A new report from Juniper Research has revealed that more than 62 million vehicles will be capable of V2V (Vehicle-to-Vehicle) communication by 2023; rising from just over 1.1 million in 2019. This represents an average annual growth rate of 173 percent over these four years. V2V solutions enable low-latency communications between vehicles, notably for the purpose of driver safety.
The new study, “Consumer Connected Cars: Telematics, In-Vehicle Apps & Connected Car Commerce 2018-2023,” found that rollouts of 5G networks, anticipated to launch next year, will be the key accelerant behind the expansion of V2V communications. It predicted that automotive OEMs will gravitate toward 5G for V2V communication over other technologies; owing to its lower latency and high range.
60 Percent of New Vehicle Sales in U.S. to be V2V Capable by 2023
Juniper found that the move toward 5G will expedite commercial deployments and interoperability, and predicted that the U.S. will become the leading market for V2V deployments. The report predicts that more that 60 percent of new vehicles sold in the U.S. will be V2V-capable by 2023.
In turn, the technology could prevent more than 9,300 deaths a year in the country, representing one in four motor vehicle deaths.
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 to 12 years, will hinder mass adoption.”
5G to Disrupt Automotive Business Models
The research also predicted that automotive OEMs will explore new strategies to generate revenues beyond the vehicle sale, including in-vehicle content subscriptions. The firm predicts 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.
For more insights, download the free whitepaper: Connected Cars: How 5G, Connected Commerce & Blockchain will disrupt the Ecosystem here.
This post originally appeared on Telematics Talk, a Babcox sister publication.
