July 20, 2024
truck platooning market

The proliferation of autonomous driving technology is anticipated to open up the new avenue for truck platooning market

The truck platooning market is estimated to be valued at US$ 2.52 Billion in 2022 and is expected to exhibit a CAGR of 30.1% over the forecast period 2023-2030, as highlighted in a new report published by Coherent Market Insights.

Market Overview:

Truck platooning involves linking two or more trucks together electronically through connectivity technology, sensors and automated driving support systems. It enables trucks to drive closely together in a coordinated manner at high speeds. This reduces air resistance and improves fuel economy by around 10%. Truck platooning aids in reducing traffic accidents by enabling swift emergency braking. It also helps decrease driver fatigue and improves freight transport efficiency.

Market Dynamics:

Two major factors expected to drive growth of the global truck platooning market over the forecast period include fuel efficiency and increase in freight transport. Truck platooning offers as much as 10% improvement in fuel efficiency which helps fleet operators save on transportation costs. This is a key attraction for companies. Also, with the rise in e-commerce and just-in-time delivery models, freight transport volumes are growing exponentially. Truck platooning facilitates improved fleet management and ensures on-time deliveries. This boosts its adoption. However, issues regarding data sharing standards, liability in case of accidents and highway infrastructure readiness remain challenges to widespread commercialization of truck platooning technology.

Segment Analysis

Truck platooning market can be segmented into vehicle automation, platooning type, platooning size, services, and region. Among them, vehicle automation segment dominated the market in 2023 and is expected to remain dominant during the forecast period. This is attributed to growing implementation of semi-autonomous and fully autonomous technologies in trucks for platooning purposes.

PEST Analysis

Political: Governments across the globe are supporting the development of C-ITS and truck platooning technologies through initiatives and projects to promote road safety standards. Some countries have also formulated favorable policies and regulatory norms for truck platooning trials.
Economic: Adoption of truck platooning provides significant economic benefits such as reduced fuel consumption and operational costs for fleet operators. It also boosts the commercial vehicle manufacturing industry.
Social: Growing road accidents caused by human errors have increased the need for advanced driver assistance systems. Demand for safer, efficient, and eco-friendly logistics operations is driving the market.
Technological: Significant technological advancements in areas such as vehicle-to-vehicle communication, sensor fusion, and autonomous driving are enabling the development of sophisticated truck platooning systems.

Key Takeaways

The Global Truck Platooning Market Size is expected to witness high growth, exhibiting CAGR of 30.1% over the forecast period, due to increasing focus on enhancing fuel efficiency and reducing logistics costs. The market size is estimated to reach US$ 30.33 Billion by 2030 from US$ 2.52 Billion in 2023.

Regional analysis: North America dominated the market in 2023 and is expected to continue its dominance during the forecast period. This is attributed to considerable government funding and active pilot tests for autonomous trucking and platooning in the US and Canada. Europe and Asia Pacific are emerging as high potential markets and expected to witness fastest growth over the forecast period.

Key players operating in the truck platooning market are AB Volvo, Scania AB, Continental AG, Peloton Technology, and Daimler AG among others. AB Volvo and Daimler AG are involved in multiple partnerships and projects to develop and test advanced platooning systems across different geographies. In December 2021, Scania AB partnered with Siemens Logistics to test feasibility of platooning on public roads in Germany. In June 2022, Continental AG collaborated with Microsoft Corporation to accelerate development of automated truck platooning systems.

*Note:
1. Source: Coherent Market Insights, Public sources, Desk research
2. We have leveraged AI tools to mine information and compile it