According to a report by World Health Organization, around 1.25 million people die due to road traffic crashes globally every year. And it (road accidents) is expected to be seventh leading cause of death by 2030.

The growing concern regarding road accidents is emphasizing the need of internet enabled cars. These connected vehicles embedded with sensors, cameras, radar, etc. can communicate with other vehicles and surroundings. They (internet enabled vehicles) are connected to one another via same network platform which is likely to reduce road related accidents.

The new innovative technologies—vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-devices (V2D), vehicle-to-pedestrians (V2P), vehicle-to-cloud (V2C) and vehicle-to-home (V2H)—in connected cars are significantly lowering road traffic crashes. For instance, connected cars with V2V and V2I application are predicted to minimize collision rate to zero. The technologies and applications inform drivers regarding forth coming adverse situation much earlier. Anticipating upcoming situation, drivers can react on time preventing accidents.

Governments Role:

  • The European Union (EU) has enforced law according to which all vehicles in the EU should be embedded with eCell technology from April 2018. The technology will help drivers and passengers in the event of serious accidents by automatically dialing 112 (emergency number in Europe)
  • In order to reduce collision, the US Department of Transport mandated V2V technology in all vehicles by 2023
  • Asian Institute of Technology is developing an application called Cat Talk WaaS for Thailand. It is predicted to exchange traffic related information among connected cars

Apart from governments, Original Equipment Manufacturers (OEMs) and tech giants are also developing technologies for connected cars ensuring road safety.

  • The OEMs like Audi AG, BMW, etc. and tech giants such as Intel, Qualcomm, etc. are developing applications for connected vehicles.
  • German based OEM—Volkswagen—will be embedding V2V technology in its product by 2019.

Embedding new technology like V2V, V2I, etc. in connected vehicles has unfolded two distinct scenarios. The foremost, it is able to curb road traffic crashes. And the second, it has exposed immense business opportunities for OEMs and tech giants in automotive space.

The mandatory laws enforced by many countries to have connected car technology is likely to drive the market of internet enabled vehicles exponentially in short and mid-term. This is because in long term autonomous vehicles are expected to dominate the road and accidents will be a thing of the past.


Subarna Poudel is a researcher with Frost & Sullivan. He can be reached at subarna.poudel@frost.com


Sapan Agarwal drives content and marketing for Frost & Sullivan. Sapan is based out of Kuala Lumpur Malaysia and can be reached at sapan.agarwal@frost.com | +603 6204 5830