Connected Truck

Connected Truck Market Outlook

The global connected truck market is poised to reach a valuation of approximately USD 115 billion by 2035, growing at a compound annual growth rate (CAGR) of 25% during the forecast period of 2025 to 2035. The increasing demand for advanced connectivity in commercial vehicles, driven by the need for enhanced fleet management, safety features, and operational efficiency, is a significant growth factor. Furthermore, the growing trend of digitalization across the transportation sector, coupled with the rising adoption of telematics solutions, is expected to accelerate the expansion of the connected truck market. Innovations in communication technologies and the push for regulatory compliance in safety and emissions standards are also contributing to market growth. Moreover, the escalating emphasis on sustainability and the reduction of operational costs through smart logistics are driving fleet operators toward the adoption of connected truck technologies.

Growth Factor of the Market

Several factors are driving the growth of the connected truck market, including technological advancements in IoT and data analytics, which enable real-time tracking and monitoring of vehicle performance. The increasing integration of artificial intelligence in fleet operations is also playing a pivotal role in enhancing operational efficiency, leading to significant cost savings for logistics companies. Furthermore, the growing demand for enhanced safety features, such as automatic braking systems and lane-keeping assistance, is compelling manufacturers to incorporate connected technologies into their vehicles. The ongoing transition toward electric and autonomous vehicles is expected to further boost the connected truck market, as these vehicles rely heavily on connectivity for navigation and performance optimization. Additionally, governmental regulations promoting eco-friendly practices are encouraging fleet operators to adopt advanced connectivity solutions, fueling market growth.

Key Highlights of the Market

• The connected truck market is anticipated to witness a CAGR of 25% from 2025 to 2035.
• North America is expected to dominate the market, accounting for over 45% of the global market share by 2035.
• The increasing integration of AI and IoT technologies in fleet management is driving market innovation.
• 5G connectivity is set to revolutionize communication types in connected trucks, offering real-time data transmission.
• Fleet management applications are projected to hold the largest share within the application segment, emphasizing efficiency and safety.

By Component

Hardware :

The hardware segment of the connected truck market comprises various components such as onboard sensors, telematics devices, and communication modules. These hardware systems are essential for facilitating connectivity and enabling the transfer of data between the truck and external systems. The evolving landscape of automotive technology, particularly with the advent of advanced sensors and GPS systems, is significantly enhancing the capabilities of connected trucks. The hardware segment is expected to witness substantial growth due to the increasing demand for real-time monitoring of vehicle performance, which is critical for fleet management and operational optimization. Moreover, ongoing advancements in miniaturization and energy efficiency are further driving the adoption of sophisticated hardware solutions.

Software :

The software segment of connected trucks encompasses applications that facilitate fleet management, data analytics, and vehicle-to-cloud communication. With the rise of big data and machine learning, software solutions are becoming increasingly sophisticated, enabling fleet operators to gain valuable insights from the data collected. These solutions enhance operational efficiency by providing predictive maintenance alerts and optimizing route planning based on real-time traffic conditions. The increasing reliance on cloud-based platforms for managing and analyzing vast amounts of data is propelling the growth of the software segment, particularly as more companies shift toward digital transformation in their operations. Consequently, the software segment represents a vital aspect of the connected truck ecosystem.

Services :

The services segment includes various offerings such as maintenance, support, and installation services associated with connected truck technologies. As the market continues to expand, the demand for comprehensive service packages that ensure the optimal functioning of connected systems is on the rise. Service providers are increasingly focusing on delivering value-added services that enhance the overall ownership experience for fleet operators. The integration of remote diagnostics and troubleshooting services is gaining traction, allowing for proactive maintenance and minimizing downtime. This growing trend towards service-oriented business models within the connected truck market suggests that companies are placing significant emphasis on customer satisfaction and after-sales support.

