Connected Trucks Market Size & Forecasts 2026-2035, By Segments (Component, Connectivity, Range, Vehicle, Application), Growth Opportunities, Innovation Landscape, Regulatory Shifts, Strategic Regional Insights (U.S., Japan, China, South Korea, UK, Germany, France), and Competitive Dynamics (Daimler, Volvo, Scania, Paccar, Navistar)

Market Outlook

Connected Trucks Market size is expected to advance from USD 30.95 billion in 2025 to USD 119.87 billion by 2035, registering a CAGR of more than 14.5% across 2026-2035. By 2026, the industry is anticipated to generate USD 34.96 billion in revenue.

• Base Year Value (2025): USD 30.95 Billion
• CAGR (2026-2035): 14.5%
• Forecast Year Value (2035): USD 119.87 Billion
• Historical Data Period: 2021-2025
• Largest Region: North America
• Forecast Period: 2026-2035

Key Takeaways

Market Dynamics

Expansion of IoT-enabled Fleet Telematics and Monitoring

The expansion of IoT-enabled fleet telematics and monitoring is revolutionizing the connected trucks market by enhancing operational efficiency and data-driven decision-making. As logistics companies increasingly prioritize real-time data access, IoT solutions provide insights into vehicle performance, driver behavior, and fuel consumption. According to the International Telecommunication Union, the integration of IoT technologies in transportation has led to significant improvements in logistics management. This trend not only boosts productivity but also aligns with sustainability goals by optimizing fuel usage and reducing emissions. Established players can leverage these technologies to improve service offerings, while new entrants can capitalize on the growing demand for innovative telematics solutions.

Integration of Connected Truck Systems with Predictive Maintenance Tools

The integration of connected truck systems with predictive maintenance tools is reshaping the connected trucks market by minimizing downtime and maintenance costs. Fleet operators are increasingly adopting advanced analytics to predict vehicle failures before they occur, as highlighted by a report from the American Transportation Research Institute, which emphasizes the cost benefits of predictive maintenance. This proactive approach enhances reliability and safety, appealing to businesses that prioritize operational continuity. For established companies, investing in predictive maintenance capabilities can create a competitive edge, while new entrants have opportunities to develop specialized software solutions that cater to this evolving need.

Adoption of Autonomous and Semi-Autonomous Trucking Technology

The adoption of autonomous and semi-autonomous trucking technology is a significant driver of change in the connected trucks market, paving the way for enhanced safety and efficiency. As regulatory bodies, such as the National Highway Traffic Safety Administration, begin to outline frameworks for autonomous vehicles, the industry is witnessing a surge in investment and innovation. This shift is not only transforming traditional logistics operations but also addressing labor shortages in the trucking sector. Established players can explore partnerships with technology firms to accelerate their autonomous initiatives, while new entrants can focus on niche applications, such as last-mile delivery solutions, capitalizing on the growing acceptance of autonomous technologies.

Growth Driver Assessment Framework
Growth Driver	Impact On CAGR	Regulatory Influence	Geographic Relevance	Adoption Rate	Impact Timeline
Expansion of IoT-enabled fleet telematics and monitoring	3.50%	Short term (≤ 2 yrs)	North America, Europe (spillover: Asia Pacific)	Low	Fast
Integration of connected truck systems with predictive maintenance tools	3.00%	Medium term (2–5 yrs)	Asia Pacific, North America (spillover: Europe)	Medium	Moderate
Adoption of autonomous and semi-autonomous trucking technology	2.00%	Long term (5+ yrs)	North America, Europe (spillover: MEA)	High	Slow

Industry Restraints:

Regulatory Compliance Challenges

The connected trucks market faces significant hurdles due to stringent regulatory compliance requirements across various jurisdictions. These regulations often necessitate extensive technological adaptations and can lead to operational inefficiencies for companies striving to meet standards set by agencies such as the Federal Motor Carrier Safety Administration (FMCSA) in the U.S. or the European Union’s General Data Protection Regulation (GDPR). For instance, the FMCSA’s regulations on electronic logging devices (ELDs) have imposed additional costs and complexity on fleet operators, potentially deterring investment in advanced connected technologies. Furthermore, the necessity for compliance can generate consumer hesitation, as stakeholders may question the safety and reliability of connected systems that must navigate a complex regulatory landscape. As a result, both established firms and new entrants may find their innovation cycles slowed, limiting the overall growth potential of the market.

