Vehicle-to-Infrastructure (V2I) Communication Market Size, Share, and Trends Analysis, By Component (Hardware, Software), By Technology (DSRC, C-V2X), By Vehicle Type (Passenger Vehicles), By Application (Traffic Management, Road Safety), By End-Use (Automotive OEMs) and By Region, Forecast 2025-2032

Vehicle-to-Infrastructure (V2I) Communication Market Overview and Key Insights:

The global Vehicle-to-Infrastructure (V2I) communication market reached USD 412.7 million in 2024 and is expected to register a revenue CAGR of 22.4% during the forecast period. Increasing focus on road safety and traffic efficiency, rising expansion of autonomous and connected vehicles, growing integration of IoT and big data analytics, and rising investment in smart cities and infrastructure modernization are expected to drive revenue growth of the market.

The Vehicle-to-Infrastructure (V2I) communication market is witnessing significant revenue growth owing to the advancements in self-driving cars, autonomous vehicles, and vehicle automation. As governments and automakers prioritize roadway safety and efficiency, V2I technology is being increasingly integrated to increase highway traffic management and reduce congestion. The rising adoption of driverless and telematics solutions enables seamless communication between vehicles and infrastructure. It improves navigation, traffic signal coordination, and emergency response systems.

Market Drivers:

Increasing focus on road safety and traffic efficiency is the major factor driving revenue growth of the market. According to the World Health Organization (WHO), more than 3,500 individuals lose their lives in road accidents every day, resulting in nearly 1.3 million preventable deaths and around 50 million injuries annually. This alarming statistic positions road incidents as the primary cause of mortality among children and young adults across the globe. Current trends indicate that, without significant intervention, road accidents could account for an additional 13 million deaths and 500 million injuries over the next decade.

The rising road traffic and increasing accident rates have spurred governments and vehicle manufacturers to deploy advanced safety technologies aimed at reducing fatalities. This pressing demand is driving significant investments in Vehicle-to-Infrastructure (V2I) communication systems. It enables real-time data exchange between vehicles and traffic management networks to enhance emergency responses and improve overall traffic efficiency.

Market Opportunity:

Increasing collaboration among automakers and infrastructure companies is creating significant opportunities for the market. These stakeholders are co-developing integrated solutions that enhance vehicle connectivity and streamline infrastructure deployment. Automakers are designing vehicles with built-in V2I capabilities, while infrastructure providers are deploying smart sensors, roadside units, and data analytics systems to support real-time communication. This partnership not only accelerates the adoption of advanced safety features and efficient traffic management systems but also helps establish common standards and reduce implementation costs.

In May 2023, Commsignia Ltd. and Mitsubishi Electric Corporation unveiled a strategic collaboration aimed at developing a comprehensive Vehicle-to-Everything (V2X) platform. This joint initiative is set to integrate Commsignia’s advanced V2X solutions with Mitsubishi Electric’s High-Definition Locator (HDL) technology, to enhance safety in both autonomous driving and Advanced Driver-Assistance Systems (ADAS). Through this partnership, the companies plan to accelerate the commercialization of V2X solutions that improve safety in assisted and self-driving environments. Ultimately, such collaborations significantly boost the overall revenue growth of the V2I communication market.

Recent Trends:

One recent trend in the Vehicle-to-Infrastructure (V2I) Communication market is the increasing adoption of 5G and advanced communication standards. The enhanced capabilities of 5G such as ultra-low latency, higher bandwidth, and improved network reliability are very crucial in enabling real-time data exchange between vehicles and infrastructure. Advanced standards like Cellular V2X (C-V2X) are further enhancing these interactions by providing a robust framework for communication that supports dynamic traffic management, predictive analytics, and enhanced road safety measures.

In November 2021, Japanese operator SoftBank and automaker Honda introduced a use case-based verification project designed to minimize collisions between pedestrians and vehicles by leveraging a 5G Standalone mobile communication system alongside a cellular V2X system. Before this, the two companies had collaborated on testing 5G-enabled connected vehicle technology by setting up an experimental 5G base station at the Takasu Proving Grounds.

Restraints & Challenges:

Data privacy & security concerns pose a significant challenge to the Vehicle-to-Infrastructure (V2I) Communication market. The inherent connectivity of V2I systems exposes them to potential cyberattacks and data breaches, which compromise not only vehicle safety but also the integrity of critical transportation infrastructure. In September 2024, the U.S. Commerce Department introduced regulations aimed at banning the use of hardware and software sourced from China and Russia in connected vehicles. This regulatory measure will encompass V2X and V2I systems, which are critical for enabling communication between vehicles, road infrastructure, other connected vehicles, and cloud-based platforms.

