Automotive V2X Market Size and Share Analysis by Offering (Hardware, Software), Communication (V2V, V2I, V2P, V2G, V2C, V2D), Connectivity (Cellular, DSRC), Vehicle Type (Passenger Cars, Commercial Vehicles), Technology (Automated Driver Assistance, Intelligent Traffic Systems, Emergency Vehicle Notification, Passenger Information System, Fleet and Asset Management, Parking Management System, Line of Sight, Non-Line of Sight, Backing), Unit (Onboard Units, Roadside Units) - Global Industry Demand Forecast to 2030

Automotive V2X Market Size & Share

The automotive V2X market generated revenue of USD 633.8 million in 2023, which is expected to witness a CAGR of 49.9% during 2024–2030, to reach USD 10,225.5 million by 2030. This is due to the rising demand for advanced technology with respect to vehicle safety, surging environmental concerns, and cost benefits.

• Additionally, the demand is increasing for automatic vehicles, which compels manufacturers to incorporate advanced V2X systems in the vehicles.
• Further, government regulations are also being incorporated for road infrastructure and vehicle safety which act as a potent growth driver of the market.

Awareness of Vehicle Safety Is Driving the Market

In the past few years, road accidents and deaths associated with them have increased pressure on countries worldwide to implement advanced technologies to solve and eliminate road safety issues.

• According to the WHO, approximately 1.19 million people die globally and 20–50 million people suffer from non-fatal injuries every year.
• V2X technology has emerged as a revolutionary solution that has the potential to significantly improve road safety.
• Real-time communication among automobiles, surrounding infrastructure, pedestrians, and other road users, becomes simpler through V2X.
• With the help of V2X technology, vehicles can easily exchange crucial information related to their speeds, positions, and possible hazards, which becomes important for hazard detection and collision avoidance.
• With the goal of improving safety through a variety of movements, automatic vehicles use vehicle-to-vehicle communication to send and receive information about direction, intentions, and speed.
• Automatic vehicles can actively strengthen routes and reduce collisions through constant communication.

Incorporation of 5G and AI Technology in Cellular-V2X (C-V2X) Technology

5G and AI play a crucial role in the future of the automotive industry since prediction capabilities are important in cars to personalize the driving experience.

Additionally, V2X is more efficiently assisted by 5G and AI for essential communications that contribute to more secure and safer driving. Also, cellular-V2X technology plays an essential part in the development of vehicle automation by creating communications among roadside equipment, vehicles, and pedestrians.

The C-V2X technology is intended to run with a 5G network, which would make it possible for strategic C-V2X and V2X to operate as a solid base for facilitating the cooperative intelligent transport systems (C-ITS) technology and services. This is expected to provide bright opportunities for market players.

Software Category Is Growing at a High CAGR

Based on offering, the software category is expected to grow at 55% CAGR from 2024 to 2030 in the market. This can be due to the incorporation of 5G technology and the enhancement of features in vehicles. In addition, V2X technology is being widely adopted and this movement is increasing the demand for V2X software.

• There is a constant increment of the connected vehicles that are introduced with complex software arrangements. Connected vehicles need programming for routes and updates.
• As connected vehicles are expanding, at the same time, there is a developing emphasis on cybersecurity. Software solutions are used to give security to vehicles from any digital dangers, which guarantees the safety of the vehicle's systems and data.
• Software is utilized to improve the client experience with vehicles. Voice acknowledgment, film frameworks, and different features play a significant part in making driving more advantageous and charming.
• Software is being used by automotive production companies for data analytics to gain insights from vehicle data.
• In addition, electric vehicles necessitate sophisticated software for energy consumption, charging infrastructure, and battery management. This is fundamental for the compelling activity of these vehicles.

