Research shows that estimated costs to install V2V equipment into a new vehicle will result in an average per-vehicle cost to the consumer of $342.80 in 2012 dollars

NHTSA Researchers estimate costs for vehicle-to-vehicle deployment in the United States

Made Public Date
10/01/2014
Identifier
2014-SC00322
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Summary Information

In the National Highway Traffic Safety Administration (NHTSA) Vehicle-to-Vehicle Communications: Readiness of V2V Technology for Application report, researchers evaluated vehicle equipment cost scenarios including Original Equipment Manufacturer (OEM) cost for a full V2V system installed in new passenger vehicles (passenger cars and light trucks).

For V2V systems installed on vehicles as original equipment, preliminary estimates are based on confidential information provided by two suppliers. Relying on that information, NHTSA estimates that the cost to install the supplier equipment into the vehicle will result in a per-vehicle cost to the consumer of $342.80 ($327.13 + $15.67) in 2012 dollars. As shown in Table 1, below, they anticipate that the equipment at the supplier level will cost $216.79, while the installation will cost $10.38. After accounting for the retail price equivalent of 1.51, which includes the additional costs necessary before the product reaches the consumer, and also for the reduction in costs due to the current installation rate of Global Positioning System (GPS) units (meaning that if GPS is already present on a vehicle, the addition of V2V technology does not require another GPS unit), they estimate the increase in per-vehicle cost will be $329.14 in 2020. They further explain the estimates for the supplier costs, installation costs, and GPS market penetration in separate sections of the report. Additionally, they anticipate that manufacturers and suppliers will realize cost savings over time due to additional experience in manufacturing V2V safety equipment.

Table 1 Summary of Likely Costs in Year 1 for New Vehicles (2012 dollars)

Variable Costs Consumer Costs
Supplier Costs $216.79 $327.13
Installation Costs $10.38 $15.67
Minus Current GPS Installation $9.20 $13.89
Total $217.97 $329.14


This report, dated August 2014, includes many more details of connected vehicle system costs. These findings along with the costs provide a valuable resource for those considering the implementation of connected vehicle systems.

System Cost

V2V - Summary of Likely Costs in Year 1 for New Vehicles (2012 dollars) - $342.80/vehicle.