In-vehicle technologies and telematics, in particular, will transform the automotive industry. 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 single machines with no human interaction. In terms of vehicle telematics, this allows data to be sent from the vehicle to another location and used for vehicle conditioning or to monitor driver behavior.
Connected Car Market Development
According to the latest worldwide market study by Juniper Research, over 62 million vehicles will be capable of Vehicle-to-Vehicle (V2V) communication by 2023 -- rising from just over 1.1 million in 2019.
This adoption represents an average annual growth rate of 173 percent over these 4 years. Juniper believes that V2V solutions will enable low-latency communications between vehicles, notably for the purpose of driver safety.
The new market analysis found that the rollouts of 5G wireless communication networks, anticipated to launch next year, will be the key accelerant behind the expansion of V2V communications.
Juniper has predicted that automotive OEMs will gravitate towards 5G for V2V communication over other technologies, due to its lower latency and high range.
Juniper found that the move towards 5G will expedite commercial deployments and interoperability, and predicted that the U.S. will become the leading market for V2V deployments. Besides, over 60 percent of new vehicles sold in the U.S. market will be V2V-capable by 2023.
In turn, it's estimated that the technology could prevent over 9,300 deaths per annum in the United States, representing about 1 in 4 motor vehicle deaths.
"The safety benefits of V2V are clear, no incumbent technology can provide the network conditions across the entirety of road networks," said Sam Barker, senior analyst at Juniper Research. "5G will be the key facilitating technology of these automotive safety features, however long vehicle refresh rates -- typically around 8-12 years -- will initially hinder mass adoption."
Outlook for In-Vehicle Application Growth
The research findings also predicted that automotive OEMs will explore new strategies to generate revenues beyond the vehicle sale, including in-vehicle content subscriptions. Juniper forecast that revenues from directly-integrated vehicle apps will likely exceed $2.2 billion by 2023.
Juniper has 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.