Truck Platooning Market Size, Share & COVID-19 Analysis, By Technology (Adaptive Cruise Control (ACC), Blind Spot Warning (BSW), Forward Collision Warning (FCW), Lane Keep Assistance (LKA), Autonomous Emergency Braking (AEB), and Others), By Infrastructure Type (Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), and Others), By Level of Autonomy (Semi-autonomous and Fully Autonomous), and Regional Forecasts, 2023-2030

The global truck platooning market size was valued at USD 59.4 million in 2022 and is projected to grow from USD 79.2 million in 2023 to USD 1,360 million by 2030, exhibiting a CAGR of 50.1% during the forecast period.

Truck platooning is an emerging technology enabling trucks to communicate and follow closely, reducing air drag and enhancing efficiency and fuel economy. A combination of connected vehicle technology and production systems allows the trucks to closely follow each other by communicating through V2V infrastructure, and others. Therefore, trucks continuously communicate and coordinate travel with other trucks in close proximity.

As the adoption of new-generation trucks is increasing across the logistics and transportation operations, so is the demand for truck platooning. The technology is nascent and evolving continuously owing to the significant R&D investment from major players such as Pelton Technology Inc., Scania AB, and Volkswagen. Moreover, increasing demand for efficient fleet operations among fleet managers worldwide is anticipated to boost market growth.

COVID-19 IMPACT

Dropped Logistics & Transportation During COVID-19 Hampered the Market Growth

The COVID-19 pandemic has negatively impacted the truck platooning industry. Significantly dropped logistics and transportation operations due to stringent government guidelines coupled with the closed manufacturing facilities resulted in a drop in demand for platooning. Economic instability induced by COVID-19 also restrained key players from investing in nascent technologies such as autonomous trucks, platooning, and related technologies.

However, the market recovered immediately, with relaxed government guidelines and supply chain operations back on track. Moreover, the surge in the adoption of e-commerce continued its trajectory post-pandemic, which motivated the logistics and last-mile delivery providers to adopt advanced fleet management technologies to reduce the delivery time and improve truck fleets. All these factors fueled the growth of the market post-pandemic.

LATEST TRENDS

Increasing Adoption of Autonomous Truck Fleets to Drive Market Growth

Autonomy is one of the major ongoing megatrends in the automotive and transportation sector. Similarly, in the case of the trucking industry, penetration of autonomy has been witnessing consistent growth over the past decade. As platooning requires a significant level of autonomy for efficient operations, adopting autonomous trucks in the trucking industry is anticipated to boost market growth during the forecast period. For instance, in January 2023, U.S.-based startup Outrider raised nearly USD 73 million in funding to ramp up its autonomous truck operations.

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DRIVING FACTORS

Increasing Demand for Road Safety to Drive Market Growth

Increasing demand for road safety worldwide is driving the market growth. Trucks used for logistics and transportation carry a heavy load of cargo. Therefore, increasing number of road accidents of these heavy-duty trucks has fueled the demand for road safety. According to the National Highway Traffic Safety Administration (NHTSA), 523,796 large trucks were involved in traffic crashes across the U.S. in 2021. Platooning improves road safety by managing the speed, travel, braking, and other truck parameters through V2V communication across the fleet of trucks. Hence, surging demand for road safety worldwide is anticipated to boost market growth in future.

Surging Demand for Efficient Trucking Operations to Fuel the Market Growth

The trucking industry is continuously trying to improve the efficiency of truck fleets for cost-effective long-distance deliveries. Platooning optimizes transport through effective utilization of the roads assisting the logistics companies to deliver goods faster. Additionally, effective road utilization also reduces traffic jams. Through platooning technology, the trucks form road trains by traveling closely in a single file; this significantly reduces the air drag on the trucks resulting in improved fuel economy. All these factors improve the efficiency of trucking operations, further fueling the demand for truck platooning.

