Proving the Business Case for the Internet of Things

Penetration of connected car modules to hit 62% by 2027: ABI

Iain Morris
July 3, 2014
Global penetration of so-called V2X modules used to provide connected-car services is set to reach 62% by 2027, according to a new study from ABI Research.

The total installed base of V2X modules in vehicles will grow to 423 million by 2027, says the market-research company, driven by regulatory moves and growing interest in the use of autonomous vehicle technology.

“V2X technology has been a long time coming, but its hour of glory might just be around the corner, at least in terms of automotive time frames,” said Dominique Bonte, vice president and practice director at ABI. “The United States Department of Transportation’s decision on a V2V [vehicle-to-vehicle] mandate and Europe’s voluntary approach via the C2C-CC [Car2Car Communication Consortium] with an memorandum of understanding signed by 11 vehicle original equipment manufacturers committing to deployments by 2015 will drive the V2V market forward.”

Bonte notes that accelerating developments in autonomous driving – an area in which tech giants like Google (Mountain View, CA, USA) are taking a growing interest – will also fuel interest in V2X technology as a “critical component for adding redundancy and reliability”.

Although the V2X ecosystem currently remains small, a number of major automotive suppliers and semiconductor vendors are working on the development of new products and services, including Autotalks (Kfar-Netter, Israel), Cohda Wireless (NXP) (Adelaide, Australia), Qualcomm (San Diego, CA, USA), Savari (Santa Clara, CA, USA), Continental (Hannover, Germany), Bosch (Stuttgart, Germany), Hitachi (Tokyo, Japan), Denso (Aichi, Japan), Visteon (Van Buren Township, MI, USA), Kapsch TrafficCom (Vienna, Austria), Arada Systems (Sunnyvale, CA, USA) and Delphi (Gillingham, UK).

Nevertheless, ABI says the full potential of cooperative systems will only be realized through the deployment of Road Side Units (RSUs) attached to traffic lights, light poles, digital signage, tolling gates and buildings supporting vehicle-to-infrastructure (V2I) communications and services.

The company expects the rollout of V2I to begin in the wake of the first wide-scale V2V deployments at the end of this decade, and predicts there will be 1.92 million RSUs installed globally by 2030.
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