Can V2X Be Profitable?

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By Maite Bezerra | 2Q 2022 | IN-6515


Short-Range Communication Business Models


The most promising business models for short-range communication (PC5 or ITS-G5) in private vehicles are tolling, road charging, priority lane access, on-demand traffic signal priority, and seamless and accurate license plate recognition and payment in parking scenarios. Some present concrete costs benefits and monetization opportunities for road and parking operators, but their viability is intrinsically related to the availability of On-Board Units (OBUs) in vehicles. However, none of these applications generate direct and substantial revenues that justify carmakers' investment in the technology. Instead, they offer an opportunity to recoup some of the costs in case the hardware is already fitted in the car to comply with regulations or safety score standards. This is a similar trajectory to Driver Monitoring Systems (DMS), which, after becoming a mandated feature in several markets, including Europe and China, started being used for infotainment functionalities such as in-cabin personalization and payments via facial recognition. As a critical mass of compatible vehicle…

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