By Communication Type

Vehicle-to-Cloud :

The Vehicle-to-Cloud (V2C) communication type facilitates seamless data exchange between connected trucks and cloud-based platforms, enabling real-time data analytics and monitoring. This communication method is crucial for fleet operators to access valuable information remotely, allowing for enhanced decision-making and improved operational efficiency. The increasing adoption of cloud computing solutions in the logistics sector is driving the growth of V2C communication, as it provides the infrastructure needed to manage and analyze vast amounts of data collected from vehicles. Moreover, the scalability and flexibility offered by cloud solutions are appealing to businesses looking to optimize their fleet operations without making significant investments in on-premises infrastructure.

Vehicle-to-Infrastructure :

Vehicle-to-Infrastructure (V2I) communication plays a vital role in enhancing road safety and traffic management for connected trucks. By enabling communication between vehicles and surrounding infrastructure—such as traffic signals, road signs, and toll booths—this technology is crucial for optimizing traffic flow and reducing congestion. The implementation of V2I communication systems is increasingly being embraced by municipalities and transportation agencies as it enhances urban mobility and safety. As smart cities continue to evolve, the demand for V2I communication in connected trucks is expected to grow, leading to improved logistics operations and a reduction in transportation-related emissions.

Vehicle-to-Vehicle :

Vehicle-to-Vehicle (V2V) communication is a critical component in promoting safety and efficiency in connected truck operations. This communication type allows trucks to share information regarding their speed, position, and direction with one another, enhancing situational awareness and reducing the risk of accidents. By facilitating real-time alerts regarding potential hazards, V2V communication significantly contributes to accident prevention and overall road safety. The increasing focus on enhancing safety standards in the transportation sector is driving the adoption of V2V technologies, as fleet operators recognize the importance of proactive safety measures. Furthermore, the growing integration of autonomous vehicle technologies is expected to further bolster the demand for V2V communication systems.

By Application

Fleet Management :

The fleet management application segment is one of the largest contributors to the connected truck market, as it encompasses various functionalities that enhance the operational efficiency and safety of commercial vehicles. Fleet management solutions leverage data analytics and real-time monitoring to optimize routes, reduce fuel consumption, and improve overall fleet utilization. These applications enable fleet operators to monitor vehicle health, track driver behavior, and ensure compliance with regulatory requirements. With the increasing complexity of logistics operations and the rising demand for cost-effective solutions, fleet management applications are becoming indispensable for businesses seeking to maintain a competitive edge in the transportation industry.

Remote Diagnostics :

Remote diagnostics applications play a crucial role in ensuring the optimal performance of connected trucks by enabling fleet operators to monitor vehicle systems in real-time. This application allows for the early detection of potential issues before they escalate into costly repairs, leading to significant reductions in maintenance expenses and vehicle downtime. By providing insights into engine performance, fuel efficiency, and other critical metrics, remote diagnostics empower fleet managers to make informed decisions regarding maintenance schedules and vehicle replacements. The growing adoption of predictive maintenance techniques, facilitated by remote diagnostics applications, is driving the overall demand for connected truck technologies among fleet operators.

Safety & Compliance :

Safety & compliance applications are increasingly becoming essential for connected trucks, as they enable businesses to meet regulatory requirements while enhancing the safety of their operations. These applications provide real-time monitoring of driver behavior, vehicle performance, and environmental conditions, ensuring adherence to safety regulations and protocols. By leveraging advanced analytics and reporting tools, fleet operators can identify areas for improvement and implement necessary training programs to enhance driver safety. With the growing emphasis on reducing accidents and improving compliance standards, safety & compliance applications are expected to gain significant traction in the connected truck market.

Predictive Maintenance :

Predictive maintenance applications are revolutionizing the connected truck market by allowing fleet operators to anticipate and address maintenance issues before they become critical. By utilizing advanced algorithms and machine learning techniques, these applications analyze historical data to predict potential failures and recommend maintenance schedules. This proactive approach reduces vehicle downtime and maintenance costs, enabling companies to optimize their fleet operations effectively. The increasing focus on minimizing operational costs and maximizing asset utilization is driving the demand for predictive maintenance solutions in the connected truck market, reinforcing their importance in contemporary fleet management practices.

