Juniper Research estimates that over 62 million vehicles will be capable of V2V communication by 2023; up from just over 1.1 million in 2019. This represents an average annual growth rate of 173% over these 4 years.
The new study, Consumer Connected Cars: Telematics, In-Vehicle Apps & Connected Car Commerce 2018-2023 pins the rollouts of 5G networks in 2019 as accelerant behind the expansion of V2V communications. It predicted that automotive OEMs will gravitate towards 5G for V2V communication over other technologies; owing to its lower latency and high range.
“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,” said research author Sam Barker.
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.