The global self-driving truck market is expected to generate $1 billion in 2020 and is projected to reach $1.67 billion by 2025, growing at a CAGR of 10.4% during the forecast period, 2020-2025. According to the Allied Market Research report, "Self-Driving Truck Market by Level of Autonomy (Level One, Level Two, Level Three, and Level Four) and Industry Vertical (Logistics, Construction & Manufacturing, Mining, and Port) - Global Opportunity Analysis and Industry Forecast, 2020-2025," the growth of the market is driven by the growing number of human-induced road accidents and surge in artificial intelligence (AI) capabilities in automotive that reduces the transportation cost significantly. However, concerns pertaining to security and privacy of shipments hamper market growth. Nonetheless, the drive to reduce traffic congestion would provide lucrative opportunities for emerging market players in the near future.
By level of autonomy, the Level 4 segment is expected to grow at the highest CAGR of 18.7% from 2020 to 2025. The demand is driven by that fact that these vehicles can continue to operate autonomously even if the driving situation is out of control, thereby preventing approximately 75-90% of road accidents. However, the Level 1 segment is poised to dominate the global market through 2025 because it was the first step toward automated driving in trucks and has been widely adopted.