By Connectivity

4G/LTE :

The 4G/LTE connectivity type has been a significant enabler for the connected truck market, providing the necessary bandwidth for real-time data transmission and communication between vehicles and external networks. With the capability to support various applications such as fleet management, remote diagnostics, and safety systems, 4G/LTE has become the backbone of connected truck technologies. As fleet operators increasingly rely on connectivity to enhance operational efficiency and safety, the adoption of 4G/LTE solutions is expected to continue growing. However, with the emergence of 5G technology, the market is gradually transitioning to more advanced connectivity options that offer even greater speed and reliability.

5G :

5G technology is set to transform the connected truck market by providing ultra-fast connectivity, low latency, and enhanced reliability. This next-generation communication standard enables real-time data exchange and seamless communication between vehicles, infrastructure, and the cloud, significantly improving operational efficiency. The implementation of 5G connectivity will facilitate advanced applications such as autonomous driving, real-time traffic management, and vehicle-to-everything (V2X) communication. As more fleet operators recognize the advantages of 5G technology in optimizing their logistics operations, the demand for connected trucks equipped with 5G solutions is expected to surge in the coming years.

Wi-Fi :

Wi-Fi connectivity is increasingly being utilized in connected trucks for various applications, including driver connectivity, infotainment systems, and data transfer between vehicles and maintenance facilities. This connectivity type provides a cost-effective solution for fleet operators to maintain communication and access cloud-based applications while on the road. The growing demand for improved in-cabin experiences and the need for reliable data exchange are driving the adoption of Wi-Fi solutions in connected trucks. As logistics companies continue to prioritize employee productivity and passenger comfort, Wi-Fi connectivity is expected to play an essential role in the connected truck ecosystem.

By Region

In the North American region, the connected truck market is anticipated to dominate due to the high adoption rates of advanced technologies and stringent regulations related to vehicle safety and emissions. The market is projected to account for over 45% of the global market share by 2035, fueled by the presence of several key players and a robust logistics infrastructure. Moreover, the increasing focus on enhancing fleet efficiency and reducing operational costs among fleet operators is contributing to the growth of the connected truck market in North America. The CAGR in this region is expected to be around 23% during the forecast period, reflecting the region's strong commitment to embracing connected vehicle technologies.

Europe is also expected to witness significant growth in the connected truck market, driven by the increasing demand for regulatory compliance and safety features among commercial fleets. The European market is projected to capture approximately 30% of the global market share by 2035, with key players focusing on developing innovative solutions tailored to the region's unique requirements. The ongoing investment in infrastructure improvements and smart transportation initiatives is further propelling the adoption of connected truck technologies in Europe. As the demand for fuel efficiency and eco-friendly practices continues to rise, the connected truck market in this region is expected to grow at a CAGR of 21% during the forecast period.

Opportunities

The connected truck market presents numerous opportunities for growth and innovation, particularly with the increasing demand for electric and autonomous vehicles. As manufacturers invest in electrification and automation technologies, there is a significant opportunity for the integration of connected solutions that enhance the performance and safety of these vehicles. Fleet operators are increasingly seeking ways to optimize their operations and reduce their environmental impact, creating a market ripe for connected truck technologies that facilitate energy efficiency and sustainability. Furthermore, the ongoing development of smart city initiatives creates opportunities for collaboration between vehicle manufacturers, technology providers, and governmental agencies, paving the way for the deployment of advanced connected truck solutions that improve urban mobility and logistics.

