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The truck platooning system market size is estimated to grow at a CAGR of 57.74% between 2022 and 2027. The market size is forecast to increase by USD 760.36 million. The growth of the market depends on several factors, including increased demand for reducing operating costs and fuel computations, reduction of human error by automation of the driving process, and growing popularity of cutting-edge technology in truck platooning.
This truck platooning system market report extensively covers market segmentation by component (hardware, software, and services), vehicle type (HCV and LCV), and geography (North America, Europe, APAC, Middle East and Africa, and South America). It also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.
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The increasing need to reduce operating costs and fuel computations is notably driving the market growth, although factors such as the high cost of implementing the system are negatively impacting the market growth. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.
The increasing need to reduce operating costs and fuel computations by the fleet is driving the market. One of the key reasons is the growing need to optimize fuel consumption and operating efficiency. The system enables trucks to travel closely together in a formation, reducing air resistance and aerodynamic drag. As a result, it leads to lower fuel consumption and lower emissions. Hence, truck platooning systems provide a cost-effective solution for fleet operators who are under immense pressure to reduce operational costs. These systems increase efficiency, allowing fleets to transport more goods and deliver them faster.
Further, with the automation of the driving process, truck platooning systems also help to reduce human error, thus enabling safer and more reliable operations. The system can respond more quickly to road hazards and safer braking distances by maintaining a close distance between the platoons. Thus, truck platooning systems play a key role in reducing the number of accidents that occur on highways, thus improving overall road safety. As a result, these factors are expected to drive the growth of the market in focus during the forecast period.
There is a significant rise in the adoption of self-driving trucks in the truck platooning system market. Several factors are driving this development, including the growing demand for efficient and safe transportation of goods over long distances. Self-driving trucks have advanced technology, such as the truck crew system, which allows them to operate without human intervention. These trucks can navigate the roads independently with the help of in-built sensors, cameras and a global positioning system and GPS systems. In Addition, these trucks can cover long distances without needing rest breaks, which is impossible for human drivers.
One of the biggest advantages of self-driving trucks is that they can drive in groups, a group of trucks moving close together. This helps reduce air resistance, which in turn reduces fuel consumption and emissions. In addition, grouping also helps reduce traffic congestion and improve road safety.
One of the main obstacles to the widespread adoption of truck platooning is the high cost of implementing the system. The upfront cost of the technology can be expensive for many trucking companies, which poses a major threat to the truck platooning system market. The cost estimate can range from USD 40,000 to USD 100,000. This cost includes the installation of sensors, cameras, and other equipment, as well as the necessary software and training for drivers.
The maintenance costs for the system can also be a significant expense. Regular maintenance and updates are required for sensors and other components to function properly in addition to the overall cost of technology, which makes it difficult for small companies to invest in such systems. Thus, such factors are expected to hinder the growth of the global truck platooning system market during the forecast period.
The market report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.
Global Truck Platooning System Market Customer Landscape
Vendors are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.
AB Volvo -The company offers consumer NAS such as Drivestor 4 Pro, Nimbustor 2, Lockestor 10 under the brand ASUSTOR Inc.
The research report also includes detailed analyses of the competitive landscape of the market and information about 15 market vendors, including:
Qualitative and quantitative analysis of vendors has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize vendors as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize vendors as dominant, leading, strong, tentative, and weak.
The market share growth by the hardware segment will be significant during the forecast period. Hardware plays a key role in the functioning of a truck platooning system. The hardware components include cameras, sensors, radar, and other communication devices. Real-time video feed is provided by the truck platooning system for the driver and platoon coordinator. Installation of cameras is mostly on the front, sides, and back of the truck to provide 360-degree coverage. These cameras help detect obstacles, monitor traffic, and communicate between platoon trucks.
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The hardware segment shows a gradual increase in the market share of USD 7.73 million in 2017 and continued to grow by USD 29.13 million in 2021. Sensors are another important hardware component in the truck platooning system. They are mainly used to detect the distance between trucks and ensure safe driving. Usually, radio frequency sensors and electronic sensors are used to detect the proximity and relative speed of the trucks in the platoon. Additionally, they provide smooth and controlled deceleration and acceleration to the entire platoon. Radar systems are also commonly used in the truck platooning system to provide accurate data on the position of the vehicles on the road and detect any obstacles in the path. This data is vital for maintaining distance between trucks and ensuring a smooth and safe driving experience.
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North America is estimated to contribute 40% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.
North America is a key region in the global truck platooning system market. Laser radar and advanced driver-assistance system is one of the notable advancements in truck platooning systems which drives significant market growth in the region. Truck platooning is an emerging technology involving multiple trucks in a convoy-like formation to improve fuel efficiency, reduce emissions, and enhance overall road safety.
One of the main drivers of the truck platooning market is North America. This is due to the rising demand for eco-friendly transportation solutions which includes public transportation, such as electric buses and trains and bus rapid transit (BRT) systems which can carry people far more efficiently than cars. The increasing investment in infrastructure development and the expansion of logistics networks have further facilitated the adoption of this technology in the region. Additionally, various government initiatives promoting sustainable transportation solutions are propelling the adoption of truck platooning as well. Further, the high level of research and development (R&D) activities in the region are expected further to increase the market growth during the forecast period.
The outbreak of COVID-19 in 2020 has resulted in nationwide lockdowns which led to the temporary closure of several automotive manufacturing plants in North America. However, post-pandemic, the regional truck platooning system market showed steady growth with the resumption of manufacturing operations in the automotive industry and the initiation of mass COVID-19 vaccination drives by the government of different countries. As a result, In North America, automotive production increased by around 50-80% in 2021 compared to 2020. Therefore, the regional market is expected to witness a similar growth trend during the forecast period.
The truck platooning system market report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027.
Technavio categorizes the Truck Platooning System Market as a part of the consumer discretionary market within the global automobiles and components market. The parent global auto parts and equipment market covers companies that are engaged in developing and producing auto components. It also includes companies offering database management software. Our market research report has extensively covered external factors influencing the parent market growth during the forecast period.
Truck Platooning System Market Scope |
|
Report Coverage |
Details |
Page number |
154 |
Base year |
2022 |
Historic period |
2017-2021 |
Forecast period |
2023-2027 |
Growth momentum & CAGR |
Accelerate at a CAGR of 57.74% |
Market growth 2023-2027 |
USD 760.36 million |
Market structure |
Concentrated |
YoY growth 2022-2023(%) |
53.54 |
Regional analysis |
North America, Europe, APAC, Middle East and Africa, and South America |
Performing market contribution |
North America at 40% |
Key countries |
US, Canada, China, Germany, and UK |
Competitive landscape |
Leading Vendors, Market Positioning of Vendors, Competitive Strategies, and Industry Risks |
Key companies profiled |
AB Volvo, Aptiv Plc, Continental AG, Daimler Truck AG, Goldstone Technologies Ltd., Iveco SpA, PACCAR Inc., Peloton Technology Inc., Robert Bosch GmbH, Toyota Tsusho Corp., Traton SE, and ZF Friedrichshafen AG |
Market dynamics |
Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID 19 impact and recovery analysis and future consumer dynamics, Market condition analysis for forecast period |
Customization purview |
If our report has not included the data that you are looking for, you can reach out to our analysts and get segments customized. |
We can help! Our analysts can customize this market research report to meet your requirements.
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