Truck platooning market to reach nearly $5 billion globally by 2025
The global truck platooning market garnered $500.9 million in 2017 and is expected to reach $4.59 billion by 2025, growing at a CAGR of 32.4% from 2018 to 2025. Stringent government policies for reducing emissions in the transport sector, lowered fuel consumption, and supportive government initiatives for platooning are projected to drive the growth in the market, according to the report, "Truck Platooning Market by Technology (Adaptive Cruise Control (ACC), Blind Spot Warning (BSW), Global Positioning System (GPS), Forward Collision Warning (FCW), Lane Keep Assist (LKA), and Others), Platooning type (Driver-Assistive Tuck Platooning (DATP) and Autonomous Truck Platooning), and Communication Technology (Vehicle-to-infrastructure (V2I), Vehicle-to-vehicle (V2V), and Vehicle-to-everything (V2X)): Global Opportunity Analysis and Industry Forecast, 2018–2025," released by Allied Market Research.
However, expensive platooning technology and increases in security and privacy concerns will hinder the market growth. Conversely, expanding size of truck platooning fleets and a surge in production of fully autonomous trucks will create new pathways in the industry.
Based on technology, adaptive cruise control (ACC) technology accounted for the highest market share in 2017, contributing nearly one-fourth of the total share. This is due to its advantages such as crash avoidance, less driver fatigue, and others. However, blind spot warning (BSW) technology is expected to register the highest growth rate, with a CAGR of 38.4% from 2018 to 2025. This is attributed to factors such as reliable information provided regarding the vehicle's blind spot, safe lane changing, and high level of safety.
Based on platooning type, the driver-assistive tuck platooning (DATP) segment contributed nearly 99% of the total market share in 2017, and it is estimated to maintain its dominance throughout the forecast period. This is due to autonomous trucks being in the development phase along with feasibility of trucks with Level 1 and Level 2 automation for truck platooning. However, the autonomous truck platooning segment is expected to grow at the largest CAGR of 46.6% during the forecast period, 2018–2025. This is due to continuous developments conducted by leading truck manufacturers producing trucks equipped with autonomous technology.
North America contributed nearly half of the total share in terms of revenue in 2017, due to supportive government policies for carrying out tests for platooning trucks on roads. This region would maintain its dominant position throughout the forecast period. However, the region of Latin America, Middle East, and Africa is estimated to register the highest growth rate, with a CAGR of 36.0% from 2018 to 2025, because of reduction in fuel consumption, lowered carbon emissions, and others.
Leading market players analyzed in the research include AB Volvo, Continental AG, Bendix Commercial Vehicles Systems LLC, Delphi Automotive PLC, Daimler AG, Navistar International Corporation, Meritor Wabco, Peloton Technology, OTTO Technologies, and Scania AB.