TRUCK PLATOONING MARKET ANALYSIS

The global truck platooning market size is estimated to be valued at US$ 2.52 Billion in 2023 and is anticipated to witness a compound annual growth rate (CAGR) of 30.1% from 2023 to 2030.  The market is fueled by rising environmental pollution, rising road safety concerns, and increasing focus on cost-effective transportation modes. The key factors driving the growth of this region are the increased investments in automotive R&D, growing demand for autonomous and intelligent transportation, and rising sales of EVs.

Global Truck Platooning Market: Regional Insights

North America is anticipated to gain major share in the global truck platooning market over the forecast period. The market for truck platooning is in its testing phase in the region. Several truck manufacturers in this region are involved in development of technology on roads. Moreover, the transportation sector of this region is a major contributor of the logistics operations where trucks are the major necessities in this industry of the region. Thus, the market is likely to gain major growth in North America over the coming years.

Among remaining regions, Europe is also anticipated to exhibit strong growth in the global truck platooning market over the forecast period. This is wing to the increasing lucrative initiatives by government of countries across the region, rise in testing of platooning technology of trucks, and technological advancements along with stringent norms towards vehicle safety in the region. The technological developments such as use of integrated applications of IoT and stringent regulations like EU General Safety Regulation norms of ACEA related to safety of vehicles are the primary drivers for the growth of this market in Europe.

Figure 1. Global Truck Platooning Market Share (%), By Region, 2022

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Global Truck Platooning Market Drivers:

Increasing government regulations for emission reduction to boost the market pace

Several countries around the world have implemented certain regulations to control harmful gas emission from vehicles. The transportation sector accounts for major share in the global pollution and out of this, trucks used for transport cause greenhouse gas emission the most. Due to the emission of such harmful gases, the adoption of truck platooning technology can be reduced in this sector. These vehicle operate very closely reducing the air drag by nearly 40% and reduces Carbon Dioxide per kilometer by 10%. Due to stringent government regulations, the truck platooning technology is widely being adopted around the world, which in turn is expected to drive growth of the market over the forecast future.

Decreased consumption of fuel to drive the market growth

Several companies involved in truck manufacturing are focused on development of truck platooning technology for increasing the fuel consumption. The platooning trucks are usually following the leading truck having a very short distance between them. This reduces the air resistance for the following trucks and causes lesser consumption of fuel. Scania AB, a major truck manufacturer is conducting test for truck convoys with the use of truck platooning technology and is focusing on producing a solution for reducing the fuel consumption considerably for the transportation sector. The reduction in fuel consumption due to use of truck platooning technology is expected to augment growth of the global truck platooning market over the forecast period.

Global Truck Platooning Market Opportunities:

Increasing production of completely autonomous trucks for platooning is expected to generate growth opportunities in the global truck platooning market over the forecast period. As the platooning technology is in its beginning stage, several truck manufacturers are involved in development of this technology. Due to significant benefits of this technology, such as reduced fuel consumption, reduced traffic congestion, lesser GHG emission, and lesser driver fatigue, several truck manufacturers are attracted to the technology. As producing fully autonomous trucks for platooning does not require any driver inputs, the production of these completely autonomous vehicles for the purpose of platooning is increasing, which in turn is expected to drive the market growth.

Extension availability in size of truck platooning fleet is anticipated to create lucrative environment for growth opportunities in the global truck platooning market during the forecast period. The use of truck platooning offers different benefits such as enhanced driver comfort, less congestion, cost savings, enhanced safety, and others. Currently, testing truck platooning technology for involves maximum 3 vehicles, due to which, the benefits of this technology are restricted to the limited truck number. However, increasing development efforts of platooning technology for accommodating higher number of trucks in a platoon is likely to create major growth opportunities in the market.

Global Truck Platooning Market Trends:

Increase in technological developments in truck platooning is a major trend in the market

The demand for safer and highly fuel-efficient vehicles is increasing, and as a result the investment in novel vehicle technologies has increased by vehicle manufacturers. Automobile manufacturers are making use of truck platooning technology to increase the safety and efficiency of trucks. These truck platooning technologies offer advanced features such as avoiding forward collision and mitigation system, adaptive cruise control, active braking systems, and departure warning. Such technological advancements are likely to drive the demand for this truck platooning technology, which is expected to boost the market growth in the near future.

Rise in need for enhanced driver capabilities and growing commercial vehicles is a recent trend

Increasing need for enhanced driver capabilities the popularity of truck platooning has grown significantly. The technology allows more predictive truck driving on the road and enhances the safety of for other road users. With the new trends in road freight sector, such as customization of vehicles, are enabling truck fleets to equip advanced navigation and security tools. Thus, this trend is likely to propel growth of the global truck platooning market during the forecast period.

