navigant research
The continuing push to improve safety while reducing the emissions and energy consumption is driving the development of a number of crucial automotive technologies, including electrification and automated driving systems.

One of the key enabling systems for the success of both is the provision of real-time data to vehicles, drivers, and pedestrians through vehicle-to-external communications (V2X) using dedicated short-range communications (DSRC).

Automakers and governments are striving to meet consumer demands for safer cars with lower emissions and energy consumption. This push is driving the development of a number of crucial technologies, including electrification and automated driving systems that rely on real-time data to vehicles, drivers, and pedestrians, through connected vehicle systems as V2X.

Navigant predicts that global demand for new connected vehicles is projected to continue growing over the next decade, particularly in developing markets where dense urbanization is already causing problems with traffic congestion, accident rates, and air quality.

Even before there is significant deployment of automated vehicles, V2X connectivity has the potential alleviate some of these issues. DSRC-based V2X systems are anticipated to be deployed by OEMs beginning in 2016 and see rapid expansion over the next decade.

In addition to the embedded OEM systems on new vehicles, aftermarket retrofit systems and new smartphones with DSRC capability are expected to be adopted. According to Navigant Research, global revenue from sales of OEM and aftermarket DSRC-based V2X systems is projected to reach more than $36 billion by 2025.

Sam Abuelsamid, senior research analyst with Navigant Research said: “According to the US Department of Transportation, adding V2X communications could help prevent 70 to 80% of vehicle crashes.

“Connected vehicles have enormous potential to provide drivers with increased situational awareness of upcoming hazards and congestion.”

Abuelsamid added: “Connectivity is also a key enabling technology for plug-in electric vehicles (PEVs) and fuel cell vehicles (FCVs). The limited electric driving range of most current PEVs makes it important for drivers to take advantage of opportunistic charging and be able to remotely monitor the battery charging status.

“Even conventional internal combustion engine vehicles can benefit from real-time information provided through connected vehicle systems, to help avoid congestion, saving time and energy.”   The report, Connected Vehicles, examines the market for connected vehicles, with a focus on the key components of V2X communications technology and factors that may influence successful deployment.