The Internet of Vehicle (IoV) market, valued at $66,075 million in 2017, is forecasted to reach $208,107 million by 2024. The reason for this growth can be attributed to rising demands, improvements, and vast upgrades in the automotive industry, the increase in connected devices, and the introduction of Logistics 4.0. Here is the growing internet of the vehicle market.
IoV is somewhat synonymous with the automation of vehicles or implementing IoT technologies in vehicles.
The IoV ultimately allows vehicles to communicate with drivers, other vehicles, management systems, pedestrians, and infrastructure, all in real-time. The improved safety factors related to both drivers and pedestrians that stem from this technology is another reason for its popularity.
The IoV technology can be broken down by the communication channels.
The vehicle can communicate with itself first (intra-vehicle), which results in an internal performance review. The vehicle can also communicate with other vehicles (vehicle-to-vehicle) through wireless communication, capturing information such as each vehicle’s speed and position.
The three structures are as follows:
- Vehicle-to-infrastructure data supports communication between the vehicle and roadside units.
- Vehicle-to-pedestrian systems gather and act on information such as people walking or cyclists near the vehicle.
- Vehicle-to-cloud systems allow this information to be accessed through APIs. Combined, these systems are referred to as Vehicle-to-Everything.
The global IoV market, products, and key players are segmented by technology, region, software, and more. The market as a whole, however, is experiencing massive growth, partly because the driver can have much higher levels of safety, protection, communication, and information sharing.
The growth in demand for IoV
Vehicle-to-everything (also known as vehicle-to-X, V2X) technology has numerous benefits to the consumer, which has driven demand. This, coupled with increased investment and advancing technology, make the market positioned to skyrocket. Notably, consumers are honing in on key features of these vehicles.
V2X technology aids in decreasing traffic accidents caused by human error. Warning sensors, road hazard detections, and vehicle-to-pedestrian communication all make for a safer driving experience.
Technologies such as smart parking help drivers get off the road faster, reducing the amount of CO2 emissions. Mapping can also help get people to where they want to be faster, which reduces fuel usage. Traffic and congestion will also be reduced thanks to V2X technology.
Reducing traffic saves cities money, as does lower incidents of accidents. Intra-vehicle technology can optimize routes and make transport faster, as well. While these are time savers for drivers, ultimately, it is a cost-saver for cities.
Growth restrictions in the IoV market
A somewhat exciting relationship has evolved in the IoV market, which is that between automakers and software providers. Each plays a vital role in the developing IoV market, but this balance of power may not always remain stable.
Who, for example, owns the customer data and who takes control of customer experience? The data ownership problem is particularly crucial as breaches and hacking come into play. Who is at fault, and who must deal with the consequences of cybersecurity issues?
Another potential growth restriction is the security concerns themselves.
Car hacking is a concern, and connected device security threats plague any provider in this space. Vehicle security breaches come with serious consequences in addition to the release of personal information.
Building technology that can guard against any breaches and explaining the security features to the consumer is a growing challenge.
Both the automotive manufacturer and software provider have to manage longer product lifecycles as well.
Creating a connected car takes years while building a connected device takes months. However, the consumer expects that their connected car will work efficiently with all connected technology, which can become a problem.
If the car’s technology is seven years older than the device technology, how do stakeholders ensure a seamless experience? Vehicles will have to have processing capabilities to scale this technology, which is not necessarily an easy task.
Managing challenges in the IoV market
In addition to technology and safety challenges, the IoV market also faces another issue: people own cars less and less. Thanks to car-sharing and other methods of transportation gaining popularity, consumers do not necessarily need to own a car, or perhaps a family can now own only one car instead of two.
While carmakers grapple with that trend, this technology ushers in a new possibility: the self-driving car.
Driverless technology is a game-changer in the automotive industry and opens up new avenues for revenue. Most of the key players have a self-driving car in the works, with Google’s Waymo reportedly testing a small group in Arizona.
The advancing technology and the consumer demand for more connected vehicles are two huge drivers of growth in the IoV market.
While software developers and carmakers still have plenty of challenges ahead, having the consumer demand rise as much as it has and engineers actively solving key obstacles make it no surprise that IoV is a market to watch.
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