Home Automotive and Transportation Automotive V2X Market Size, Share and Forecast to 2031

Automotive V2X Market Size, Share & Trends Analysis Report By Communication (Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), Vehicle-to-Device (V2D), Vehicle-to-Cloud (V2C)), By Offering (Hardware, Software), By Propulsion (Internal Combustion Engines, Electric Vehicles, By Connectivity, Cellular, DSRC), By Connectivity (Dedicated Short Range Communication (DSRC), Cellular-V2X (C-V2X) communication), By Vehicle Type (Passenger Cars, Commercial Vehicles), Based on Technology (Automated Driver Assistance, Intelligent Traffic Systems, Emergency Vehicle Notification, Passenger Information System, Fleet & Asset Management, Parking Management System, Line of Sight, Non-line of Sight, Backing, Others) and By Region(North America, Europe, APAC, Middle East and Africa, LATAM) Forecasts, 2023-2031

Report Code: SRAT3504DR
Last Updated : Aug 02, 2023
Author : Straits Research
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Market Overview

The Total Addressable Market (TAM) for Automotive V2X was valued at USD 2.56 billion in 2021. It is expected to reach USD 36.43 billion by 2031, growing at a CAGR of 36.5% during the forecast period (2023–2031).

V2X is a system for vehicular technology that enables the communication between moving objects and their surroundings. V2X communications systems are primarily utilized to improve safety and reduce collisions. In a conventional vehicle, V2X systems can provide the driver with crucial information about bad weather, nearby accidents, road state, and other nearby vehicles' risky behavior. V2X technology has other uses, such as integrating automatic toll, parking, and other fee payments.

The link between a vehicle and any entity that could affect or be affected by the vehicle is known as vehicle-to-everything (V2X). Vehicle-to-infrastructure (V2I), Vehicle-to-Network (V2N), Vehicle-to-Vehicle (V2V), Vehicle-to-Pedestrian (V2P), and Vehicle-to-Device (V2D) communications are all included in this vehicular communication system.

Automotive V2X Market

Market Dynamics

Global Automotive V2X Market Drivers

Rising Adoption of Smart Automobiles

Connected vehicles can communicate with other vehicles, drivers, road infrastructure, and the cloud using the V2X platform. These services produce valuable data, such as vehicle performance and road conditions, and allow auto dealers, fleet operators, and drivers to optimize resource usage, improve safety, and automate some driver functions. Intelligent transportation infrastructure and connected vehicles work together to collect and transmit information from the environment. This gives transportation authorities access to real-time traffic data for better road management and infrastructure planning. As a result, the demand for basic vehicle connectivity applications like real-time updates, navigation, and in-car infotainment systems is primarily to blame for the rising demand for connected car services. The introduction of (IoT) in the automotive industry, rising demand for connectivity solutions, and demand for an improved driving experience are significant factors in the adoption of smart automobiles.

Rising Industrialization and Urbanization

The rate of industrialization and urbanization has increased due to the swift development of the economy and society in many developed nations worldwide. The V2X-based intelligent transport system (ITS), the key enabling technology to improve traffic efficiency, road safety, and the driving experience, has also developed quickly due to global urbanization and industrialization. Additionally, macroeconomic factors like rising disposable income, higher employment rates, and an expanding GDP are encouraging the development of smart cities with advanced infrastructure, which is expected to fuel the expansion of the automotive V2X market. The ongoing development and commercialization of cellular technologies and associated infrastructure are also fueling the growth of the global market.

Global Automotive V2X Market Restraints

Growing Concerns about Data Communication Security

The technology that underpins V2X communications in automobiles is still in its infancy. The automotive V2X market may be constrained by incidents like unauthorized access to several vehicle connectivity solutions or hacking into the in-vehicle connectivity system. The main security issue is that the hacker can access the vehicle's computer system and the data it gathers and stores. As a result, the market's growth is hampered by automotive V2X's cyber security risks.

