Semi-Autonomous & Autonomous Trucks and Buses Market

[346 Pages Report] The global Semi-autonomous & autonomous Trucks and Buses market size is projected to grow from USD 40.7 billion in 2024 to USD 179.9 billion by 2035, at a CAGR of 14.4%. The Semi-autonomous & autonomous Trucks and Buses market is witnessing robust growth driven by increasing demand for autonomous vehicles  and innovation around advance driving technologies may drive the market for Semi-autonomous & autonomous Trucks and Buses.

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SEMI-AUTONOMOUS & AUTONOMOUS TRUCKS AND BUSES MARKET:

Driver: Rising adoption of automation technology

Automation is another major driver in the industry. The automotive industry is transitioning to provide higher levels of automation, with self-driving technologies enabling vehicles to function safely and effectively. Key components of semi-autonomous driving technology include adaptive cruise control, lane keep assistance, and automatic emergency braking. These features enhance vehicle safety and help move it closer to full autonomy. Furthermore, the more investment car companies put into developing self-driving technologies, the more sophisticated sensors, cameras, radars, and software become in buses and trucks to perceive and react to their environment. Investments, partnerships, and technological progress that foster innovation have, therefore, been spurred on by increasing demand for the manufacture of autonomous vehicles. OEMs are working with many Tier 1 suppliers to design and integrate ADAS. For instance, Magna International in Canada and Robert Bosch GmbH in Germany are working on such a mission. Magna International last month launched its ClearView vision system on the Ram 2500 and 3500 heavy-duty pickup trucks, systems it said improved parking and maneuvering features.

Restraint: Lack of infrastructure in developing countries

The insufficient infrastructure is a major obstacle for the widespread use of advanced driver features in semi-autonomous and autonomous buses and trucks. Although these technologies show potential progress in automotive safety and efficiency, their success greatly depends on complementary infrastructure, specifically communication networks and road infrastructure. Semi-autonomous and autonomous buses and trucks require essential infrastructure such as clearly labeled roads, lane markers, and GPS connectivity in order to operate efficiently. Good connectivity infrastructure is essential for efficient functioning of vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2X) communications. Information such as lane changes, object detection, vehicle distances, traffic updates, and navigation and connectivity services are essential for advanced vehicles on highways. Nevertheless, due to the restricted network connections on highways, semi-autonomous and autonomous buses and trucks may not always be able to access cloud data.

In developing nations like Mexico, Brazil, and India, the progress of IT infrastructure on highways is lagging behind that of more advanced countries. Insufficient infrastructure could restrict the capabilities of semi-autonomous and autonomous buses and trucks, like V2I communication and real-time traffic data integration, making them less effective.

Opportunity: Surge in demand for truck platooning

Truck platooning is a convoy of commercial vehicles that are closely controlled to travel in coordination with the help of connectivity technologies, autonomous driving systems, and artificial intelligence. The first vehicle is a leader for the entire platoon; all subsequent vehicles can move at varying speeds and change lanes according to the leader's behavior, requiring minimal driver intervention. The design of autonomous and semi-autonomous truck platooning is coming along with an increasing demand for fuel efficiency and the need to solve traffic congestion. Adaptive cruise control between platooning trucks enhances fuel economy by allowing the trucks to travel at a constant speed while maintaining close following distances. Other benefits of platooning include reducing traffic congestion by allowing other vehicles on the road and providing a smooth traffic flow on busy routes.

Challenge: Regulatory hurdles

There is a massive influence from the evolving regulatory framework on the semi-autonomous & autonomous trucks and buses market. The governments of most countries in the world have been developing regulations dealing with the safety standards in commercial vehicles, which shall be the key driver for the transformation of this market. For instance, the accident of a self-driving car in the US (August 2023) that resulted in a fatality can be an excellent example to understand these problems. A series of lawsuits and court proceedings will follow as autonomous trucks gain traction in the market. New safety and infrastructural regulations are being developed concerning new technologies in shuttles, buses, and last-mile delivery trucks. Buses are another area where OEMs, software providers, and Tier I suppliers focus on developing automated driving systems. However, there are still several issues at large in terms of how successfully a self-driving bus and truck can be introduced into it, among them the legislative environment. What defines an adequate functioning level for autonomous and semi-autonomous buses and trucks is a legal framework that specifies accident liability, insurance premiums, technology failure responsibility, driver training, and others.

