SANTA CLARA, Calif., Feb. 28, 2019 /PRNewswire/ — The surge in service- and solution-based revenue streams following the rise in digital transformation, autonomous trucking, urban trucking, platformization, and dealership evolution is expected to propel the $11.2 billion Truck-as-a-Service (TaaS) market toward $79.42 billion in 2025. Digital freight brokerage is likely to be the biggest market segment with revenue potential of $54.2 billion, while the telematics devices segment is anticipated to grow from 25.7 million units in 2018 to more than 73.1 million in 2025. With the world’s leading truck OEMs like the Traton Group, Daimler Trucks, and Volvo Trucks showing clear intention to adopt connected, autonomous, digital, and smart services, TaaS is set to take off.
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“Lack of instant load and rate visibility, frequently delayed payments and operating cash crunches are creating a huge market for digital brokerage solutions, as in the very least they enable faster brokerage, instant electronic upload of proof of delivery as well as electronic payment terms,” said Silpa Paul, Industry Analyst, Mobility. “Meanwhile, Big Data and Internet of Things (IoT) are spawning opportunities for business solutions based on data analysis, and autonomous driving technology is fostering services such as platooning, which are expected to deliver fuel savings of 4 percent to 11 percent per truck.”
Frost & Sullivan’s recent analysis, Truck-as-a-Service Market, Forecast to 2025, covers the service segments of telematics, platooning, business analytics, retail digitalization, and digital freight brokerage. The geographic scope of the study covers North America, Europe, South America, China, India, and rest-of-the-world.
“By 2025, online channels are likely to become the key differentiating sales tool for OEMs and dealers. Almost 70 percent of sales leads will come through digital channels rather than traditional channels, and an omni-channel strategy will help increase lead conversion by 40 percent to 50 percent,” noted Paul. “OEMs will also be looking to deliver new services, such as automated freight aggregation, as a value addition to their fleet customers.”
Successful OEMs and dealers will identify and respond to the following revenue opportunities:
- Investing in start-ups involved in digital technologies. This will help OEMs cope with a highly integrated ecosystem of real-time diagnostics, online booking of services and repairs, remote repairs, assisted repairs, remote diagnostics, and prognostics.
- Leveraging omni-channel customer touchpoints to develop a seamless, personalized customer experience across digital and brick-and-mortar channels.
- Developing a robust CRM program that can convert digital sales leads, build customer loyalty, and sell after-sales services and maintenance.
- Differentiating through a connected after-sales offering. This will enable OEMs and dealerships to gain additional insights into customer behavior.
- Servitising new technologies such as advanced driver assistance systems (ADAS); safety; health, wellness and wellbeing (HWW); and driver training.
Truck-as-a-Service Market, Forecast to 2025 is part of Frost & Sullivan’s global Automotive & Transportation Growth Partnership Service program.
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