Wave after wave of new technology is washing over the trucking industry. But it now looks like it is really starting to hit en masse.
According to a recent article in FleetOwner, which is based on a recent Frost & Sullivan research report, technology is expected to grow from a $10b a year market today to $245b a year by 2025.
The truly amazing part of this estimate though, is digital freight brokerage is expected to account for $210b of this $245b market.
You can check out the original article here, Disruptors on the march in trucking.
Here are some other highlights you’ll find inside:
- The trucking market dwarfs most markets and is extremely inefficient, so it is attractive for all tech companies.
- Cost barriers for telematics along with most other technologies have mostly been eliminated.
- This is allowing digital freight brokerages to come in at lower margins while offering telematic services to trucks for free.
- Connected trucks will drive efficiencies throughout the shipping process from trucks to drivers to dispatch to shippers.
As a side note, I was amazed at how crowded the technology, apps, GPS market was at the IANA conference back in September 2016. It seems everyone has developed location and tracking apps for any possible use you can imagine.
I think this trend will keep accelerating in every tech tool for the trucking market. The innovative markets today will quickly become overcrowded and commoditized within shorter and shorter timeframes.
Which will keep pushing the price of technology further and further down.