
Automated Truck Market – Research Methodology
Vision Research Reports analysts follow a systematic research methodology to obtain crucial information regarding the growth of the automated truck market. The VRR study validates information collected through various sources. In order to gather information regarding the automation truck market, primary research was conducted. For primary research, interviews with vice presidents, marketing managers, business unit heads, chief operation officer, and salespersons were conducted.
In order to carry out secondary research, various sources such as company websites, annual reports, white paper, financial reports, broker reports, investor presentations, press releases, and government documents were studied. Post the primary and secondary research, insights obtained were then validated through the data triangulation method. This aids in sourcing credible information that includes competitor analysis, opportunities, risks, microeconomic factors, macroeconomic factors, and demographic analysis.
Automotive Parts Remanufacturing Market Size, Share, Growth, Trends, Company Analysis, Regional Insights and Forecast 2020 - 2027Read more...
Solid Tyre Market Size, Share, Growth, Trends, Production, Consumption, Revenue and Forecast 2020 to 2027Read more...
Container Fleet Market Size, Share, Growth, Trends, Production, Consumption, Revenue and Forecast 2020 to 2027Read more...
Automotive Sheet Metal Components Market Size, Share, Growth, Trends, Production, Consumption, Revenue and Forecast 2020 to 2027Read more...
Automotive AC Compressor Market Size, Share, Growth, Trends, Production, Consumption, Revenue and Forecast 2020 to 2027Read more...