Global Automotive V2X Market Size, Share and Trends Analysis, By Component (Hardware, Software), By Communication Type, By Connectivity (DSRC, C-V2X), By Application (Passenger Vehicles, Commercial Vehicles), By End-Use, and By Region Forecast to 2031

Global Automotive V2X Market Overview and Key Insights:

The global automotive V2X market size reached USD 832.4 million in 2023 and is expected to register a revenue CAGR of 46.3% during the forecast period. Rising concerns for road safety, growing adoption of autonomous and connected vehicles, increasing urbanization and traffic congestion and rising demand for enhanced driving experience are expected to drive revenue growth of the market.  

Market Drivers:

Rising concern for road safety is the major factor driving revenue growth of the automotive vehicle V2X market. Increasing road traffic and accident rates in recent years prompted governments and vehicle manufacturers to introduce advanced technologies that increase safety and reduce fatalities. Road accidents result in approximately 1.3 million fatalities and 50 million injuries annually, which is the leading cause of death among children and young people worldwide. According to the World Health Organization (WHO), road accidents are expected to cause 13 million deaths and 500 million injuries globally over this decade. V2X communication provides real-time data exchange between vehicles, infrastructure, and pedestrians, providing critical warnings for collision avoidance, blind spot detection, and emergency braking, to reduce road accidents. 

Regulatory mandates, such as Europe’s Vision Zero program and similar programs across the globe are accelerating the deployment of V2X systems. As consumers demand safer vehicles, automakers integrate V2X technology into their offerings. This increased focus on safety boosts investments in V2X-enabled solutions, driving significant revenue growth of the market.

Market Opportunity:

The increasing competition between strategists, telecommunication providers and technology companies creates ample opportunities for the global automotive vehicle V2X market. These networks facilitate the integration of advanced networking technologies, such as 5G and edge computing, into V2X systems, enabling seamless data exchange for improved safety and productivity automakers use telecommunications corporate expertise to build robust network infrastructure, while technology companies use innovative solutions such as AI-driven analytics and cloud platforms.

In May 2023, for instance, Commsignia Ltd. and Mitsubishi Electric Corporation announced a strategic partnership to develop a Vehicle-to-Everything (V2X) platform. This collaboration will integrate Commsignia’s V2X solutions with Mitsubishi Electric’s High-Definition Locator (HDL) technology, aiming to enhance safety in autonomous driving and Advanced Driver-Assistance Systems (ADAS). Commsignia and Mitsubishi Electric, through their new partnership, aim to accelerate the deployment of commercial V2X solutions designed to enhance safety in assisted and autonomous driving systems.

Recent Trends:

One recent trend in the automotive V2X market is the increasing integration of 5G technology to enhance communication capabilities. 5G-based Cellular V2X (C-V2X) offers ultra-low latency, higher bandwidth, and broader network coverage than traditional Dedicated Short-Range Communication (DSRC) systems. This makes them ideal for real-time data exchange in connected and autonomous vehicles. This advancement supports applications such as advanced driver-assistance systems (ADAS), traffic management, and remote vehicle control. The collaboration between telecom companies and automotive manufacturers highlights the growing emphasis on 5G-enabled V2X solutions, which are set to drive market innovation and adoption.

In November 2021, for instance, Japanese operator SoftBank and automaker Honda announced the launch of a use case-based verification to reduce collisions between pedestrians and vehicles, utilizing a 5G Standalone mobile communication system and a cellular V2X communication system. The two companies had previously collaborated on technology verification for 5G-enabled connected vehicles by establishing a 5G experimental base station at the Takasu Proving Grounds.

Restraints & Challenges:

Cybersecurity and data privacy concerns are major restraints on the revenue growth of the automotive V2X market. V2X systems enable real-time communication between vehicles, utilities, and pedestrians. It also provides access to a vast amount of sensitive data which makes them vulnerable to cyberattacks, data breaches, and unauthorized access. The integration of these systems into vehicles creates new attack vectors, which could compromise safety and lead to potential malicious exploitation.

