Truck-as-a-Service (TaaS) Market Size, Share & COVID-19 Impact Analysis, By Truck Type (Light Duty Trucks and Heavy Duty Trucks), By Service Type (Digital Freight Brokerage, Telematics, Truck Platooning, and Rental and Leasing), By End Use (Automobiles, Machinery, Apparels & Footwear, Pharmaceutical Products, Retail, Electronics, Petrochemicals, Agriculture, Building Materials, and Others), and Regional Forecast, 2023-2030

The global truck-as-a-service (TaaS) market size was valued at USD 150.72 billion in 2022. The market is projected to grow from USD 160.03 billion in 2023 to USD 405.03 billion by 2030, exhibiting a CAGR of 14.2% during the forecast period.The North America dominated the Truck-as-a-Service (TaaS) Market with a share of 54.38 % in 2022.

TaaS is revolutionizing the logistics sector, presenting an on-demand model for trucking services. By leveraging digital platforms and cutting-edge technology, TaaS optimizes route planning, matches shippers with carriers, and enhances overall operational efficiency. Its flexibility allows businesses to scale transportation resources based on demand, reducing undue expenditures.

As the industry evolves, TaaS is becoming a pivotal solution, offering a dynamic and cost-effective approach to freight transportation with implications for supply chain optimization and the broader transformation of the traditional trucking model.

COVID-19 IMPACT

Halt in the Movement of Goods Owing to the Pandemic Hindered the Market Stability

The COVID-19 pandemic had a considerable effect on the market. The global lockdowns, restrictions on movement, and disruptions to supply chains resulted in a decline in transportation demand, affecting TaaS providers. Businesses facing economic uncertainties and supply chain disruptions reconsidered their logistics strategies, impacting the adoption of TaaS solutions.

However, the pandemic also underscored the importance of flexibility and adaptability in logistics. TaaS, with its scalable and subscription-based model, became an attractive option for businesses navigating uncertainties. In addition, the need for real-time tracking, efficient route optimization, and cost-effective solutions gained prominence during the crisis, further emphasizing the value proposition of TaaS.

As economies recover and logistics operations adapt to the new normal, this market is expected to rebound. The pandemic underscores the resilience and agility offered by TaaS solutions, making them an integral part of future transportation strategies as businesses prioritize flexibility and cost-efficiency in a post-pandemic landscape. Ongoing digitization and the pursuit of sustainable transportation options are likely to drive the continued growth of this market.

Truck-as-a-Service (TaaS) Market Trends

Integration of the Internet of Things (IoT) for a Sustainable Future is a Growing Market Trend

The TaaS market is experiencing a transformative phase driven by several technological trends that are reshaping the landscape of logistics and transportation. One of the key trends is the advanced integration of telematics and Internet of Things (IoT) technologies. Real-time tracking and monitoring of trucks enable efficient fleet management, optimize routes, and provide valuable data for predictive analytics, enhancing overall operational efficiency. Moreover, the development and testing of autonomous driving solutions have gained momentum. While fully autonomous trucks are still in the experimental stage, there is a growing focus on driver-assistive technologies and platooning, where trucks travel closely together to improve fuel efficiency and reduce congestion.

Autonomous trucking has also emerged as a transformative technology, promising to revolutionize the logistics and transportation industry. The trend extends beyond the theoretical exploration of fully autonomous trucks to practical applications involving driver-assistive technologies and platooning. The technological trend of autonomous driving and IoT aligns with broader industry goals of improving efficiency, reducing upfront costs, and addressing challenges such as the shortage of qualified drivers. As the technology develops and gains acceptance, it is poised to redefine the dynamics of this market, offering businesses the potential for safer, more cost-effective, and sustainable transportation solutions.

Truck-as-a-Service (TaaS) Market Growth Factors

Growing Focus on Sustainability to Foster the Market Growth

One major factor currently propelling the growth of this market is the increasing focus on sustainability and the adoption of electric and alternative fuel technologies. The transportation industry, including trucking, has been a notable contributor to carbon emissions and environmental degradation. In response, there is a growing emphasis on decarbonizing the logistics sector and TaaS providers are playing a pivotal role in this transformation.

