Global demand for automated trucks is set to grow rapidly over the coming years as the logistics industry continues to adopt new technology and fleet management companies seek to reduce operational costs, according to the latest report by Transparency Market Research.
According to the report, the global automated truck market is projected to reach a valuation of $2 billion by 2027, expanding at a compounded annual growth rate (CAGR) of 55% during that period driven by a range of macroeconomic and industry-specific factors.
Asia-Pacific is expected to be at the forefront of global demand, with the automated truck market in the region expanding at 40% CAGR between 2019 and 2027. The automated truck market in North America is also projected to expand at a high pace due to the significant shortage of truck drivers in the US and Canada.
The global automated truck market is projected to reach a valuation of $2 billion by 2027
The mining industry is likely to remain an attractive end-use industry through 2019, as mining companies look to expand their output capacities to meet the surging demand for minerals from manufacturing industries. High investments for the automation of mines by large mining firms such as Rio Tinto and BHP Billiton are anticipated to boost the demand for automated haul trucks.
However, the rise of e-commerce portals in the coming years and their demand for logistics are likely to outstrip the market share of the mining industry in terms of value, the report says.
Automated trucks can be safely driven with little or no assistance on roads with the help of artificial intelligence and cloud data. These vehicles can work for longer durations without any break, and hence, result in higher work efficiency.
As a result, automated trucks are anticipated to notably impact the logistics and mining industries, owing to extensive utilization of automated haul trucks in mines and rising investments by key truck manufacturers and technology companies.
Moreover, the rising inclination of the automotive industry toward vehicle connectivity and intelligent transportation has prompted manufacturers to focus on the development of autonomous trucks.