Global Automotive V2X Market Opportunities

Future Potential of Cellular-V2X (C-V2X) and AI Technologies

The future of the automotive industry depends heavily on artificial intelligence (AI) and 5G as the prevalence of predictive capabilities in automobiles increases and enhances the driving experience. V2X communications for crucial driving safety and security are carried out more effectively with 5G and AI. Cellular-V2X plays a significant role in the growth of vehicle automation by establishing communication channels between cars, roadside equipment, and pedestrians, increasing the vehicle's awareness of its surroundings.

Additionally, the Cooperative Intelligent Transport Systems (C-ITS) services will be made possible by the C-V2X technology, which is also made to work with upcoming 5G network technologies. This will further enable mission-critical V2X communications. Therefore, the rapidly developing use cases, such as platooning, vehicle safety, and traffic efficiency, are anticipated to provide the automotive V2X market with abundant growth opportunities. The growing interest among governmental organizations, automakers, and mobile service providers to conduct extensive C-V2X tests and trials alongside 5G connectivity creates new market expansion opportunities.

Study Period 2019-2031 CAGR 36.5%
Historical Period 2019-2021 Forecast Period 2023-2031
Base Year 2022 Base Year Market Size USD 2.56 Billion
Forecast Year 2031 Forecast Year Market Size USD 36.43 Billion
Largest Market Europe Fastest Growing Market North America
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Regional Analysis

By region, the global automotive V2X market is segmented into North America, Europe, Asia-Pacific, and LAMEA.

Europe Dominates the Global Market

Europe is the most significant shareholder in the global automotive V2X market and is expected to grow at a CAGR of 24.5% during the forecast period. The UK, Germany, France, Russia, and the rest of Europe are all included in the European market analysis. Due to the rising demand for sophisticated connectivity in surveillance and security features for the general public throughout the region, Europe is predicted to experience high growth rates for the market during the forecast period. The Europe fleet management market is expected to expand significantly over the forecast period, particularly in Germany and the UK. Additionally, the market is anticipated to grow due to rising telematics and GNSS adoption in fleet management services and population growth. In addition, leading automakers are working to improve the quality of the driving experience by developing and releasing newly connected and autonomous vehicles. Due to these factors, there is a huge market demand in Europe for automotive V2X services. Furthermore, market players in the Europe fleet management market are signing long-term contracts and resolving to pursue long-term business opportunities.

North America is expected to grow at a CAGR of 29.30%, generating USD 8,412.5 million during the forecast period. North America is expected to experience higher demand for automotive V2X systems than other regions because it is home to developed nations like the U.S., Canada, and Mexico. The development of IoT and other information, communication, and technology, particularly in automobiles, as well as government initiatives and their advent and integration, are driving the market. The major forces behind the growth of the North American automotive V2X market are the demand for intelligent transportation and user concern for the environment. The market is anticipated to benefit significantly from investments in new smart city initiatives and fleet management innovation across various transportation modes.

Asia-Pacific is expected to grow significantly over the forecast period. This is attributed to an increase in population and the need for extensive fleet management, rapid urbanization, a vital rail infrastructure, significant international trade, and supportive government initiatives in developing nations like India, China, and Indonesia. The main drivers of the market's expansion are the rise in demand for smart transportation, driver and vehicle safety concerns, and the implementation of strict government regulations regarding vehicle upkeep and tracking.

The market in the Asia-Pacific region is also expanding due to the mandatory integration of electronic logging devices (ELD) in fleets and the adoption of wireless technology due to their accessibility and low cost. The development of the global market is fueled by investments in the emerging concept of smart cities and various connectivity advancements, which are anticipated to offer lucrative opportunities for smart transportation in the Asia-Pacific region. Improvements in transportation infrastructure and a rise in the adoption of security standards across all modes of transportation drive the expansion of the Asia-Pacific automotive V2X market.

The fleet management market in LAMEA is anticipated to have a high growth potential due to an increase in the GDP of African economies, the adoption of telematics and GNSS in a few Middle Eastern countries, and the rapid urbanization of Latin America. Regarding revenue, LAMEA has the smallest market share for connected cars. Additionally, OEMs are directly offered Automotive V2X services. Implementing government safety regulations and advancements in automotive V2X solutions are expected to present profitable growth opportunities. It is anticipated that the adoption of security technologies will increase due to economic growth in regions like Latin America and Brazil. Furthermore, the region's ongoing rise in demand for vehicle safety and effective management of large fleets has positioned the market.

