Single Standardization Only After 2024... Future Car Technology Development Delayed One After Another

Despite ongoing discussions since 2019,
no inter-ministerial agreement reached
Ministry of Science and ICT - Ministry of Land, Infrastructure and Transport to pursue demonstration this year
Highway pilot project planned for next year

Global competition accelerating
Market valued at $700 million last year
Projected to reach $629.9 billion by 2035

Confusion persists among automakers and telecom equipment industries
Experts warn "Potential for wasteful situations like electric vehicle charging confusion"

[Asia Economy Reporters Choi Dae-yeol and Cha Min-young] The global autonomous vehicle market, which started at $700 million last year (based on fully autonomous vehicles), is projected to reach $31.4 billion by 2025, $310.9 billion by 2030, and $629.9 billion by 2035. Among these, the most crucial technology is Vehicle-to-Everything (V2X) communication. Broadly, V2X refers to the standards and technologies that enable vehicles to interact with public roads and other road users. It is a core technology that allows autonomous vehicles to operate independently. The related industries, including automotive, telecommunications, and electronics, are expected to grow into an astronomical market as the level of autonomous driving technology advances.

Standards Adrift Amid Divergent Opinions

The Ministry of Land, Infrastructure and Transport (MOLIT) has been researching and developing Wi-Fi-based DSRC technology for several years. At that time, although the technology was first developed overseas and its stability was guaranteed, it had the drawback of a communication range of less than 1 km, making it extremely limited outside urban areas.

The alternative technology developed is the cellular-based 'C-V2X' technology. Based on LTE and 5G technologies, it features an extended communication range of several kilometers, as well as superior transmission speed and latency. Although it requires a preparation period after standardization, it has resolved most of the shortcomings of the existing DSRC technology and has established itself as the global standard.

As advanced technology and the single standard choices by the U.S. and China led to the rapid rise of 'C-V2X' technology, the Ministry of Science and ICT, telecommunications industry, and automotive industry advocated for adopting 'C-V2X' as South Korea's V2X standard. However, MOLIT insists on the 'DSRC' method, citing completed technology development and stability. The disagreement between the two ministries escalated to the point where the Ministry of Economy and Finance and the Blue House intervened, but the differences remained unresolved. Eventually, a mediation proposal was made to demonstrate both technologies and select the better one, but the related industries are sighing, saying that the standardization has been delayed indefinitely by going through the demonstration phase despite the clear technical superiority.

The Ministry of Science and ICT plans to conduct demonstrations of LTE-V2X functions this year to support single standardization of vehicle communication methods for autonomous driving, together with MOLIT. Next year, a pilot project will run both communication methods concurrently on highways, and single standardization will be pursued only after 2024. An industry insider said, "Despite discussions ongoing since 2019, no agreement has been reached between ministries, requiring mediation by the Blue House and the Ministry of Economy and Finance, with sharp conflicts persisting. If standardization is delayed, related technology development and industry will inevitably fall behind, so the government should prioritize national competitiveness over inter-ministerial selfishness and promptly establish the standard."

Among China's top three electric vehicle startups?Xiaopeng (小鵬, Xpeng), FAW Group's Hongqi, and Great Wall Motors (長城汽車, GWM)?all have launched cellular-based V2X commercial vehicles, while major U.S. commercial vehicle manufacturers including Ford have announced plans to equip vehicles with cellular-based V2X technology, which the U.S. Federal Communications Commission (FCC) selected as the standard last year.

After China designated cellular-based V2X technology as the standard last year, it unveiled a national smart vehicle innovation development strategy. Chinese automakers plan to equip half of new vehicles with cellular-based V2X technology by 2025 and all vehicles by around 2030. With the U.S. FCC endorsing C-V2X last year, the global market competition is expected to accelerate sharply. In particular, the short-range wave technology advocated by MOLIT is expected to disappear in the U.S. within the next three years. This has raised concerns about the difficulty of developing technology solely for the domestic market.

Confusion continues in the telecommunications equipment industry as well. Domestic companies are struggling in equipment technology competition. Qualcomm in the U.S., Autotalks in Israel, and Huawei in China are intensifying development of communication chips for 5G-V2X, an advancement beyond LTE-V2X. Hyundai Motor Company, leading the global autonomous vehicle market, is also known to use Qualcomm chips. Telecom companies are continuing to develop autonomous vehicle and connected car solutions. KT has completed C-V2X bus test operations on public roads and launched AI voice recognition connected car solutions. SK Telecom, together with Seoul City, has been operating the 5G-based K-City pilot for over two years since 2019, showcasing 5G-based V2X technology.

Repeating Electric Vehicle Charging Confusion

Companies refining autonomous vehicle technology express concerns as the delay in standardizing communication methods, a core infrastructure for unmanned vehicles, continues. Considering the typical automotive manufacturing process involves numerous small and medium parts suppliers closely intertwined with finished vehicle manufacturers, it is necessary to select and focus on one standard rather than developing multiple incompatible methods simultaneously. Due to inter-ministerial disagreements since last year delaying additional demonstration projects, small and medium IT companies that have been refining technology through DSRC pilot projects have adopted a "wait and see" attitude. Hyundai Motor Group has been focusing on preliminary research of 5G communication-based V2X systems while also developing technology compatible with DSRC to ensure smooth application regardless of government standards. The company plans to introduce a Level 3 autonomous vehicle capable of hands-free driving at certain speeds on highways or expressways in the second half of this year.

Since newly applied automotive technologies are directly related to safety, it is common for countries and international bodies to undergo standardization during research and pilot application stages. As autonomous driving communication methods are rapidly advancing in the U.S., China, and Europe, there are calls for South Korea to accelerate efforts as well. Professor Kim Pil-soo of Daelim University advised, "In the past, delays in standardizing electric vehicle charging methods led to a wasteful situation where major countries and automakers applied different methods. For the sake of domestic automakers, parts suppliers, infrastructure developers, and future autonomous vehicle consumers, our government needs to actively participate in international standardization efforts."

This content was produced with the assistance of AI translation services.