Costs and Outlook of On-Board Equipment for Connected Vehicles

Connected Vehicle Technology Industry Delphi Study: Projected outlook and costs for Connected Vehicle Technology

September 2012
Nationwide,United States

Summary Information

Respondents of the Connected Vehicle (CV) Technology Industry Delphi study overwhelmingly reaffirmed the consensus that Dedicated Short Range Communication (DSRC) is needed for cooperative, active safety systems, while third generation (3G) and fourth generation (4G) cellular communications tend to be thought of as appropriate for other applications. Also, DSRC was commonly viewed as being standard equipment by 2017. By 2022, respondents indicated that Global Positioning System (GPS) receivers, satellite radios, and Wi-Fi transceivers also will be included as standard equipment. Mobility and Personal Convenience applications were forecasted to be widely available on new vehicles by 2017 through brought-in (as opposed to built-in or original equipment) communication devices, and all applications will be widely available by 2022. The majority think the applications will be built-in by that point. The V2V-only systems are considered valuable, but respondents view a complimentary V2I system as necessary to maximize full public benefits of connected vehicle technology. Respondents also think a V2V system is possible using DSRC technology only, using another communication technology for V2I systems. Below are consensus unit costs to include on-board DSRC equipment in vehicles:

  • Cost to Vehicle Manufacturers of Embedded DSRC - In both rounds, when asked how much it will cost vehicle manufacturers (in US$) to add a DSRC radio as embedded equipment, respondents gave a median response of $175 for 2017 and $75 for 2022. The second round means were $148 for 2017 and $73 for 2022.
  • Cost Added to Base Vehicle Price for Connected Vehicle Technology - Regarding what connected vehicle technology will add to the base cost (in US$) of a new vehicle for the consumer, the median in both rounds was $350 for 2017 and $300 for 2022. The second round means were $335 for 2017 and $260 for 2022.
  • Consumer Cost to Add DSRC as Aftermarket Equipment - What it will cost the consumer (in US$) to add DSRC as aftermarket equipment, the median for both rounds was $200 for 2017 and $75 for 2022. The second round means were $233 in 2017 and $113 in 2022.
Interestingly, one of the biggest challenges respondents see to the broad adoption of connected vehicle technology is funding for roadside infrastructure. Road transportation continues to undergo significant technological transformations as wireless communication increasingly enables vehicles to communicate with each other and with the infrastructure. This has multiple benefits, including improved safety, mobility, personal convenience, and economic development. To make the most of this opportunity, public and private entities must collaborate to develop a system that actively engages the automotive, telecommunications, and consumer electronics industries. The challenge lies in building enough confidence on both the public and private sides of the issue to bring them together to cooperate and achieve an integrated outcome.

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Connected Vehicle Technology Industry Delphi Study

Author: Center for Automotive Research

Published By: Michigan DOT

Source Date: September 2012


System Cost

Embedded DSRC: 2017 - $175, 2022 - $75
Additional Base Vehicle Price: 2017 - $350, 2022 - $300
Aftermarket DSRC: 2017 - $200, 2022 - $75


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Related Unit Cost Subsystems

Vehicle On-Board (VS)


On-board, Equipment, DSRC, dedicated, short, range, communication, embedded, aftermarket, vehicle, manufacturer, technology, built-in, brought-in, system

Cost ID: 2013-00288