From the proliferation of vehicle GPS tracking technology to autonomous car testing, connected vehicles are the way of the future. A future likely including cars that can communicate with one another, nearby traffic lights, and even buildings. More importantly, connected vehicles could make the roads much safer. The Department of Transportation estimates the technology could prevent up to 80% of accidents.
Just how popular will connected vehicles be? According to a report from Navigant Research, the industry should see a significant increase in demand for the vehicle-to-external communication estimating annual revenue will jump from $96.3 million in 2016 to $36.6 billion by 2025.
Of course, the technology doesn’t come cheap. For companies operating large fleets, connected vehicle technology will add around $18,000 to the manufacturer’s cost of a class 8 truck come 2025. That could add nearly $35,000 to the retail cost. Light-duty vehicle costs shouldn’t run quite so high.
According to senior research analyst at Navigant, Sam Abuelsamid, “Automakers and governments are striving to meet consumer demands for safer cars with lower emissions and energy consumption. This push is driving the development of a number of crucial technologies, including electrification and automated driving systems that rely on real-time data to vehicles, drivers, and pedestrians, through connected vehicle systems as V2X.”