Global V2V/V2I Market size is rapidly evolving due to factors such as adoption of advanced technology for development of connected vehicles and rise in government funds for enhanced traffic management. For instance, in 2015, the government of UK invested USD 217 million for the development of connected vehicles. Rapid urbanization and globalization results into enhanced traffic on the roads causing traffic congestions and accidents. Hence, the adoption of V2V and V2I technology assists the drivers to better control the vehicles by obtaining information regarding height of an upcoming bridge, nearby vehicles or an obstacle in the road.
The major factors driving the V2V/V2I market include development in wireless technology, increasing roadways communication infrastructure, sharing of vehicle information and growing awareness for driver’s safety. The use of smart connected technologies such as IoT, sensors and GPS in the V2V and V2I technology proves to be an effective tool for fleet management as the drivers get real time information regarding traffic congestions. This assists in increasing traffic efficiency, reduction in transport time, fuel consumption and environmental pollution.
OEMs are coordinating with government agencies to form even communication standards across all regions. These companies encourage the government to develop standard regulatory norms for the technology adoption. For instance, in 2017, the National Highway Traffic Safety Administration (NHTSA) of USA published a proposal to require all new vehicles to be equipped with V2V and V2I capabilities. To fulfill this project the NHTSA is working major automotive industry players such as Delphi Automotive, General Motors and Denso Corp., to develop effective vehicle to vehicle information transmission technology.
However high operating costs and huge initial investment are the factors restraining the growth of V2V/V2I market. Moreover, the developing countries lack cellular connectivity platform and advanced infrastructure which imposes a major barrier for the acceptance of the smart communication technologies in these regions. The security of huge data generated by the vehicles also acts as a barrier as this data needs to be stored in cloud platforms with high storage capability. Hence, security and data privacy concerns and standardization of protocol are some of the factors having a negative impact on the V2V/V2I market growth.
The V2V/V2I market has penetration into different technologies such as smart sensors, big data analytics and cloud computing. The smart sensors manage and control traffic on the roads by offering the drivers and passengers a plethora of advanced transport services aimed at improving driving efficiency and safety. Big data analytics aids the companies in understanding the user requirements and expectations thus bringing about relevant changes in the automotive developments. Vehicular cloud computing helps in managing traffic congestions by providing access to library of maps and shortcuts and enhanced security.
North America especially the US dominates the V2V/V2I market due to the significant initiatives taken by the government and the increasing demand for connected car technology. The U.S. auto manufacturers and technology firms have been coordinating on V2X communication 5G network standards. They are striving to work together and cooperate with government to formulate policies that facilitate software development and road testing thus enhancing consumer safety.
Europe is anticipated to witness the fastest growth rate over the forecast period owing the presence of numerous market giants and various projects undertaken by the government. The companies have been engaged into partnerships and collaborations to bring about various reformations in the smart transportation services. For instance, in January 2017, Parkopedia partnered with Volkswagen to launch a new product HAD Parking Maps to provide its customers detailed information on parking spaces. Asia Pacific will hold a significant market share by 2025 due to the development of large number of transportation initiatives in Japan, India and Australia and the presence of largest number of automotive manufacturers in China.
The V2V/V2I market is fragmented with the presence of a substantial number of players. Some of the players present in the market are General Motors, Volkswagen, Delphi Automotive LLP, Audi, BMW, Daimler AG, Toyota Motor Corporation and Volvo Cars.