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Truck-as-a-Service Market, Forecast to 2025

  • Report

  • 96 Pages
  • December 2018
  • Region: Global
  • Frost & Sullivan
  • ID: 4730443

Digitalization of Truck Services to Create $79.42 Billion Opportunity by 2025

The confluence of technologies in the trucking industry is providing a platform for various stakeholders to build service and solution-based revenue models. As commercial trucks increasingly integrate telematics devices, a plethora of services beyond tracking, from prognostics to asset management to driver behavior management, are being enabled. The industry view holds that digitaliizing the freight brokerage process has had the greatest impact on improving freight efficiency, reducing empty miles and emissions, as well as lowering the cost of trucking.

As a result, a slew of digital brokerage solutions are being funded across major truck markets in an effort to usher in digital brokerage. As consumers increasingly adopt digital channels of interaction with leading OEM brands and for purchases, digitalization of truck retailing is an eventuality that traditional truck OEMs are embracing starting with spare-part sales. Big Data and the Internet-of-Things (IoT) are offering opportunities for business solutions based on the examination of data. Be it monitoring the total-cost-of-ownership or deciding between leasing or outright purchases, past data can now be analyzed to make intelligent decisions.

Developments in autonomous driving technology would result in the creation of autonomous driving services, such as platooning technology, which can be offered on a subscription model. Platooning is touted to result in fuel savings of 4–11% per truck.

Digital freight brokerage, telematics services, business analytics, digitalization of retail and platooning are expected to rapidly expand the TaaS market from $13.26 billion in 2018 to over $79.42 billion in 2025. Digital freight brokerage is expected to be the biggest service revenue opportunity with a revenue potential of $54.24 billion. The global telematics devices market is expected to grow from 25.7M units in 2018 to 73.1M in 2025, growing at a CAGR of 16.1%. This will translate into service revenue growth from $5.14 billion in 2018 to $16.51 billion in 2025.

With rising connectivity, data security becomes a core issue. Governments and the truck industry will have to work together to make digitally-enabled service solutions more pragmatic, safe, and environmentally friendly. Increasing use of light-weighting features will make room for the additional payload to accommodate new devices.

Key Issues Addressed

  • What are the key new revenue opportunities emerging in the truck market?
  • What is driving the shift of trucking from a product business to a service business?
  • What is the futuristic strategy orientation of key truck OEMs?
  • What is the revenue potential of digital freight brokerage and truck telematics services in 2025?
  • What is the revenue potential of digital retailing and business analytics in the trucking industry in 2025?
  • What are the key initiatives, in terms of new products, that industry stakeholders need to take?

Key Conclusions

Into 2025, the trucking industry will experience high integration of real-time diagnostics, online booking of services and repairs, remote repairs, assisted repairs, and remote diagnostics and prognostics. OEMs will look to tap into these opportunities for revenue growth by investing in start-ups involved in digital technologies.

Table of Contents

1. Executive Summary
Executive Summary - Transformational Trends and Their Impact
Executive Summary - Top 5 Service Opportunities
Executive Summary - TaaS Market Size
Executive Summary - Key Findings
2. Research Scope, Objectives, Background, and Methodology
Research Scope
Research Aims and Objectives
Key Questions This Study Will Answer
Research Background
Research Methodology
3. Definitions and Segmentation
Commercial Vehicle Definitions and Vehicle Segmentation
Truck as a Service (TaaS) - Definitions
TaaS Geographic Coverage
4. Evolution of Truck as a Service (TaaS)
Potentially Disruptive Business Models Cited by Global CEO Survey
Paradigm Shift from Product to Service
Need to Transition from Product to Service
Digitization Enabling Service/Solution Model Evolution
5. Telematics/FMS
Telematics Service Revenue
Rising Penetration of Telematics Devices to Enable TaaS
Key Focus Areas in Telematics Packages
Roadmap of Key Telematics Services
Over-the-Air (OTA) Updates
Evolution of a New Business Model - No Contract/Initial Fee
TomTom Telematics - Collaborative Strategy for Growth
6. Digital Freight Brokerage
Brokerage Market Size
Investments in Digital Freight Brokerage
Growth Potential of Various Solutions
Future Value-added Services
7. Digital Retailing
Retail Digitalization Spending
Definition of Digital in Truck Retail
Evolution of Online and Digital Truck eRetail
Truck Retailing Strategy - From Push to Pull
Omni-Channel Retailing
Goodyear Roll - New Omni-channel Retail Strategy
Volvo Trucks - Using Social Media in a B2B Market
Future Store Formats
Aftermarket Services
Digital Aftermarket Parts Store in 2025
Digitization Expansion in Auto Parts and Service
Case Study - Alliance Truck Parts
8. Platooning
Platooning Market Size
Advantages of Platooning
Platooning - Level 2 Autonomous Driving Technology
Key Developments in Autonomous Trucking
Business Models for Truck Platooning
Platooning Market - Mergers, Acquisitions, and Investments
9. Business Analytics
Business Analytics - Services Revenue
Advantages of Business Analytics
Big Data Enabled Services
Business Analytics - Revenue Model
ATLAAS by Fleet Advantage - Big Data Solution for Private Fleets
Connvex by Fleet Complete - An Analytics Platform
Trimble Reveal by TMW* - A Multi-industry Platform
10. Blockchain - a Key New Technology for Services
Roadmap of Trucking Services on Blockchain
Role of Blockchain in Freight Brokerage
Services Using Blockchain
Case Study - Blockchainfirst Toll Collection System
11. Truck OEM Activities in TaaS
TRATON Group - Investing in RIO
MAN Trucks -  Innovations Roadmap
MAN Truck & Bus (UK) Attempts ‘Servitization’
Daimler Truck & Bus - New Global eMobility Group and Autonomous Development Center
Tata Motors Sets Up Mobility Innovation Hub
Nikola Motor Company - TaaS Value Proposition
12. Growth Opportunities in TaaS
Growth Opportunities
Growth Opportunity 1 - Dealership/OEM Omni-channel Retailing Strategy
Growth Opportunity 2 - CRM
Growth Opportunity 3 - Connectivity Solutions / Predictive Analytics
Strategic Imperatives for Success and Growth
13. Key Conclusions and Future Outlook
The Last Word - 3 Big Predictions
Legal Disclaimer
14. Appendix
Market Engineering Methodology
List of Exhibits

Companies Mentioned (Partial List)

A selection of companies mentioned in this report includes, but is not limited to:

  • Daimler Truck & Bus
  • Fleet Advantage
  • Fleet Complete
  • MAN Truck & Bus
  • Nikola Motor Company
  • Tata Motors
  • TMW
  • TRATON Group