Daimler and Volvo Take Lead in Implementation of V2V Communication Systems in Europe


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LONDON--March 6, 2014: The demand for vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication systems is on the rise due to the systems' ability to improve traffic efficiency, mobility, safety, as well as driving conditions, while at the same time avert potentially dangerous situations. New analysis from Frost & Sullivan (Frost Automotive), Strategic Analysis of the European Market for V2V and V2I Communication Systems, expects more than 40 percent of vehicles to use V2V communication technologies by 2030.

Daimler and Volvo are anticipated to lead the implementation of V2V communication systems among vehicle original equipment manufacturers (OEMs) across Europe. V2I communication systems have also been finding significant traction in Europe, especially in the Netherlands, Denmark, Austria, Germany, and France.

"Vehicular communication systems are becoming popular as countries across Europe look to minimise the huge losses in time and related costs incurred due to traffic congestion," said Frost & Sullivan Automotive & Transportation Industry Analyst Neelam Barua. "Traffic jams in Germany for instance, lead to a macroeconomic loss of more than €17 billion annually."

"The average driver annually loses close to a complete work-week stuck in traffic jams," added Frost & Sullivan Automotive & Transportation Team Leader Prana Tharthiharan Natarajan. "This scenario is common to both Europe and the US. The deployment of V2I can reduce such down-time by a huge factor. Additionally, V2x is the ultimate enabler of automated driving, which is presently built on self-sufficient architectures."

One of the prominent enabling technologies in this market is the cooperative system, which uses wireless local area network (WLAN) or dedicated short-range communications (DSRC), to assist V2V, V2I or infrastructure-to-vehicle (I2V) communication. It is expected that global navigation satellite systems (GNSS) and infrared modes will augment DSRC solutions and mobile-based technologies such as long term evolution (LTE) to form the futuristic platform for cooperative-intelligent transportation systems (C-ITS) in the region.

Cooperative systems prove to be more useful than advanced driver assistance systems and telematics, particularly when situations like construction site warnings and traffic congestion in highways caused by an accident or road damage are encountered.

Market participants plan to introduce Cooperative-ITS communication systems to take automotive safety to an even higher level. The Car 2 Car Communication Consortium has signed a Memorandum of Understanding (MoU) with major vehicle manufacturers to facilitate the deployment of a standard pan-European C-ITS by 2015.

However, although projects such as the sim-TD, DriveC2X, eCoMove catalyse the pilot-launch of C-ITS in Europe, automotive OEMs and road users must coordinate with road operators for the success of the initial deployment.

The European market also needs an effective business model that identifies the parties that will primarily benefit from these vehicle communication solutions, recognises the team that will maintain the integrated system, and clarifies the methods of revenue generation. The availability of reliable and robust products that cater to the vehicular communication requirements, the degree of market acceptance and interoperability of V2X devices, as well as product conformance and upgradability will also be key to market growth.

"With market-ready products for V2X communication already made available by Tier I suppliers, new products embedded with V2X technology launched by automotive OEMs, and the strong backing extended by EU governments, the market for C-ITS is likely to witness considerable growth in the next two to three years," stated Barua. "In fact, 15 OEMs and ten Tier I suppliers across Europe are expected to deploy V2X applications by 2015."

"Interestingly, crowd-sourced V2X information from the connected car space is also gaining traction. A number of telematics service providers are looking to enable V2X through tethered and embedded connectivity interfaces that allow vehicles to send and receive data that could serve as the nascent stage of V2X, in the absence of DSRC or WLAN," concluded Natarajan. "Letting vehicles interact with each other can reduce crashes involving multiple vehicles, whereas ensuring V2X interactivity with passive elements such as environment, pedestrians, bicyclists etc. is essential for the future. At present, the industry still depends on ADAS for such information."

If you are interested in more information on Frost & Sullivan's latest study Strategic Analysis of the European Market for V2V and V2I Communication Systems, please send an email to Katja Feick, Corporate Communications, at katja.feick@frost.com, with your full name, company name, job title, telephone number, company email address, company website, city, state and country.

Strategic Analysis of the European Market for V2V and V2I Communication Systems (MA29-18) is part of the Automotive & Transportation (automotive.frost) Growth Partnership Service program. Frost & Sullivan's related studies include: Electronic Braking System Market in Europe, Tyre Pressure Monitoring Systems Market in Europe, and Automotive Ethernet Technology in Europe and North America. All studies included in subscriptions provide detailed market opportunities and industry trends evaluated following extensive interviews with market participants.

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