Supply Chain Disruptions

Supply chain vulnerabilities also represent a critical restraint on the connected trucks market, exacerbated by recent global events such as the COVID-19 pandemic and geopolitical tensions. Disruptions in the supply chain can lead to delays in the production and delivery of key components necessary for connected truck technologies, such as sensors and communication devices. For example, a report from the International Transport Forum highlights that supply chain constraints have caused significant setbacks for manufacturers, impacting their ability to deliver advanced telematics solutions on schedule. This situation poses strategic challenges for both legacy companies and startups, as they must navigate a landscape where component shortages can stall technological advancements and market entry. In the near to medium term, these supply chain issues are likely to persist, compelling market participants to invest in more resilient supply chain strategies while also fostering a competitive environment where agility and adaptability become paramount.

Regional Forecast

North America Market Statistics:

North America captured over 41.2% of the global connected trucks market in 2025, establishing itself as the largest region. This dominance is largely attributed to the robust adoption of telematics and fleet management systems in the U.S., driven by increasing operational efficiencies and a heightened focus on sustainability within the logistics sector. The region's growth is further bolstered by favorable regulatory frameworks that encourage technological advancements, as seen in initiatives from the U.S. Department of Transportation aimed at enhancing vehicle connectivity and safety. As consumer preferences shift towards more efficient and eco-friendly transportation solutions, North America presents significant opportunities for stakeholders in the connected trucks market, driven by a blend of technological innovation and evolving industry standards.

The United States anchors the North American market, playing a pivotal role in the connected trucks landscape. The integration of telematics in fleet management has become a critical factor, with companies like Fleet Complete reporting enhanced operational efficiencies and reduced costs through advanced data analytics. Regulatory support from the Federal Motor Carrier Safety Administration, which promotes the use of connected technologies for safety improvements, further emphasizes the importance of this market in the U.S. The cultural shift towards digital transformation in logistics is evident, as companies increasingly prioritize investments in smart technologies to meet consumer demands for transparency and efficiency. This strategic positioning not only reinforces the U.S.'s leadership in the connected trucks market but also highlights the country's potential to drive broader regional growth through innovation and enhanced operational capabilities.

Asia Pacific Market Analysis:

Asia Pacific emerged as the fastest-growing region in the connected trucks market, registering rapid growth with a robust CAGR of 16%. This remarkable expansion can be attributed to the accelerating logistics and autonomous vehicle growth, which are reshaping the transportation landscape in the region. The increasing demand for efficient supply chain solutions and the integration of advanced technologies are driving fleet operators to adopt connected trucks, enhancing operational efficiency and reducing costs. Moreover, the region's growing emphasis on sustainability and regulatory support for smart logistics solutions are further propelling market growth, as stakeholders increasingly prioritize environmentally friendly practices and innovative technologies. For instance, initiatives by the Asian Development Bank emphasize the importance of sustainable transport systems, indicating a strong commitment to developing connected infrastructure that supports these advancements. Looking ahead, Asia Pacific offers substantial opportunities in the connected trucks market, driven by a confluence of technological innovation and evolving consumer preferences.

Japan plays a pivotal role in the connected trucks market, characterized by its advanced technological landscape and strong emphasis on automation. The growth of logistics and autonomous vehicle solutions is evident as Japanese companies like Toyota and Honda invest heavily in smart transportation systems and connected vehicle technologies. Consumer demand in Japan is shifting towards more efficient and environmentally friendly logistics solutions, prompting fleet operators to integrate connected truck technologies that enhance route optimization and reduce emissions. Additionally, the Japanese government has implemented policies aimed at promoting autonomous vehicle testing and deployment, creating a conducive environment for innovation in the transportation sector. This strategic focus positions Japan as a key player in the Asia Pacific connected trucks market, reinforcing the region's leadership in technological advancements and sustainability initiatives.

