Cars are likely to built with sensors that automatically summon emergency services after a crash, or prevent collisions by alerting vehicles of sudden braking, Ofcom's Tomorrow's Wireless World report said.
The study looked at how wireless technology is likely to be adapted over the next 10 to 20 years.
The report said wireless communication was now "integral to our lives", with mobile subscriptions outnumbering the total UK population by 10 million.
Ofcom said it carried out the research to prepare for future demands on the UK's radio frequencies, or spectrum, that wireless services use.
The report focused on advances in healthcare and transport, after working with independent experts and Government departments.
Ofcom said many major car manufacturers were developing wireless systems that allowed cars to automatically alert each other to sudden braking.
The devices could be fitted to vehicles by 2015, the report said.
Sensors fitted in cars that automatically alert emergency services to an accident are under discussion by the European Commission and could be on the market by 2010.
Systems to alert drivers to congestion and help those with sensitivities to smog, pollution or pollen avoid certain routes are being pioneered in Japan, the US and parts of Europe.
Peter Ingram, Ofcom's chief technology officer, said: "There is nothing new about these technologies. They just require us getting organised and making use of what's already out there."
Digg
Delicious
Spurl
Newsvine
Furl
Reddit
Yahoo!