Component Segment Insights and Analysis:

Based on the component, the Vehicle-to-Infrastructure (V2I) communication market is segmented into hardware, software, and services. Hardware segment is further sub-segmented into Roadside Units (RSUs), On-board Units (OBUs), sensors & antennas and others. Software segment is further sub-segmented in communication software, data analytics & processing software and others. Services segment is further sub-segmented into installation & integration, maintenance & support, and consulting & system design.

Hardware segment contributed the largest share in 2024 due to the increasing investments in smart transportation infrastructure, rising adoption of connected vehicles, and government initiatives to enhance road safety and traffic management. The push for autonomous driving and Intelligent Transportation Systems (ITS) also creates a strong demand for high-performance communication hardware to ensure seamless data exchange between vehicles and infrastructure.

In addition, the growing deployment of Roadside Units (RSUs), sensors, and cameras in urban areas is fueling demand for V2I hardware. For example, Caltrans District 12 in Southern California recognized the urgent need to enhance and expand its roadside technology to improve traffic flow and ensure the safety of pedestrians, cyclists, and motorists. Maintaining efficient intersections was essential for preserving residents’ quality of life. To tackle this challenge, Caltrans District 12 collaborated with Western Systems and Yunex Traffic to further extend its deployment of Roadside Units (RSUs). After previously acquiring 188 units, they have now installed an additional 52 RSUs at critical intersections across the district.

Technology Segment Insights and Analysis:

Based on technology, the Vehicle-to-Infrastructure (V2I) communication market is segmented into Dedicated Short-Range Communication (DSRC), Cellular-based Communication (C-V2X), Wi-Fi, WiMAX and others.

Dedicated Short-Range Communication (DSRC) segment contributed the largest share in 2024. Increasing government mandates and smart city initiatives aimed at improving traffic safety and efficiency have increased the deployments of DSRC, especially at intersections, highways, and urban corridors. The effectiveness of DSRC in supporting applications such as signal prioritization, collision avoidance, and adaptive traffic management has further fueled the revenue growth of this segment.

In July 2024, Toll4Europe GmbH and NORBIT ASA introduced an innovative GNSS and DSRC Hybrid On-Board Unit (OBU). It is designed for effortless installation and user-friendly operation. This advanced OBU enhances tolling efficiency by leveraging both Global Navigation Satellite System (GNSS) and Dedicated Short-Range Communication (DSRC) technologies. It allows seamless and reliable electronic toll collection. The growing deployment of such hybrid OBUs is driving revenue growth of the DSRC segment by increasing demand for DSRC-enabled tolling systems.

Application Segment Insights and Analysis:

Based on application, the Vehicle-to-Infrastructure (V2I) communication market is segmented into traffic management, road safety, toll collection & enforcement, parking management, environmental monitoring, fleet management and others.

Traffic management segment contributed the largest revenue share in 2024 due to the increasing urbanization, rising traffic congestion, and the growing adoption of smart city initiatives. Governments and transportation agencies are investing in advanced traffic management systems to enhance road safety, reduce travel delays, and optimize traffic flow. The integration of V2I communication with Intelligent Transportation Systems (ITS) provides real-time data exchange between vehicles and infrastructure. It improves signal timing, adaptive traffic control, and incident detection.

Global investment in smart traffic management solutions is expected to surge to USD 18.6 billion by 2028, marking a substantial 75% increase from USD 10.6 billion in 2023. This significant rise in spending is driving revenue growth of the traffic management segment. Governments and transportation agencies are prioritizing intelligent traffic control systems that leverage V2I technology to enhance road efficiency, reduce delays, and improve overall safety. In addition, the adoption of AI-driven analytics, real-time data processing, and adaptive signal control is fueling demand for V2I-enabled traffic management solutions and boosting revenue growth of this segment.

Geographical Outlook:

Vehicle-to-Infrastructure (V2I) Communication market is strategically segmented by geography to provide a comprehensive understanding of regional market dynamic. Discover demand analysis, emerging trends, and growth opportunities shaping market performance across different region and countries.

North America Vehicle-to-Infrastructure (V2I) Communication Market:

Market in North America accounted for largest revenue share in 2024 due to the increasing government investments in smart transportation infrastructure, rising adoption of connected and autonomous vehicles, and stringent road safety regulations, especially in U.S. and Canada. Approximately 175 million U.S. drivers are expected to use connected vehicles in 2027. This trend is fueling revenue growth of the market in this region.  In addition, the presence of key automotive and technology players, along with initiatives such as the U.S. Department of Transportation’s Intelligent Transportation Systems (ITS) programs, is accelerating V2I deployments across highways, urban intersections, and tolling systems.