RESTRAINING FACTORS

High Cost of Platooning Technology May Hamper the Market Growth

Platooning is a nascent technology; therefore, high hardware, technology, and operating costs are restraining its adoption in developing & underdeveloped economies. Additionally, truck platooning requires trucks equipped with a significant level of automation. Hence, the slow adoption of automated trucks in these developing & underdeveloped economies is also anticipated to hamper the truck platooning market growth.

SEGMENTATION

By Technology Analysis

Stringent Government Regulations Related to Road Safety Are Expected to Drive the Adaptive Cruise Control (ACC) Market Growth

By technology, the market is segmented into Adaptive Cruise Control (ACC), Blind Spot Warning (BSW), Forward Collision Warning (FCW), Lane Keep Assistance (LKA), Autonomous Emergency Braking (AEB), and others.

The Adaptive Cruise Control (ACC) segment held the major market share in 2022. Platooning requires commercially available adaptive cruise control and collision avoidance systems as key components for effective operation. Therefore, the demand for adaptive cruise control among platooned trucks is increasing rapidly. Adaptive cruise control automatically adjusts the vehicle's speed to match the vehicle running in the front. Therefore, surging demand for accurate speed matching among the platooned trucks is anticipated to propel the segment growth.

The Forward Collision Warning (FCW) segment is anticipated to witness the fastest growth rate during the forecast period. Forward collision warning is important to avoid accidents when vehicles run unsupervised. Moreover, forward collision warning is a highly important technology for platooning on autonomous fleets in the coming years. Therefore, increasing demand for forward collision warning in autonomous trucks for enhanced road safety and crash prevention is anticipated to boost the market growth.

By Infrastructure Type Analysis

Rising Penetration of V2V Communication Between Truck Fleets to Drive Segment Growth

By infrastructure type, the market is classified into Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), and others. 

The Vehicle-to-Vehicle (V2V) segment held the largest global truck platooning market share in 2022. Platooned trucks use Wi-Fi connection, V2V communication, radar, and other sensors to communicate with the fleet effectively. Therefore, as the demand for effective communication between platooned trucks increases, so does V2V communication. Major key players focused on improving the range of V2V connectivity for long-distance communication. Therefore, surging R&D investments in V2V communication technology will accelerate market growth over the forecast period.

The Vehicle-to-Infrastructure (V2I) segment is anticipated to witness the highest growth rate during the forecast period. V2I enables wirelessly exchanging data and allows communication between vehicle and road infrastructure. Increasing demand for V2I communication for the safe & effective operations of autonomous truck fleets is expected to fuel the market growth in the coming years.

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By Level of Autonomy Analysis

Surging Investments to Develop Fully Autonomous Trucks to Propel the Segment Growth

By level of autonomy, the market is categorized into semi-autonomous and fully autonomous.

The semi-autonomous segment dominated the market in 2022 and is likely to continue its dominance throughout the forecast period. Currently, most of the trucks in the market are of semi-autonomous technology. These trucks have Advanced Driver Assistance (ADAS) and connected technology. Therefore, the surging use of these semi-autonomous trucks for platooning will likely drive market growth during the forecast period. Additionally, the penetration of autonomy in the trucking industry is not up to the market and is expected to take significant time to reach maturity. Therefore, using semi-autonomous trucks is the only viable option for fleet managers. All these factors are anticipated to boost the segment growth in future years.

The fully autonomous segment is projected to grow fastest over the forecast period. Fully autonomous technology is being tested and expected to take over semi-autonomous trucks in upcoming years. Therefore, rising demand for these autonomous truck fleets in truck platooning is driving the investment in self driving technology. For instance, in April 2023, one of the leading autonomous driving technology companies, Aurora, announced its plans to roll out an autonomous trucking service between Houston and Dallas to test its self-driving freight-hauling services by 2024. Therefore, key players' initiatives to commercialize autonomous trucking are anticipated to ramp up market growth in the coming years.

