Truck-as-a-Service Market (Service Type: Digital Freight Brokerage, Platooning, Digital Retailing, Telematics, Business Analytics, and Blockchain; and End-use Industry: Chemicals, FMCG, Pharmaceutical & Healthcare, Hi-Tech Product Industry, Food & Beverages, and Others) - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast, 2020 - 2030
Press Release :
Digital Retailing Acquires Prominence in Truck-as-a-Service Market
Though COVID-19 (Coronavirus) cases have been rising in America, new-car and truck dealers have always been resilient in adverse situations such as recession, drastic fuel prices, and interest rate fluctuations. In such a scenario, digital retailing is gaining recognition, as truck dealers strive to meet customer demand. Digital retailing has provided clients with the flexibility to procure accurate trade appraisals and obtain bank approvals with precise payment information. This has eliminated the need to have in-person interaction with a dealership employees, which has become crucial, especially during the pandemic.
Analysts at the Transparency Market Research opine that truck dealers will continue to use digital retailing even after the COVID-19 pandemic subsides. Many dealers have already adopted and implemented 100% virtual and digital sales processes and are reaping its benefits amidst the COVID-19 era. These factors are likely to drive the truck-as-a-service market during the forecast period.
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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.
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.
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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.
East Asia Set for Exponential Growth with Connected Devices and Smart Mobility
The trucking industry is witnessing a digital transformation, which has fueled the use of connected devices, thus deploying greater visibility and transparency across the supply chain. As such, the truck-as-a-service market is anticipated to surpass US$ 99.2 Bn mark by the end of 2030. On the other hand, the installation of telematics devices in trucks has jumped exponentially in North America. This is evident since currently, North America dictates the highest revenue among all regions in the truck-as-a-service market. However, East Asia is predicted to take the lead in terms of value by the end of 2030.
The era of increased smartphone usage, smart cities, and smart mobility is currently one of the prominent trends in North America. However, the connected environment is growing increasingly prominent in countries of East Asia. Such factors are boosting the adoption of digital freight brokerage solutions.
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.
Incumbent Players versus Challengers: Who will dominate Truck-as-a-Service Market
The automation of truck brokerage is driving change in the truck-as-a-service market. As such, venture backed-digital freight brokers are posing as a tough competition to the incumbents of the market. For instance, Convoy— a provider of digital freight network has raised US$ 185 Mn at US$ 1 Bn valuations in September 2018 and is aiming for two times the valuation in the upcoming years. On the other hand, logistics technology startups are attracting capital investments. However, the incumbent market players also have advantages such as larger reach in terms of their business network and higher enterprise value.
In terms of revenue, incumbent market players hold a lion’s share as compared to the venture backed-digital freight challengers. Moreover, private companies do not publish their financial data, thus making it challenging for investors to take the decision.
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The COVID-19 pandemic has accelerated the shift toward digital retailing. Truck-as-a-service platforms are gaining increased popularity for optimizing vehicle performance and monitoring safety habits of truck drivers. Digital freight matching platforms are quickly bridging the gap between truck drivers with capacity to available loads.
Currently, more than 50% of the freight is transported via road in North America. However, East Asia is projected to grow exponentially during the forecast period, thus creating a dilemma for companies in the truck-as-a-service market, in terms of long-term investments that support the establishment of connected environments. Hence, companies should increase their focus in R&D activities is order to make informed decisions.
Truck-as-a-Service Market: Overview
- The global truck-as-a-service market is anticipated to expand at a CAGR of ~26% during the forecast period, owing to rise in adoption of telematics systems and latest technologies, including road side assistance and traffic updates. 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.
Drivers of Truck-as-a-Service Market
- Rise in adoption of smartphones is boosting the penetration of wireless technology and other digital platforms. Currently, consumers prefer digital channels to purchase goods from OEMs, owing to quick and easy transaction and saving in brokerage money, which is anticipated to propel the truck-as-a-service market across the globe. Moreover, a surge in demand for e-tailing trade and business transactions is due to independent access to online trade portals for seller or buyers, and ever-inflating costs of products available in retail shops. Favorable government regulations, rise in regional GDPs, and per capita expenditure are other factors augmenting e-tailing, which in turn is fueling the utilization of truck transportation.
- Development of autonomous vehicles is likely to offer significant opportunities in autonomous services, including platooning service. Furthermore, increase in data security, connectivity, and government mandates regarding vehicle safety are projected to boost the demand for advanced technology in transportation service, which is likely to fuel the truck-as-a-service market across the globe. Expansion of the e-Commerce industry in developing countries, along with growing industrialization and increasing number of manufacturing plants across the globe are anticipated to fuel the demand for trucking service technologies, which in turn is anticipated to drive the truck-as-a-service market during the forecast period.
Challenges for Truck-as-a-Service Market
- Major vehicle manufacturers shut down their plants due to the coronavirus pandemic. Majority of companies in Japan, India, China, and South Korea follow the just-in-time (JIT) inventory system, which is a management strategy. JIT inventory system aims at minimizing inventory and increasing efficiency. However, automakers are facing shortages of components due to the shutdown of companies procuring raw material, resulting in either halting or slowing down of vehicle production, which is likely to be a challenge for the market.