Governments worldwide are implementing stringent emission standards and regulations, pushing the industry toward cleaner and more sustainable practices. As a result, TaaS providers are actively integrating electric and hybrid trucks into their fleets. Electric trucks, in particular, have gained prominence due to their zero-emission nature, reduced operational costs, and the potential for long-term sustainability. The adoption of alternative fuels, growing charging infrastructure such as hydrogen, is also being explored to reduce the environmental impact of trucking operations further.

The push toward sustainability in TaaS is not merely a response to regulatory pressures but is increasingly becoming a strategic business imperative. Companies are recognizing its importance and contributing to global sustainability initiatives.

This sustainability-driven market driver aligns with the broader societal shift toward environmentally responsible practices and reflects the commitment of the TaaS industry to be at the forefront of a more sustainable and greener future for the trucking and logistics sector. As the requirement for eco-friendly transportation solutions continues to grow, TaaS providers embracing sustainable technologies are expected to gain a competitive edge in the evolving market landscape.

RESTRAINING FACTORS

Complexities Related to the Regulatory Landscape May Restrain the Market Growth

One major market restraint currently challenging the growth of this market is the complex regulatory landscape and uncertainties surrounding the integration of autonomous driving technologies. While autonomous driving holds immense promise for transforming the trucking industry by enhancing safety efficiency and reducing operational costs, navigating the regulatory environment poses significant challenges. The uncertainty surrounding autonomous driving regulations introduces hesitancy among TaaS providers to make substantial investments in fully autonomous fleets. This restraint hinders the realization of the full potential of autonomous technologies to revolutionize the trucking industry, improve road safety, and enhance operational efficiency.

The lack of uniformity in regulations adds a layer of complexity for TaaS providers, who must navigate different sets of rules and standards as they operate across diverse geographical areas. In addition, concerns related to safety, liability, and the ethical considerations of autonomous systems are contributing to regulatory hesitancy. Autonomous driving technologies, including advanced driver assistance systems (ADAS) and platooning, are progressively being integrated into TaaS fleets. However, the absence of clear and comprehensive regulations hampers the scalability and widespread adoption of these technologies.

As the industry works toward overcoming these regulatory challenges, collaboration between TaaS providers, technology developers, and regulatory bodies becomes crucial. The industry's ability to navigate and influence the regulatory landscape will significantly impact the pace and scale of autonomous technology adoption in the TaaS sector.

Truck-as-a-Service (TaaS) Market Segmentation Analysis

By Truck Type Analysis

Light Duty Trucks Segment Secures the Largest Share Owing to Growing Deployment of Flexible Transportation Solutions by Businesses

By truck type, this market is segmented into light duty trucks and heavy duty trucks.

The light duty trucks segment is experiencing the fastest growth and dominance as businesses increasingly leverage on-demand and flexible transportation solutions. Light duty trucks, including pickups and vans, are integral for last-mile delivery and urban logistics. Truck-as-a-service providers catering to this segment offer scalable services, optimize delivery routes, and provide cost-effective alternatives for businesses with varying transport needs. The agility of light-duty trucks within the truck-as-a-service framework aligns with the demands of e-commerce, local deliveries, and diverse industries contributing to the overall expansion of truck-as-a-service solutions in the evolving landscape of modern logistics and transportation services.

The heavy duty trucks segment is witnessing substantial rise in the truck-as-a-service (TaaS) market growth due to the rising demand for scalable and efficient freight transportation solutions. These trucks play a pivotal role in long-haul logistics, offering substantial cargo capacity and enhanced performance.

By Service Type Analysis

Growing Demand for Scalable Transportation Solutions to Spur the Rental and Leasing Segment Growth

By service type, this market is classified into digital freight brokerage, telematics, truck platooning, and rental and leasing.

The rental and leasing segment is currently dominating the global market. By offering businesses flexibility without long-term commitments, rental and leasing services provide cost-effective access to trucks. This segment's growth is fueled by the increasing demand for scalable and temporary transportation solutions that align with the core principles of TaaS.

The telematics segment is witnessing the fastest growth rate in the truck-as-a-service (TaaS) market share. Telematics technologies enable real-time tracking, monitoring, and data collection from trucks, optimizing fleet management. This growth is because of increasing demand for enhanced operational efficiency, improved safety, and data-driven insights, positioning telematics as a crucial component in the evolving truck-as-a-service landscape. The major market players are increasingly focused on equipping advanced telematics systems, further driving the segmental growth.