Additionally, the rise of e-commerce and the growing demand for last-mile delivery services are fueling the need for connected trucks equipped with advanced routing and tracking capabilities. Fleet operators are seeking solutions that enable real-time visibility and responsiveness to changing consumer demands, leading to increased investment in connected truck technologies. The potential for integration with emerging technologies such as artificial intelligence, big data analytics, and blockchain further enhances the growth prospects of the connected truck market. As businesses transition toward data-driven decision-making, the demand for sophisticated connectivity solutions that provide actionable insights will continue to increase, presenting substantial opportunities for market participants.

Threats

The connected truck market faces several threats that could hinder its growth potential, including cybersecurity concerns and the potential for data breaches. As vehicles become increasingly connected, they also become more vulnerable to cyberattacks that could compromise sensitive data and disrupt operations. Fleet operators must invest heavily in cybersecurity measures to protect their systems and data from potential threats. Moreover, the complexity of integrating connected truck technologies with existing infrastructure poses a challenge, as it requires significant investment and collaboration among various stakeholders. The pace of technological advancement may also outstrip regulatory frameworks, leading to uncertainties in compliance and safety standards, which could impede the widespread adoption of connected truck solutions.

Another significant threat to the connected truck market is the fluctuating economic conditions that can impact fleet operators' budgets and investments. Economic downturns can lead to reduced demand for logistics services, prompting fleet operators to delay or scale back investments in connected truck technologies. Additionally, competition among technology providers to establish dominance in the market may lead to price wars, ultimately impacting profit margins for key players. The rapid pace of technological development may also exclude smaller companies that lack the resources to keep up, resulting in market consolidation and reduced innovation in the long run. These threats necessitate vigilance and adaptability among market participants to navigate the complexities of the evolving connected truck landscape.

Competitor Outlook

• Volvo Group
• Scania
• DAF Trucks
• Mercedes-Benz Trucks
• MAN Truck & Bus
• Navistar International
• Paccar Inc.
• Wabco Holdings
• Bosch Mobility Solutions
• Teletrac Navman
• Omnicomm
• Geotab
• Trimble Inc.
• Verizon Connect
• Fleet Complete

The competitive landscape of the connected truck market is characterized by the presence of several established players and numerous emerging companies striving to capture market share through innovation and strategic partnerships. Major companies in this space are increasingly focusing on the development of advanced connectivity solutions that enhance vehicle performance and operational efficiency, thus improving the overall value proposition for fleet operators. A significant trend observed in the market is the collaboration between technology providers and traditional truck manufacturers to create integrated solutions that address the evolving needs of the logistics sector. This collaboration enables the exchange of expertise and resources, allowing companies to deliver superior products and services to their customers.

Companies such as Volvo Group and Scania are at the forefront of the connected truck market, leveraging their extensive experience in the automotive industry to develop innovative solutions that improve fleet management and safety. Volvo Group is known for its commitment to sustainability, and it has been actively investing in electric and autonomous vehicle technologies, creating a strong platform for the integration of connected features. Meanwhile, Scania has been focusing on developing telematics solutions that enhance the efficiency and performance of its vehicles, reinforcing its competitive position in the market. These companies are continuously enhancing their product offerings through research and development initiatives to meet the increasing demand for connected solutions in the transportation sector.

Additionally, companies such as Geotab and Teletrac Navman are emerging as significant players in the connected truck market by providing comprehensive fleet management solutions that leverage IoT technologies for real-time monitoring and analytics. They focus on delivering actionable insights to fleet operators, facilitating data-driven decision-making that enhances operational efficiency. Their continued investment in innovation and customer-centric approaches has positioned them as leaders in the fleet management application segment, further driving the adoption of connected truck solutions. As the market evolves, these companies are expected to continue playing a crucial role in shaping the future of connected truck technologies, emphasizing the importance of connectivity in the logistics and transportation sectors.