- Improper road infrastructure coupled with lack of intent to improve transport facilities is expected to restraint the truck-as-a-service market during the forecast period. Truck transportation is not as reliable as railway freight transportation during rainy season, where roads become unsafe, complex, and unfit for use. This results in higher chances of accidents and breakdowns of trucks. This is another factor that is anticipated to hamper the truck-as-a-service market during the forecast period.
Segmentation of Truck-as-a-Service Market
- Based on service type, the telematics segment dominated the global truck-as-a-service market due to rise in penetration of advanced technologies in transportation service. Telematics services, including roadside assistance, traffic information, and smart routing are likely to be integrated by fleet owners in order enhance safety. Rise in demand for optimizing operational activities and real-time connectivity is projected to boost the telematics services segment during the forecast period.
- Based on end-use industry, the FMCG segment dominated the market, owing to an increase in transportation of consumer goods across the globe. An extension of lockdown due to the coronavirus pandemic is likely to drive FMCG transportation services, which in turn is projected to boost the truck-as-a-service market.
Truck-as-a-Service Market: Regional Analysis
- Based on region, the global truck-as-a-service market has been divided into North America, East Asia, South Asia, Europe, Latin America, and Middle East & Africa
- North America and Europe are projected to be prominent markets during the forecast period. This is primarily due to the expansion of the warehouse industry and manufacturing plants across the North America and Europe. Rise in demand for fast moving consuming goods across North America is likely to offer significant opportunities for trucking service providers, which is likely to boost the truck-as-a-service market across the region.
Truck-as-a-Service Market: Competition Landscape
- Key players operating in the global truck-as-a-service market include
- Daimler AG
- MAN Trucks
- Nikola Corporation
- Fleet Advantage
- Trimble Transportation Enterprise Solutions Inc.
- Traton SE
- Tata Motors.
- Scania AB
- PACCAR Inc.
- Navistar International
- Key players at the global level are expanding their presence by engaging in mergers and acquisitions with several players in the industry. In October 2018, Daimler AG entered into a premium ride-hailing joint venture with Geely Group, in China. This joint venture would provide ride-hailing mobility services in various cities across China. This venture is expected to support Geely to utilize premium vehicles of Mercedes-Benz.
Truck-as-a-Service Market - Scope of the Report
Transparency Market Research’s recent report on the truck-as-a-service market, with the help of a comprehensive outlook, provides readers with an assessment of the global market landscape. This study on the truck-as-a-service market analyzes the scenario for the period of 2019 to 2030, wherein, 2019 is the base year and 2018 and before is historical data. This report enables readers to make important decisions with regard to their business, with the help of a wealth of information enclosed in the study.
This TMR study on the truck-as-a-service market also provides data on the developments made by important players and stakeholders in the market, along with a competitive analysis. The report also provides an understanding of the strengths, weaknesses, threats, and opportunities, along with the trends and restraints in the landscape. Presented in a clear sanctioned manner, this report on the truck-as-a-service market gives readers an individual understanding of the market.
This study also discusses the underlying trends and impact of various factors that are driving the truck-as-a-service market, along with their influence on the evolution of the market.
This study also offers Porter’s Five Point Analysis, value chain analysis, regulatory scenario, and a SWOT analysis of the truck-as-a-service market, in order to elaborate the crucial growth tactics and opportunities for market players contributing to the market.
Key Questions Answered in This Report on Truck-as-a-Service Market
- How much value will the truck-as-a-service market generate by the end of the forecast period?
- Which segment of the market is likely to have the maximum market share by 2030?
- What are the impact factors and there effects on the market for truck-as-a-service market?
- What regions currently contribute the maximum share to the overall truck-as-a-service market?
- What are the indicators expected to drive the truck-as-a-service market?
- What region is likely to be a lucrative market during the forecast period?
- What are the essential strategies by key stakeholders in the truck-as-a-service market to expand their geographic presence?
- What are the major advancements witnessed in the truck-as-a-service market?
- How regulatory norms affected the market for truck-as-a-service market?
This report answers these questions and more about the truck-as-a-service market, aiding major stakeholders and key players in making the right decisions and strategizing for the advancement of their business.
Truck-as-a-Service Market: Research Methodology
This TMR report on the truck-as-a-service market is based on a complete and comprehensive evaluation of the market, backed by secondary and primary sources. Market volume is determined by country wise model mapping of vehicle through internal & external proprietary databases, and relevant patent and regulatory databases. The competitive scenario of the truck-as-a-service market is supported by an assessment of different factors that influence the market on a minute and granular level. By thoroughly analyzing the historical data, current trends and announcement by the key players, researchers of the truck-as-a-service market arrive at predictions and estimations, and calculate the forecast for the market.
This report uses an analytical triangulation method to estimate the numbers and figures of the truck-as-a-service market, with both a bottom-up and top-down approach.
This detailed assessment of the truck-as-a-service market, along with an overview of the landscape, is provided based on a careful examination of the avenues related to this industry. Analysts’ conclusions on how the truck-as-a-service market is estimated to expand are based on carefully vetted primary and secondary sources.
Truck-as-a-Service Market – Segmentation
This report on the truck-as-a-service market provides information on the basis of service type, end-use industry, and region.