Federal regulators are expected to issue new rules in the next few months that could jump-start the market for cars that communicate with other cars and road infrastructure.

The technology—on demonstration this week a U.S. Department of Transportation event in Washington—uses a combination of positioning technology, such as GPS or other kinds of sensors, and high-speed wireless networks.

The immediate goal is to reduce the number of accidents, cut back on toxic emissions and make transportation more efficient. But the rulings could also have a big impact on the development of next-generation vehicles, including cars that drive themselves, and could provide an opening for companies from outside the auto industry.

Auto makers such as General Motors Co., Ford Motor Co., BMW and Volkswagen AG , already are conducting research on automated vehicles, which can maintain their own speed, stay centered in lanes, avoid collisions, and navigate without the aid of a person at the wheel.

Car companies are taking a variety of approaches. Some, such as BMW, Volkswagen and Nissan Motor Co. are using their own engineers. But Daimler AG will turn over all software development for its electronic driver-assistance features to Finland-based Elektrobit Corp.