• 1 Appendix

  • 1.1 List of Tables
  • 1.2 List of Figures

• 2 Introduction

  • 2.1 Market Definition
  • 2.2 Scope of the Report
  • 2.3 Study Assumptions
  • 2.4 Base Currency & Forecast Periods

• 3 Market Dynamics

  • 3.1 Market Growth Factors
  • 3.2 Economic & Global Events
  • 3.3 Innovation Trends
  • 3.4 Supply Chain Analysis

• 4 Consumer Behavior

  • 4.1 Market Trends
  • 4.2 Pricing Analysis
  • 4.3 Buyer Insights

• 5 Key Player Profiles

  • 5.1 Geotab
    • 5.1.1 Business Overview
    • 5.1.2 Products & Services
    • 5.1.3 Financials
    • 5.1.4 Recent Developments
    • 5.1.5 SWOT Analysis
  • 5.2 Scania
    • 5.2.1 Business Overview
    • 5.2.2 Products & Services
    • 5.2.3 Financials
    • 5.2.4 Recent Developments
    • 5.2.5 SWOT Analysis
  • 5.3 Omnicomm
    • 5.3.1 Business Overview
    • 5.3.2 Products & Services
    • 5.3.3 Financials
    • 5.3.4 Recent Developments
    • 5.3.5 SWOT Analysis
  • 5.4 DAF Trucks
    • 5.4.1 Business Overview
    • 5.4.2 Products & Services
    • 5.4.3 Financials
    • 5.4.4 Recent Developments
    • 5.4.5 SWOT Analysis
  • 5.5 Paccar Inc.
    • 5.5.1 Business Overview
    • 5.5.2 Products & Services
    • 5.5.3 Financials
    • 5.5.4 Recent Developments
    • 5.5.5 SWOT Analysis
  • 5.6 Volvo Group
    • 5.6.1 Business Overview
    • 5.6.2 Products & Services
    • 5.6.3 Financials
    • 5.6.4 Recent Developments
    • 5.6.5 SWOT Analysis
  • 5.7 Trimble Inc.
    • 5.7.1 Business Overview
    • 5.7.2 Products & Services
    • 5.7.3 Financials
    • 5.7.4 Recent Developments
    • 5.7.5 SWOT Analysis
  • 5.8 Fleet Complete
    • 5.8.1 Business Overview
    • 5.8.2 Products & Services
    • 5.8.3 Financials
    • 5.8.4 Recent Developments
    • 5.8.5 SWOT Analysis
  • 5.9 Wabco Holdings
    • 5.9.1 Business Overview
    • 5.9.2 Products & Services
    • 5.9.3 Financials
    • 5.9.4 Recent Developments
    • 5.9.5 SWOT Analysis
  • 5.10 MAN Truck & Bus
    • 5.10.1 Business Overview
    • 5.10.2 Products & Services
    • 5.10.3 Financials
    • 5.10.4 Recent Developments
    • 5.10.5 SWOT Analysis
  • 5.11 Teletrac Navman
    • 5.11.1 Business Overview
    • 5.11.2 Products & Services
    • 5.11.3 Financials
    • 5.11.4 Recent Developments
    • 5.11.5 SWOT Analysis
  • 5.12 Verizon Connect
    • 5.12.1 Business Overview
    • 5.12.2 Products & Services
    • 5.12.3 Financials
    • 5.12.4 Recent Developments
    • 5.12.5 SWOT Analysis
  • 5.13 Mercedes-Benz Trucks
    • 5.13.1 Business Overview
    • 5.13.2 Products & Services
    • 5.13.3 Financials
    • 5.13.4 Recent Developments
    • 5.13.5 SWOT Analysis
  • 5.14 Navistar International
    • 5.14.1 Business Overview
    • 5.14.2 Products & Services
    • 5.14.3 Financials
    • 5.14.4 Recent Developments
    • 5.14.5 SWOT Analysis
  • 5.15 Bosch Mobility Solutions
    • 5.15.1 Business Overview
    • 5.15.2 Products & Services
    • 5.15.3 Financials
    • 5.15.4 Recent Developments
    • 5.15.5 SWOT Analysis

