Increasing emphasis on improving road safety by reducing accidents due to human error is facilitating the adoption of automated systems in trucks driving the market for automated trucks to reach $ 1.5 billion by 2031.
According to the market research and competitive intelligence provider Fact.MR, the market surpassed $ 210 million in valuation in 2020 and is anticipated to grow at 22% CAGR between 2021 and 2031
The popularity of automated vehicles is also growing due to the rising focus on making transportation and logistics smarter. These developments also will help in reducing the risk of road accidents.
The study identified that the sales of automated trucks integrated with light detection and ranging (LiDAR) technology are rising to reduce the risk of accidents even in tricky nooks and turns of roads.
The integration of hardware components such as LiDAR, infrared radars, sophisticated movement sensors, cameras, and complex algorithms will enable the automated trucks market to gain traction. The research firm has forecast the overall demand in the market to rise by seven folds through the assessment period.
During the COVID-19 outbreak, the market registered high growth since the focus on social distance encouraged several studies on distributing vehicles with minimum human intervention.
Some of the key players operating in the market include Uber Technologies, Daimler, Ford, AB Volvo, BMW, Tesla, Google, IVICO, DAF, Scania and Slazenger.
As per a recent study by the American Trucking Association (ATA), the transportation industry would need to employ approximately 60,000 drivers across the US to cater to the surging demand registered nationwide. This gap in demand is expected to increase to 160,000 by 2028.
Besides this, focusing on curbing carbon emissions from vehicles will create a conducive environment for automated trucks' sales.
According to the Geography of Transport Systems, the share of transportation to global CO2 emissions is rising. The transportation industry is responsible for 22% of carbon emissions recorded worldwide, with advanced economies like the US accounting for nearly one-fourth of this share.
To address the rising concern, the transport sector is gradually shifting towards automation. This also will create attractive opportunities for the growth of the automated trucks market, the market research and consulting agency said.
'The use of automated trucks is increasing in response to the improving penetration of automation technologies in the automotive sector and the growing need to improve logistical operations by eliminating delays due to unanticipated events such as accidents,' said a Fact.MR analyst.
According to the consulting agency, the US is anticipated to grow at 15% CAGR in the forecast period, and the UK market is expected to account for over 35% of the total market share. However, Asia is estimated to be the most lucrative market with a significant growth rate in the coming years.
Logistics will dominate the end-user segment accounting for over one-third of total revenue. By sensor, LiDAR-based autonomous vehicles are estimated to have a significant growth rate of 10% CAGR. The agency further said that the Class-8 and Class-9 trucks will be the most popular, accounting for half of the global sales. By autonomy level, Level-3 autonomous trucks are anticipated to hold three of every five sales.
Some of the growth drivers for this segment include research and development activities undertaken by major automobile manufacturers and the increasing adoption of electric cars, and increasing infrastructure in developing economies.
The market will accelerate from the efforts of OEMs and governments to create autonomous trucks. In addition, increasing government initiatives for easy access and affordable prices availability will bolster market growth, the report stated.
Courtesy: Fact.MR. NB: Photo is representational; courtesy: Volvo.