Truck Platooning Market Size, Share & Analysis

[162 Pages Report] The global truck platooning market size was valued at USD 37.6 million in 2021 and is expected to reach USD 2,728.7 million by 2030, at a CAGR of 60.96%, during the forecast period 2021-2030. The forecast period considered for the study is 2021 to 2030. Growing demand for road safety & security and increasing focus toward reducing the operating cost of transportation have triggered the growth of the market.

Objectives of the Report

• To analyze and forecast (2021–2030) the truck platooning market, in terms of volume (Units) and value (USD million)
• To define, describe, and project the market based on platooning type, systems, services, sensor type, and region
• To analyze and forecast the market across four key regions, namely, Asia Oceania, Europe, Americas, and the Middle East and Africa (MEA)
• To analyze the regional markets for growth trends, prospects, and their contribution to the total market
• To strategically profile key players in the market and comprehensively analyze their market shares and core competencies
• To track and analyze competitive developments such as joint ventures, mergers and acquisitions, new product launches, expansions, and other industry activities carried out by the key industry participants
• To analyze the competitive landscape which includes recent developments (new product developments, expansion, mergers & acquisitions, supply contracts/joint ventures) by the OEMs, software/solution providers, Tier-1 companies, and startups

The research methodology used in the report involves primary and secondary sources and follows a bottom-up and top-down approach for data triangulation. The study involves the study of country-level sales of heavy-duty trucks and penetration of different types of platooning (autonomous truck platooning, DATP). The penetration and analysis are projected based on various factors such as autonomous vehicle index, infrastructure readiness, truck platooning testing & development, consumer acceptance, OEMs presence, and government regulations. The analysis has been discussed and validated by primary respondents, which include experts from the truck platooning industry, research professionals & consultants, and software & hardware suppliers. Secondary sources include associations such as European Automobile Manufacturers Association (ACEA), American Trucking Associations, Connected Vehicle Trade Association, truck platooning software & hardware suppliers’ websites and annual reports, and paid databases and directories such as Factiva and Bloomberg.

The figure given below illustrates the break-up of the profile of industry experts who participated in primary discussions.

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The ecosystem of the truck platooning market consists of Tier I suppliers and software/service providers such as Continental (Germany), Bosch (Germany), NVIDIA (US), and PELOTON (US). Platooning systems and technologies are supplied to automotive OEMs such as Volvo (Sweden), Daimler (Germany), and others.

Target Audience

• Automotive electronic component suppliers
• Automotive OEMs
• Autonomous platform providers
• Autonomous vehicle manufacturers
• Technology providers
• The automobile industry as an end-user industry and regional automobile associations
• Traders, distributors, and suppliers of materials used for truck platooning systems
• Truck platooning service providers 
• Truck platooning component manufacturers
• Truck platooning system suppliers
• Research institutes and government organizations

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Scope of the Report

Market, By Platooning Type

• Autonomous Truck Platooning
• DATP

Market, By Services

• Telematics-Based Services
  • Automatic Crash Notification
  • Emergency Calling
  • Navigation & Infotainment
  • On-road Assistance
  • Remote Diagnostics
  • Vehicle Tracking
• Platooning-Based Services
  • Pricing
  • Financial Transaction
  • Match Making

Market, By Systems

• Adaptive Cruise Control (ACC)
• Automated Emergency Braking (AEB)
• Blind Spot Warning (BSW)
• Forward Collision Warning (FCW)
• Global Positioning System (GPS)
• Human Machine Interface (HMI)
• Lane Keep Assist (LKA)
• Others

Market, By Sensor Type

• Image
• Radar
• LiDAR

Market, By Region & Country

• Asia Oceania (Australia, Japan, Singapore, and Others)
• Europe (Germany, France, UK, Sweden, Belgium, The Netherlands, Spain, Austria, and Others)
• Americas (US, Canada, and Others)
• Middle East and Africa (UAE, Kuwait, and Others)

Available Customizations

Telematics-based services market for truck platooning, By Platooning Type

• Autonomous Truck Platooning
• DATP

* the study considered automatic crash notification, emergency calling, navigation & infotainment, on-road assistance, remote diagnostics, and vehicle tracking under the telematics based services segment

Platooning-based services market for truck platooning, By Platooning Type

• Autonomous Truck Platooning
• DATP

** the study considered match making, pricing, and financial transaction services under platooning based services segment.

