Global Automotive V2X Market Size By Vehicle Type (Passenger Vehicles, Commercial Vehicles), By Application (Advanced Driver Assistance Systems (ADAS), Traffic Management and Optimization, Emergency Vehicle Notification, Infotainment and Connectivity), By Connectivity (DSRC, Cellular), By Geographic Scope And Forecast

Automotive V2X Market Size And Forecast

Automotive V2X Market size was valued at USD 3.56 Billion in 2024 and is projected to reach USD 42.69 Billion by 2031, growing at a CAGR of 42.50% from 2024 to 2031.

• Vehicle-to-Everything (V2X) represents the next generation of information and communication technologies, connecting vehicles to a wide array of external systems and infrastructure.
• By 2021, it is anticipated that over 70% of manufactured vehicles will incorporate V2X capabilities. These connected vehicles require the integration of various systems such as advanced driver assistance systems, body and chassis systems, infotainment systems, and powertrain systems into telematics frameworks to ensure the smooth operation of V2X features and applications.
• V2X technology significantly enhances the transportation environment by improving comfort and safety, boosting traffic efficiency, and reducing pollution and accident rates by up to 80%.
• However, the development and testing of V2X applications present several challenges, including the need to emulate real-world conditions with multiple cars, roadside infrastructure, and complex multi-way communication within a connected test environment.
• This whitepaper explores various types of V2X communication, associated applications, and the two primary communication technologies used in V2X. It also addresses the challenges faced during V2X testing and highlights some industry solutions.
• Establishing a robust connected test environment capable of recreating intricate real-world scenarios, such as dead-reckoning, is crucial for developing advanced V2X solutions.
• This progress is essential for the realization of Intelligent Transportation Systems, paving the way for a safer, more efficient, and environmentally friendly future in automotive transportation.

Global Automotive V2X Market Dynamics

The key market dynamics that are shaping the global automotive V2X market include

Key Market Drivers

• Time SavingsV2X technology contributes to efficient traffic management and time savings for vehicle users. By communicating with surrounding infrastructure, V2X-equipped cars provide real-time information on road signs, traffic conditions, and congestion. This allows drivers to choose the best routes and avoid delays. Applications like Green Light Optimal Speed Advisory inform drivers of the optimal speed to reach traffic signals when they are green, further enhancing efficiency. Additionally, V2X data aids transport management authorities in developing smarter solutions for traffic and infrastructure management.
• Money SavingsA more efficient and safer transportation system facilitated by V2X technology translates into significant cost savings. The U.S. Department of Transportation estimates that V2X could save society $871 billion annually. In Europe, traffic congestion costs nearly 100 billion euros each year. V2X technology can detect congestion-causing factors in advance, allowing vehicles to react accordingly and optimize routes. This reduces delays, lowers productivity losses, and decreases the overall cost and complexity of business operations.
• Environmental BenefitsV2X technology helps reduce the environmental impact of transportation. By minimizing traffic congestion and long queues at traffic lights, V2X enables smooth, continuous traffic flow. Vehicles traveling at optimal speeds in free-flow conditions produce fewer emissions compared to those stuck in traffic, thereby reducing the overall carbon footprint. This contributes to a cleaner and more sustainable environment.
• Enhanced ConvenienceDrivers highly rely on V2X applications, and their driving experience improves significantly. V2X technology keeps drivers informed about unseen hazards, traffic conditions, congestion, diversions, and optimal routes and speeds. This comprehensive awareness allows for safer and more efficient travel, enhancing overall convenience and making driving a more enjoyable experience.
• Accurate Vehicle InformationV2X technology provides precise and real-time data on various vehicle parameters such as direction, speed, acceleration, braking, and time. For electric vehicles (EVs), it offers crucial information on the range and the location of charging stations. This comprehensive data allows drivers to make informed decisions, ensuring optimal vehicle performance and safety. Additionally, V2X systems can monitor vehicle conditions, alerting drivers to potential maintenance issues before they become serious problems.
• Sensing ObstructionsOne of the significant safety advantages of V2X connectivity is its ability to detect objects outside the driver’s field of view. This feature is particularly useful in preventing accidents by alerting drivers to potential hazards that they might not otherwise see. For instance, V2X can detect a vehicle suddenly decelerating around a blind turn and warn the following driver well in advance, aiding in crash avoidance.
• Robust Performance in All Environmental ConditionsV2X technology operates effectively in various environmental conditions where traditional sensors may fail. Whether it’s sun glare, dense fog, intense rain, or nighttime driving, V2X connectivity ensures reliable communication and data exchange. This capability significantly enhances driving safety and decision-making in adverse weather conditions, making it a crucial component for autonomous and semi-autonomous vehicles.
• Growing Ecosystem of Connected CarsBy 2021, it is expected that there will be over 380 million connected cars on the road, paving the way for a comprehensive connected ecosystem and intelligent transportation systems. This ecosystem not only facilitates seamless communication between vehicles and infrastructure but also offers substantial benefits to car manufacturers. These benefits include enhanced data acquisition, targeted marketing opportunities, and the development of personalized in-car applications, products, and services, enriching the customer experience.