China, as a major player in the connected trucks market, is experiencing transformative changes driven by rapid urbanization and logistics sector growth. The logistics and autonomous vehicle growth trend is particularly pronounced as Chinese companies like Baidu and Alibaba invest in smart logistics and autonomous delivery systems. Consumer preferences are shifting towards integrated logistics solutions that offer real-time tracking and enhanced efficiency, leading to increased adoption of connected trucks among fleet operators. Furthermore, the Chinese government has introduced supportive regulations to facilitate the development of autonomous vehicles, enhancing the competitive landscape for connected truck technologies. With a robust manufacturing base and a growing emphasis on digital transformation, China is well-positioned to capitalize on the opportunities within the connected trucks market, further solidifying the Asia Pacific region's status as a leader in this domain.

Europe Market Trends:

Europe holds a commanding share of the connected trucks market, driven by a robust logistics sector and increasing emphasis on sustainability. The region's strategic position as a hub for international trade and its advanced infrastructure contribute to a notable presence in this market. Recent shifts in consumer preferences toward environmentally friendly transportation solutions, alongside stringent regulatory frameworks established by the European Commission, are fostering a landscape ripe for innovation. Companies like Daimler AG have reported significant investments in connected vehicle technologies, reflecting a commitment to digital transformation and operational efficiency. The ongoing evolution of supply chain logistics, influenced by technological advancements, positions Europe as a fertile ground for growth in the connected trucks sector, offering substantial opportunities for investors and stakeholders looking to capitalize on emerging trends.

Germany plays a pivotal role in the connected trucks market, characterized by its strong automotive industry and leadership in technological innovation. The country's focus on integrating advanced telematics and connectivity features into commercial vehicles has resulted in a surge in adoption rates among fleet operators. According to the German Association of the Automotive Industry (VDA), the demand for connected trucks is expected to rise significantly as companies seek to enhance operational efficiencies and comply with evolving environmental regulations. This trend is further supported by initiatives from major players like MAN Truck & Bus, which are investing heavily in connected solutions to meet market needs. As Germany continues to lead in technological advancements, its influence on the regional market dynamics is substantial, presenting strategic opportunities for growth.

France also emerges as a significant player in the connected trucks market, driven by a strong commitment to sustainability and innovation in transportation. The French government has implemented policies aimed at reducing carbon emissions, which are prompting logistics companies to adopt connected truck technologies that enhance fuel efficiency and reduce environmental impact. Companies such as Renault Trucks are actively developing solutions that integrate connectivity with eco-friendly practices, illustrating the alignment between regulatory pressures and market opportunities. As consumer demand for greener logistics solutions grows, France's proactive stance on sustainability positions it as a key contributor to the overall growth of the connected trucks market in Europe, reinforcing the region's attractiveness for investment.

Regional Market Attractiveness & Strategic Fit Matrix
Parameter	North America	Asia Pacific	Europe	Latin America	MEA
Innovation Hub	Advanced	Developing	Advanced	Developing	Nascent
Cost-Sensitive Region	Medium	High	Medium	High	High
Regulatory Environment	Supportive	Supportive	Supportive	Neutral	Neutral
Demand Drivers	Strong	Strong	Strong	Moderate	Weak
Development Stage	Developed	Developing	Developed	Emerging	Emerging
Adoption Rate	High	Medium	High	Medium	Low
New Entrants / Startups	Dense	Moderate	Dense	Sparse	Sparse
Macro Indicators	Strong	Stable	Strong	Stable	Weak

Segmentation Analysis

Analysis by Range

The connected trucks market for the long range segment dominated with a 63.7% share in 2025. This segment leads primarily due to the critical reliance of long-haul trucking on cellular connectivity, which is essential for real-time data transmission and operational efficiency. As logistics companies increasingly prioritize seamless communication and tracking, the demand for long-range connectivity solutions has surged, reflecting broader trends in digital transformation and supply chain optimization. Notably, the International Transport Forum highlights that enhanced connectivity can significantly reduce operational costs and improve route efficiency. This segment presents strategic advantages for both established firms looking to upgrade their fleets and emerging players aiming to innovate within the connectivity space. Given the ongoing advancements in cellular technologies, including the rollout of 5G, the long range segment is expected to remain pivotal in the connected trucks market in the near to medium term.

