The V2X communication technology market is rapidly expanding as various industries increase investment in research and development. Serving as a vital component to driverless cars, V2X was not expected to become available at such an early stage but recent breakthroughs are quickly progressing the go-to-market timelines. The market potential for V2X technology is huge as it can eventually integrate fully with the massive public and private transportation industries. For more introductory in to What is V2X Technology, read our featured Long-Term Evolution (LTE) white paper.
How Vehicle-to-Everything (V2X) Technology will Impact Society
What is V2X? V2X stands for Vehicle to Everything – a form of technology that allows vehicles to actively communicate with other components of surrounding traffic systems. Individuals will be able to “hail” a car with V2X technology to take them to a desired location. This is similar to current ride-sharing platforms; however, the addition of V2X communication will provide a massive efficiency boost. One of V2X’s segments, V2V, or vehicle to vehicle, allows vehicles to directly communicate with each other. This means that when a vehicle merges onto a highway or freeway, it will be able to join a “platoon” of cars—a group of cars following each other with narrow gaps in between. V2X technology will let vehicles determine which platoon is most suitable to join based on intended destinations. Benefits of this system include vehicle autonomy, savings on fuel and energy consumption, —from both personal and macroeconomic viewpoints—quicker trips on the road, less traffic congestion, fewer accidents, and eco-friendly spillover effects.
Another segment of V2X is V2I: Vehicle to Infrastructure technology. This essentially allows vehicles to communicate with external systems including street lights, toll booths, buildings, and even pedestrians. A short-range wireless signal is used to communicate with other compatible systems. Outside interference and inclement weather will not affect these communications. V2I technology will make these traffic feats possible:
- Vehicles will be aware of when traffic lights are changing, and will respond accordingly
- Communications between vehicles and toll systems or parking lots will integrate automatic payments
- Possible hazards will be reported to the driver, such as weather conditions, nearby accidents, and potentially dangerous drivers
V2X will undoubtedly lead to increased driver safety—this is considered the primary goal of the technology implementation. For more on how V2X connectivity will decrease human errors, check out this article by Automotive World.
V2X Market Overview
The automated driver assistance segment of the V2X market is expected to witness high growth. The increasing demand for V2X safety features is the main driving force behind the growth of the automated driver assistance market. Major vehicle manufacturers including Ford, Mercedes-Benz, Tesla, GM (Lytft), BMW, Toyota Volkswagen, and Volvo are investing heavily in autonomous vehicle R&D. Technology companies are also heavily invested, including Qualcomm, Apple, Alphabet (Google), Amazon, Uber, Huawei, Bosch and Cisco. For an exhaustive list, view this CB Insights article. The electric vehicle segment is also expected to witness a high growth spurt and with electronic controls, is primed for autonomous integration.
Market research reports suggest that North America will be the largest V2X market until at least 2025. Europe comes in as a close second regarding V2X market demand. The European Transport Safety Council (ETSC) has actually adopted V2X communication technology in order to increase driver safety. Demand for the telematics applications component of V2X systems is expected to drive the market in this region. Expect V2X to be integrated in both the commercial (trucking, transportation) and private (consumer) markets.
The original V2X standard is based on a Wi-Fi offshoot, IEEE 802.11p runs in the 5.9GHz frequency band. A newer alternative to IEEE 802.11p is C-V2X—Cellular V2X—whose main proponents are the 5G Automotive Association and chipmaker Qualcomm. Recently in November of 2018, Qualcomm secured the world’s first major 5G design win with a leading automaker, which represents a giant leap in the world of 5G. Read more about Qualcomm’s 5G V2X deal here:
Currently, IEEE 802.11p has an advantage over C-V2X regarding earlier development and deployment. However, C-V2X 5G offers improved performance, the ability to implement both direct and network-assisted communication, and an optimal path to 5G. Now, let’s further explore the V2X competitive landscape.
V2X Competitive Landscape
Because V2X is expected to drastically grow over the next 25 years, many top V2X suppliers, such as Delphi, Denso, Qualcomm, BMW, Audi AG, Cisco, Intel, Vodafone Group, Bosch, PTC, General Motors, Harman International Industries, Tomtom N.V, Cohda Wireless PTY, Panasonic, and others will roll out V2X integration plans in order to stay competitive in the booming industry. Currently, expensive vehicles tend to take advantage of V2X technology, but lower-cost vehicles are expected to add the communication systems in the near future as the tech trickles down. This means V2X suppliers are attempting to secure deals with every auto manufacture available, regardless of vehicle costs. GM and Lyft have partnered up to enable V2X in their vehicles by 2021, using dedicated short-range communications technology.
The technology debate of C-V2X versus DSRC 802.11p is not resolved. As LTE V2X holds an LTE uplink origin, Qualcomm argues that C-V2X is the future of the vehicle to everything market. Recently, Qualcomm was almost acquired by Broadcom, which would have had major implications on this debate, and the quest for 5G. Along with Ford and Panasonic, Qualcomm recently demonstrated the first real-world application of V2X in Colorado. The Panasonic V2X cloud-based data platform proved itself to be a major contender in the race to deploy V2X technology globally.
V2X’s Potential in the Automobile Market
Expect to be reading about V2X in the news much more often, soon. After examining the benefits the technology brings to vehicles and society, plus the progress that has already been made on such an early innovation, one thing is clear. Demand will only increase—most likely in an exponential fashion—from here. Companies such as Qualcomm and Panasonic have been preparing for the mass release of V2X technology to society, and one thing is certain—the development of the V2X industry will be one worth following.
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