Advancements in 5G connectivity, AI-driven traffic management, and the integration of Dedicated Short-Range Communication (DSRC) and Cellular V2X (C-V2X) technologies are also enhancing V2I capabilities. In August 2024, the U.S. Department of Transportation is set to introduce a strategic roadmap to accelerate the adoption of automotive Vehicle-to-Everything (V2X) technology, with a strong focus on enhancing road safety. This initiative is a crucial response to the rising number of traffic fatalities in the U.S., which now exceeds 40,000 annually. The increased government support and regulatory push for safer and more efficient roadways are accelerating investment in V2I technologies and driving revenue growth of the market in this region.

Asia Pacific Vehicle-to-Infrastructure (V2I) Communication Market:

Asia Pacific is expected to register a fast revenue growth rate during the forecast period due to the rapid urbanization, increasing government investments in smart city projects, and the rising adoption of connected and autonomous vehicles in the region, especially in China, Japan, South Korea and India. Governments of these countries are heavily investing in Intelligent Transportation Systems (ITS) to address traffic congestion, enhance road safety, and improve overall mobility. In April 2022, The Ministry of Electronics and Information Technology (MeitY) of India introduced multiple applications within the Intelligent Transportation System (ITS) framework under the InTranSE-II program to enhance India’s traffic management and transportation efficiency, which is expected to boost revenue growth of the market in India.

Rising adoption of connected and autonomous vehicles in the region is also a driving factor for the market expansion in Asia Pacific. In October 2024, BMW announced to begin mass-producing vehicles equipped with Vehicle-to-Everything (V2X) technology in China by 2025. Additionally, BMW’s establishment of its largest research, development, and digitalization hub in China is fostering local innovation and accelerating the integration of V2I communication systems.

Europe Vehicle-to-Infrastructure (V2I) Communication Market:

Market in Europe accounted for a significant revenue share in 2024 due to strong government support for smart mobility initiatives, stringent road safety regulations, and increasing investments in connected vehicle infrastructure in the region. The Vision Zero strategy of European Union is accelerating the deployment of Intelligent Transportation Systems (ITS) and V2I communication technologies. Countries like Germany, France, and the UK are investing in smart intersections, adaptive traffic management systems, and digital road infrastructure to enhance traffic efficiency and reduce congestion.

In September 2023, the 5G Automotive Association (5GAA) introduced a groundbreaking initiative aimed at accelerating the deployment of 5G-V2X technology for connected vehicles across Europe. This effort is a key driver of revenue growth in the V2I communication market. It enhances real-time data exchange between vehicles and road infrastructure and improves traffic safety and efficiency. The increasing implementation of 5G-V2X technology is significantly fuelling revenue growth of the market in this region as European governments and automotive industries push for enhanced road safety and smart mobility solutions.

Competition Analysis:

The Vehicle-to-Infrastructure (V2I) Communication market is characterized by a fragmented structure, with numerous players competing across various segments and regions. List of major players included in the Vehicle-to-Infrastructure (V2I) Communication market report are:

• 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
• Commsignia

Strategic Developments in Vehicle-to-Infrastructure (V2I) Communication Market:

• On 05 October 2021, Cepton Technologies, a pioneer in smart lidar solutions, partnered with UK-based IoT solutions provider Vortex IoT to transform buses into real-time road inspection systems. This collaboration enables a lidar-powered Vehicle-To-Infrastructure (V2I) solution for urban asset management. By integrating artificial intelligence and machine learning with Cepton’s high-resolution Vista-P60 lidar sensors, the system generates a detailed map of the urban landscape. It enhances infrastructure monitoring and maintenance.
• On 16 September 2024, Commsignia launched the Hybrid Suite to enhance road safety by promoting the adoption of vehicle safety messaging and expanding connectivity options. To streamline technology for users, the company provides a single SDK that enables seamless access to a robust combination of Vehicle-to-Vehicle (V2V), Vehicle-to-Network (V2N), and Vehicle-to-Infrastructure (V2I) connectivity.

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 2022 to 2023, with 2024 serving as the base year for market size calculations. The forecast period extends from 2025 to 2032.

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 Vehicle-to-Infrastructure (V2I) Communication Market Report:

The Vehicle-to-Infrastructure (V2I) Communication market report offers a detailed analysis of market size, including historical revenue (in USD Million) data for 2022-2023 and revenue forecasts for 2025-2032 across the following segments:

• 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

• 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

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