Exploring Vehicle-to-Vehicle (V2V) Communication Technology and Vehicle Connectivity in 2018

A deep dive into vehicle innovation starring Tesla.

Orlando Trott
Aug 16, 2018 · 5 min read

Car connectivity has the potential to reach between $450 billion to $750 billion worldwide by 2030, according to a McKinsey & Company report on advanced industries.(1)

As innovators and developers partner to bring advanced solutions into the automotive industry, it’s important for strategist to identify and quantify what data-points are valuable in regards to safety, car-to-car connectivity, and ultimately — profitability.

Connected cars will send 25 gigabytes of data to the cloud every hour. That’s equal to about a dozen HD movies and exceeds the storage capacity of most smartphones today.(2)

Most new-model cars are equipped with software-guided parking solutions, exterior safety sensors, and fuel optimization systems in order to provide the customer with the best driving experience possible while delivering valuable performance data back to the manufacturer.

But some would ask, if a manufacturer is collecting data on an asset that is purchased by a customer, should maintenance be discounted or even free?

It’s in the manufacturers interest to keep the vehicle up to date on all regular maintenance tasks such as oil changes, tire rotations, software updates and liquid fulfillment….

After all, Apple does not make customers pay for upgrades when they improve the devices software experience.

However, due to the way manufacturers have distanced themselves from the actual point of sale, the mentioned business model adjustments would be equivalent to reshaping their entire business model.

[Enter Tesla]

I will remain bullish on Tesla not because of the brand alone, but due to the level of connectivity that will surround the technology powering the brand.

Vehicle-to-Vehicle (V2V) and Vehicle-to-Infrastructure (V2I) technology, when implemented correctly, will allow vehicles to communicate with other cars and potentially even bridge the gap between a vehicle’s internal navigation systems and stop lights.

When Tesla revealed their plan to move in on the trucking industry, optimal efficiency within the logistics industry took a step closer to becoming a reality.

Tactics such as platooning have already been introduced to the trucking industry and initially received large sums of backlash from Washington.

Related Article: Will Truckers Be Replaced By Data Scientists? The Race To Platoon Across America & Tech’s Race To Disrupt The Trucking Industry

34 states within the US have rules that prohibit trucks from using a fuel-saving technology called platooning, a new study shows legislatures are making changes to allow the trucking industry to adopt the practice.

Platooning, in short, is when trucks utilize technology to digitally tether convoys of two or more trucks allowing them to travel closely together to reduce drag and increase fuel efficiency.

Outfitting convoys of big rigs with vehicle-to-vehicle communication technology offers a host of benefits. If the trucks can share information about braking activity, direction, speed and potential obstacles they can maintain a closer-than-usual following distance, forming a convoy that reduces drag and boosts fuel efficiency. The tight formation, or platoon, also can reduce traffic congestion and react quickly to potential obstacles.(3)

In an effort to reduce fuel, I believe there’s only a matter of time before logistics executives entertain the idea of eliminating the cost altogether.

Most still view Tesla as a car company and not as a leading software technology company, an analyst from Berenberg outlines why this should not be the case below.

An investment bank analyst from Berenberg said (via Proactive Investors), “Imminent competition from traditional Original Equipment Manufacturers (OEMs) is often cited as a key threat to Tesla, but this underestimates the full extent of Tesla’s technology advantage, which manifests in the entire electronic architecture design… [Tesla’s] clean-sheet development builds the infrastructure around the technology, enabling minimized-time-to-market product improvements.”

Berenberg added, “This is a decisive barrier for legacy carmakers. Tesla’s centralized, integrated, technology-driven architecture enables flexibility and OTA (over-the-air) software-upgrade-ability across the entire domain. In contrast, traditional architectures implement technology additively to the legacy infrastructure, resulting in decentralized electronic control units (ECUs) systems that creates excess complexity and incompatibility.”

Tesla’s battery tech has also leapfrogged efforts from legacy carmakers. Berenberg notes, “We expect Tesla to remain the battery technology leader, as traditional OEMs have shown little effort to commit meaningful capital to battery technology… Tesla’s temperature management is the most sophisticated in the industry, allowing better resilience to capacity degradation, and consequently better residual values.”

While the march toward fully connected vehicles is forging it’s way into the main stream, its path will be not be easy. Emerging technologies can enable vehicles to function in ways once only imagined in futuristic sci-fi films.

With all that said, one thing remains true, the key to faster adoption will depend on consumer confidence and safety.

Interested in taking a deeper look into this industry or an alternative industry?

Click here to schedule time on my calendar for a free market research consultation.

Sources:

  1. Monetizing car data: New service business opportunities to create new customer benefits
  2. Connected cars will send 25 gigabytes of data to the cloud every hour
  3. FedEx Says Platooning Technology Could Revolutionize Truck Fleets

Disclaimer: This Article Is Not Investment Advice

You understand and agree that no content published from this writer constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You also understand that essays written by this writer may contain opinions from time to time.

Orlando Trott

Written by

Strategy Consultant | Follow for insights around Tech, Consumer Data & Business Analytics.

Data Dump

Data Dump

Data Dump is a repository of thoughts, insights and best practices surrounding enterprise growth, consumer data, and corporate strategy. Contact the writer [orlando.trott@yahoo.com]

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