Automotive V2X Market Report Coverage

Report Attribute	Details
Market Size in 2023	USD 633.8 Million
Market Size in 2024	USD 902.5 Million
Revenue Forecast in 2030	USD 10,225.5 Million
Growth Rate	49.9% CAGR
Historical Years	2017-2023
Forecast Years	2024-2030
Report Scope	Market Trends, Drivers, and Restraints; Revenue Estimation and Forecast; Segmentation Analysis; Impact of COVID-19; Companies’ Strategic Developments; Market Share Analysis of Key Players; Company Profiling
Segments Covered	By Offering; By Communication; By Connectivity; By Vehicle Type; By Technology; By Unit; By Region

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Vehicle-To-Vehicle (V2V) Category Holds the Largest Market Share

Based on communication, vehicle-to-vehicle held the largest market share, of 90%, in 2023. V2V helps provide other vehicle information to drivers like direction, speed, and location, and alerts them of any possible threats including heavy traffic, intersections, blind spots, and terrain issues.

The implementation of safety applications and advanced driver assistance systems (ADAS) relies significantly on V2V communications. This technology is used for exchanging real-time information, which is beneficial for alerting drivers about the prevention of collisions and possible hazards.

Regulatory bodies and automotive companies have given preference to the standardization of V2V communication protocols and technology. The wide popularity of V2V systems can be attributed in part to efforts to establish common standards.

Various automotive makers are teaming up to execute V2V communication in their vehicle models. V2V technology's effectiveness is increasing and interoperable systems are being created as a result of these collaborations. Also, different regions are implementing guidelines to make the V2V communication system necessary in new vehicles.

Vehicle-To-Infrastructure (V2I) Is the Fastest-Growing Category

• Based on communication, vehicle-to-infrastructure is the fastest-growing category, advancing at a CAGR of 53% from 2024 to 2030.
• This growth can be associated with the assistance that V2I provides for the development of driver assistance systems like intelligent parking and autonomous driving. This can increase future planning of traffic lanes and parking lots and other factors to manage optimal traffic movement.
• Road conditions and traffic updates are given through vehicle-to-infrastructure, which helps in efficient navigation and the reduction of congestion.
• Further, V2I communication is instrumental in conveying constant updates on road conditions and traffic, prompting effective routes and a decrease in congestion.
• This further develops the management of traffic as well as upgrades the driving experience by furnishing drivers with convenient and important data.
• V2I technology is projected to play a significant role in shaping the future of transportation, contributing to connected, safer, and more efficient mobility solutions as the automotive industry continues to evolve.

Commercial Vehicles Category To Witness the Fastest Growth

Based on vehicle type, the commercial Vehicles category is projected to witness the highest CAGR, of 54%, during 2024–2030 in the market. Commercial vehicles contain both light and heavy commercial vehicles such as buses, vans, and large trucks. Due to their greater capacity than passenger cars, these vehicles are used to transport goods or fare-paying passengers.

The main reason behind the growth of the commercial category is the platooning feature provided by V2X technology. In platooning, vehicles travel in a convoy that is tightly coordinated and has little space between them. This element, outstandingly invaluable for trucks, lessens fuel utilization and working expenses. Truck platooning's sophisticated maneuverability, made possible by V2X, improves traffic flow and saves fuel, which is expected to reduce fuel consumption by 12%.

Additionally, in arrangement with the industrywide obligation to upgrade vehicular security, a developing number of business vehicles outfitted with V2X innovation are expected to be presented in the coming years.

Major original equipment manufacturers (OEMs), for example, Ford and Stellantis decisively plan to incorporate V2X capacities into their separate lines of pickup trucks and vans. This essential move acknowledges the important role that V2X innovation plays in propelling security and functional proficiency inside the commercial vehicle category.

APAC Is the Market Leader

Geographically, APAC is the largest market, with a revenue share of 60% in 2023. APAC has been an emerging region for the production of automobiles in the past few years.