• For instance, in January 2023, ZF Friedrichshafen AG announced its acquisition of Intellic as a strategy from ZF to advance in next-generation Fleet Connectivity technology for commercial vehicles.

The digital freight brokerage segment is experiencing considerable growth in the market. By leveraging advanced technology and digital platforms, digital freight brokers connect shippers with carriers efficiently. This segment optimizes freight matching, enhances visibility, and streamlines logistics operations, contributing to the overall expansion and efficiency of the TaaS ecosystem.

The truck platooning segment is experiencing notable growth in the market. By utilizing advanced connectivity and autonomous driving technologies, truck platooning enhances fuel efficiency, reduces congestion, and improves overall logistics. This segment's growth is driven by the quest for cost savings, increased safety, and the optimization of transportation operations within the truck-as-a-service framework.

By End Use Analysis

Surge in Agricultural Produce to Fuel the Agriculture Segment Expansion

In terms of end use, the truck-as-a-service market is divided into apparels & footwear, petrochemicals, automobiles, machinery, building materials, pharmaceutical products, retail, electronics, agriculture, and others.

The agriculture segment dominated with the maximum share in 2022 and the segment is anticipated to display similar statistics during the forecast period. Agricultural products need fast and timely logistics services and large quantities of some perishable fruits with limited shelf life. Most food product industries depend on various truck types, as some need temperature control for the transportation of raw materials to their manufacturing units and delivery of finished products to consumers without quality deterioration. A rise in such agricultural produce has led to the segmental growth.

The retail is the fastest-growing sector. With rising globalization, international retailers are becoming increasingly competitive. These retailers are opening new stores in developing countries, such as in the Asia Pacific region, experience intense competition. This results in a surge in economic activity and facilitates transportation between regions. Therefore, the demand for road transport services to speed up the delivery of products is increasing, thereby increasing the retail segment of the market.

Other segments, such as machinery, apparels & footwear, automobiles, pharmaceutical products, petrochemicals, electronics, building materials, and others also have a significant growth rate in the market.

REGIONAL INSIGHTS

With respect to region, this market is segregated into Europe, North America, the Asia Pacific, and the rest of the world.

The North America market for truck-as-a-service exhibits a robust and dominant nature. North America region is currently dominating with the increased a well-established logistics infrastructure, advanced technological adoption, and a strong focus on sustainability characterize the region. The U.S. and Canada, in particular, are witnessing increased TaaS adoption, driven by the need for efficient and scalable transportation solutions. The presence of major TaaS providers and a supportive regulatory environment contribute to the market's growth in this region.

Europe stands as a significant player in the global TaaS market, with countries such as Germany, the U.K, and France at the forefront. The European market benefits from stringent emission regulations, promoting the adoption of electric and low-emission TaaS solutions. In addition, the region's emphasis on smart transportation and integrated mobility solutions further fuels the demand for TaaS as a viable and sustainable alternative.

• For instance, in February 2023, Swedish electric truck start-up Volta expanded its TaaS network in Europe. Volta expanded its TaaS network with two new sites in Duisburg, Germany, Madrid, and Spain. Volta is utilizing both new sites in Germany and Madrid to provide a full range of customer support and training, as well as maintenance and service, for the fleet of battery electric trucks deployed in those markets.

Asia Pacific, with its diverse and dynamic economies such as China, Japan, and India represents a burgeoning market for TaaS. The region's rapid urbanization, population growth, and increasing number of e-commerce activities are driving the demand for efficient logistics and transportation solutions. Governments in the region are also investing in smart city initiatives, contributing to the adoption of TaaS for enhanced mobility and reduced congestion.

The rest of the world market for truck-as-a-service is gradually gaining traction. The need for cost-effective and scalable transportation solutions, coupled with increasing urbanization and economic development, fuels the demand for TaaS in these regions.

