The truck platooning market is estimated to be valued at US$ 2.52 Bn in 2023 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.
Truck platooning involves linking two or more trucks together electronically at close proximity to maximize fuel efficiency and utilize existing road infrastructure. The technology allows trucks to travel together on highways at reduced spacing distances of less than 50 meters between each other. Truck platooning helps decrease costs through improved fuel efficiency and safety regulations.
Market key trends:
One of the major trends fueling the growth of the truck platooning market is increasing pressure on fleet operators and companies to reduce vehicular emissions and comply with prevailing safety regulations. Platooning enables trucks to drive closely together at high speeds of over 60kmph. This minimizes air resistance experienced by trailing trucks, reducing fuel consumption by up to 10% compared to individual driving. With governments globally enacting stricter environmental standards to curb emissions from the transportation sector, truck platooning provides an effective solution to lower carbon footprint. In addition, enhanced safety features allowed by platooning such as automatic braking and collision avoidance are expected to comply with evolving safety norms for commercial vehicles.
Threat of new entrants: The high capital requirement and stringent regulations in the truck platooning market pose moderate threat of new entrants. Bargaining power of buyers: Large fleet operators and logistics companies have significant bargaining power over technology providers due to their bulk purchasing ability. Bargaining power of suppliers: Technology providers such as sensors manufacturers has moderate bargaining power due to scarce expertise in developing automation and connectivity solutions for truck platooning. Threat of new substitutes: Low threat from new substitutes currently as truck platooning offers efficiency and safety advantages over traditional trucking. Competitive rivalry: Intense competition among existing players to capture larger market share through innovation and partnerships.
Strength: Truck platooning enables fuel savings of up to 10% and improves road safety. It enhances fleet efficiency by allowing trucks to drive closely together using vehicle-to-vehicle connectivity.
Weakness: High upfront investment requirements for technology deployment and limited return on investment for small fleet operators. Compatibility issues between systems of different manufacturers.
Opportunity: Rising demand for fleet management solutions among logistics companies presents an opportunity. Government initiatives to promote adoption of fuel-efficient transportation modes also boost prospects.
Threats: Stringent regulations around data privacy and cybersecurity pose implementation challenges. Labor union resistance over potential job losses in trucking sector.
The Global Truck Platooning Market Size is expected to witness high growth, exhibiting CAGR of 30.1% over the forecast period, due to increasing demand for fleet management solutions and government efforts to promote eco-friendly transportation. Regionally, North America dominates currently due to supportive regulatory environment and presence of major technology providers. Europe is expected to grow at fastest pace due to stringent emission norms.
Key players operating in the truck platooning market are AB Volvo, Scania AB, Continental AG, Peloton Technology, and Daimler AG among others. AB Volvo has collaborated with Daimler to develop hybrid powertrain solutions for platooning. Scania AB offers connectivity solutions that enable interconnection of vehicles in a platoon. Continental AG provides advanced sensor and automation technology for vehicle coordination. Peloton Technology has partnerships with several fleet operators to deploy its platooning systems.