The global truck platooning market is projected to grow a substantial CAGR over the forecast period owing to key benefits offered such as reduced operational cost and enhanced vehicle safety. Truck Platooning refers to a convoy of two or more trucks linked to each other using automated and connected technology. The connected vehicle technology helps the lead truck to communicate and coordinate with trailing trucks, enabling them to move in contiguity. With the use of radar, cameras, reflective light scanning, the fleet of trucks can travel at a subsequent distance of 30 to 50 feet. Thus, the truck platooning system supports the driver by providing a quick reaction and enhanced capabilities to maintain road safety.
Driver’s distraction and lost focus owing to drowsiness is the primary reason behind most of the road accidents. Thus, increasing concerns for road safety and security is anticipated to be a key driver in the adoption of the truck platooning. Moreover, the company’s focus towards reducing the operational cost is expected to be a potential driver to propel the truck platooning market growth. The research and development efforts in the field of autonomous and semi-autonomous vehicles that provide safety features such as Adaptive Cruise Control (ACC), Forward Collision Warning (FCW), Lane Keep Assist (LKA), and other Advanced Driver Assistance System (ADAS) is expected to boost demand for truck platooning. ACC helps to adjust vehicle speed while maintaining a safe distance between the vehicles, whereas FCW warns the driver in the event of a frontal collision, LKA provides warning while exiting the lane, and other ADAS features contribute towards automating and enhancing the driving experience for the user.
The fuel cost is considered as a significant operational component within logistics and fleet operations. With rising fuel cost, the profit margins are significantly affected. However, truck platooning market is anticipated to improve the bottom line of the companies by reducing the overall transportation cost. As per estimations from the European Union’s International Council of Clean Transportation (ICCT) 75% cargo per kilometer is transported with the help of heavy-duty vehicles, which compound for 30% of C02 emission. Thus, stringent emission regulations such as Euro 7 Emission Norms have compelled the original equipment manufacturer (OEM) to integrate newer technologies in the heavy-duty vehicle segment.
Truck platooning is a complex process and requires integration of advanced technologies such as collision avoidance system, sensors for transmission of data, ACC, and FCW systems, among others. Moreover, growing adoption of the internet of things (IoT) and surrounding infrastructure such as smart vehicle applications, transport logistics applications, and guidance and control systems, among others in transportation system is complimenting the growth for truck platooning.
The truck platooning market faces tough hurdles such as lack of security and encryption of data to protect the platooning communication system from infringement or hacks. Furthermore, factors such as return on investment of the platooning system, acceptance from the drivers, system security, and the amount of viable platoon time are anticipated to be key challenges in the market growth.
The European region is considered as a pioneer in a successful demonstration of the truck platooning system. The primary factors responsible for driving the growth in the European markets are the technological advancements such as the integrated application of the IoT along with the implementation of strict regulations such as ACEA’s EU General Safety Regulation norms pertaining to vehicle safety.
The North American region is anticipated to witness healthy growth over the forecast period. The North America transportation industry trucks play a vital role in logistical operations and have a significant contribution to the transportation industry. The development of favorable regulatory policies in the U.S. from National Highway Traffic Safety Administration (NHTSA) and National Transportation Safety Board (NTSB) that features accountability, safety, and compliance are the potential factors that contribute to market growth. Moreover, the North American market has a strong inclination towards adopting new technologies, thereby boosting the adoption of truck platooning in the near future.
The Asia Pacific countries such as Japan and Singapore are anticipated to witness robust market growth as they have initiated to launch truck platoon test trials. In Singapore, Scania is planning to set up a full-scale truck platooning operation. A multi-year project has been organized by the Ministry of Transport and the Port of Singapore Authority (PSA Corporation) and is undertaken by Toyota. The project is divided into two phases, first is the designing and refinement of the truck platooning technology, and the second phase will consist of local trails and development of technology.
The truck platooning value chain encompasses companies such as Peloton Technology, AB Volvo, Scania, Daimler AG, Navistar Inc, WABCO, PACCAR Inc., MAN, IVECO, Hino Motors, Ltd., and Continental AG, among others. These companies are continuously engaged in R&D and have adopted several strategies to remain competitive in the truck platooning market. For instance, Volvo Group venture capital, a subsidiary of the Volvo group invested in Peloton Technologies for the development of platooning technologies and has partnered with other companies to diversify its technology offerings. Also, Scania has collaborated with Swedish National Road and Transport Research Institute and Volkswagen Research for testing of platoons between Sodertalje and Helsingborg in Sweden.
Peloton Technologies is the market leader in the deployment and development of the truck platooning system in the U.S. market. OEMs have invested in the company to promote commercialization of truck platoon system across the North America region. The prominent vendors such as Daimler AG is focusing on enhancing road safety and is continuously involved in technological innovations to boost truck platooning adoption. Such developments are anticipated to help the company to emerge as one of the prominent players in the truck platooning system market.
This report has a service guarantee. We stand by our report quality.
We are in compliance with GDPR & CCPR norms. All interactions are confidential.
Design an exclusive study to serve your research needs.
Get your queries resolved from an industry expert.
"The quality of research they have done for us has been excellent..."
The automotive & transportation industry is amongst the most exposed verticals to the ongoing COVID-19 outbreak and is currently amidst unprecedented uncertainty. COVID-19 is expected to have a significant impact on the supply chain and product demand in the automotive sector. The industry's concern has moved on from being centered on supply chain disruption from China to the overall slump in demand for automotive products. The demand for commercial vehicles is expected to plummet with the shutdown of all non-essential services. Furthermore, changes in consumer buying behavior owing to uncertainty surrounding the pandemic may have serious implications on the near future growth of the industry. Meanwhile, liquidity shortfall and cash crunch have already impacted the sales of fleet operators, which is further expected to widen over the next few months. We are continuously monitoring the COVID-19 pandemic, and assessing its impact on the growth of the automotive & transportation industry. The report will account for Covid19 as a key market contributor.