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Today, vehicles are increasingly being connected to the Internet of Things which enable them to provide ubiquitous access to information to drivers and passengers while on the move. The Internet of Vehicles (IoV) helps a vehicle to connect to the nearby vehicle or other traffic infrastructure using a wireless network. Through this technology the vehicles send floating data to the base area located at long distances. By 2024, the global IoV market is projected to reach at US$208,107 million, growing at a CAGR of 18.00% from 2018 to 2024, according to Allied Market Research.
IoV involves the use of hardware and software automation, and incorporation of technology in all kind of vehicles. In 2017, the vehicle-to-infrastructure segment dominated the market, in terms of revenue, due to increase in investment on automation and infrastructure, reports Allied Market Research. The market research also reported that North America was the highest revenue contributor to the internet of vehicle market in 2017, accounting for around 43% share, owing to surge in demand for mobility for automation and increase in safety and security concerns.
The reason for IoV’s 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. IoV is somewhat synonymous with the automation of vehicles or implementing IoT technologies in vehicles.
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.
In IoV, 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: 1) Vehicle-to-infrastructure data supports communication between the vehicle and roadside units. 2) Vehicle-to-pedestrian systems gather and act on information such as people walking or cyclists near the vehicle. 3) Vehicle-to-cloud systems allow this information to be accessed through APIs. Combined, these systems are referred to as Vehicle-to-Everything.
Benefits of IoV
The way IoV works with and reacts to data can change the entire perception of today’s urban environments. It’s anticipated that IoV will be able to address the challenges of modern transportation while catering to the needs of tech-savvy consumers. It will become one of the backbones of smart cities, bringing the following perks:
- Enhanced safety- Human mistakes, namely distracted driving, are the primary cause of car accidents. IoV safety technology will ensure healthy driving habits, predict problems, detect possible collisions, track drivers’ health, and more.
- Positive impact on the environment- Smart infrastructure including connected and shared vehicles, streetlights, parking lots with sensors, and traffic and gas management technologies will significantly reduce vehicle emissions in big cities. Optimized routes and less congestion as well as more carsharing services and autonomous and electric vehicles will aid in creating a more sustainable future.
- Cost savings and lifecycle revenue- Both governments and individual users benefit from optimized city infrastructure and traffic management as well as safer roads and decision-making based on properly gathered and analyzed data. More than that, IoV makes way for the wider adoption of carsharing services and autonomous driving, which is a serious budget-saver for people and cities.
With the ability to process data gathered by connected vehicles, OEMs can create a whole new market of services. Knowing their customers better, automakers will be able to offer personalized deals, custom IoV solutions, paid advanced features, and more while partnering with financial institutions, retailers, and internet of vehicle software companies. As part of the IoV ecosystem, connected cars will be able to stand up to consumers’ expectations, offering a range of services from entertainment to in-car payments.
Future of IoV technology
As self-driving technology will soon be necessary for all automakers, IoV applications and solutions will only gain pace with time. Traditional OEMs are getting ready for innovation by transforming into IT-driven companies. Some automakers like General Motors and Volkswagen are opting for their own IoV software development in the fields of ADAS and networking systems. Other top automotive market players are partnering with tech giants like IBM, Google, Bosch, and Tencent. Telecom companies are also taking their place in the Internet of Vehicles’ future. Given that, new business models are emerging.
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