Connected Trucks Market - Cumulative Impact of United States Tariffs 2025 - Global Forecast to 2030

The Connected Trucks Market size was estimated at USD 48.30 billion in 2024 and expected to reach USD 55.78 billion in 2025, at a CAGR 14.91% to reach USD 111.25 billion by 2030.

The advent of connected trucks marks a pivotal transformation in the logistics and commercial transportation industry, integrating advanced connectivity, real-time analytics, and autonomous capabilities to create resilient, efficient fleets. This executive summary highlights key developments, strategic implications, and actionable insights shaping the connected trucks domain. With an increasing focus on data-driven decision-making, fleet operators are leveraging telematics, vehicle-to-everything communication, and predictive maintenance to optimize route planning, reduce operational costs, and enhance safety. Emerging technologies such as AI-driven driver assistance, over-the-air software updates, and edge computing are redefining vehicle performance and maintenance protocols. As regulatory landscapes evolve to accommodate connectivity standards and environmental targets, stakeholders must navigate complex compliance requirements while capitalizing on innovation. This introduction sets the stage for an in-depth exploration of transformative shifts, geopolitical impacts, market segmentation dynamics, regional patterns, company strategies, and recommended actions for senior leaders seeking to maintain competitive advantage in an increasingly connected ecosystem.

The connected trucks landscape is undergoing transformative shifts driven by technological breakthroughs, evolving customer demands, and strategic realignments across the value chain. First, the convergence of 5G and edge computing is enabling ultra-low latency communication, facilitating advanced driver assistance features and vehicle-to-infrastructure coordination for optimized traffic flow. Simultaneously, electrification initiatives are accelerating, with OEMs integrating battery and fuel cell architectures that require robust connectivity for energy management and charging infrastructure integration. AI and machine learning algorithms are being embedded into fleet management platforms to forecast maintenance needs, identify fuel-saving opportunities, and analyze driver behavior. Regulatory bodies worldwide are mandating digital tachographs and emission tracking, compelling fleets to adopt telematics solutions for compliance and reporting. Furthermore, consolidation among technology vendors and traditional automotive suppliers is reshaping the competitive field, fueling partnerships that blend hardware, software, and services into cohesive solutions. As user expectations for transparency and sustainability intensify, fleets that embrace these shifts will realize enhanced uptime, lower total cost of ownership, and improved environmental performance.

The imposition of new United States tariffs in 2025 has generated a cumulative impact on the connected trucks ecosystem, affecting both upstream suppliers and downstream operators. By targeting critical semiconductor components, GPS modules, and sensor assemblies, these tariffs have increased hardware costs by an estimated 8-12%, compelling vendors to reassess sourcing strategies and accelerate efforts to qualify alternative suppliers in tariff-exempt regions. Maintenance and installation service providers face margin compression as labor rates adjust to offset higher parts expenses. Additionally, manufacturers of fleet management software have incorporated these cost pressures into subscription pricing models, leading to renegotiations of service contracts and phased rollout schedules. In response, many stakeholders are pursuing nearshoring initiatives to mitigate duties, while others are redesigning control units and communication devices to rely on domestically produced chips. The tariff environment has also heightened interest in total cost of ownership analyses, driving fleets to intensify utilization of predictive maintenance and fuel-efficiency optimization tools to preserve budgetary resilience. This realignment underscores the strategic importance of supply chain agility and trade policy forecasting in connected trucks planning.

An analysis of segmentation reveals differentiated adoption patterns across vehicle classes, component categories, and communication technologies. Vehicle type diversity spans heavy commercial vehicles-encompassing both dump trucks and tractor-trailers-light commercial vehicles, which include pickups and vans, and medium commercial vehicles such as distribution trucks and movers. Each class exhibits unique operational profiles and connectivity requirements, from high-capacity data streams for long-haul tractor-trailers to cost-effective telematics for last-mile van fleets. In parallel, component type segmentation highlights distinct value pools: control units, GPS devices, and sensors form the hardware backbone; installation and maintenance services ensure uptime and compliance; while fleet management software and onboard connectivity platforms deliver analytics, routing, and regulatory reporting. Finally, communication technology preferences-ranging from vehicle-to-cloud architectures enabling centralized analytics to vehicle-to-infrastructure systems that coordinate traffic signals, and vehicle-to-vehicle networks enhancing convoy safety-illustrate how fleets tailor solutions to operational objectives. These segmentation insights guide providers in prioritizing product development, customizing service offerings, and aligning go-to-market strategies with specific customer needs.

