A new report from Juniper Research has revealed that over 62 million vehicles will be capable of V2V (Vehicle-to-Vehicle) communication by 2023, rising from just over 1.1 million in 2019. 

This represents an average annual growth rate of 173% over these four years, notes to the research group. V2V solutions enable low-latency communications between vehicles, notably for the purpose of driver safety.

Juniper found that the rollouts of 5G networks, anticipated to launch next year, will be the key accelerant behind the expansion of V2V communications. It predicted that automotive original equipment manufacturers [OEMs] will gravitate towards 5G for V2V communication over other technologies, owing to its lower latency and high range.

The research group found that the move towards 5G will expedite commercial deployments and interoperability, and predicted that the US will become the leading market for V2V deployments. The report predicts that over 60% of new vehicles sold in the US will be V2V-capable by 2023. In turn, the technology could prevent over 9,300 deaths per annum in the country, representing 1-in-4 motor vehicle deaths.

“The safety benefits of V2V are clear, however no incumbent technology can provide the network conditions across the entirety of road networks,” says Sam Barker, author of the report. “5G will be the key facilitating technology of these automotive safety features, however long vehicle refresh rates, typically around 8-12 years, will hinder mass adoption.”

Juniper also predicted that automotive OEMs will explore new strategies to generate revenues beyond the vehicle sale, including in-vehicle content subscriptions. It predicted that revenues from directly-integrated vehicle apps will exceed $2.2 billion by 2023. Juniper advised that in addition to leveraging 5G networks, OEMs must open up their in-vehicle ecosystems to third parties in order to accelerate the development of emerging and future automotive content revenue streams.