Connected Trucks Market Size

Connected Trucks Market size was valued at USD 24.3 billion in 2023 and is estimated to register a CAGR of over 14.5% between 2024 and 2032. The market growth is attributed to the rising demand for operational efficiency and cost savings. The need for improved operational efficiency and cost savings is a significant driver for the adoption of connected trucks. Fleet operators leverage connected technologies to optimize route planning, reduce idle time, monitor vehicle health, and enhance fuel efficiency.

For instance, in June 2023, Volvo Eicher Commercial Vehicles (VECV), a collaborative venture between the Volvo Group and Eicher Motors, reported that its Uptime Centre has significantly enhanced the operational reliability of its connected trucks and buses, leading to an impressive 98% improvement in uptime. This enhancement translates to substantial savings ranging from 7% to 10% for fleet operators. These measures contribute to overall cost reductions and improved profitability for trucking companies, which, in consequence, will foster the adoption of connected trucks market.

The increasing demand for remote diagnostics and predictive maintenance in the trucking industry is driving the widespread adoption of connected trucks. These technologies enable real-time monitoring of vehicle health, allowing for proactive maintenance and minimizing downtime. To that end, in March 2023, Volvo Trucks North America unveiled the Blue service contract, integrating connected services and asset data to implement an adaptive, dealer-managed preventive maintenance plan. Introduced at the Technology & Maintenance Council's 2023 Annual Meeting, the Volvo Blue service contract ensures that Volvo-certified technicians perform all tasks using authorized parts. It encompasses real-time monitoring, software management, and recall updates.

The primary goal is to streamline preventive maintenance scheduling for fleets and dealers alike. With the Blue service contract, dealers can proactively schedule maintenance 30 days in advance, leveraging connected fleet data for a more predictive approach. Fleet managers benefit from improved operational efficiency, reduced maintenance costs, and enhanced vehicle reliability. As the industry prioritizes cost-effective and streamlined operations, the integration of connected trucks market becomes pivotal in meeting the rising demand for efficient and predictive maintenance practices.

However, connected trucks rely heavily on data exchange and communication technologies, making them susceptible to cybersecurity threats. Concerns about data security and privacy breaches are significant barriers to adoption. Fleet operators and manufacturers must address these issues by implementing robust cybersecurity measures to protect sensitive information, including vehicle and cargo data, from unauthorized access and potential exploitation. Regulatory compliance and data protection concerns add complexity to the adoption of connected truck technologies.