Key Challenges

• Network-Based CommunicationVehicle-to-network (V2N) communications enable vehicles to interact with other vehicles (V2V), pedestrians (V2P), devices, and infrastructure (V2I). With a larger communication range, V2N also supports vehicle-to-home (V2H) and vehicle-to-cloud (V2C) applications. These capabilities enable a wide array of smart applications and services through the spectrum provided by mobile network operators.
• Direct Short-Range Communication (DSRC)DSRC is used for short-range communication between vehicles, pedestrians, and infrastructure without significant reliance on cellular networks. This technology is particularly recommended for safety-critical V2X applications that must function in the absence of cellular coverage. DSRC ensures real-time communication for immediate safety needs.
• V2X ApplicationsThe development of V2X applications spans various domains, including safe driving, driving assistance, traffic congestion management, fuel economy, emergency response, and in-car services. The numerous sensors in connected cars generate vast amounts of data, creating opportunities for the development of new applications and services. These platforms must be capable of real-time analytics and integrate seamlessly with the hardware generating the data. As the ecosystem expands, these applications should also interact with original equipment manufacturers (OEMs) and third parties, such as insurance companies and service providers, to offer a wide range of services to end consumers.
• Challenges in V2X TestingV2X technology is becoming more prevalent and users rely on it for daily commutes, the reliability of the technology, associated equipment, and various onboard applications and services becomes increasingly critical. Real-world conditions pose significant challenges for V2X testing. Cellular signals can degrade, interfere, become noisy, or drop off, making it difficult to emulate real-world conditions with multiple cars and millions of road scenarios. Setting up roadside infrastructure for realistic simulations requires dozens of units, and creating test tracks for these scenarios incurs substantial costs. These financial and logistical challenges are significant roadblocks for many V2X ecosystem partners, apart from OEMs and large Tier-1 suppliers.

Key Trends

• The Advent of 5G Technology5G technology is set to revolutionize the automotive V2X market due to its low latencies, high reliability, and impressive bandwidth, capable of reaching speeds up to several Gbit/s, potentially 100 times faster than 4G. Original Equipment Manufacturers (OEMs) are already exploring the possibilities of automating product lines within manufacturing projects, such as Mercedes Factory 56 and BMW’s 5G plants in China. The potential applications of 5G extend far beyond manufacturing, making it a crucial enabler for a wide range of connected vehicle services that customers will value and pay for. The industry views 5G as the primary candidate for vehicle connectivity, providing significant technical benefits in terms of speed, latency, security, and reliability, which are essential for continuous coverage and advanced connected vehicle trends.
• Industry Initiatives and CollaborationsThe 5G Automotive Association (5GAA), comprising major players like Audi, BMW, and Daimler, is dedicated to advancing the adoption of 5G. Initiatives such as Huawei and Audi’s Smart City Wuxi project in China, which uses real-time traffic management information based on Cellular Vehicle-to-Everything (C-V2X) technology, and Ford’s commitment to integrate 5G into 100% of its vehicles by 2022, demonstrate the industry’s commitment to leveraging 5G for connected vehicle applications. Companies like Audi and SEAT are also conducting 5G pilot projects, showcasing the potential of this technology.
• Enhanced In-Car EntertainmentWith the rise of self-driving and autonomous vehicles, high-quality in-car entertainment is becoming increasingly important. 5G technology provides the necessary high network throughput for streaming high-quality video content, such as 4K video, to and from vehicles. Successful trials, like the one conducted in the center of Seoul, have already demonstrated 4K video streaming capabilities that 4G networks could not achieve. This capability not only enhances entertainment options but also supports additional features like video calls from the vehicle, making the most of e-vehicle charging times and enhancing the overall user experience.