The rising cybersecurity and data privacy concerns prompted governments of various countries to impose stringent regulations. In September 2024, for instance, The U.S. Commerce Department intends to introduce proposed regulations to prohibit the use of hardware and software from China and Russia in connected vehicles. The restrictions would extend to the deployment and testing of Chinese and Russian technologies in automated driving systems and vehicle communication systems. This includes V2X systems, which enable vehicles to communicate with road infrastructure, other equipped vehicles, and cloud-based platforms.

Component Segment Insights and Analysis:

Based on the component, the global automotive V2X market is segmented into hardware and software. Hardware segment is further sub-segmented in modules, antennas, chipsets, communication devices and others. Software segment is further sub-segmented in communication protocols software, cloud integration software, platforms data analysis software, and others.

Hardware segment contributed largest share in 2023 due to increasing demand for connected autonomous vehicle technology. Hardware integrations such as on-board units (OBU), roadside units (RSU) and antennas have become essential as automakers and technology providers strive to improve road safety, reduce congestion and improve fuel efficiency. These devices communicate smoothly between vehicles, infrastructure, and pedestrians, supporting applications such as collision avoidance, traffic management, and real-time navigation. In addition, the widespread adoption of 5G technology accelerates the deployment of V2X systems, as 5G’s low latency and fast data rates enhance the efficiency of hardware components.

Software segment is expected to have the fastest CAGR throughout the forecasted period due to the increasing reliance on advanced algorithms and data processing solutions to enable seamless vehicle communication. As V2X technology becomes more sophisticated, software plays a critical role in managing complex interactions between vehicles, infrastructure, and other connected devices. This includes the production of real-time data for applications such as accident warning, traffic optimization, and predictive maintenance. The rise of 5G connectivity has further increased the demand for robust software solutions, as higher bandwidth and reduced latency enable more efficient communication and data analysis.

Communication Type Segment Insights and Analysis:

Based on the communication type, the automotive V2X market is segmented into Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), Vehicle-to-Cloud (V2C), Vehicle-to-Network (V2N), Vehicle-to-Device (V2D) and Others.

Vehicle-to-Vehicle (V2V) segment contributed largest share in 2023 due to increasing adoption of safety-focused technologies and the push for smarter transportation systems. The growing emphasis on reducing traffic congestion and enhancing fuel efficiency has also contributed to the revenue growth of this segment. It enables features like cooperative adaptive cruise control and platooning. As the world advances toward a more connected and automated future, the automotive industry has identified vehicle-to-vehicle (V2V) communication as a critical area of focus. V2V technology enables vehicles to wirelessly share real-time data about their speed, direction, and location with nearby vehicles.

In December 2023, Canada-based auto parts manufacturer Magna international partnered with NorthStar, a 5G innovation initiative established by telecommunications providers Telia Sweden and Ericsson. Telia and Ericsson have deployed a private 5G network at Magna’s automotive test track in Vårgårda, Sweden, where advanced driver-assistance systems (ADAS) and cutting-edge vehicle-to-vehicle (V2V) connectivity solutions are being tested. Utilizing the 26GHz frequency band and 400MHz bandwidth, this 5G network plays a vital role in enabling real-time data transmission from vehicle sensors.

Application Segment Insights and Analysis:

Based on the application, the automotive V2X market is segmented into traffic management, fleet management, autonomous driving, driver assistance, emergency vehicle notification, parking management system, vehicle safety, vehicle infotainment, and others.

Traffic management segment contributed largest share in 2023 due to the rising awareness of enhancing road safety, reducing congestion, and improving overall transportation efficiency. V2X provides real-time communication between vehicles, infrastructure, pedestrians, and networks for seamless data exchange, enhancing decision-making. V2X supports advanced traffic management solutions by enabling dynamic traffic flow adjustments, optimized signal timing, and rapid incident detection and response. The proliferation of connected and autonomous vehicles amplifies the need for V2X systems, as they rely on such communication to navigate safely and efficiently.