• The demand for V2X technology in this region has increased as a result of the population's growing purchasing power and growing concerns regarding the environment.
• Outstandingly, South Korea and Japan are ahead in the worldwide electronics industry and are situated to plan V2X arrangements with an upgraded performance at a competitive cost.
• In the region, China is focused on cell vehicle-to-everything (C-V2X) innovation over dedicated short-range communication (DSRC). Thus, the expected commercialization of 5G-V2X will drive fast development in the country. Also, the Chinese government has attempted significant endeavors to install C-V2X.
• The region has so many key market players such as Hitachi Solutions Ltd., Huawei Technologies Co Ltd., Hyundai Motor Company, and Mitsubishi Corporation. Their presence in APAC is adding fuel to the growth of the market.

The European market is projected to grow at a significant CAGR in the near future. This can be because leading automotive manufacturers are aware of the advantages of V2X technology.

• Europe is the region that has been active in road safety and the environment. The incorporation of V2X innovations is associated with these priorities, which drives the growth of the regional market.
• Many cities in Europe are known for their emphasis on sustainability and smart urban planning, which further demands advanced transportation solutions.
• V2X technology has a great role in smart city initiatives and propels market growth.
• Europe is also investing a huge amount of money in research and development, especially in European technological hubs, which can lead to innovations in V2X technology and contribute to the market growth.

Competitive Analysis

Several key market players have been involved in new product development to stay ahead of the competition. Also, several collaborations and partnerships are happening among players to take the V2X technology to another level.

Cost-effectiveness production, efficient supply chain management, and a focus on cybersecurity increase competitive advantage in this dynamic and safety-focused automotive landscape.

• Huawei unwrapped the industry’s full portfolio of 5.5G solutions in October 2023 to accelerate the development of V2X services and further facilitate intelligent transportation systems.
• In February 2023, Qualcomm released its connected car 5G during the Mobile World Congress (MWC), which was held in Barcelona. The main goal of this is to increase vehicle broadband connectivity and facilitate new support for in-car satellite communications.
• In December 2022, Cohda Wireless designed a V2X network arrangement, which planned to work with the joining of connected vehicles on roads and highways around the world.
• Autotalks introduced its TEKTON3 and SECTON3 third-generation chipsets in June 2022, specifically designed to meet the upcoming V2X requirements. These imaginative gadgets address the world's underlying contributions supporting 5G-V2X.
• In October 2021, Brandmotion LLC had a partnership with DENSO Products and Services Americas to give an all-in-one resource to urban communities looking to install advanced V2X innovation in their vehicles.
• In August 2023, Huawei Technologies collaborated with the China Mobile Research Institute to conduct 5G-based V2X testing in various locations in China.

Top Providers of Automotive V2X Solutions Are:

• Qualcomm Technologies Inc.
• Harman International
• NXP Semiconductors
• Autotalks Ltd.
• Robert Bosch GmbH
• STMicroelectronics
• Continental AG
• Infineon Technologies AG
• Savari Inc.
• Denso Corporation

Market Breakdown

The report analyzes the impact of the major drivers and restraints on the automotive V2X market, to offer accurate market estimations for 2017–2030.

Segment Analysis, By Offering

• Hardware
• Software

Segment Analysis, By Communication

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Pedestrian (V2P)
• Vehicle-to-Grid (V2G)
• Vehicle-to-Cloud (V2C)
• Vehicle-to-Device(V2D)

Segment Analysis, By Connectivity

• Cellular
• DSRC

Segment Analysis, By Vehicle Type

• Passenger Cars
• Commercial Vehicles

Segment Analysis, By Technology

• Automated Driver Assistance
• Intelligent Traffic Systems
• Emergency Vehicle Notification
• Passenger Information System
• Fleet and Asset Management
• Parking Management System
• Line of Sight
• Non-Line of Sight
• Backing

Segment Analysis, By Unit

• Onboard Units
• Roadside Units

Region/Countries Reviewed for this Report

• North America
  • U.S.
  • Canada
• Europe
  • Germany
  • U.K.
  • France
  • Italy
  • Spain
• Asia-Pacific
  • Japan
  • China
  • India
  • South Korea
  • Australia
• Latin America
  • Brazil
  • Mexico
• Middle East and Africa
  • Saudi Arabia
  • South Africa
  • U.A.E.