Vehicle-To-Vehicle (V2V) Communication Market: Automotive Technology That Enhances Driver and Passenger Safety
According to the global status report on road safety 2015 by WHO, the total number of fatalities in road accidents had plateaued at 1.25 million per year, across the globe (180 countries specific). Number of road accidents have witnessed considerable decline over the last few years, however, remain a primary concern owing to the considerable loss of property and human lives. Moreover, according to the International Organization for Road Accident Prevention, around 90% of the road incidents are owing to the human induced errors that includes rash driving, loss of alertness while driving and changing lanes without signaling among many others.
Adoption of V2V communication can be utilized to overcome human errors and reduce the road accidents by over 75%
U.S. Department of Transportation is in the process of adopting the technology to allow vehicles to communicate with each other and prevent collisions, since 2014. The government agency also estimates that this could help the government reduce around 80% of the road accidents every year, which excludes the cases of mechanical failures and drunk drivers in the country. According to Coherent Market Insights analysis, the stats are similar around the globe, and may help to considerably reduce the number of incidents and property losses. This is expected to be the most prominent factor that will fuel growth of the V2V communication market through the forecast period.
The global V2V communication market is estimated to be valued at US$ 582.5 million in 2020 and is expected to witness a CAGR at 45.8% during the forecast period of 2020 to 2025.
Figure 1. Global V2V Communication Market, Key Industry Trends
Vehicle-to-vehicle (V2V) communication is expected to be the key component of the future autonomous vehicle driving systems in the near future
In May 2016, a 40-year old man met with a fatal accident in his autonomous car produced by Tesla, which crashed into a tractor trailer when taking turn. The cause of the accident was supposed to be the lack of the camera to detect the object because of non-malicious/natural blinding. The outcome of the incident would have been different if both the vehicles had deployed the car to car to communication systems, and the Autopilot would have been aware of the truck’s location, speed, and its level of threat. Even if the truck lacked these systems, the surrounding cars could have relayed the data and enhanced the safety of the user. Thus, the future of the autonomous vehicle safety, is largely reliant on the propagation of these systems, and the requirement to propel the innovation in the automotive sector, V2V communication market is expected to gain substantial impetus through the forecast period.
Passenger cars are expected to dominate the end use segment of the V2V communication market through 2025
Passenger cars currently dominate the overall automotive market in terms of volume in almost all the major countries around the globe. Moreover, pilot projects conducted by industry participants, and the current deployment are majorly focused on the passenger cars. Moreover, the regulatory bodies have emphasized the importance of V2V communication in passenger cars and light vehicles such as the U.S. DoT and the NHTSA. Thus, passenger cars are expected to dominate the end use segment over the coming years. Some OEMs have started offering automotive enabled with these systems, which include Toyota, Daimler AG, and General Motors.
Some of the key industry participants in the V2V communication market are Daimler AG, Toyota, Delphi Automotive PLC, Harman International Industries, Inc., Mobileye NV, Ford Motor Co., Honda, Nissan, Volkswagen, Audi, Hyundai, and Kia. Industry participants are increasingly emphasizing on the development of the cellular based systems and commercialization of the 5G technology to support the efficiency of these systems.
V2V Communication technology refers to the systems that enable communication of automotive with each other to provide improved awareness of the surrounding environment and information regarding the future actions of the nearby vehicles. This helps in the elimination of accident threats from the blind spots and enhances user safety. Owing to the high number of incidents occurring due to human errors that can be significantly reduced with the utilization of these systems, V2V communication market is expected to witness strong growth prospects during the forecast period.
Prominent drivers of the V2V communication market include the enhanced safety through avoidance of collisions due to number of unprecedented threats that can be identified by these systems and human errors. However, the industry growth is expected to considerably challenged by the number of differences between the industry participants with respect to the adoption of common standards and the requirement of the all the vehicles to adopt uniform communication standards. These systems cannot ensure the user safety until most vehicles adopt similar transmission equipment, for the efficiency of the information exchange. Thus, proliferation of the technology is expected to be largely dependent on the establishment of the regulatory standards to mandate the installation of car to car communication systems. However, industry participants can garner growth if they establish consensus on similar standards for the deployment over the next few years.
This report segments the global V2V communication market on the basis of connectivity type, deployment type, applications, and end use. On the basis of connectivity, the global V2V communication market is classified into DSRC, and cellular based technologies. Deployment type of V2V communication include installations in OE and aftermarket. V2V communication market application segment includes traffic safety, traffic efficiency, and infotainment, payment and other applications. On the basis of the end use, V2V communication market is segmented into passenger cars and commercial vehicles.
Key features of the study:
“*” marked represents similar segmentation in other categories in the respective section.
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