SEMI-AUTONOMOUS & AUTONOMOUS TRUCKS AND BUSES MARKET: ECOSYSTEM

In the semi-autonomous & autonomous trucks and buses market ecosystem, component providers supply crucial elements such as semiconductors, sensors, software, processors, and controllers used in vehicle radar and sensing systems, alongside control modules and power electronics for automated driving and safety systems. Leading Tier 1 providers such as Robert Bosch GmbH (Germany), Denso Corporation (Japan), Continental AG (Germany), ZF Friedrichshafen AG (Germany), and Valeo (France) play pivotal roles in integrating autonomous features into bus and truck models through partnerships and agreements with component manufacturers and technology providers. Software companies within the ecosystem collaborate with these providers or develop their systems to enhance ADAS functionalities.

LiDAR segment is estimated to exhibit the fastest growth in semi-autonomous & autonomous trucks and buses market

Laser imaging detection and ranging (LiDAR) technology employs laser beams to measure the distance from an object, operating on a principle similar to radar sensors. LiDAR sensors find application in systems such as adaptive cruise control, collision avoidance, and night vision. Unlike radar, LiDAR utilizes shorter wavelengths, enabling effective detection of nonmetallic objects and those with weaker reflections. Its angular resolution is precise, achieving sub-degree accuracy both horizontally and vertically, owing to its utilization of short wavelengths and pulses. This characteristic renders LiDAR well-suited for high-resolution 3D environment mapping, facilitating accurate detection of free spaces, boundaries, and vehicle localization. Consequently, LiDAR plays a pivotal role in achieving L3 and higher autonomy levels. Innovative LiDAR technologies such as solid-state LIDAR, MEMS LIDAR, and electronically scanning LIDAR have emerged in recent years. These advancements aim to enhance the suitability of LIDAR for automotive applications in terms of size, cost, and robustness. While these technologies present improvements over traditional mechanical rotating LiDAR, further maturation is required to align with the maturity level of other ADAS sensors. The increasing traffic congestion, growing demand for roadways and vehicle safety systems, and the rising preference for semi-autonomous and autonomous vehicles drive the demand for LiDAR system sensors.

Last-mile Delivery Truck segment is expected to have significant growth in Semi-autonomous & autonomous Trucks and Buses market during the forecast period

The growth of e-commerce has significantly increased the demand for efficient and reliable last-mile delivery solutions. Last-mile delivery trucks play a crucial role in logistics, transporting goods from distribution centers or facilities to end-users. To meet this rising demand, autonomous trucks are being increasingly adopted. These vehicles can operate longer hours without fatigue and help reduce operational costs, making them an attractive option for the logistics industry. Autonomous trucks are witnessing high demand due to the expansion of the e-commerce sector. The primary goal is to deliver goods to consumers on time and reduce delivery costs for companies. In the US, continuous efforts are underway to develop next-generation drone and ground delivery vehicle technologies. These innovations are expected to expand last-mile delivery options in rural and urban areas, enhancing the efficiency and reach of delivery services. Companies are investing heavily in advanced sensor systems, machine learning algorithms, and real-time data analytics to improve the safety and efficiency of autonomous delivery trucks. For instance, the integration of AI-driven route optimization tools helps in planning the most efficient delivery paths, reducing fuel consumption and delivery times.

L2 and L3 segment is expected to see largest growth in Semi-autonomous & autonomous Trucks and Buses market during the forecast period

Level 2 automation is called partial automation. In Level 2 semi-autonomous trucks, the system can take control or assist in acceleration, steering, and braking in certain circumstances. The driver needs to monitor the driving environment, perform safety-critical functions, perform dynamic driving tasks, and always be ready to take control of the truck. In addition to the ADAS features integrated into level 1 autonomous trucks, level 2 automation offers additional features such as TJA, automated platooning, and Intelligent Park Assist (IPA). Level 3 automation is called conditional automation. The major difference between level 2 and level 3 semi-autonomous trucks is that the system monitors the driving environment and executes acceleration and steering. However, the driver still needs to perform dynamic driving tasks. The driving environment is monitored with the help of sensors such as LIDAR and radar. The data from LIDAR is used to create localization and mapping. About 1 or 2 LIDARs can be used in a level 3 semi-autonomous truck. The 3D LIDARs manufactured by Velodyne have a 360-degree field of view (FoV). Hence, one LIDAR is sufficient to monitor the surroundings. In addition to some of the features offered in level 1 and level 2, level 3 semi-autonomous trucks are integrated with ADAS features such as highway pilot, co-pilot, and highly automated truck platooning. The production of level 3 semi-autonomous trucks is currently in the development phase. However, speedy R&D activities and increasing investments from the industry are expected to boost the segment.

“The Europe Semi-autonomous & autonomous Trucks and Buses market is projected to become fastest by 2035.”

