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Autonomous Vehicle Ecosystem Gains Momentum

The term connected cars refers to devices installed in the vehicle which allow Machine-to-Machine (M2M) communication or machine-to-human interaction. M2M is communication between two machines that require no human interaction.

In contrast, vehicle telematics enables data to be sent from a vehicle to another location, and used for vehicle conditioning or to monitor driver behavior. Beyond the connected car ecosystem, opportunities will present themselves for integration with other ecosystems, such as the smart home and smart city technology.

The full value of the ecosystem will be felt by others outside the connected car ecosystem, such as law makers and mobile network operators.

Connected Vehicle Market Development

According to the latest worldwide market study by Juniper Research, 50 percent of new vehicles will be shipped with Vehicle-to-Vehicle (V2V) hardware by 2022 -- it's a wireless communication technology that enables real-time short-range communication between vehicles.

The new study found that the total number of V2V-enabled consumer vehicles on the road will reach 35 million by 2022 -- that's up from less than 150,000 vehicles in 2017. This strong growth rate (376 percent CAGR) reflects the early stages of roll-out for V2V, but will still only represent 2.7 percent off all vehicles.

According to the Juniper assessment, the technology launched by Mercedes-Benz and Cadillac will play an important role in the advance of autonomous vehicles, as the annual production of self-driving cars approaches 15 million by 2025.

The research found that, alongside GPS, Light-Detection and Ranging (LiDAR) and road mapping, V2V will be among the critical technologies in delivering autonomous driving systems.

In order for V2V to be successful, OEMs must include cellular connectivity to provide over-the-air firmware updates. Moreover, OEMs should implement 5G technology at the earliest opportunity, to benefit from these newly enabled services.

Outlook for Vehicle-to-Everything Apps

5G wireless will play a key role in the future of the Vehicle-to-Everything (V2X) communications. Low latency, high bandwidth and wide coverage will be the key enabler of new services such as in-vehicle audio streaming and vehicle-to-infrastructure services -- such as safety and weather warnings for drivers.

As the complexity of these services increases, Juniper analysts estimate that future automotive technologies, including autonomous systems, could each consume up to 1 terabyte of data per day.

"For V2X to meet future expectations, development must continue on the premise that 5G will be the underlying connection. This will be underpinned by increasing cross-industry collaborations such as the 5G Automotive Association," said Sam Barker, research analyst at Juniper Research.

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