One of the current areas of technology development that most grabs the imagination and has the potential for disruption of the status quo is autonomous vehicles. In most cases this focuses on passenger vehicles. However, Transforma Insights recently published a report, ‘Autonomous Road Freight Vehicles: 1.1 million revenue generating units by 2033 to support road freight operations’, which discusses in detail how one branch of autonomous vehicles, those for transporting freight, can revolutionise goods transportation with minimal human intervention.
Even though the size of the market is relatively small today, it is poised for rapid expansion, driven by various benefits that will be briefly discussed in this blog. In it, we explore the need for autonomous road freight vehicles, their benefits, regulatory landscape in selected regions, and notable vendors operating in this dynamic market.
Many developed economies are facing truck driver shortages which can become a pressing issue, eventually escalating supply chain problems. The American Trucking Association reported a shortage of 78,000 truck drivers in 2022 in the US and the number is expected to reach 160,000 drivers by 2031. Using self-driving trucks not only decreases the dependence on drivers but can also ensure round-the-clock operation, unlike human drivers who can only work for a limited period of time.
Long working hours, sleep deprivation, fatigue, and drowsiness often result in vehicle crashes and potential deaths. According to the National Safety Council, in the US, 5,788 people died in large truck collisions in 2021 and around 117,300 heavy trucks were involved in accidents which resulted in injuries. Autonomous trucks can decrease road accidents by navigating long stretches of highways, giving enough time for drivers to relax and refresh, and intervening in case the drivers are distracted.
The use of autonomous trucks on planned routes, driving at constant speeds, and the resulting reduction in braking and acceleration can help truck operators achieve significant fuel efficiency. According to a study conducted by the University of California, San Diego’s Jacobs School of Engineering, and TuSimple, the latter’s autonomous trucking technology can bring fuel savings of at least 10%.
One of the well-known methods to achieve fuel efficiency is truck platooning which typically involves two or more autonomous trucks equipped with automated driving assistance systems in which the leading truck is generally human-controlled. The platooning trucks maintain a fixed, close distance between them and move at a constant speed along a highway. This helps trucks to reduce aerodynamic drag and lowers traffic congestion, encouraging fuel savings.
In the context of testing and adoption of road freight autonomous vehicles, regulations will play a key role, either as an enabler or as a barrier. With the market still in its infancy, the regulatory environment is undergoing rapid evolution. Essentially, developed economies will be at the forefront of driving the adoption of autonomous vehicles. Countries like China, the US, Japan, South Korea, and much of Europe have given the green light to the implementation of Level 3 and Level 4 automation in vehicles . However, the regulatory landscape remains fragmented, with variations such as Germany permitting vehicles to operate at Level 4 while South Korea provides limited access to Level 3 vehicles.
Both in Level 3 and Level 4 automation, the driver is not required to drive the vehicle when its automated features are engaged. However, in Level 3 automation, the driver must take control of the vehicle when alerted by the automated system. Example feature of Level 3 automation would be traffic jam pilot, while for Level 4, it can be local driverless taxis.
Here is a snapshot showcasing the government regulations on the use and testing of autonomous vehicles in selected markets.
Both in Level 3 and Level 4 automation, the driver is not required to drive the vehicle when its automated features are engaged. However, in Level 3 automation, the driver must take over driving. Example feature of Level 3 automation would be traffic jam pilot, while for Level 4, it can be local driverless taxis.
This section provides a snapshot of some of the key vendors operating in the dynamic market of self-driving road freight vehicles. Developing autonomous road freight vehicles demands both technology expertise and substantial capital for research and development. Existing players in the self-driving road freight vehicle industry hold a distinct advantage due to the mounting barriers to market entry, compounded by stringent government regulations.
Below, we have provided a list of vendors offering autonomous road freight vehicles.
The adoption of autonomous road freight vehicles is beginning to gain momentum with multiple governments around the world supporting their introduction, although concerns around the safety and performance of these vehicles can act as a deterrent to the pace of mass adoption. Considering the advantages realised, the progressively favourable regulatory landscape, increased testing of autonomous vehicles onto urban roads, societal acceptance and along with the expanding networks of suppliers and industry participants, it is expected that the market will experience growth over the next ten years, albeit initially quite slowly.
