Vehicle to Infrastructure Communication Market Size to Reach USD 2,036.0 Million in 2032
The vehicle to infrastructure communication market size reached USD 412.7 million in 2024 and is expected to register a revenue CAGR of 22.4% during the forecast period.
April 25, 2024 – Rising expansion of autonomous and connected vehicles is the key factor driving revenue growth of Vehicle-to-Infrastructure (V2I) communication market. The global connected car fleet is expected to expand to more than three times its present size in the near future. In 2021, there were approximately 84 million connected vehicles in operation across the United States. This figure is anticipated to surpass 305 million by 2035. As self-driving and connected vehicles become more prevalent, there is a growing need for seamless communication with road infrastructure to enhance navigation, traffic management, and overall safety. V2I technology provides real-time data exchange between vehicles and traffic signals, road signs, and other infrastructure elements. It optimizes traffic flow and reduces congestion.
Automakers and technology providers are increasingly investing in V2I solutions to support Advanced Driver-Assistance Systems (ADAS) and autonomous driving capabilities. In November 2022, Quectel Wireless Solutions, a leading provider of IoT and automotive solutions, introduced its latest AG18 module. Equipped with PC5 direct communication technology, the module facilitates seamless interaction between vehicles and their surroundings, enhancing road safety and traffic efficiency. The AG18 supports Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), and Vehicle-to-Pedestrian (V2P) communication, operating on the dedicated 5.9GHz intelligent transportation system (ITS) band. The integration of such modules into connected and autonomous vehicles accelerates the deployment of smart mobility ecosystems and driving revenue growth of the market.
However, the lack of reliable cellular connectivity and advanced infrastructure are restraining revenue growth of the market. V2I technology relies on seamless data transmission between vehicles and road infrastructure. It requires high-speed, low-latency networks such as 5G and well-developed intelligent transportation systems. Many regions, particularly in developing economies and rural areas, lack the necessary network coverage, Roadside Units (RSUs), and smart infrastructure to support V2I deployment. This infrastructure gap hinders large-scale adoption and limits the revenue growth of the market.
Key Highlights:
- Cellular-based Communication (C-V2X) segment accounted for a significant revenue share in 2024 due to the increasing adoption of 5G technology, regulatory support, and the rising deployment of connected and autonomous vehicles. C-V2X enables seamless, real-time communication between vehicles and infrastructure using cellular networks. It provides enhanced safety, traffic efficiency, and intelligent mobility solutions. Additionally, leading automotive manufacturers and telecom providers are investing in C-V2X-enabled Vehicles and Roadside Units (RSUs), which is driving revenue growth of this segment.
- Road safety segment is expected to register a fast revenue growth rate during the forecast period due to the increasing focus on reducing traffic accidents, enhancing pedestrian safety, and improving overall roadway efficiency. Governments and regulatory bodies across the globe are implementing stringent safety regulations and investing in Intelligent Transportation Systems (ITS) to minimize collisions and fatalities, which is expected to create a high demand of V2I communication in road safety aapplications.
- North America accounted for largest revenue share in 2024 in the Vehicle-to-Infrastructure (V2I) communication market due to the strong government initiatives, advanced infrastructure, and the rapid adoption of connected and autonomous vehicle technologies. The U.S. Department of Transportation (USDOT) and various state agencies are investing heavily in smart transportation projects, integrating V2I solutions to enhance road safety, reduce congestion, and improve traffic management. Additionally, the widespread deployment of 5G networks and edge computing technologies is accelerating the adoption of V2I communication systems in the region.
- Some major companies in the global market report include Ford Motor Company, Volvo Cars, Hyundai Motor Company, BMW AG, Volkswagen Group, Robert Bosch GmbH, Continental AG, Qualcomm Incorporated, Autotalks, Harman International, Huawei Technologies Co., Ltd., NXP Semiconductors, Cohda Wireless, Denso Corporation, ZF Friedrichshafen AG, and Commsignia.
- On December 2, 2024, SmartDV Technologies, a prominent provider of customizable semiconductor design IP (Intellectual Property) and Verification IP (VIP), announced that RANiX has licensed its SDIO IP family. This collaboration is set to strengthen RANiX’s Vehicle-to-Everything (V2X) solutions, facilitating the development of advanced automotive communication technologies that enhance safety, connectivity, and intelligent vehicle ecosystems.
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Navistrat Analytics has segmented global Vehicle-to-Infrastructure (V2I) Communication market on the basis of component, technology, vehicle type, application and end-use and region:
- Component (Revenue, USD Million; 2022-2032)
- Hardware
- Roadside Units (RSUs)
- On-board Units (OBUs)
- Sensors & Antennas
- Others
- Software
- Communication Software
- Data Analytics & Processing Software
- Others
- Services
- Installation & Integration
- Maintenance & Support
- Consulting & System Design
- Hardware
- Technology Outlook (Revenue, USD Million; 2022-2032)
- Dedicated Short-Range Communication (DSRC)
- Cellular-based Communication (C-V2X)
- Wi-Fi
- WiMAX
- Others
- Vehicle Type Outlook (Revenue, USD Million; 2022-2032)
- Passenger Vehicles
- Commercial Vehicles
- Light Commercial Vehicles (LCVs)
- Heavy Commercial Vehicles (HCVs)
- Application (Revenue, USD Million; 2022-2032)
- Traffic Management
- Road Safety
- Toll Collection & Enforcement
- Parking Management
- Environmental Monitoring
- Fleet Management
- Others
- End-Use (Revenue, USD Million; 2022-2032)
- Automotive OEMs
- Tier 1 Suppliers
- Telecom Operators
- Government Agencies
- Others
- Regional Outlook (Revenue, USD Million; 2022-2032)
- 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