The Rise of Autonomous Trucks Market: Transforming the Future of Freight Transportation

Autonomous trucks are set to transform road freight transportation with advancements in self-driving technologies. Autonomous trucks utilize a variety of sensors and cameras to collect visual data from the surrounding and maneuver safely on the roads without human intervention. Autonomous driving technology reduces the human element which leads to more predictable driving and fewer accidents. By removing the driver from the vehicle, autonomous trucks also promise to lower operating costs for logistics companies while increasing vehicle utilization. 

The autonomous trucks market is estimated to be valued at USD 1.49 Bn in 2024 and is expected to reach USD 4.62 Bn by 2031, growing at a compound annual growth rate (CAGR) of 17.55% from 2024 to 2031.

Key players operating in the autonomous trucks market are Daimler, Tesla, Ford, Volvo, and Navistar. Daimler through its Mercedes-Benz brand is a pioneer in truck autonomy and is testing Level 4 semi-autonomous trucks. Tesla is also developing fully electric self-driving trucks to transform long-haul logistics.

Growing e-commerce and need for efficient logistics is expected to propel the demand for autonomous trucks. Autonomous Trucks Market can operate round the clock without breaks and drive long distances without fatigue. This allows better utilization of fleet and reduces the cost of transportation.

Major truck makers are partnering with logistics companies to launch pilot projects of autonomous trucks across regions. Daimler launched a pilot project with Penske to test autonomous trucks in the US while Volvo partnered with logistics firm DB Schenker for testing in Europe. Such pilots will help collect real-world data and feedback which will be vital for commercialization at scale.

Market Key Trends
Connectivity is one of the key trends shaping the autonomous trucks market. Advanced connectivity capabilities through technologies like 5G, Vehicle to Everything (V2X) and dedicated short-range communications (DSRC) allows autonomous trucks to share data with other vehicles and infrastructure on the road. It improves freight efficiency while reducing fuel consumption and emissions. OEMs are working to ensure the necessary technology integrations are completed to realize the full benefits of connected transportation.

Porter's Analysis
Threat of new entrants: Low barriers of entry for self-driving tech but significant capital requirement and R&D to develop truck hardware poses challenges for new companies.

Bargaining power of buyers: Large fleet owners hold stronger position to negotiate on price and demand additional services while smaller owners have less influence.

Bargaining power of suppliers: Major component manufacturers like sensors providers can negotiate on price and contracts with OEMs who rely on steady technology supply.

Threat of new substitutes: Emerging last mile delivery solutions like drones may compete in specific applications but unlikely to replace long haul trucking for cost and operational reasons.

Competitive rivalry: Intense competition expected from major truck OEMs and self-driving tech companies to dominate market, pressure on pricing and tie-ups for complementary strengths.

Geographical Regions
North America currently accounts for around 50% of global autonomous trucks market value led by robust testing in US states and deployment of self-driving truck platoons. Product innovations and pilot projects collaboration between OEMs and local fleet owners is driving regional market.

Asia Pacific is identified as the fastest growing regional market for autonomous trucks projected to expand at over 20% CAGR during forecast period supported by government initiatives for smart transport in China, developing road infrastructure in India and collaboration with global companies in Japan and South Korea.

Get this Report in Japanese Language: 自律走行トラック市場

Get this Report in Korean Language: 자율주행 트럭 시장

About Author:

Ravina Pandya, Content Writer, has a strong foothold in the market research industry. She specializes in writing well-researched articles from different industries, including food and beverages, information and technology, healthcare, chemical and materials, etc. (https://www.linkedin.com/in/ravina-pandya-1a3984191)