MARKET REPORT |
Ford is integrating C-V2X into vehicles in the US
from 2022, with a commitment to eventually
putting 5G into all its vehicles. In Seoul, a “5G
for automotive” trial demonstrated 4K video
streaming successfully and showed 4G could
not achieve the same results.
Capgemini’s Trend Radar argues to succeed in
the high growth markets of the US and China,
companies need to act now to “understand 5G
better, launch pilots, and readjust their
connectivity strategy and roadmaps”. The
authors advise assessing key connectivity
requirements, building 5G use cases and pilots,
identifying a 5G implementation model and
ensuring the connectivity strategy is flexible.
Technology companies have seen the
potential for disruption in the sector, and
Capgemini has identified 250 entering the
connected services market. This represents
22% of all automotive start-ups. OEMs are
increasingly investing in them, though much
less than Intel or Softbank. Safety and security
accounts for the largest share, followed by data
platforms, hardware and software, telematics,
and remote services.
The arrival of so many dynamic new entrants
represents both a threat and an opportunity for
traditional players. The best strategy, the
$64.9bn The predicted value of the
global ITS market by 2023 (in
US dollars), up from
US$46.2bn in 2018
(MarketsandMarkets)
026 Intertraffic World | Annual Showcase 2020
authors advise, is to build strategic
partnerships. It often makes sense to
team up to cut costs and share
expertise. The MOBI initiative is
a good example of this
strategy, as is the recent
alliance between
Volkswagen and Ford to
collaborate on autonomous
vehicles, mobility services
and electric vehicles.
“We’re seeing more
‘coopetition’, such as Daimler
and BMW joining forces to
develop AVs and share
components for electric vehicles.
Until three years ago,
this collaboration would have been
impossible,” says Dr Mehl. “They were fierce
competitors, but all the technologies require
major investments and payback is still unclear
for autonomous vehicles. For economic reasons it
makes sense to work together. There’s also an
awareness of the threat from data monopolists
entering the connected market .”
Succeed with open data
A final piece of advice in the Capgemini report
is to provide an open platform for third parties.
Owners of platforms will act as gatekeepers
deciding which services to integrate. “A
fundamental belief at Capgemini is that
companies are stronger when they have open
platforms. It means opening the platform up to
the wider ecosystem, for example gas stations
fueling cars, or having intelligent payment
systems,” says Dr Mehl.
The market for intelligent transportation
systems (ITS) presents lucrative growth
opportunities worldwide. According to
MarketsandMarkets, it was valued at US$46.2bn
in 2018 and expected to reach US$64.9bn by 2023,
at a CAGR of 7.1%. Apurva Agarwal, associate
director for semiconductors and electronics
at MarketsandMarkets, said rising congestion
worldwide was a major driver of the growth
of ITS, which offers real-time traffic statistics.
For example, figures from the US Auto
Insurance Center show the average driver
spends 42 hours a year stuck in traffic jams,
which costs them around US$960 each. ITS is
already helping to reduce congestion in some
parts of the world. In South Korea, ITS systems
have increased average vehicle speeds by 20%
and decreased delay times on some critical
roadways by 39%. Similarly, in Singapore, the
congestion management system has increased
traffic flows by 90%.
Other transport sectors are wrestling with
similar issues and embracing ITS. The global
railway industry is investing in Internet of
Things (IoT) technologies over the next 15 years.
Currently, the rail industry spends US$2bn on
smart rail projects and connected trail
technologies, but these sums are likely to
increase fast. The American Society of Civil
Engineers’ 2013 report card said the US needs
to invest an extra US$3.6tn by 2020 to upgrade
the nation’s infrastructure. Investments in
smart technologies will help to deal with
the challenges. ■
R Extra eyes on the road esearch carried out by the Global
Market Insights expect the market
value of Internet Protocol (IP)
cameras to explode to more than
US$25bn by 2025. Currently at US$8bn, the
increasing adoption of pan-tilt-zoom (PTZ)
cameras for 360° visibility and security of
large facilities is augmenting the IP camera
market growth. These solutions are being
widely adopted by traffic managers,
allowing operators to monitor the roads by
capturing the footage from multiple angles
or directions, enhancing the management
of the highway. Major advantages such
as ease in installation, high-quality and
tamper-resistant image production, and
wide coverage area are propelling the
demand for PTZ solutions in the IP camera
market. Manufacturers are engaged in
providing infrared technology in PTZ
cameras for enhancing the image quality
in different light conditions. For instance,
in March 2019, Axis Communications AB,
announced the launch of AXIS Q6215-
LE PTZ Network Camera with built-in
IR illumination to help meet demand.
PERCENTAGE OF PEOPLE WHO ACCEPT AUTONOMOUS VEHICLES
China 75%
Europe 36%
USA 24%
0 10 20 30 40 50 60 70 80
IMAGES: ANDREY; KRUNJA; HARVEPINO, ADOBE-STOCK.COM
/ADOBE-STOCK.COM
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