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Segmental Analysis

The global automotive V2X market is segmented by communication, connectivity, and vehicle type.

By Communication Analysis

Based on communication, the global market is bifurcated into vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), vehicle-to-cloud (V2C) and vehicle-to-device (V2D).

The vehicle-to-infrastructure (V2I) segment is the highest contributor to the market and is expected to grow at a CAGR of 32.9% during the forecast period. Vehicle-to-Infrastructure (V2I) communication is the wireless data transfer between moving objects and the supporting infrastructure of the road. This includes infrastructure elements like parking meters, traffic lights, lane markers, streetlights, overhead RFID readers, and cameras. Travelers can receive real-time advisories about road conditions, traffic congestion, accidents, construction zones, and parking availability from V2I sensors, which communicate with infrastructure components. The main factors influencing the adoption of vehicle-to-infrastructure (V2I) communication worldwide are improved mobility for vehicles and pedestrians and lower emissions resulting from better traffic management. The vehicle-to-infrastructure (V2I) communication market is expanding due to innovative city projects, rapid urbanization, and globalization.

Vehicle-to-vehicle (V2V) communication allows for wireless data transmission between moving vehicles. This enables the vehicles to broadcast information to other vehicles nearby, such as brake status, speed, position, and the steering-wheel position. The system works up to 1,000 feet, or roughly 300 meters, by giving drivers enough time to react. It uses a wireless network called dedicated short-range communications (DSRC), comparable to Wi-Fi. Forward collision warning, blind spot and lane change warning, emergency brake light warning, control loss warning, and no pass warning are a few examples of applications for vehicle-to-vehicle communication.

By Connectivity Analysis

Based on connectivity, the global market is bifurcated into dedicated short-range communication (DSCR) and cellular-V2X (C-V2X) communication.

The cellular-V2X (C-V2X) communication segment owns the highest market share and is expected to grow at a CAGR of 30.7% during the forecast period. In order to transmit and receive signals from a vehicle to another vehicle, pedestrians, or infrastructures like traffic lights, streetlights, parking meters, and lane markers, cellular-V2X is based on the Third Generation Partnership Project (3GPP). C-V2X uses two complementary transmission modes. The first is direct communication between vehicles and other road users, like pedestrians and cyclists. In this mode, C-V2X communication is conducted separately from cellular networks. The second mode of operation is network communications, in which C-V2X uses the standard mobile network to give vehicle access to local traffic and road information. The development of cellular vehicle-to-everything (C-V2X) technology is primarily driven by the popularity of autonomous driving technology and cellular technologies. Since smartphone apps can control connected vehicles, rising smartphone demand and technological advancements are expected to accelerate C-V2X adoption.

A vehicle can communicate with other cars or infrastructure using the short- to medium-range wireless communication technology known as a dedicated short-range communication (DSRC). Vehicle-to-vehicle or vehicle-to-infrastructure applications both make use of DSRC technology. Roadside units or onboard units (OBUs) are used in this technology's communication (RSUs). With the aid of OBUs, DSRC is used in V2V to process communication between two vehicles. This will help the driver even more when navigating intersections, making turns, applying the emergency brake, and other things. The demand for dedicated short-range communication (DSRC) is anticipated to rise due to growing interest in smart cities, connected infrastructure, an advanced drive assist system (ADAS), and connected vehicles (DSRC). Integrating significant safety features such as ADAS, park assist, and vehicle-to-vehicle (V2V) systems into recently developed electric and autonomous vehicles is another factor that is anticipated to spur the adoption of DSRC and, in turn, the automotive V2X market.

By Vehicle Type Analysis

Based on vehicle type, the global market is bifurcated into passenger cars and commercial vehicles.

