The market for autonomous trucks is gaining traction as key companies increase their testing efforts and establish partnerships, although financing models and pricing structures are still in limbo.
Kodiak Robotics, a provider of autonomous trucking technology, is set to go public via a merger with special purpose acquisition company Ares Acquisition, giving the Mountain View, California-based firm a pre-money valuation of $2.5 billion, as announced on April 14. The company believes the total market for autonomous trucking could exceed $4 trillion.
Aurora, another major player, aims to deploy 10 driverless trucks on the route between Houston and Dallas in the first half of the year. They have been collaborating with Texas lawmakers to share safety updates and solicit feedback, as per a release dated March 31. The Pittsburgh-based company is also working alongside U.S. Customs and Border Protection to craft training programs and signage that will aid in ensuring autonomous trucks meet inspection requirements.
Accelerating Progress
The autonomous trucking sector is reportedly evolving “faster than anticipated,” according to Jennifer Costabile, general director of marketing and sales enablement at GM Envolve, who spoke at a recent Commercial Vehicle Business Summit.
“We are leveraging technology from providers to expedite our efforts in integrating this into the vehicles produced by GM for retail and commercial clients,” she noted.
Enhancing Operational Efficiency
Besides tackling challenges like driver shortages and elevated labor expenses, autonomous trucking also stands to drastically cut operating costs through enhanced efficiency. Ann Rundle, vice president of electrification and autonomy at ACT Research, shared insights with Equipment Finance News.
“With a computer at the wheel, vehicles can operate very efficiently.”
— Ann Rundle, ACT Research
She added that fuel economy could see improvements of around 10% due to stable driving patterns—eliminating abrupt acceleration and deceleration.
Televised trucks will also enable fleet operators to maximize asset use despite existing hours-of-service constraints, according to Lydia Vieth, a research analyst focused on autonomy and electrification at ACT Research.
Challenges in Financing
Lenders may hesitate to finance autonomous vehicles owing to uncertain economics and the absence of an aftermarket in this emerging sector, a spokesperson from Commercial Credit Group conveyed to EFN.
One hurdle for financing is the need for definitive pricing models, as mentioned by Vieth. “Currently, the market isn’t large enough for any substantial data,” she explained. “The autonomy companies are still engaged with fleets that wish to experiment and learn.”
In the absence of clear pricing and ROI data, autonomous companies will likely continue leasing trucks to fleet operators so they can assess the value proposition ahead of making purchases, Rundle added.
“From a financing standpoint, if I’m dealing with companies like Mitsubishi or BMO as a fleet, I can present solid data on payback and should face fewer difficulties,” she noted.
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