Truck platooning systems market, By Platooning Type

• Autonomous Truck Platooning
• DATP

** the study considered Adaptive Cruise Control (ACC), Automated Emergency Braking (AEB), Blind Spot Warning (BSW), Global Positioning System (GPS), Human Machine Interface (HMI), Lane Keep Assist (LKA), and others under truck platooning systems

Drivers

Reduction in operating cost

Reduction in fuel consumption

According to Scania, the fuel cost accounts for more than 30% of the operational cost in normal European transport operations. A small reduction in fuel consumption would have significant impact on the overall freight cost in the transportation industry, which operates on small profit margins. The use of platooning in the trucking industry can help to reduce fuel cost incurred by vehicle manufacturers and transportation service providers. According to Peloton, the reduction in aerodynamic drag of two-truck platoons provides unprecedented fuel savings for both the trailing and the leading truck. For instance, in December 2015, tests conducted by Scania showed that a convoy of truck platooning can reduce fuel consumption by up to 12%. Similarly, the North American Council for Freight Efficiency (NACFE) and the US Departments of Energy & Transportation have shown double digit fuel savings in truck platooning tests. Therefore, truck platooning can help increase revenue and, ultimately, the benefits could be passed on to the customers in the form of low cost of traveling or low cost of goods. Additionally, truck platooning could offer increased vehicle utilization, lower crash cost, reduction in thefts, and reduced repair and maintenance cost. For instance, predictive maintenance system helps to predict and avoid machine failure by combining data from advanced Internet of Things (IoT) sensors and maintenance logs as well as external sources.

Lowering the CO2 emission

The rising stringency in emission norms has forced OEMs and Tier-1 manufacturers to adopt new technologies in heavy-duty vehicles. Similarly, government agencies such as the US Department of Transportation (US DOT) have also implemented new policies and programs to reduce vehicle emissions. According to the European Union, heavy-duty vehicles in Europe are responsible for moving 75% of the freight ton kilometers and account for 30% of on-road CO2 emissions.

Road safety

Road safety and security is one of the prime concerns for transport authorities and service providers. Most of the road accidents occur as the driver is either distracted or has lost focus owing to drowsiness. According to European Truck Platooning Challenge, human error is responsible for more than 90% of traffic accidents. The World Health Organization’s (WHO) Third Global Status Report on Road Safety 2015 estimated that more than 1.2 million road traffic deaths occur globally each year. The drivers are working more than the prescribed duration of driving, which results in the loss of concentration and causes accidents. As per the European Union drivers’ working hour regulations, the daily driving period should not exceed 9 hours, and daily rest period shall be 11 hours. In the US, drivers of large trucks are permitted by federal hours-of-service regulations to drive up to 11 hours at a stretch and up to 77 hours over a seven-day period. Following table shows the number of deaths caused due to the collision between large trucks and different vehicle types.

Restraints

High cost of hardware and technologies

The platoon trucks are anticipated to be highly priced chiefly due to the introduction of commercialized technological systems into the vehicles. The installation of advanced features such as adaptive cruise control (ACC), blind spot warning (BSW), lane keep assist (LKA), and forward collision warning (FCW) eventually increases the overall cost of the vehicle. Though most of these technologies to enable truck platooning are already available, the constant improvement is necessary to make them more reliable. This is because technologies embedded in the truck platooning must support the vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications.

Lack of infrastructure

Truck platooning is also driving smart transportation, which needs integrated application of internet of things (IoT) technologies and surrounding infrastructure in transportation systems. The current road infrastructure is constraining the development of the possible routes for long-haul truck platoons. For instance, unsuited lane markings and bridges could block the optimal routing of platoons. This, in turn, is expected to increase the cost of developing the infrastructure to adapt to the changes in vehicle technologies and support them..

New Product Developments

Supply Contracts/Collaboration//Partnerships/Joint Ventures

The truck platooning market is projected to grow at a CAGR of 60.96% from 2021 to 2030, and the market size is projected to grow from USD 37.6 million in 2021 to USD 2,728.7 million by 2030. The increasing government regulations for vehicle safety, growing adoption of advanced driver assistance systems (ADAS), and significant testing of on-highway platooning are expected to play a significant role in the growth of the market.

The driver-assistive truck platooning (DATP) segment is projected to hold the largest share in the truck platooning market, by platooning type. Developed countries such as the US, Netherlands, Sweden, and the UK are likely to deploy DATP on roads in the near future. In June 2018, Volvo Trucks North America joined hands with FedEx and the North Carolina Turnpike Authority to demonstrate on-highway truck platooning in North Carolina.

Adaptive cruise control (ACC) is projected to be the fastest growing segment of the truck platooning market, by systems. ACC is an essential system for truck platooning operations. ACC helps to automate the speed of the trucks with the help of V2V communication.