Moreover, governments and regulatory bodies worldwide are prioritizing smart city initiatives and adopting stringent safety regulations, which is boosting the adoption of V2X for traffic management. In August 2024, for instance, The U.S. Department of Transportation unveiled a national V2X strategy to implement vehicle-to-everything communication and infrastructure across the country. This plan targets the nationwide wireless technology rollout in the 5.895-5.925 GHz spectrum band by 2036. Developed through collaboration between public and private sectors, the strategy offers essential guidance to stakeholders. It aims to establish a safe, efficient, and sustainable transportation system by facilitating the widespread adoption of interoperable V2X technologies.

Geographical Outlook:

Market in Asia Pacific accounted for largest revenue share in 2023 due to the rapid advancements in automotive and communication technologies, and increasing investments in smart infrastructure. Governments across various countries in the region such as China, Japan, South Korea, and India are prioritizing Intelligent Transportation Systems (ITS) to address urban congestion, enhance road safety, and reduce emissions that align with the adoption of V2X solutions. The region’s rapid automotive manufacturing base is facilitating the integration of V2X technology into new vehicle models, supported by stringent safety and emission regulations.

For instance, BMW will commence mass production of cars equipped with vehicle-to-everything (V2X) technology in China from 2025. The country serves as an ideal environment for the advancement of intelligent connected vehicles. BMW has built its largest research, development, and digitalization hub outside Germany in China, fostering local innovation and collaboration in intelligent connected technologies. Additionally, collaborations between automotive Original Equipment Manufacturers (OEMs), technology providers, and telecommunication companies are fostering innovation and ensuring the scalability of V2X technologies in this region.

North America is expected to register a fast revenue growth rate during the forecast period due to the rising adoption of connected and autonomous vehicles, stringent government regulations for vehicular safety, and advancements in communication technologies, especially in U.S. and Canada.  Additionally, rising awareness of reducing traffic congestion and accidents, supported by initiatives like the U.S. Department of Transportation’s programs for cooperative driving automation is boosting the adoption of V2X technology. In August 2024, for instance, The U.S. Department of Transportation is unveiling a roadmap aimed at accelerating the adoption of automotive V2X technology to save thousands of lives. Safety advocates emphasize that V2X technology has the potential to prevent numerous crashes annually and reduce the severity of accidents by lowering impact speeds. This initiative is seen as a critical step toward addressing the alarming rise in U.S. traffic fatalities, which now exceed 40,000 per year.

Market in Europe is expected to register a modest revenue growth rate during the forecast period due to the commitment to sustainability, road safety, and technological innovation in this region especially in Germany, U.K., Spain, and France. Stringent regulations from the European Union (EU) on vehicle emissions and safety standards encourage automakers to adopt V2X solutions to improve traffic efficiency and reduce environmental impact.

In September 2023, The 5G Automotive Association (5GAA) launched a transformative initiative to accelerate the adoption of 5G-V2X technology for connected cars in Europe.  Major European car manufacturers collectively holding over 70% market share, are showcasing their commitment to collaboration and advancing state-of-the-art solutions. 5G-V2X technology, which combines mobile network communications with direct communication capabilities, is set to deliver critical connected car services. These advancements aim to enhance road safety, particularly for vulnerable users, alleviate traffic congestion, and improve overall mobility efficiency and driving comfort in this region.

Competition Analysis:

The automotive V2X market market is characterized by a fragmented structure, with numerous players competing across various segments and regions. List of major players included in the automotive V2X market report are:

• Qualcomm Incorporated
• Continental AG
• Robert Bosch GmbH
• Autotalks Ltd.
• Huawei Technologies Co., Ltd.
• Denso Corporation
• NXP Semiconductors
• Harman International
• Cohda Wireless
• Intel Corporation
• Valeo SA
• ZF Friedrichshafen AG
• SmartDV Technologies

Strategic Developments in Global Automotive V2X Market:

