A new report from Navigant Research analyzes the market for connected vehicles, with a focus on the key components of vehicle-to-external communications (V2X) technology, providing global forecasts of OEM and aftermarket sales of V2X equipment for light-duty vehicles, through 2025.
The report, Connected Vehicles, examines the market for connected vehicles, with a focus on the key components of V2X communications technology. The study provides an analysis of how these factors, including the cost of hardware, regulations, potential societal benefits, and security and privacy concerns, are projected to affect OEMs, hardware and software suppliers, regulators and intelligent transportation infrastructure operators.
As wireless communications become increasingly capable and ubiquitous around the world, connecting vehicles to each other, to other road users, and to the surrounding infrastructure will become increasingly important. V2X using dedicated short-range communications (DSRC) as well as 4G and 5G cellular data communications are expected to expand rapidly in the next decade, driven by the desire to reduce societal costs while improving safety, reducing energy consumption and decreasing traffic congestion.
“With U.S. regulators on the verge of mandating vehicle-to-vehicle (V2V) communications technology beginning in about 2020, the market for connected vehicles is set to take off,” said Sam Abuelsamid, senior research analyst with Navigant Research. “Toyota launched a V2V system based on DSRC in Japan in late 2015, General Motors is launching the first system in the U.S. market in early 2017 and Audi has a 4G LTE-based vehicle to infrastructure system on select model year 2017 vehicles.”
In addition to embedded OEM systems on new vehicles, aftermarket retrofit systems and smartphones with DSRC capability are expected to be adopted, according to the report. Ultimately, V2X is expected to be a key technology for reducing vehicle crashes and fatalities in the next decade, as well as enabling a robust automated driving ecosystem.
Global market forecasts of OEM and aftermarket sales of V2X equipment for light-duty vehicles extend through 2025. The report also provides a review of major market drivers and barriers related to connected vehicles and the key industry players. An executive summary of the report is available for free download on the Navigant Research website.