By 2022 50 per cent of new vehicles will be shipped with V2V (Vehicle-to-Vehicle) hardware — a technology that enables real-time short-range communication between vehicles — according to a new report from Juniper Research.

The new research, Consumer Connected Cars: Applications, Telematics & V2V 2017-2022 found that the total number of V2V-enabled consumer vehicles on the road will reach 35 million by 2022, up from less than 150,000 vehicles in 2017. This strong growth rate (376 per cent CAGR) reflects the early stages of roll-out for V2V, but will still only represent 2.7 per cent off all vehicles.

The technology, launched by Mercedes-Benz and Cadillac, will play an important role in the advance of autonomous vehicles, as the annual production of self-driving cars approaches 15 million by 2025.

The research found that, alongside GPS, LiDAR (Light-Detection and Ranging) and road mapping, V2V will be amongst the critical technologies in delivering autonomous driving systems.

In order for V2V to be successful, the research found that OEMs must include cellular connectivity to provide OTA (Over-The-Air) firmware updates. It recommended that OEMs implement 5G technology at the earliest opportunity to benefit from these newly enabled services.

5G will play a pivotal role in the future of the V2X (Vehicle-to-Everything) communications. Low latency, high bandwidth and wide coverage will be the key enabler of new services such as in-vehicle audio streaming and V2I (Vehicle-to-Infrastructure) services, such as safety and weather warnings for drivers. As the complexity of these services increases, Juniper estimates that future automotive technologies, including autonomous systems, could each consume up to 1 terabyte of data per day.

Juniper anticipates that three regions will be the heaviest users of connected vehicle services (North America, West Europe, and Far East and China). In-vehicle entertainment will contribute to the majority of data traffic, mainly music streaming services such as Apple Music and Spotify.

Research author Sam Barker said the connected car market will create economic opportunities far beyond the car itself.

“Beyond the connected car ecosystem, opportunities will present themselves for integration with other ecosystems, such as the smart home and smart city technology,” said Barker on the new company blog.

While Apple and Alphabet currently have their own smart home platforms, Samsung have acquired Harman for $8 billion to add to their growing portfolio. Juniper believes the market will witness a rise in V2H services, albeit fragmented, over the next five years.

According to Juniper’s analysis the true value of the ecosystem will be felt by others outside the connected car ecosystem, such as law makers and MNOs (Mobile Network Operators).

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