Automotive V2X Market Size to Reach USD 16,869.4 Million in 2031
The 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
December 12, 2024: 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. Growing adoption of autonomous and connected vehicles is the key factor driving market revenue growth.
V2X technology plays a crucial role by providing real-time communication between vehicles, infrastructure, pedestrians, and the network. This connectivity increases road safety, reduces traffic congestion, and supports integrating advanced driver assistance systems (ADAS) in autonomous vehicles. Furthermore, stringent regulations on deploying intelligent transport systems and government initiatives promoting connected vehicle technologies are accelerating the expansion of V2X solutions. The trends are creating new opportunities for investment and innovation while extending the application of V2X technologies across both commercial fleets and passenger vehicles, further boosting the revenue growth of the market.
For instance, in March 2022, Cisco and Verizon successfully demonstrated a proof of concept in Las Vegas, showcasing how cellular and mobile edge compute (MEC) technology can support autonomous driving solutions without relying on expensive physical Roadside Units to extend radio signals. This breakthrough simplifies and enhances the deployment of applications such as autonomous last-mile delivery bots and robotaxis in cities like Las Vegas, which already utilize public MEC technologies. Moreover, the collaboration highlights how cities and roadway operators can leverage C-V2X applications to improve road safety, including pedestrian protection, emergency and transit vehicle prioritization, on and off-ramp assistance for vehicles like loaded trucks, and enhanced intersection safety for traffic signal management.
However, limited network coverage and latency issues are restraining revenue growth of the market. Reliable V2X communication mostly relies on a very strong communication infrastructure to allow seamless transmissions between vehicles, infrastructure, and other connected objects. Inadequate network coverage limits V2X deployment and functionalities, especially in rural and less-developed areas. In addition, latency issues in current communication technologies are resulting in delayed responses, compromising the safety and efficiency of critical applications like collision avoidance and traffic signal prioritization. These challenges hinder large-scale adoption and discourage investments in V2X technologies, which slows market expansion and restrains revenue growth of the market.
Key Highlights:
- Software segment is expected to register a fast revenue growth rate over the forecast period due to increasing adoption of advanced connectivity technologies among automotive manufacturers. There is a rising demand for software solutions that provide seamless communication between vehicles, infrastructure, and other entities like pedestrians and traffic signals. Furthermore, growing adoption of electric and autonomous vehicles, which heavily depend on connectivity and software systems for optimal functioning, also contributes to the revenue growth of this segment.
- Vehicle-to-Infrastructure (V2I) segment is expected to account for a significant revenue share over the forecast period owing to increasing focus on improving road safety, traffic efficiency, and smart city initiatives. As governments worldwide invest in smart infrastructure and connected cities, the demand for V2I solutions rises, aiming to reduce congestion, enhance safety, and optimize urban mobility.
- North America is expected to register a fast revenue growth rate in the automotive V2X market during the forecast period. North America is home to leading automotive manufacturers, technology providers, and innovators actively investing in V2X solutions to enhance road safety, reduce traffic congestion, and improve vehicle efficiency. In August 2024, The U.S. Department of Transportation released Saving Lives with Connectivity, a plan to accelerate V2X deployment, as a strategic framework to advance this emerging technology. To support the initiative, the U.S. DOT also provided research grants to evaluate the impact of planned V2X deployments, aiming to inform and shape the future expansion of the technology.
- Some major companies in the global market report include 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, and ZF Friedrichshafen AG.
- On 17 March 2021, Siemens Mobility and Bosch introduced an integrated connected vehicle collective perception system that establishes a direct connection between onboard camera intelligence and a dual-mode roadside unit (RSU). According to Siemens, roadside cameras can now capture and process detection and geocoordinate data more efficiently without the need for additional interface devices, simplifying installation and reducing costs. The fully integrated Vehicle-to-Everything (V2X) platform utilizes edge processing with camera intelligence, eliminating the need for a central server, thereby enhancing efficiency and scalability.
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Navistrat Analytics has segmented automotive V2X market on the basis of communication type, component, connectivity, vehicle type, application, and region:
- 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
- Hardware
- 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
- Others
- 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
- Rest of MEA
- North America