Analysis by Vehicle

The connected trucks market for heavy commercial vehicles (HCV) captured over 68.6% share in 2025. This leadership is attributed to HCVs dominating freight transport, necessitating robust connectivity for effective fleet management and compliance with regulatory standards. As customer preferences shift towards sustainable logistics, HCVs equipped with advanced connectivity features are increasingly favored, aligning with environmental goals and efficiency demands. The European Commission has emphasized the importance of digital solutions in reducing emissions and enhancing operational transparency, further fueling the growth of this segment. Established firms benefit from the ability to leverage existing infrastructure, while new entrants can capitalize on the demand for innovative HCV technologies. The emphasis on regulatory compliance and sustainability ensures that the HCV segment will continue to be a cornerstone of the connected trucks market moving forward.

Analysis by Component

In the connected trucks market, the hardware component represented more than 49.5% of the total share in 2025. This segment's dominance is driven by the essential role of sensors and telematics systems in ensuring effective truck connectivity, which is critical for both safety and operational efficiency. As the industry shifts towards more automated and data-driven operations, the demand for advanced hardware solutions is rising, reflecting broader trends in technological improvements and workforce dynamics. According to the American Transportation Research Institute, investments in telematics can lead to significant cost savings and improved driver performance. This segment offers substantial opportunities for established players to enhance their product offerings and for newcomers to introduce innovative hardware solutions. With the ongoing integration of IoT technologies, the hardware segment is poised to remain a vital part of the connected trucks market in the foreseeable future.

Report Segmentation
Segment	Sub-Segment
Component	Hardware, Software, Service
Connectivity	Vehicle-to-Infrastructure (V2I) communication, Vehicle-to-Cloud (V2C) communication, Vehicle-to-Vehicle (V2V) communication
Range	Dedicated Short Range Communication (DSRC), Long range
Vehicle	Light Commercial Vehicle (LCV), Heavy Commercial Vehicle (HCV)
Application	Fleet management, Safety & compliance, Remote diagnostics & maintenance, Infotainment & connectivity

Competitive Landscape

Key players in the connected trucks market include industry giants such as Daimler, Volvo, Scania, Paccar, Navistar, MAN Truck & Bus, Iveco, Dongfeng Motor, Tata Motors, and Nikola. These companies are at the forefront of technological advancements in vehicle connectivity, leveraging their extensive expertise and established market presence to drive innovation. Daimler and Volvo, for instance, are recognized for their robust investment in connected vehicle technologies, ensuring they remain influential in shaping industry standards. Meanwhile, Scania and Paccar are noted for their commitment to sustainability and efficiency, positioning themselves strategically within the growing demand for environmentally friendly transport solutions. Each of these players contributes uniquely to the market, characterized by their distinct approaches to connectivity and operational excellence.

The competitive landscape in the connected trucks market is marked by a flurry of strategic initiatives that enhance market positioning and drive innovation. Companies such as Navistar and MAN Truck & Bus are actively engaging in partnerships that bolster their technological capabilities, while Iveco and Dongfeng Motor are exploring synergies to enhance product offerings and expand their reach. The focus on research and development is evident as players like Tata Motors and Nikola invest heavily in next-generation technologies, fostering a culture of innovation that propels the market forward. This dynamic environment encourages a continuous evolution of product lines and services, with companies adapting to consumer needs and competitive pressures through strategic collaborations and technological advancements.

Strategic / Actionable Recommendations for Regional Players

In North America, fostering partnerships with technology firms can enhance the development of advanced connectivity features, enabling players to leverage AI and IoT for improved fleet management solutions. This approach can significantly enhance operational efficiencies and customer satisfaction.

For the Asia Pacific region, tapping into the burgeoning demand for electric and hybrid trucks presents a lucrative opportunity. Collaborating with local startups specializing in clean technologies can accelerate innovation and market penetration, allowing for a competitive edge in sustainability.

In Europe, focusing on customer-centric solutions that integrate connectivity with enhanced safety features can differentiate offerings in a crowded market. Engaging in alliances with regulatory bodies and industry groups can also facilitate smoother compliance with stringent environmental standards, further solidifying market presence.