• 6 Market Segmentation

  • 6.1 Connected Truck Market, By Component
    • 6.1.1 Hardware
    • 6.1.2 Software
    • 6.1.3 Services
  • 6.2 Connected Truck Market, By Application
    • 6.2.1 Fleet Management
    • 6.2.2 Remote Diagnostics
    • 6.2.3 Safety & Compliance
    • 6.2.4 Predictive Maintenance
  • 6.3 Connected Truck Market, By Connectivity
    • 6.3.1 4G/LTE
    • 6.3.2 5G
    • 6.3.3 Wi-Fi
  • 6.4 Connected Truck Market, By Communication Type
    • 6.4.1 Vehicle-to-Cloud
    • 6.4.2 Vehicle-to-Infrastructure
    • 6.4.3 Vehicle-to-Vehicle

• 7 Competitive Analysis

  • 7.1 Key Player Comparison
  • 7.2 Market Share Analysis
  • 7.3 Investment Trends
  • 7.4 SWOT Analysis

• 8 Research Methodology

  • 8.1 Analysis Design
  • 8.2 Research Phases
  • 8.3 Study Timeline

• 9 Future Market Outlook

  • 9.1 Growth Forecast
  • 9.2 Market Evolution

• 10 Geographical Overview

  • 10.1 Europe - Market Analysis
    • 10.1.1 By Country
      • 10.1.1.1 UK
      • 10.1.1.2 France
      • 10.1.1.3 Germany
      • 10.1.1.4 Spain
      • 10.1.1.5 Italy
  • 10.2 Asia Pacific - Market Analysis
    • 10.2.1 By Country
      • 10.2.1.1 India
      • 10.2.1.2 China
      • 10.2.1.3 Japan
      • 10.2.1.4 South Korea
  • 10.3 Latin America - Market Analysis
    • 10.3.1 By Country
      • 10.3.1.1 Brazil
      • 10.3.1.2 Argentina
      • 10.3.1.3 Mexico
  • 10.4 North America - Market Analysis
    • 10.4.1 By Country
      • 10.4.1.1 USA
      • 10.4.1.2 Canada
  • 10.5 Connected Truck Market by Region
  • 10.6 Middle East & Africa - Market Analysis
    • 10.6.1 By Country
      • 10.6.1.1 Middle East
      • 10.6.1.2 Africa

• 11 Global Economic Factors

  • 11.1 Inflation Impact
  • 11.2 Trade Policies

• 12 Technology & Innovation

  • 12.1 Emerging Technologies
  • 12.2 AI & Digital Trends
  • 12.3 Patent Research

• 13 Investment & Market Growth

  • 13.1 Funding Trends
  • 13.2 Future Market Projections

• 14 Market Overview & Key Insights

  • 14.1 Executive Summary
  • 14.2 Key Trends
  • 14.3 Market Challenges
  • 14.4 Regulatory Landscape

Segments Analyzed in the Report

The global Connected Truck market is categorized based on

By Component

• Hardware
• Software
• Services

By Communication Type

• Vehicle-to-Cloud
• Vehicle-to-Infrastructure
• Vehicle-to-Vehicle

By Application

• Fleet Management
• Remote Diagnostics
• Safety & Compliance
• Predictive Maintenance

By Connectivity

• 4G/LTE
• 5G
• Wi-Fi

By Region

• North America
• Europe
• Asia Pacific
• Latin America
• Middle East & Africa

Key Players

• Volvo Group
• Scania
• DAF Trucks
• Mercedes-Benz Trucks
• MAN Truck & Bus
• Navistar International
• Paccar Inc.
• Wabco Holdings
• Bosch Mobility Solutions
• Teletrac Navman
• Omnicomm
• Geotab
• Trimble Inc.
• Verizon Connect
• Fleet Complete