December 9, 2023

Digitalization Propels Truck-as-a-Service Market Growth: Insights into Trends and Forecast 2030

The global automotive industry, a cornerstone of economic development worldwide, is experiencing a profound transformation driven by technological advancements. In particular, the trucking sector is undergoing a significant shift as real-time data gathering and digitalization become pivotal components, revolutionizing fleet management and logistics.

As vehicles evolve rapidly, advanced features like GPS, platooning, tracking, and fleet management are no longer mere accessories but essential components of modern transportation. Disruptive innovations such as Autonomous Driving, Connected Vehicles, Electrification, and Shared Mobility (ACES) are opening up new avenues for growth and redefining the trucking landscape. This digital revolution, including sophisticated software-driven telematics, has given rise to the Truck-as-a-Service (TaaS) program, an innovative approach embraced by Original Equipment Manufacturers (OEMs) to capture a larger market share.

Unprecedented Momentum for Autonomous and Connected Technologies

The COVID-19 pandemic has accelerated the adoption of autonomous and connected vehicle technologies, as the trucking industry adapts to the surge in e-commerce. Four key trends – logistics, electrification, autonomy, and digitalization – are driving significant growth potential within the commercial vehicle sector. This technological convergence is creating new opportunities for stakeholders, leading to the development of innovative business revenue models and services.

Connectivity Transforms the Trucking Industry

In the coming years, connectivity is predicted to transform the trucking industry, with developed countries already offering services like prognostic analysis, asset management, and driver behavior monitoring. Freight digitalization is set to reduce cost centers, improve efficiency, decrease empty miles, and reduce emissions. The adoption of digital technologies is making truck dealers more resilient in challenging times, eliminating the need for in-person interactions and fostering digital retailing services, which are expected to persist even in a post-COVID-19 economy.

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Truck-as-a-Service (TaaS) – Redefining Fleet Management

Many automakers and OEMs are embracing the Truck-as-a-Service business model to meet the rising demand for digital retailing. In this model, OEMs take responsibility for truck ownership and maintenance, ensuring guaranteed uptime for operators utilizing TaaS. This approach minimizes capital investment for fleet operators, mitigates accidental risks through constant driver monitoring and vehicle prognostics, and eliminates vehicle downtime and maintenance costs. Major companies like Volvo, Volkswagen, and Daimler AG are investing in TaaS programs, benefiting fleet operators by reducing their cost centers and enhancing profit margins.

Pent Up Demand Leads to New Opportunities

Despite the challenges posed by the COVID-19 pandemic, truck dealers have shown resilience, with the sale of essential goods driving demand for truck services. Increasing connectivity features in entry-level vehicles present new opportunities for market growth as digitization continues to revolutionize the automotive industry.

North America and Asia Pacific Lead the Way

North America is at the forefront of the global TaaS market, driven by rapid digital transformation and the integration of connected devices. Asian economies are also expected to gain momentum due to increased connectivity solutions, rising e-commerce activities, online purchasing, and the growing demand for last-mile deliveries.

Incumbent Players and New Entrants Drive Competition

Increased connectivity features in modern trucks are creating lucrative opportunities, with automation solutions reshaping the TaaS market. Key players and new entrants are engaged in fierce competition, attracting significant investments from venture capitalists. Providing timely updates and effective fleet management at minimal costs is expected to give companies a competitive edge in this dynamic industry.

Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2023-2030 – By Product, Technology, Grade, Application, End-user, Region: (North America, Europe, Asia Pacific, Latin America and Middle East and Africa)

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This press release first seen on Brilad