Report Description

Forecast Period

2024-2028

Market Size (2022)

USD 1 billion

CAGR (2023-2028)

10.2%

Fastest Growing Segment

Forward Collision Warning

Largest Market

Europe

 

Market Overview

Global Truck Platooning Market has valued at USD 1 billion in 2022 and is anticipated to project robust growth in the forecast period with a CAGR of 10.2% through 2028. A developing technique called truck platooning allows trucks to communicate and follow one another closely, which reduces air resistance and improves efficiency and fuel economy. The trucks can closely follow each other thanks to a mix of linked vehicle technologies and production systems that communicate via V2V infrastructure and other systems. As a result, truckers constantly exchange information and coordinate their movements with nearby trucks. The need for truck platooning is growing along with the adoption of new-generation trucks throughout logistics and transportation operations. Due to the enormous R&D investment from industry leaders like Pelton Technology Inc., Scania AB, and Volkswagen, the technology is still in its infancy and is constantly evolving. Additionally, it is projected that global fleet managers' rising desire for effective fleet operations will accelerate market expansion.

Key Market Drivers

Fuel Efficiency and Cost Reduction

One of the primary drivers of the global truck platooning market is the pursuit of fuel efficiency and cost reduction. Truck platooning involves a group of trucks driving closely together, benefiting from reduced air resistance. As a result, platooning can lead to substantial fuel savings, which is a critical consideration for fleet operators aiming to minimize operational costs. The reduction in fuel consumption is particularly pronounced at highway speeds, making platooning an attractive option for long-haul trucking operations. Lower fuel expenses translate into improved profitability and competitive advantages for logistics companies, fostering the adoption of platooning technology.

Environmental Sustainability and Emissions Reduction

The global focus on environmental sustainability and the reduction of greenhouse gas emissions is another significant driver of the truck platooning market. Transportation is a major contributor to carbon emissions, and the trucking industry plays a pivotal role in this regard. Platooning helps decrease emissions by optimizing fuel consumption and reducing the carbon footprint of freight transport. Governments and regulatory bodies worldwide are implementing stringent emissions standards and offering incentives for sustainable transportation practices. Consequently, truck platooning emerges as a solution that aligns with these sustainability goals, encouraging its adoption and driving market growth.

Driver Shortages and Labor Costs

A pressing challenge in the trucking industry is the shortage of qualified commercial truck drivers. As experienced drivers retire and new recruits are in short supply, there is a growing need for technology that can mitigate the impact of driver shortages. Truck platooning addresses this challenge by allowing a single driver to lead a convoy of vehicles, with the trailing trucks operating autonomously but under human supervision. This reduction in the number of required drivers can help companies overcome labor shortages and reduce labor costs, which are often a significant portion of their expenses. Thus, platooning technology is seen as a solution to enhance operational efficiency and address the industry's labor challenges.