More than 62 million vehicles — representing 60% of new vehicles sold in the US — will be capable of V2V (Vehicle-to-Vehicle) communication by 2023, rising from just over 1.1 million in 2019, according to a new report from Juniper Research entitled: Consumer Connected Cars: Telematics, In-Vehicle Apps & Connected Car Commerce 2018-2023.
This represents an average annual growth rate of 173% over these 4 years. V2V solutions enable low-latency communications between vehicles, notably for the purpose of driver safety. The report states that V2V technology could prevent over 9,300 deaths per annum in the country, representing 1 in 4 motor vehicle deaths.
Juniper predicts that the US will become the leading market for V2V deployments. .
The new study, found that rollouts of 5G networks, anticipated to launch next year, will be the key accelerant behind the expansion of V2V communications. The report predicts that automotive OEMs will gravitate towards 5G for V2V communication over other technologies; owing to its lower latency and high range.
Research author Sam Barker remarked: “The safety benefits of V2V are clear, however no incumbent technology can provide the network conditions across the entirety of road networks. 5G will be the key facilitating technology of these automotive safety features, however long vehicle refresh rates, typically around 8-12 years, will hinder mass adoption.”
The research also predicted that automotive OEMs will explore new strategies to generate revenues beyond the vehicle sale, including in-vehicle content subscriptions. It predicted that revenues from directly-integrated vehicle apps will exceed $2.2 billion by 2023. Juniper advised that in addition to leveraging 5G networks, OEMs must open up their in-vehicle ecosystems to third parties in order to accelerate the development of emerging and future automotive content revenue streams.