The global truck-as-a-service market size is expected to surpass around US$ 96 Bn by 2027, expanding at a CAGR of 25% during the forecast period 2020 to 2027.
Rapid expansion of transport facilities due to advancements in technology and booming urbanization have led to a rise in transportation of goods and commodities, which is likely to boost the truck-as-a-service market across the globe.
Rise in penetration of smartphones and access to speedy Internet services has fueled consumer preference toward online shopping. This, in turn, is anticipated to propel the truck-as-a-service market. Increase in trade agreements between developing nations is anticipated to offer new opportunities to the logistics industry in the near future. Rise in digital freight brokerage for light and heavy commercial vehicles is anticipated to propel the truck-as-a-service market across the globe. Transportation of products and goods by means of roadways plays an integral role in truck-as-a-service market. Moreover, this mode of transport is cost-effective for door-to-door service, owing to improved road infrastructure. This is anticipated to propel the truck-as-a-service market during the forecast period.
Increased trend of online shopping is a major factor driving the road transportation for delivery of goods, which is likely to boost the truck-as-a-service market across the globe. Moreover, rise in penetration of advanced technologies in commercial vehicles, which helps to enhance the safety of drivers and avoid breakdown of vehicles, is anticipated to boost the truck-as-a-service market across the globe. Investments by various governments across the globe in fast movable consuming goods (FMCG) is likely to offer significant opportunities for truck transportation service providers, which in turn is estimated to boost the truck-as-a-service market.
In addition, rise in adoption of technology in transportation, including next-gen global positioning, helps to track vehicle location. Modern GPS business solutions enable constant two-way communication and boosts transparency between owner and driver, which propels the truck-as-a-service market. A GPS vehicle tracking system is automated and provides real-time updates on a remote device. This helps in quick decision-making, which is likely to augment the truck-as-a-service market across the globe.
Based on service type, the truck-as-a-service market has been segmented into digital freight brokerage, platooning, digital retailing, telematics, business analytics, and blockchain. Telematics service is likely to be a highly lucrative segment during the forecast period. This is primarily due to technological developments, including connected vehicle, live traffic updates, and global positioning system, which is likely to propel the truck-as-a-service market across the globe.
In terms of end-use industry, the FMCG segment dominated the market, owing to the rise in low cost goods transportation across the globe. Various governments across the globe are trying to invest in the FMCG segment due to increase in the coronavirus pandemic across the globe. Rise in developments in transportation management system, payment gateway integration, and customer management boost the FMCG segment, which in turn is estimated to propel the truck-as-a-service market across the globe.
North America dominated the global truck-as-a-service market in 2019. It is anticipated to hold a significant share during the forecast period due to expansion of logistics and warehouse industries, and production plants across North America. Followed by North America, Europe also held a major share of the truck-as-a-service market due to the expansion of the e-Commerce industry and consumer trend toward online shopping, which in turn is likely to boost the truck-as-a-service market across the globe.
Advanced Data Analytics Tools Help Identify Vehicle and Uptime
Telematics has facilitated real-time communication, which is coupled with routing apps that help truck drivers to avoid delays and contributes toward fleet optimization. However, analyzing truck data to improve service operation can be challenging for fleet managers. Hence, companies in the truck-as-a-service market are developing smarter algorithms that overcome issues in data analysis.
Trying to analyze telematics data without advanced tools can be potentially challenging for fleet operators. It is found that too many data points change at a high frequency for a fleet service location manager. Hence, companies in the truck-as-a-service market are developing advanced data analytics tools that deploy aggregation of individual data points in the most effective way. This helps to understand the vehicle health and its impact on the uptime of trucks. Proliferation of the Internet of Things (IoT) in truck-as-a-service platforms is another advantage, which has enabled accurate identification of vehicle health.
Truck-as-a-Service Platforms Enhance Productivity Levels for Shippers and Carriers
Artificial intelligence (AI) and Machine Learning (ML) is playing a crucial role in making predictions about supply and demand in the truck-as-a-service market. Several startups are exploring business opportunities in this innovative business model. This is explains why the market is predicted to grow at an explosive CAGR of ~26% during the assessment period. Centralizing procedures and processes with the help of an appropriate ecosystem has helped to increase the operational efficiency of truck drivers and shippers.
With the help of truck-as-a-service platforms, truck drivers and carriers can optimize their time by gaining access to channels to find shipping demand. As such, the revenue of digital freight brokerage is anticipated to be the highest in the truck-as-a-service market among all service types. Digital freight brokers are using their own truck equipment pools to accelerate the movement of cargo.
Electronic Logs and Safety Standards Help Reduce Operational Costs via Telematics
Mobile devices are becoming increasingly commonplace in vehicles. Smartphones and rugged tablets are leveraging the telematics technology in the truck-as-a-service market. Moreover, telematics has eliminated the need for spending several hours completing paper record of duty status logbooks. Thus, trucking fleet managers can easily do away with overspending and improve overall efficiency for stakeholders in the value chain. On the other hand, telematics has helped to improve safety as truck dealers can closely monitor behaviors of the driver and assess whether it aligns with the company and regulatory standards.
Increased job satisfaction and a decline in operating costs are bolstering the growth of the truck-as-a-service market. Since drivers have greater control over their electronic logs, it has become one of the top contributors to job satisfaction. Better fleet and driver utilization help in fuel savings.
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