Dynamic average consensus is a decentralized control/estimation framework where a group of agents cooperatively track the average of local time-varying reference signals. In this paper, we develop a novel state decomposition-based privacy preservation scheme to protect the privacy of agents when sharing information with neighboring agents. Specifically, we first show that an external eavesdropper can successfully wiretap the reference signals of all agents in a conventional dynamic average

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... nsus algorithm. To protect privacy against the eavesdropper, a state decomposition scheme is developed where the original state of each agent is decomposed into two sub-states: one succeeds the role of the original state in inter-node interactions, while the other sub-state only communicates with the first one and is invisible to other neighboring agents. Rigorous analyses are performed to show that 1) the proposed privacy scheme preserves the convergence of the average consensus; and 2) the privacy of the agents is protected such that an eavesdropper cannot discover the private reference signals with any guaranteed accuracy. The developed privacy-preserving dynamic average consensus framework is then applied to the formation control of multiple non-holonomic mobile robots, in which the efficacy of the scheme is demonstrated. Numerical simulation is provided to illustrate the effectiveness of the proposed approach.