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 electrically-driven 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.

Transparency Market Research (TMR), 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.

Automated Truck Market Strategy

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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.

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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 Asia Pacific

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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.

Automated Truck Market – Competitive Landscape

The automated truck market functions amidst a high degree of competition. The threat of new entrants is low in the landscape, since entry into the market translates into huge initial investment. The automated truck market remains under the dominance of market frontrunners –

  • VOLVO AB
  • Daimler AG
  • EMBARK
  • TuSimple Inc.

who resort to merger and acquisition activities in order to broaden their exposure across the globe.

Market frontrunners heavily invest in research and development activities to foster innovation in the landscape and stay ahead of the business curve. For instance, in June 2018, Volvo Trucks, North Carolina Turnpike Authority, and FedEx Corporation presented truck platooning by leveraging ADAS.

Regional players collaborate with autonomous technology service providers operating in the market for the development of a product suite. For instance, in January 2019, DENSO CORPORATION averred that, it has partnered with TomTom to develop a software platform for autonomous vehicles. With this strategic partnership, TomTom’s HD map will meet DENSO’s in-vehicle sensor to form a complete autonomous driving system.

Automated Truck Market Segmentation

Analysts’ Take on the Automated Truck Market

Authors of the report are highly optimistic regarding the potential of the automated market, which is likely to record a ~ 55% CAGR during the period of 2019-2027. Investment in level 3 and level 4 trucks will remain lucrative for manufacturers, while level 5 trucks are likely to witness a slowdown in their adoption rate. Manufacturers can concentrate their efforts towards developing automated trucks that address the requirements of the logistics industry. Developed countries with a shortage of labor can be brought into the radar, and partnerships with local manufacturers are likely to surface new sales opportunities in these regions. The trends of 5G and electric vehicles will further take the growth of the automated truck market into top gear. However, high initial investments restrict the entry of new players, and protests from drivers remain a challenge for manufacturers to tackle. All in all, the nascent automated truck market is likely to move at an accelerated pace over the course of the forecast period.

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Automated Truck Market - Key Insights

  • The automated truck market is estimated to expand significantly at a CAGR of ~ 55% between 2019 and 2027.
  • The cab-integrated automated trucks segment is anticipated to be the leading segment of the automated truck market.
  • The level 3 segment is anticipated to expand at a significant pace in the automated truck during the forecast period.

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.

  • The capability of automated trucks to drive continuously for longer hours is anticipated to propel the demand for autonomous trucks.
  • Significant investments are being made by key truck manufacturers such as Daimler, Volvo, and Komatsu Corporation towards the development of autonomous trucks.
  • Low operating cost of logistics companies due to high fuel-efficiency of these vehicle and the requirement of fewer number of drivers drive demand.
  • Increasing shortage of drivers in North America is likely to fuel the demand for autonomous trucks at a significant pace.
  • There are low chances of accidents due to the absence of human intervention in autonomous trucks, as most accidents occur due to human error. 

Challenges for Automated Truck Market

  • The trucking industry is a major sector for employment in most nations. Thus, the adoption of automated trucks may result in increased unemployment, which, in turn, has already resulted in protests by truck drivers across a few countries.
  • The cost of fully-automated trucks is significantly higher as compared to that of manually-operated trucks, which is likely to hinder the demand for automated trucks.
  • Fully-automated trucks are completely based on advanced driving assistance systems, and are likely to be operated by AI and cloud data. Consequently, high level of data protection is required to prevent these vehicles from being hacked or misguided. 

The global automated truck market has been segmented based on truck type, end-use industry, autonomy level, sensor, and class. 

Based on truck type, the cab-integrated segment is likely to hold a major share of the market. Only class 8 and class 9 trucks are segmented into cab-integrated and cables, as the development of cabless trucks for these segments is the prime focus of manufacturers. Cabless trucks are anticipated to roll out in the market after cab-integrated automated trucks, as companies such as Embark and TuSimple, Inc. are already testing their cab-integrated autonomous trucks, while only a concept model of the cabless truck has been showcased by Volvo AB. 