REGIONAL INSIGHTS

Technological Advancements in European Trucking Industry to Drive Market Growth

Regionally, the market is categorized into North America, Europe, Asia Pacific, and the rest of the world.

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Europe held the largest market share in 2022 and is expected to continue its dominance throughout the forecast period. The presence of major trucking companies, such as Daimler, MAN, and others, is driving market growth in the region. For instance, most truck platooning technology providers, such as Volvo, Daimler, Scania, MAN, and others, are based in Europe.

Additionally, the ENSEMBLE project aims to implement multi-brand truck platooning in Europe to fuel economy and improve traffic safety, which is likely to drive market growth. Moreover, the stringency of safety norms in Europe is higher than in any other country. For instance, advanced emergency braking and lane-keep assistance have been mandatory for all trucks in Europe since 2015. All these factors will support the market growth in the coming years.

The Asia Pacific market is expected to witness the fastest growth rate during the forecast period. The rapidly growing trucking industry, coupled with the strong presence of manufacturing and logistics sectors in emerging economies, including India, China, and others, is expected to influence the adoption of commercial vehicle platooning in the region. Moreover, APAC accounts for truck sales more than any other region. Therefore, the vast availability of truck fleets and advanced trucking technologies developed by key players operating in China, Japan, and India are anticipated to fuel the market growth in future.

North America is expected to grow significantly in this market. Governments in North America are showing increasing interest in supporting and promoting the adoption of autonomous vehicle technologies. Various initiatives, grants, and pilot projects are being launched to encourage the implementation of platooning and explore its benefits.

KEY INDUSTRY PLAYERS

Players Focus on Strategic Acquisitions to Gain Competitive Advantage in the Market

Almost all the key players operating in this industry, including Daimler, Volvo, and others are focused on strategic partnerships & acquisitions for the development and early deployment of autonomous truck fleets. For instance, in February 2023, Torc Robotics, a Daimler Truck subsidiary, announced the acquisition of Algolux Inc. The acquisition assisted the company in bringing SAE level 4 autonomous trucks into series production in the U.S. within a decade. Therefore, as autonomous trucks' availability increases worldwide, the utilization of efficient truck platooning technology in logistics and transportation activities is expected to grow rapidly in the coming years.

LIST OF KEY COMPANIES PROFILED:

• AB Volvo (Sweden)


• Daimler (Germany)


• Scania (Sweden)


• Peloton Technology (U.S.)


• Continental AG (Germany)


• Volkswagen AG (Germany)


• Wabco (Switzerland)


• Navistar, Inc. (U.S.)


• MAN (Germany)


• ZF Friedrichshafen AG (Germany)


• Bendix Commercial Vehicles Systems LLC (U.S.)

KEY INDUSTRY DEVELOPMENTS:

• June 2023 – TuSimple, a global autonomous driving technology company, began testing its level 4 autonomous vehicles. The test run started in Japan’s critical freight corridor. The freight corridor connects the major Japanese cities, including Nagoya, Osaka, and Tokyo.


• June 2023 – TuSimple started testing its autonomous trucks on public roads in China. The ‘Driver Out’ run was approved by the government of Shanghai.


• May 2023 – EASE Logistics partnered with the Ohio Department of Logistics (ODOT) and DriveOhio's Rural Automated Driving Systems (ADS) project to deploy automated trucking technology on revenue-generating routes.


• February 2023 – Italian transport company IVECO and America-based trucking technology company, Plus started public road testing of its jointly developed new generation of automated trucks in Germany.


• February 2022 – Waymo started testing its autonomous trucks in Texas in partnership with a leading global logistics service provider, CH Robinson.

REPORT COVERAGE

The report provides detailed truck platooning market analysis and focuses on key aspects such as leading companies, product types, technology, design, and technology. Besides this, the report offers insight into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report encompasses several factors that have contributed to the growth of the market in recent years.

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