List of Key Companies in Truck-as-a-Service (TaaS) Market

Convoy Inc. Led Due to Deployment of Innovative Technology and Strategic Partnerships

Convoy has reached a leading position in this period of 3 to 4 years by leveraging strategic partnerships and innovative technology to address key challenges within the freight and logistics industry. One of the primary reasons for Convoy's leadership is its emphasis on efficiency through digitalization. The company utilizes a digital freight network that connects shippers and carriers seamlessly.

Convoy has also distinguished itself through a focus on cost savings and sustainability. The platform offers features such as automated matching, real-time tracking, and data-driven insights, allowing businesses to reduce transportation costs and make informed decisions. Moreover, strategic partnerships and collaborations have been instrumental in Convoy's success. The company has formed alliances with major players in the industry, including shippers, carriers, and technology providers. These partnerships enhance the reach and capabilities of the Convoy platform, contributing to its status as a reliable solution for businesses seeking efficient TaaS options.

In conclusion, Convoy's leadership in this market is characterized by its technologically advanced platform, a commitment to sustainability, strategic partnerships, and a keen focus on addressing critical issues in the freight and logistics industry.

LIST OF KEY COMPANIES PROFILED:

• Convoy Inc.(U.S.)


• Trimble Transportation (U.S.)


• Omnitracs LLC (U.S.)


• OCTO Telematics Ltd. (Italy)


• Microlise Limited. (India)


• Masternaut Limited. (U.K.)


• Transfix (U.S.)


• Fleet Advantage LLC. (U.S.)


• Volta Trucks (Sweden)


• Fleet Complete (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• November 2023, Hydrogen Vehicle Systems Limited (HVS) partnered with Zeti, which will involve collaboration with Gravis Capital to provide a Transport as a Service offering to customers of HVS Hydrogen Fuel Cell Trucks.


• September 2023, Volta Trucks, a commercial vehicle manufacturer and services provider, signed a partnership with Spryker. In this regard, Volta Trucks aims to simplify truck ownership and accelerate the transition to an all-electric fleet through its innovative TaaS offering. Spryker will help accelerate its vision by bringing the TaaS model to life digitally and developing essential digital functionality while maintaining flexibility to adapt. The innovative project will be implemented in partnership with Amazon Web Services.


• August 2023, Webfleet, Bridgestone’s fleet management solution, announced a strategic partnership with e-fleet solutions provider VEV to boost the commercial electric vehicle (EV) transition. VEV provides a comprehensive fleet solution, helping commercial fleets build a robust fleet management system.


• June 2023, 25 Volvo e-trucks for climate-friendly container transports in Germany was purchased by Maersk. This aimed to minimize GHG emissions in hinterland container transports and highlights the company's commitment to decarbonizing global logistics and to becoming a net-zero company by 2040 across all business areas and all transport modes.


• April 2023, Volta Trucks partnered with global finance company DLL to provide financial support. The funding will enable Volta Trucks to offer customers a wide range of financing solutions for the all-electric Volta Zero through the company’s TaaS offering.

REPORT COVERAGE

The report provides detailed market analysis and focuses on many key aspects, such as leading trucking companies, product types, and product applications. Besides this, it offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market over recent years.

Report Scope & Segmentation

ATTRIBUTE	DETAILS
Study Period	2017-2030
Base Year	2022
Estimated Year	2023
Forecast Period	2023-2030
Historical Period	2017-2021
Growth Rate	CAGR of  14.2% from 2023 to 2030
Unit	Value (USD Billion)
Segmentation	By Truck Type Light Duty Trucks Heavy Duty Trucks
By Service Type Digital Freight Brokerage Telematics Truck Platooning Rental and Leasing
By End Use Automobiles Machinery Apparels & Footwear Pharmaceutical Products Retail Electronics Petrochemicals Agriculture Building Materials Others
By Geography North America (By Truck Type, By Service Type, and By End Use) U.S. (By End Use) Canada (By End Use) Mexico (By End Use) Europe (By Truck Type, By Service Type, and By End Use) UK (By End Use) Germany (By End Use) France (By End Use) Rest of Europe (By End Use) Asia Pacific ( By Truck Type, By Service Type, and By End Use ) China (By End Use) Japan (By End Use) India (By End Use) South Korea (By End Use) Rest of Asia Pacific (By End Use) Rest of the World ( By Truck Type, By Service Type, and By End Use )