With inter-vehicle communications available as a standard feature on new vehicles by 2020, the cost to implement a V2V solution in Europe (EU-25) was estimated at 359 million Euros per annum assuming a fleet penetration rate of 6.1 percent.

Experience with planning V2V and V2I deployments in Europe (EU-25)


Summary Information

This research estimated the potential costs of vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) technologies developed for the SAFESPOT program in Europe (EU-25). The goal was to address accidents at intersections, accidents due to hazardous road and weather conditions, and accidents due to speeding and inappropriate following distances.

The following bundled applications were evaluated.

V2V Technology Bundle
  • Lateral Collision Warning: Road intersection safety
  • Road Departure Warning: Road condition status - Slippery Road
  • Longitudinal Collision Warning: Speed limitation and safe distance
V2I Technology Bundle
  • Cooperative Intersection Collision Prevention: Basic application
  • Hazard and Incident Warning: Reduced friction or visibility
System costs represented the overall cost of each bundle and included estimated costs for in-vehicle devices, supporting infrastructure, and operations and maintenance costs for each bundle distributed over the lifetime of the technology which was assumed to be 12 years as a reflection of the average life of an equipped vehicle.

Implementation costs included a five percent mark-up based on the sum of component costs, and a digression rate of 16 percent was used to account for economies of scale and reduced production costs when market penetration rates were doubled. Subject matter experts were surveyed to estimate market penetration rates of these technologies in new vehicles.

V2V vehicle fleet costs were calculated by multiplying the component costs for equipped vehicles as expected in 2020 by the varied penetration rates. The table below shows the estimated costs for V2V.

Penetration Rate
Total Costs
(EUR p.a.)
18.6 M
359 M
20.5 M
386 M
26.7 M
471 M

V2I cost estimates included both the infrastructure the in-vehicle equipment costs. Besides CCTV video cameras which are expected to be standard equipment in 2020, roadside units and dedicated antenna systems, automatic ice detection systems, laser scanners, and digital maps including intersections were considered for the cost estimate. The table below assumes a 50 percent infrastructure equipment rate as an estimate of the level of deployment required to cover the bulk of all crashes in the EU-25.

Penetration Rate
Total Vehicle Cost
(EUR p.a.)
Equipment Rate
Infrastructure Cost
(EUR p.a.)
Total Costs
(EUR p.a.)
16.6 M
190 M
4,902 M
5,092 M
23.6 M
231 M
4,902 M
5,133 M
24.3 M
234.2 M
4,902 M
5,136 M
29.2 M
257.9 M
4,902 M
5,160 M


Euros were converted to dollars using the average currency exchange rate from 2010 (1.33 Dollars per Euro).

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Socio-Economic Viability of SAFESPOT Cooperative Safety Systems

Author: Schindhelm, Roland,

Published By: European Conference on Human Centred Design for Intelligent Transport Systems. Berlin, Germany. 29-30 April 2010.

Chemnitz University of Technology

Source Date: 04/29/2010

Other Reference Number: Session 3A


System Cost

V2V System: $476M to $625M (6.1 to 8.7% Penetration)
V2I System: $6,757M to $6,847 M (5.4 to 9.5% Penetration)


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Cost ID: 2013-00284