Regional dynamics in the connected trucks market reflect divergent regulatory environments, infrastructure maturity, and investment priorities. In the Americas, robust highway networks and advanced telematics adoption drive demand for integrated freight platforms, with cross-border logistics between the United States and Mexico elevating requirements for standardized communication protocols. Europe, Middle East & Africa exhibits regulatory leadership on emissions tracking and digital tachographs, prompting fleets to deploy solutions that reconcile stringent environmental standards with complex cross-border operations. Meanwhile, the Asia-Pacific region is characterized by rapidly growing last-mile delivery networks and emerging vehicle-to-infrastructure pilot programs in smart city initiatives, particularly across China, Japan, and Australia. Investment in charging infrastructure and 5G coverage is accelerating in these markets, enabling adoption of connected electric truck fleets. As each region advances at its own pace, providers must adapt solutions to local compliance regimes, infrastructure capabilities, and customer preferences to capture growth opportunities effectively.

Leading participants in the connected trucks ecosystem are leveraging strategic partnerships, R&D investments, and portfolio expansions to cement market positions. AB Volvo and Daimler Truck AG are pioneering autonomous pilot programs, while Continental AG and Robert Bosch GmbH invest heavily in next-generation sensors and control units. Denso Corporation and ZF Friedrichshafen AG are integrating machine learning capabilities into electronic control modules, enhancing predictive maintenance accuracy. Software leaders such as Geotab Inc. and MiX Telematics International (Pty) Ltd. are broadening analytics offerings to include carbon reporting, and TomTom International BV is refining real-time routing algorithms. Tier-one suppliers like Magna International Inc. and HARMAN International collaborate with OEMs to embed connectivity platforms during manufacturing. Semiconductor provider NXP Semiconductors N.V. focuses on secure V2X chipsets, while Sierra Wireless, Inc. and Verizon Communications Inc. strengthen turnkey telematics solutions. Truck OEMs including Ford Motor Company, General Motors Company, PACCAR Inc., and Tata Motors Ltd. are launching integrated software-hardware bundles. Specialty players such as BorgWarner Inc., Blue Energy Motors, and Thales Group are delivering niche services, and Trimble Inc. and Aptiv Global Operations Limited address fleet management and connectivity domains respectively. This constellation of companies creates a competitive landscape defined by innovation, collaboration, and strategic alignment.

To capitalize on the connected trucks opportunity, industry leaders should adopt a multi-pronged approach: Start by establishing modular, scalable connectivity platforms that can be tailored to different vehicle types and communication technologies, ensuring flexibility as customer needs evolve; invest in end-to-end cybersecurity measures to safeguard data integrity across hardware, software, and communications layers, thereby building operator trust and meeting regulatory requirements; cultivate strategic alliances with local service providers and infrastructure stakeholders to accelerate deployment of installation and maintenance services in targeted regions; integrate advanced analytics and AI capabilities into fleet management offerings to deliver predictive maintenance, real-time fuel optimization, and dynamic routing as standard features; and develop cost-efficient sourcing strategies that leverage nearshoring, multi-tier supplier networks, and design optimization to mitigate tariff impacts and reduce total cost of ownership for customers. By executing these recommendations, companies can drive differentiation, enhance customer retention, and secure long-term growth in the connected trucks ecosystem.

In summary, the connected trucks arena is at an inflection point, shaped by technological innovation, geopolitical dynamics, and evolving customer expectations. Stakeholders must navigate a complex landscape of vehicle classes, component ecosystems, and communication standards while adapting to region-specific regulations and infrastructure capabilities. The 2025 tariff adjustments underscore the necessity of supply chain agility and cost management, while segmentation and competitive analyses reveal strategic pathways for differentiation. By embracing modular architectures, robust cybersecurity, strategic partnerships, and data-centric service models, industry players can optimize fleet performance, reduce environmental impact, and unlock new revenue streams. Sustained success will depend on an organization’s ability to anticipate market shifts, iterate on solution portfolios, and cultivate customer trust through transparent, reliable offerings. This executive summary provides a roadmap for decision-makers to align resources, prioritize investments, and position their businesses at the forefront of the connected trucks revolution.

To secure comprehensive insights and detailed analysis on these trends and strategies, contact Ketan Rohom (Associate Director, Sales & Marketing at 360iResearch) to purchase the full market research report and gain a competitive advantage.