Volvo is stepping up its push into autonomous trucking as global freight demand continues to grow, with emerging markets — including Africa’s expanding logistics and supply chain networks — adding new pressure on transport operators to move goods faster and at lower cost.

The Swedish manufacturer is positioning driverless technology as a key part of its long-term growth strategy as customers look for efficiency gains in a tight operating environment.

The shift comes as logistics systems worldwide face rising demand tied to infrastructure development, urbanisation, and cross-border trade.

In Africa, where road freight remains central to commerce, companies are increasingly exploring automation and digital fleet management to address capacity gaps and driver shortages.

Against that backdrop, Volvo AB said revenue from autonomous transportation could reach about $3 billion within five years.

The company is preparing to launch driverless trucking operations on U.S. highways in the coming months, marking a major step in its commercial rollout plan.

Volvo also expects more than 300 autonomous trucks to be operating on highways by the end of 2027, according to Nils Jaeger, who leads the company’s autonomous division.

“We are a first mover and we are here to scale this business,” Jaeger said during an investor presentation on June 10.

A clearer roadmap for autonomous freight

The update gives Volvo’s clearest timeline yet for turning autonomous trucking into a meaningful revenue stream.

Investor interest in the sector has been building, with new entrants and funding activity signalling growing confidence in driverless freight technology.

On the same day as Volvo’s update, Swedish autonomous freight company Einride AB made its debut in New York, underscoring rising market attention on automation in logistics.

Volvo’s strategy is anchored on the view that self-driving trucks can extend operating hours beyond human driving limits.

The company says this could effectively double vehicle utilisation, helping logistics operators manage persistent driver shortages while improving efficiency on long-haul routes.

Demand holds steady despite cost pressures

Chief Executive Martin Lundstedt said demand for transport and infrastructure solutions has remained steady even with ongoing geopolitical uncertainty.

He added that Volvo continues to see stable conditions across key markets, supporting its longer-term outlook.

Chief Financial Officer Mats Backman said customer demand in Europe held firm through April and May, while North American orders remained strong, with bookings now stretching into the third and fourth quarters.

He cautioned, however, that rising freight and raw-material costs linked to tensions in the Middle East are expected to push up inflationary pressure in the second quarter.

Broader push into automation and electrification

Beyond autonomous trucking, Volvo is expanding investment across its truck and construction equipment divisions as it shifts toward automation, electrification, and connected mobility systems.

The company says these technologies are central to reshaping global freight and logistics networks, particularly as customers demand more predictable delivery times and lower operating costs.

Volvo’s approach reflects a broader industry trend, as manufacturers and logistics firms seek to modernise supply chains and adapt to sustained demand growth across both developed and emerging markets.