Vehicle-To-Vehicle (V2V) Communication Market:
Vehicle to vehicle (V2V) communication allows cars to communicate with each other and also with infrastructure such as traffic lights. This technology can aid in preventing various types of accidents, for example, by warning drivers, or warning about another driver jumping the red light. V2V communication technology also warn drivers about blind spots, vehicles coming to a sudden stop several cars ahead, and other such scenarios that could result in accidents. This technology only works between two vehicles that have V2V installed.
Furthermore, V2V communication technology operates up to 1,000 feet or about 300 meters, by giving drivers sufficient time to respond. It uses dedicated short-range communications (DSRC) which is a wireless network similar to Wi-Fi.
Increasing adoption of V2V communication to reduce human errors and road traffic accidents is a major factor expected to aid in growth of the market
U.S. Department of Transportation is focusing on adopting the connected vehicle technology to enable vehicles to communicate with each other and prevent collisions, since 2014. The government agency also estimates that this could help to reduce around 80% of road accidents every year, which excludes the cases of mechanical failures and drunk driving in the country.
According to the Global Status Report on road safety 2018 by WHO, the total number of fatalities in road accidents reached 1.35 billion per year, across the globe. Number of road accidents have witnessed considerable decline over the last few years, however, remain a primary concern due to damage to infrastructure and human lives. Moreover, according to the International Organization for Road Accident Prevention, around 90% of road incidents are owing to human induced errors that includes rash driving, loss of alertness while driving, and changing lanes without signaling, among others.
According to Coherent Market Insights analysis, the stats are similar around the globe, and may help to considerably reduce the number of incidents and damage to infrastructure. This is expected to be a major factor fueling growth of the V2V communication market throughout the forecast period.
The global vehicle-to-vehicle (V2V) communication market was valued at US$ 1,152.3 billion in 2018 and is expected to reach US$ 8,990.6 billion by the end of 2027, growing at a CAGR of 26.7% between 2019 and 2027.
Figure 1. Global V2V Communication Market, By Regional Share
Source: Coherenr Market Insights, 2018
On the basis of region, the global V2V communication market is segmented into North America, Europe, Asia Pacific, Latin America, and Middle East & Africa.
Among all these regions, Asia Pacific V2V communication market generated revenue of US$ 489.4 Bn in 2018 and is expected to reach US$ 3,115.0 Bn by 2027, witnessing a CAGR of XX% over the forecast period.
Passenger cars is expected to be dominant in the end-use segment in the V2V communication market by 2027
Passenger cars is the dominant segment in the overall automotive market in terms of volume in almost all the major countries around the globe. According to the statistics from European Automobile Manufacturers Association in 2018, around 79 billion passenger cars were sold worldwide.
Pilot projects are creating significant demand for V2V communication technology, and the current deployment are mainly focused on passenger cars. For instance, in March 2017, Cadillac introduced vehicle-to-vehicle (v2v) communication in the CTS sedan. Moreover, U.S. DoT and the NHTSA are focusing on implementation of V2V communication in passenger cars and light vehicles to increase safety of the drivers. Thus, passenger cars are expected to be dominant in the end-use segment over the forecast period.
Many automakers have started offering cars enabled with these systems, which include Toyota, Daimler AG, Mercedes-Benz, General Motors, and many more. For instance, in April 2019, Volvo Cars, a luxury vehicles brand, introduced V2V technology on new models across Europe.
Some of the key industry players in the V2V communication market are Audi, Autotalks Ltd, Cisco Systems Inc., Delphi Automotive PLC, Denso Corporation, Ford Motor Co., General Motors, Harman International Industries Inc., Infineon Technologies AG, Kapsch TrafficCom (Kapsch), Lear Corporation, Mercedes-Benz, Qualcomm Technologies Inc., Savari Inc., and Toyota Vacaville. Industry participants are increasingly emphasizing on development of cellular based systems and commercialization of 5G technology, in order to enhance efficiency of these systems.