Global Truck Platooning Market Restraints:

High cost of platooning technology to hinder the market pace

The truck platooning technology makes use of different components such as radar, Lidar, and other sensors to collect data. For instance, adaptive cruise control is a technology that uses radar sensors for sensing the distance from the vehicle in front. Such technologies are expensive and the cost of sensors used in these systems are high. Due to this, the overall cost of platooning technology is increased making it expensive for consumers. This in turn is expected to hinder growth of the global truck platooning market over the forecast period.

Increasing concerns regarding security and privacy to hamper the market growth

Due the truck platooning technology, the travelling experience has enhanced due to its benefits such as low carbon emission, high speed, and fuel-efficiency. The truck platooning systems make use of various components such as cameras and sensors. These components are operated through software, which are vulnerable to cyber-attacks. Thus, concerns regarding security and privacy of information accessed through these software is likely to limit growth of the global truck platooning market during the forecast period. However, with increasing focus on technological advancements, market players are focused on developing solutions to overcome these hurdles, which in turn is expected to aid in growth of the market.

Figure 2. Global Truck Platooning Market Share (%),By Platooning Type, 2022

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Global Truck Platooning Market Segmentation:

The global truck platooning market report is segmented into Technology, Platooning Type, and Communication Technology.

Based on Technology, the market is segmented into Adaptive Cruise Control (ACC), Blind Spot Warning (BSW), Global Positioning, System (GPS), Forward Collision Warning (FCW), Lane Keep Assist (LKA), and Others. Out of which, Adaptive Cruise Control (ACC) is expected to dominate the global market over the forecast period and this is attributed to the growing demand for this technology. Adaptive cruise control technology in truck platooning helps slow down and speed up automatically for keeping a safe distance from the car in front. This technology uses a small size radar system for measuring the relative distance from the vehicle in front.

Blind Spot Warning (BSW) segment is also expected to witness significant growth in the near future and this is owing to the rise in adoption of BSW technology to detect other vehicles located in the blind spot of the driver. This technology gives warnings such as vibration, audio, and others. It is used for avoiding hazardous situations.

Based on Platooning Type, the market is segmented into Driver-Assistive Tuck Platooning (DATP), Autonomous Truck Platooning. Out of which, Driver-Assistive Truck Platooning (DATP) is expected to dominate the global market over the forecast period and this is attributed to the high demand for DATP. Truck platooning needs input of driver to enter or leave the platoon at any time. The demand for these DATP is growing owing to its benefits, which in turn is driving growth of this segment.

Autonomous Truck Platooning segment is also expected to witness significant growth in the near future and this is owing to the increase in adoption of automation. Autonomous truck platooning involves platooning trucks that are fully automatic and need no assistance from drivers. With growing trend of autonomous vehicles, the segment is likely to gain traction in the market over the coming years.

Based on Communication Technology, the market is segmented into V2I (Vehicle-to-infrastructure), V2V (Vehicle-to-vehicle), and V2X (Vehicle-to-everything). Out of which, V2I (Vehicle-to-infrastructure) is expected to dominate the global market over the forecast period and this is attributed to the widespread adoption of V2I communication technology. This technology enables vehicles to exchange information with components supporting highway system of a country. These components include RFID readers, cameras, lane markers, traffic lights, streetlights, and others. The demand for this technology is increasing, which further driving growth of this segment.

 V2V (Vehicle-to-vehicle) segment is also expected to witness significant growth in the near future and this is owing to the rise in demand for this communication technology in truck platooning. Vehicle-to-vehicle truck platooning communication technology helps vehicles share information about their surroundings so they can react more quickly to potential hazards. This allows for safer driving, reduced air resistance and lower fuel costs. Thus, the segment is likely to see strong growth in the global market.

Global Truck Platooning Market: Key Developments

In March 2022, Two Peterbilt trucks were linked through electronic handshakes for establishing tight following distances for platooning trials in Canada.

In august 2021, ZF Friedrichshafen AG introduced novel technologies for energy-efficient and clean commercial vehicles. The company created an electric power steering to help achieve complete EV architectures.

In November 2020, Scania announced the acquisition of Nantong Gaokai, a Chinese truck company to make the tracks. With this, acquisition, the company will be able to make more fuel-efficient vehicle and safer vehicles.

In October 2020, Traton SE announced its plans of acquiring the Navistar International Corp. for US$ 3.7 billion for expanding its product portfolio. With this acquisition, the company will mainly focus on establishment and development of trucks for commercial applications.

Global Truck Platooning Market: Key Companies Insights

The global truck platooning market is highly competitive. This is attributed to continuous launch of new technologies due to ongoing R &D and efforts by value chain participants. Moreover, key players are adopting various business growth strategies in order to expand their presence on regional as well as global basis. Some of the key players in the global truck platooning market are AB Volvo, Scania AB, Continental AG, Peloton Technology, and Daimler AG among others.

*Definition: Truck platooning is a technology that allows two or more trucks to travel together in a convoy, safely and efficiently, through connectivity technology and automated driving support systems. A vehicle at the head of a platoon leads the way and controls the speed of the rest of the vehicles in the convoy. When a vehicle in front slows down or stops, it sends an immediate signal to all the other vehicles in the convoy.