Global Automotive V2X Market Regional Analysis

Here is a more detailed regional analysis of the global automotive V2X market

Asia Pacific

• Asia Pacific is substantially dominating the global automotive V2X market owing to the driven by the presence of active players and the massive populations in Asian countries like India and China, which are contributing to an increase in telecom subscribers.
• Rapid technological advancements in North America are also expected to boost market growth in the region. The presence of top telecom companies, alongside efforts to optimize network investments for customer satisfaction, further contributes to the market’s expansion.
• Asia Pacific holds the largest market share, with telecommunication technology providers and automotive OEMs leading vehicle development in the region. Japan and China are anticipated to spearhead technological development in the Asia Pacific.
• The growing purchasing power of the population and increasing environmental concerns have led to a surge in demand for V2X technology in the region. Notably, South Korea and Japan, leaders in the global electronics industry, are well-positioned to develop high-performance V2X solutions at competitive costs.
• China is emphasizing cellular vehicle-to-everything (C-V2X) technology over dedicated short-range communication (DSRC), with the commercialization of 5G-V2X expected to speed up research.
• The Chinese government has made significant efforts to install C-V2X. Hitachi Solutions Ltd., Huawei Technologies Co Ltd., Hyundai Motor Company, and Mitsubishi Corporation are among the Asia Pacific market’s leading players, driving growth.
• For instance, by 2020, the global EV fleet is expected to reach 10 million, accounting for about 1% of total vehicle stock. In 2021, an additional 6.5 million EVs were registered globally, bringing the total EV stock to nearly 17 million by the end of 2021. EVs have a limited share in India, accounting for around 10,00,495 vehicles by the end of January 2022 (0.52% of registered vehicles4). By 2030, electric vehicles are projected to account for over 30% of all new automobiles.
• By January 2022, India will have over 283 million cars, with 2-wheelers accounting for 75% of total registrations (4). Expected vehicle segments include public buses, taxi fleets, 2-wheelers, and 3-wheelers to be the first adopters of EVs.

Europe

• Europe is expected to be the fastest growing region in the Global Automotive V2X Market during the forecast period owing to the promotion of road safety and environmental sustainability, and these priorities drive the regional market’s growth for V2X innovations.
• The region’s focus on sustainability and smart urban planning in many cities creates a demand for advanced transportation solutions, with V2X technology playing a crucial role in smart city initiatives and propelling market growth.
• Significant investments in research and development, particularly in European technological hubs, are expected to lead to innovations in V2X technology, further contributing to market expansion.
• Road safety remains a top priority in Europe, and the potential of V2X to reduce accidents is a major driver for its adoption. The possible inclusion of V2X technology in the Euro NCAP safety rating system could significantly accelerate market growth by highlighting its importance in vehicle safety.
• Europe’s advanced telecommunications infrastructure also makes it well-suited for the deployment of cellular vehicle-to-everything (C-V2X) technology.
• Additionally, the high demand for premium vehicles in Europe, known for their advanced features, aligns perfectly with the integration of V2X technology, creating a strong market pull.
• Europe is at the forefront of deploying vehicle-to-everything (V2X) direct communication, known in the EU policy context as ‘cooperative intelligent transport systems’ (C-ITS). C-ITS is crucial for meeting Green Deal objectives and achieving higher levels of safety through automation.
• This technology enables the exchange of information that line-of-sight sensors cannot provide, thereby protecting vehicle occupants, motorcyclists, and pedestrians. By enhancing the safety and efficiency of transportation systems, C-ITS will play a significant role in building confidence in automated mobility.

Global Automotive V2X MarketSegmentation Analysis

The Global Automotive V2X Market is segmented based on Vehicle Type, Application, Connectivity, And Geography.

Automotive V2X Market, By Vehicle Type

• Passenger Vehicles
• Commercial Vehicles

Based on Vehicle Type, the Global Automotive V2X Market is bifurcated into Passenger Vehicles and Commercial Vehicles. The commercial vehicles segment is showing significant growth in the Global Automotive V2X Market. Commercial vehicles in the automotive market include both light and heavy trucks, vans, and buses. These vehicles, designed to convey goods or fare-paying people, serve an important role in a variety of sectors and logistics operations. The platooning function enabled by V2X technology is driving much of the expansion of the commercial vehicle sector. Platooning refers to cars operating in a closely coordinated convoy with little space between them. This function is especially useful for trucks because it decreases fuel consumption and operational expenses significantly.