• On 02 December 2024, SmartDV Technologies, a leading provider of flexible and customizable semiconductor design IP (Intellectual Property) and VIP (Verification IP) announced that RANiX has licensed its SDIO IP family. This partnership aims to enhance RANiX’s V2X (Vehicle-to-Everything) products. It is driving the creation of advanced automotive communication solutions for safer, smarter, and more connected vehicle ecosystems.
• On 20 May 2024, Fermata Energy, Xcel Energy, The City of Boulder, Colorado CarShare, and Boulder Housing Partners have launched a collaborative Vehicle-to-Everything (V2X) bidirectional charging pilot project at Boulder Housing Partners’ 30 Pearl development and Molly’s Spirits Lakeside facility. This groundbreaking initiative leverages parked EVs as mobile power units, enhancing grid resilience, lowering electricity costs, and benefiting underserved communities and local businesses. Powered by Fermata Energy’s advanced bidirectional charging platform, the project integrates four FE-20 chargers and two Colorado CarShare Nissan LEAFs to demonstrate the transformative potential of V2X and Vehicle-to-Building (V2B) technologies.

Key Advantages for Stakeholders:

Navistrat Analytics’ industry report provides an in-depth quantitative analysis of various market segments, historical and current trends, market forecasts, and dynamics within the global market. The historical years covered in this report are 2021 to 2022, with 2023 serving as the base year for market size calculations. The forecast period extends from 2024 to 2031.

The report includes an executive summary and a comprehensive overview of market drivers, restraints, opportunities, and challenges (DROC), along with insights into regulatory standards. It features detailed analyses such as PORTER’s Five Forces, SWOT, and PESTLE, as well as assessments of technological trends and the competitive landscape.

PORTER’s Five Forces analysis helps stakeholders evaluate the impact of new entrants, competitive rivalry, supplier power, buyer power, and substitution threats, enabling them to assess the level of competition and the attractiveness of the global market. The competitive landscape provides stakeholders with a clear understanding of the current market positions of key players, offering valuable insights into their competitive environment.

Scope And Key Highlights of The Global Automotive V2X Market Report:

The automotive V2X market report offers a detailed analysis of market size, including historical revenue (in USD Million) data for 2021-2022 and revenue forecasts for 2024-2031 across the following segments:

• Communication Type Outlook (Revenue, USD Million; 2021-2031)
  • Vehicle-to-Vehicle (V2V)
  • Vehicle-to-Infrastructure (V2I)
  • Vehicle-to-Pedestrian (V2P)
  • Vehicle-to-Cloud (V2C)
  • Vehicle-to-Network (V2N)
  • Vehicle-to-Device (V2D)
  • Others

• Component Outlook (Revenue, USD Million; 2021-2031)
  • Hardware
    • Modules
    • Antennas
    • Chipsets
    • Communication devices
    • Others
  • Software
    • Communication Protocols Software
    • Cloud Integration Software
    • Platforms Data Analysis Software
    • Others

• Connectivity Outlook (Revenue, USD Million; 2021-2031)
  • Dedicated Short Range Communication (DSRC)
  • Cellular (C-V2X)

• Vehicle Type Outlook (Revenue, USD Million; 2021-2031)
  • Passenger Vehicles
  • Commercial Vehicles

• Application Outlook (Revenue, USD Million; 2021-2031)
  • Traffic Management
  • Fleet Management
  • Autonomous Driving
  • Driver Assistance
  • Emergency Vehicle Notification
  • Parking Management System
  • Vehicle Safety
  • Vehicle Infotainment

• Regional Outlook (Revenue, USD Million; 2021-2031)
  • North America
    • U.S.
    • Canada
    • Mexico
  • Europe
    • Germany
    • France
    • U.K.
    • Italy
    • Spain
    • Benelux
    • Nordic Countries
    • Rest of Europe
  • Asia Pacific
    • China
    • India
    • Japan
    • South Korea
    • Oceania
    • ASEAN Countries
    • Rest of APAC
  • Latin America
    • Brazil
    • Rest of LATAM
  • Middle East & Africa
    • GCC Countries
    • South Africa
    • Israel
    • Turkey

Frequently Asked Questions (FAQ) About The Automotive V2X Market report