The automotive sector in Europe boasts 322 automobile assembly and production plants across the region. Among these, 71 focus on buses and 56 on trucks, as of August 2023. Despite the recent global automotive slowdown, the European automotive market has demonstrated consistent growth over the past six years. In January 2024, the European Union's new vehicle market rebounded with a robust 12.1% year-on-year increase in registrations, totaling 851,690 units, following a slowdown in December 2023. Leading European automobile manufacturers have been offering high-performance engines and advanced safety features to maintain competitiveness, which are crucial for the development of semi-autonomous and autonomous trucks and buses.

Sales of commercial vehicles by major automakers such as the Volkswagen Group (Germany), Mercedes-Benz Group AG (Germany), Renault Group (France), Hyundai Motor Company (South Korea), and Stellantis NV (Netherlands) have fueled demand for semi-autonomous and autonomous buses and trucks in the region. Strict emission regulations and zero-emission objectives in Europe are expected to significantly impact manufacturers of both passenger cars and commercial vehicles.

Key Market Players

The Semi-autonomous & autonomous Trucks and Buses market is dominated by major players such as Daimler Truck AG (Geremany), AB Volvo (Sweden), Scania (Sweden), Robert Bosch GmbH (Germany), Continental AG (Germany), Denso Corporation (Japan), Aurora Innovation, Inc. (US) among others.

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Scope of the Report

This research report categorizes the Semi-autonomous & autonomous Trucks and Buses market based on By Vehicle type, By Vehicle class, Propulsion Type, By ADAS features, By Application, By Sensor type, By Level of autonomy, and Region

Semi-autonomous & Autonomous Trucks and Buses Market, By Vehicle Type:

• Buses
• Trucks

Semi-autonomous & Autonomous Trucks and Buses Market, By Vehicle Class:

• Class 1- Class 3
• Class 4- Class 6
• Class 7- Class 9

Semi-autonomous & Autonomous Trucks and Buses Market, By Propulsion Type:

• Diesel
• Electric
• Hybrid

Semi-autonomous & Autonomous Trucks and Buses Market, By Application:

• Last-mile Delivery Trucks
• Mining Trucks
• Shuttles
• Intercity/Intracity Buses

Semi-autonomous & Autonomous Trucks and Buses Market, By ADAS features:

• Adaptive Cruise Control (ACC)
• Automatic Emergency Braking (AEB)
• Blind Spot Detection (BSD)
• Lane Keep Assist (LKA)
• Intelligent Park Assist (IPA)
• Traffic Jam Assist (TJA)
• Highway Pilot (HP)

Semi-autonomous & Autonomous Trucks and Buses Market, By Region

• Asia Pacific
• Europe
• North America
• Rest Of The World

Semi-autonomous & Autonomous Trucks and Buses Market, By Level of autonomy

• L1
• L2 and L3
• L4
• L5

Semi-autonomous & Autonomous Trucks and Buses Market, By Sensor type

• Cameras
• LiDAR
• Radar Sensors
• Ultrasonic Sensors

Recent Developments

• In March 2024, MAN Truck & Bus SE partnered with TRATON GROUP, Scania, Navistar International Inc., and PlusAI, Inc. for autonomous driving for trucks.
• In February 2024, MAN Truck & Bus SE expanded its logistics center in Salzgitter, Germany, strengthening its global service parts network.
• In January 2024, Daimler Truck AG partnered with Aeva Inc. and Torc Robotics to commercialize self-driving vehicle technology to equip its series-produced autonomous trucks with Aeva Inc.'s advanced 4D LiDAR sensors.
• In December 2023, Demy Schandeler and AB Volvo entered into a contract for fifteen e-buses to upgrade the present Volvo 7900 Electric, which are scheduled for delivery in the first half of 2025.
• In October 2023, Hyundai Motor Company and Iveco S.p.A collaborated to develop and deploy electric heavy-duty trucks in Europe, focusing on autonomous driving technologies.
• In September 2023, AB Volvo partnered with Boliden to integrate autonomous transport solutions into mining operations.
• In July 2023, IVECO S.p.A and PlusAI, Inc. announced that the IVECO S-Way truck, equipped with PlusDrive, is operational on public roads in Germany.
• In June 2023, Aurora Innovation Inc. launched the Aurora Multi-Sensor Dataset, a large-scale multi-sensor dataset in collaboration with the University of Toronto.
• In May 2023, Daimler Truck AG, Mitsubishi Fuso Truck and Bus Corporation, Hino Motors Ltd., and Toyota Motor Corporation signed an MoU.
• In April 2023, Continental AG and Aurora Innovation Inc. have entered an exclusive partnership to manufacture future generations of Aurora’s flagship integrated hardware and software systems, such as Aurora Driving, aiming for commercial scalability.
• In February 2023, AB Volvo Venture Capital AB invested in Waabi Innovation Inc. to transform the freight transportation sector by accelerating the development and deployment of cutting-edge autonomous trucking solutions.

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