Market Trends of Autonomous Truck Industry
This section covers the major market trends shaping the Autonomous Truck Market according to our research experts:
ADAS demand is on the rise
Rising awareness among customers is leading to growth in demand for vehicles with autonomous and advanced safety features. 90% of the customers who opt for any ADAS system in their vehicle become repeat purchasers. Government norms and policies are also boosting the sales of the ADAS market. US and European authorities will make the installation of Automotive Emergency Braking (AEB) mandatory by 2022 and the Forward Collision Avoidance/Warning System by 2020.
The complete ADAS systems are featured in expensive luxury segment vehicles only. Many truck OEMs collaborate with ADAS manufacturing companies to produce low-cost ADAS systems. However, vehicles (commercial and passenger) register a minute average annual growth of 1% in their prices, while ADAS systems are expensive due to their high manufacturing cost. OEMs may show reluctance in increasing the prices of small and mid-sized vehicle segments, and ADAS companies might not get the expected return. This factor might hinder the growth of the ADAS market.
Top OEM suppliers have adopted the strategy of partnering with technology companies to develop ADAS. Tech companies like Nvidia have entered this space to provide services to companies such as Volvo and Paccar. Amazon is using Embark's self-driving trucks to deliver its cargo.
Passive safety (safety measures to prevent drivers from injuries during or after the crash) has seen a lot of innovations in the past decades, andminimale scope for improvement is left to make in the markets of developed geographies. Companies are now focusing on providing the best passive safety in developing markets. Active Safety (to predict and avoid crashes) is in its initial stage and has a lot to offer. Any ADAS technology that gets early approval from a majority of players will play a crucial role in the development of fully autonomous vehicles in the future.
North America is leading the autonomous truck market
Although Autonomous trucks are in the early stage of adoption across the globe in geographies such as Europe and the Asia Pacific, North America is currently the largest market due to the availability of infrastructure and significant technology companies that are entering autonomous driving segment.
The rising electrification of vehicles due to infrastructure development by companies such as Tesla is also propelling the market in North America. The induction of x-by-wire technology in electric vehicles is helping in the improvement of autonomous driving.
In Sep 2021, PACCAR teamed up with Aurora, a leading autonomous driving technology company, to launch a commercial pilot of autonomous trucks in hauling operations in Washington. The technology is expected to be used by FedEx.
In 2019, Daimler Trucks North America partnered with Torc Robotics and started testing autonomous trucks at Interstate 81 in Virginia. At CES 2020, Kenworth Truck Co. unveiled its autonomous truck technology based on the T680 truck. The autonomous truck uses sensors and LiDAR and collects up to 1 terabyte of data per hour during driving.