The passenger cars segment is the highest contributor to the market and is expected to grow at a CAGR of 29% during the forecast period. Passenger cars are motor vehicles with at least four wheels used to transport people and have no more than eight-seat total, not including the driver's seat. Vehicle-to-vehicle and vehicle-to-infrastructure (V2X) autonomous communications improve traffic flow, ease traffic congestion, use less fuel and energy, and improve the passenger experience. The global increase in connected passenger car production is driving the automotive V2X market's expansion. The expansion of the automotive V2X market in the passenger car segment is also fueled by the rising demand for semi-autonomous vehicles, the rising standard of living, and the increase in disposable income. Additionally, the increase in high-tech electric and hybrid vehicles on the road is encouraging innovation in V2X technologies, which is, in turn, boosting the automotive V2X market.

A vehicle that is authorized to be used for the transportation of goods or materials rather than people is referred to as a commercial vehicle. Commercial vehicles can communicate with each other and nearby objects thanks to V2X technology. Additionally, trucks and other commercial vehicles will use V2X communication to form platoons to travel in a closely coordinated convoy with minimal space between them. The demand for the global market will increase shortly due to the development of sophisticated commercial vehicles with numerous features like truck platooning, blind-spot detection, intelligent parking assistance, emergency braking, and others.

Market Size By Communication

Market Size By Communication
  • Vehicle-to-Vehicle (V2V)
  • Vehicle-to-Infrastructure (V2I)
  • Vehicle-to-Pedestrian (V2P)
  • Vehicle-to-Device (V2D)
  • Vehicle-to-Cloud (V2C)


  • List of key players in Automotive V2X Market

    1. Denso Corporation
    2. Aptiv
    3. Infineon Technologies AG
    4. Continental AG
    5. Qualcomm Technologies, Inc.
    6. Autotalks Ltd.
    7. Cohda Wireless
    8. Kapsch TrafficCom
    9. Savari Inc.
    10. Lear Corporation
    11. LG Electronics
    12. Ford Motor Company
    13. Robert Bosch GmbH
    14. NXP Semiconductors
    15. Harman International
    16. STMicroelectronics
    Automotive V2X Market Share of Key Players

    Recent Developments

    • September 2022- The entire Cohda V2X software stack will run on the TEKTON3 chipset from Autotalks. The V2X solution's built-in software makes it simple for Tier1s and OEMs to implement, and it also guarantees high quality and optimization at reduced development and testing costs.
    • October 2022- At Infineon's OktoberTech Asia-Pacific 2022 Technology Forum in Singapore, VinFast, the first global manufacturer of smart electric vehicles in Vietnam, and Infineon Technologies AG, the industry leader in automotive semiconductor solutions, announced that they would be extending their partnership. In order to hasten VinFast's development of solutions for the future of smart mobility, the two businesses will establish a joint application competence center in Hanoi with a focus on electromobility.

    Automotive V2X Market Segmentations

    By Communication (2019-2031)

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

    By Offering (2019-2031)

    • Hardware
    • Software

    By Propulsion (2019-2031)

    • Internal Combustion Engines
    • Electric Vehicles
    • By Connectivity
    • Cellular
    • DSRC

    By Connectivity (2019-2031)

    • Dedicated Short Range Communication (DSRC)
    • Cellular-V2X (C-V2X) communication

    By Vehicle Type (2019-2031)

    • Passenger Cars
    • Commercial Vehicles

    Based on Technology (2019-2031)

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

    Frequently Asked Questions (FAQs)

    What is the estimated growth rate (CAGR) of the Automotive V2X Market?
    Automotive V2X Market size will grow at approx. CAGR of 36.5% during the forecast period.
    Some of the top prominent players in Automotive V2X Market are, Altran, Auto talks Ltd, Continental Ag, Harman International, NXP Semiconductors, Qualcomm TechnologiesIncRobert Bosch Gmbh, SavariIncSTMicroelectronics, INFINEON TECHNOLOGIES AG., etc.
    Europe has been dominating the Automotive V2X Market, accounting for the largest share of the market.
    The North America region is projected to exhibit the highest rate of growth in the Automotive V2X Market.
    The global Automotive V2X Market report is segmented as follows: By Communication, By Connectivity, By Vehicle Type


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