Based on end-use industry, the logistics industry is anticipated to be a leading segment of the market, owing to the presence of a large logistics industry in countries such as the U.S., Canada, and those in Southeast Asia. The higher demand for trucks in the logistics industry as compared to that in the mining industry is likely to drive the automated truck market at a considerable pace. The demand for haul trucks is limited in the mining industry; however, the continuous adoption of automation in the mining industry is likely to boost the demand for autonomous haulage trucks in most countries. 

In terms of vehicle class, the ultra-class is a major segment of the automated truck market; however, the class 8 & class 9 segment is likely to expand at a rapid pace due to rising developments and the demand for automated trucks in the logistics industry. 

In terms of autonomy level, the level 5 segment accounted for a prominent share of the automated truck market, owing to the presence of level 5 haulage trucks in the mining industry. However, the development of trucks platooning (level 3) and autonomous trucks for logistics is likely to propel the level 3 and level 4 segments of the automated truck market. Moreover, the truck platooning or level 3 segment is anticipated to expand at a high growth rate during the forecast period. Non-elimination of the driver and ease in driving situations with high efficiency are key factors that are expected to boost the level 3 segment. 

Automated Truck Market: Regional Analysis 

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. 

Automated Truck Market: Competitive Landscape

Key market players operating in the global automated truck market include

  • AB Volvo
  • Aptiv
  • EMBARK
  • Continental AG
  • Daimler AG
  • Intel Corporation
  • NVIDIA
  • Qualcomm Technologies, Inc.
  • Robert Bosch GmbH
  • Waymo LLC
  • Valeo
  • WABCO
  • ZF Friedrichshafen AG
  • Autonomous Solutions Inc. 
  • EMBARK
  • Waymo LLC
  • Volvo AB

are at the forefront in the development of autonomous trucks, and are anticipated to hold a major shares of the global automated truck market. EMBARK recently tested its level 4 autonomous trucks, and completed the first coast to coast journey by an autonomous truck. The truck travelled over 2,400 miles in five days.

Automated Truck Market – Introduction

A comprehensive overview of the automated truck market has been presented in the latest report published by Transparency Market Research (TMR). The research report offers key insights into the automated truck market, along with the key trends and notable developments that are observed in the landscape.

A comprehensive analysis of the pricing and adoption trends of the automated truck market has been included in the business asset. The comprehensive report assesses information regarding the significant factors that are instrumental to the growth of the automated truck market during the forecast period.

The report also analyzes the evolving demand of end users and crucial trends influencing the future growth trajectory of the automated truck market. This will help stakeholders of the automated truck market gain significant insights and further aid in making well-informed business decisions.

The business asset also elucidates the key strategies of leading players and the competition intensity prevailing in the automated truck market. The report discusses Porter’s five force analysis, and offers a brief assessment regarding the impact of the competition on the automated truck market. The study comprises a competition matrix that profiles the key players operating in the automated truck market, along with their strategies, recent developments, and volume and value share.

Automated Truck Market – 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:

  • What are the key drivers and restraints observed in the automated truck market?
  • What are the significant opportunities for the manufacturers of automated trucks?
  • What are the winning strategies followed by manufacturers of automated trucks?
  • What is the present and future value potential of the automated truck market?
  • What are the major trends observed in Asia Pacific that contribute to the growth of the automated truck market?
  • Which truck type will remain lucrative for market growth?

Automated Truck Market – Research Methodology

TMR’s analysts follow a systematic research methodology to obtain crucial information regarding the growth of the automated truck market. The TMR 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.

Automated Truck Market – Segmentation

In order to offer in-depth information on the automated truck market, the report bifurcates the market into key segments and discusses the influential trends. The automated truck market has been segmented on the basis of truck type, end-use industry, autonomy level, sensor, vehicle class, and region.

Truck Type

Cab Integrated Trucks

Cabless Trucks

End-use Industry

Logistics

Mining

Autonomy Level

Level 3

Level 4

Level 5

Sensor

RADAR

LiDAR

Camera

Others

Vehicle Class

Class 8 & Class 9

Ultra Class Trucks

Region

North America

Latin America

Europe

Asia Pacific

Middle East & Africa