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 USDc10,225.5 million by 2030. This is due to technological advancements, emerging demand for safety solutions for vehicles, cost benefits, and increased environmental concerns.
- Moreover, the number of automatic vehicles is increasing day by day, due to which makers are integrating V2X technology with these vehicles.
- Further, road infrastructure and vehicle safety are also being considered highly, due to the implementation of government regulations, which also drive the market growth.
- Road accidents and deaths have been increasing for a very long time and this has created pressure on countries globally to utilize advanced technologies to address road safety issues.
- V2X technology is used to transmit important information about speeds, potential hazards, and positions to avoid collisions and detect threats.
Passenger Cars Are Dominating the Market
Based on vehicle type, passenger cars held the larger revenue share of 80% in 2023. This is attributed to the advantages of passenger cars including comfort and personal mobility. In 2023, it was estimated that approx. 3.5 million passenger vehicles sold in India, which is responsible for the domination of the passenger vehicle category in the market.
In addition, passenger vehicles provide a flexible and efficient means of transportation, allowing individuals to travel comfortably from one place to another place. Further, increasing the disposable income of people is adding fuel to the growth of the market in this category.
Onboard Unit Category Leads the Market
Based on unit type, the onboard unit (OBU) category accounted for the larger revenue share, of 90%, in 2023 in the market. The main reason behind this is the low cost and it is an important part required to share data with other vehicles.
OBUs and roadside networks can facilitate the integration of applications through the use of already-developed software. Onboard units have become an essential part of facilitating V2X communication, which allows vehicles to communicate with other vehicles, pedestrians, and networks.
APAC Is the Market Leader
Geographically, APAC is the largest market. This is because the production of automobiles has increased in the last few years and continuously increasing in the region.
- The growing purchasing capacity and environmental concerns are the primary reasons, to increase the interest in vehicle-to-everything (V2X) technology.
- South Korea and Japan are well-placed to design V2X with increased performance at a competitive cost.
- In APAC, China is giving priority to cell vehicle-to-everything (C-V2X) technology as compared to dedicated short-range communication (DSRC). This will also contribute to the growth of the market.
The European market is growing at a high CAGR. This is because the European region gives preference to road safety and the environment. These reasons become crucial for incorporating V2X innovations, which drive the growth of the regional market.
- There are many European cities that focus on sustainability and smart urban planning, which raise the demand for advanced transportation systems.
Some of the major market players are Qualcomm Technologies Inc., Harman International, NXP Semiconductors, Autotalks Ltd., Robert Bosch GmbH, STMicroelectronics, Continental AG, Infineon Technologies AG, Savari Inc, and Denso Corporation.