Image sensor is projected to be the largest segment of the truck platooning market, by sensor type. In truck platooning, image sensors are used in several applications such as driver drowsiness, blind spot warning, road sign recognition, front monitoring, and lane keep assist. Due to the increasing accuracy of object detection, the number of image sensors used in truck platooning is expected to increase in the future.

The telematics-based services segment is projected to be the largest segment in the truck platooning market, by services. The adoption rate of telematics-based services is projected to grow in truck platooning owing to the rising concerns regarding maintenance notifications, duration of maintenance services, and reduced operational costs.

The Americas region is estimated to be the largest market for truck platooning. Trucks are the major contributor to the transportation sector of the Americas. The regulatory developments such as Compliance, Safety, and Accountability (CSA) and Hours of Service Solution (HOS) revisions are expected to drive the growth of the trucking industry in the region. Hence, the truck platooning market is expected to see substantial growth. Also, the strong financial position of this region allows these countries to invest heavily in leading technologies such as truck platooning.

Europe is projected to be the fastest growing market for truck platooning. The major factors driving the growth of the market include pioneering efforts in truck platooning, technological advancements, and stringent vehicle safety norms in the region. Countries such as Sweden and the Netherlands have seen pioneering efforts in DATP with top rank in the autonomous vehicle index. In 2016, during its Presidency of the European Union (EU), the Netherlands started a European Truck Platooning Challenge. Hence, these developments are expected to drive the growth of truck platooning in the region in the near future.

The key factors restraining the growth of the truck platooning market are the high cost of truck platooning systems and lack of infrastructure. The installation of advanced features such as blind spot warning (BSW), lane keep assist (LKA), adaptive cruise control (ACC), and forward collision warning (FCW) system increases the overall cost of the truck. Truck platooning needs integrated application of internet of things (IoT) technologies and surrounding infrastructure in transportation systems. The current road infrastructure is constraining the development of the possible routes for long-haul truck platoons. The market is dominated by a few global players. Some of the key manufacturers operating in the market are Volvo (Sweden), Daimler (Germany), Scania (Sweden), Continental (Germany), Peloton (US), and NVIDIA (US).

Opportunities

Self-driving trucks

Autonomous vehicles are developing at a rapid pace. The self-driving truck is one of the most disruptive innovations in the transportation industry that will reduce shipping costs, increase supply chain efficiency, overcome the issue of truck driver shortage, and increase road safety with fewer accidents. Additionally, autonomous and semi-autonomous trucks can help reduce traffic congestion. The Texas A&M Transportation Institute’s 2015 Urban Mobility Scorecard reported that traffic congestion causes drivers to waste more than 3 billion gallons of fuel and be stuck in their vehicles for nearly 7 billion extra hours. Autonomous vehicles could redefine road capacity with an increase in the number of vehicles that can travel safely in a lane. Elderly and physically disabled people who are unable to drive will also have a chance to get around more freely.

Challenges

Gaining user/public acceptance

One of the major concerns in truck platooning is that of user acceptance, which includes acceptance by the transporters, drivers, as well as all other road users or public. The effective implementation of truck platooning requires close cooperation between transporters, private fleet owners, and individual owner-operators. According to the American Transportation Research Institute (ATRI) survey on “Willingness of different truck/fleet owners to cooperate in order to form inter-company platoons”, transport companies are least cooperative to work with other transport companies. Similarly, owner-operators are not willing to work with transporters and private fleet operators. However, private fleets are positive towards cooperation. The intense competition between transporters, data privacy concerns, and fear of delay in shipment due to cooperative scheduling of the platoons are some of the factors that restrain user/public acceptance.

Concern over data privacy and cyber security regulations

Truck platooning would create significant opportunities to improve road freight transport. However, it can also raise concerns about data privacy and security. Truck platooning uses wireless technologies such as V2V and V2I communication, which increase the risk of cyber threats for automotive electronics. The increase in vehicle connectivity through carry-in devices such as smartphones, music players, and tablets has also increased the vehicle’s cyber risk. Excessive connectivity also increases the risk of hacking. Even if external devices are not connected to the vehicle, there is still a possibility of getting hacked. This is because advanced Human-Machine Interface (HMI) systems are connected to the Internet and data is stored in the cloud database or at the research center of the OEMs. External interaction generally carries with it the risk of personal data being exposed. Although OEMs understand and agree to data privacy policies, there are uncertainties regarding the protection of this data.

Expansions

Mergers & Acquisitions

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