Remarkable technological advancements in the field of transportation and auto manufacturing have provided cellular vehicle-to-everything (C-V2X) market with a robust growth platform. C-V2X systems are specifically designed to connect vehicles with each other as well as the roadside infrastructure, pedestrians and communication networks. These are aimed at reducing the number of fatal road accidents, the prevalence of which has prompted several government initiatives. Numerous private and government sector efforts will encourage adoption of novel safety features, expanding C-V2X industry share.
Europe Cellular Vehicle-to-Everything (C-V2X) Market Share, By Region, 2018
Increasing sales of luxury automobiles, supported by easily available car financing, has enabled manufacturers to install advanced functions like driver assistance systems. Modern informant systems and vehicle telematics installed in cars are experiencing a definite surge, driving the utilization of C-V2X products with an emphasis on enhancing comfort and complying with regulations for driver safety. Interest from global carmakers and a lack for other efficient alternatives will certainly boost global C-V2X industry trends.
National Highway Traffic Safety Administration (NHTSA), the U.S. transportation agency, had proposed a V2V regulatory mandate in 2016 that requires Dedicated Short-Range Communications (DSRC) technology to be installed in vehicles. However, NHTSA did not act on the proposal which left the door open for C-V2X market to secure a foothold in the industry. Ford, world’s leading automobile manufacturer, showed consistent support for the technological solutions and announced that it will be introducing V2X communications beginning from the year 2022.
C-V2X has garnered significant attention from almost every mobile operator, eminent equipment makers as well as automakers like BMW, Ford, Tesla, Toyota etc. These players have teamed up with tech companies to implement C-V2X trials for commercial deployment. Apparently, China is on its way to become one of the first countries to have C-V2X deployed, as the nation boasts of several auto firms and communication giants, along with few European countries which are likely follow soon.
Growing installation of fast communication networks such as LTE and 5G will enormously contribute towards the growth of cellular vehicle-to-everything market size. Harman International, subsidiary of Samsung Electronics, has developed Dual-Mode V2X which will help automakers to use over-the-air command and select the standard they want to be implemented on each vehicle, either 5G or DSRC. The Dual-Mode V2X system of Harman features both software and hardware which can operate either with telematics control units or standalone unit for vehicles.
Advanced driver assistance systems (ADAS) will witness higher demand owing to their increasing utilization in vehicles that have V2X solutions. The improved features offered by V2X systems along with the availability of DSRC like adaptive cruise control, traffic sign recognition and blind spot warnings will expand the scope of C-V2X market substantially. Industry potential can be understood from the fact that over 70 million passenger cars had been manufactured in 2018.
V2X solutions will undoubtedly be deployed in the surging number of autonomous vehicles being designed for both commercial and passenger transportation. Cadillac, a division of GM, will roll out Super Cruise, the first truly hands-free driving system in the world in 2020 and will have C-V2X communications installed in high end SUV by the year 2023. Honda has also demonstrated a system called ‘Smart Intersection’, the first such V2X technology to be deployed in a real-world setting, developed for avoiding traffic collisions at intersections that result in 20% of traffic-related deaths in the U.S.
Kapsch launched the RIS-9260, the first roadside ITS station platform for C-V2X direct communication. The roadside unit supposedly enables vehicles to connect with their environment while the traffic infrastructure provides vehicles with required information to enhance safety. The company believes that the launch of RIS-9260 will drive the commercial introduction of V2X communications, signifying a major step towards reinforcing C-V2X industry outlook from vehicle-to-infrastructure applications.
According to the safety facts listed by NHTSA, around 615,000 number of vehicles can be prevented from crashing by using cellular vehicle to vehicle (C-V2V) technology. EU’s framework program for research and innovation, Horizon 2020, has appropriated a budget of $353 million to support research and development on all automated vehicles. Similar initiatives will undoubtedly augment C-V2X market share over the forecast timespan. Reports confirm that Europe accounted for the highest revenues accrued by global C-V2X market in 2018, with a share of nearly 40%.
Owing to key initiatives undertaken by government agencies and the rapid advancement of automotive and communication sectors for deploying connected technologies, C-V2X systems would soon become a reality in new vehicles, both fossil fuel-based and electric. Global Market Insights, Inc. has predicted that global C-V2X market size will exceed US$800 million valuation by 2025.