Automotive V2X Market, By Application

• Advanced Driver Assistance Systems (ADAS)
• Traffic Management and Optimization
• Emergency Vehicle Notification
• Infotainment and Connectivity

Based on the Application, the Global Automotive V2X Market is bifurcated into Advanced Driver Assistance Systems (ADAS), Traffic Management and Optimization, Emergency Vehicle Notification, Infotainment and Connectivity. The Advanced Driver Assistance Systems (ADAS) segment is showing significant growth in the Global Automotive V2X Market. The V2X data is essential for improving existing Advanced Driver Assistance Systems (ADAS) features such as blind-spot detection, lane departure warning, and forward-collision warning. Moreover, V2X technology can facilitate the creation of more advanced ADAS features, including cooperative adaptive cruise control and emergency braking, by leveraging real-time traffic information.

Automotive V2X Market, By Connectivity

• Cellular
• DSRC

Based on Connectivity, the Global Automotive V2X Market is bifurcated into Cellular and DSRC. The Dedicated Short-Range Communication (DSRC) segment dominates the Global Automotive V2X Market owing to the ease of installation, fully matured technology, and established data security requirements connected with DSRCs. Its renowned dependability and security make it a popular choice for a variety of applications. However, the cellular segment is expected to have a greater compound annual growth rate (CAGR) during the forecast period. The predicted rise in the cellular category can be attributed to developments in cellular technology, such as the widespread implementation of 5G, which provides lower latency, better bandwidth, and more reliability.

Automotive V2X Market, By Geography

• North America
• Europe
• Asia Pacific
• Rest of the world

Based on Geography, the Global Automotive V2X Market is classified into North America, Europe, Asia Pacific, and the Rest of the World. Asia Pacific is substantially dominating the Global Automotive V2X Market owing to the driven by the presence of active players and the massive populations in Asian countries like India and China, which are contributing to an increase in telecom subscribers.  Rapid technological advancements in North America are also expected to boost market growth in the region. The presence of top telecom companies, alongside efforts to optimize network investments for customer satisfaction, further contributes to the market’s expansion.  Asia Pacific holds the largest market share, with telecommunication technology providers and automotive OEMs leading vehicle development in the region. Japan and China are anticipated to spearhead technological development in the Asia Pacific.  The growing purchasing power of the population and increasing environmental concerns have led to a surge in demand for V2X technology in the region. Notably, South Korea and Japan, leaders in the global electronics industry, are well-positioned to develop high-performance V2X solutions at competitive costs.

Key Players

The “Global Automotive V2X Market” study report will provide valuable insight with an emphasis on the global market including some of the major players such as Qualcomm, NXP Semiconductors, Huawei, Continental AG, Denso Corporation, Robert Bosch GmbH, Savari, Inc., HERE Technologies, Autopilot, Aisin Seiki Co., Ltd., Mitsubishi Electric Corporation.

Our market analysis also entails a section solely dedicated to such major players wherein our analysts provide an insight into the financial statements of all the major players, along with product benchmarking and SWOT analysis. The competitive landscape section also includes key development strategies, market share, and market ranking analysis of the above-mentioned players globally.

Global Automotive V2X Market Recent Developments

• In October 2021, Brandmotion LLC, an automotive safety technology business, announced a partnership with DENSO Products and Services Americas to provide a one-stop service for cities looking to outfit their vehicles with modern V2X technology.
• In October 2021, Infineon Technologies will debut the SLS37 V2X hardware security module (HSM) offering plug-and-play security solutions for V2X communication. The SLS37 V2X HSM uses a secure, tamper-resistant microprocessor designed specifically for V2X applications in telematics control units.
• In February 2023, Qualcomm unveiled its connected car 5G at the Mobile World Congress (MWC) in Barcelona. The major purpose is to improve vehicle broadband connectivity and enable in-car satellite communications.
• In December 2022, Cohda Wireless developed a V2X network for connecting connected vehicles on roads and highways worldwide.

Report Scope