5G and AI Integration Boosts Growth in Automotive V2X Industry with 49.9% CAGR

According to the latest market research study published by P&S Intelligence, the automotive V2X market generated USD 633.8 million in 2023 and is projected to grow at a CAGR of 49.9% between 2024 and 2030, reaching USD 10,225.5 million by 2030. This significant growth is driven by the increasing demand for advanced vehicle safety technologies, rising environmental concerns, and long-term cost benefits. Additionally, the surge in demand for autonomous vehicles has prompted manufacturers to integrate sophisticated V2X systems into their designs. Government regulations focused on road infrastructure and vehicle safety also play a crucial role in driving market expansion.

Market Drivers

The rise in road accidents and fatalities has compelled nations worldwide to adopt advanced technologies aimed at improving road safety. According to the WHO, 1.19 million people die annually, and 20–50 million people suffer non-fatal injuries. V2X technology offers real-time communication between vehicles, infrastructure, pedestrians, and other road users, thus enhancing road safety and reducing accidents.

Role of 5G and AI in Cellular-V2X Technology

The integration of 5G and AI in the automotive industry is critical for boosting predictive capabilities that enhance personalized driving experiences. Cellular-V2X technology, powered by these innovations, facilitates seamless communication among vehicles, roadside infrastructure, and pedestrians, improving driving safety and vehicle automation.

Rapid Growth of the Software Category

The software segment of the V2X market is projected to witness a CAGR of 55% between 2024 and 2030. The integration of 5G and the continuous enhancement of vehicle features drive the demand for V2X software solutions, as V2X technology becomes more widespread.

Vehicle-to-Vehicle Communication Dominates Market Share

In 2023, the vehicle-to-vehicle (V2V) communication category held the largest market share, accounting for around 90%. V2V systems enhance driver awareness by providing crucial information about nearby vehicles, such as speed, direction, and potential hazards like intersections, traffic, and blind spots.

Vehicle-to-Infrastructure Category’s Fast Growth

Vehicle-to-infrastructure (V2I) communication is projected to grow at a CAGR of 53% from 2024 to 2030. V2I technology improves driver assistance systems such as smart parking and autonomous driving, optimizing traffic management and parking.

Commercial Vehicles Category Expected to Grow Fastest

The commercial vehicle segment, which includes heavy and light commercial vehicles such as trucks, buses, and vans, is expected to achieve the highest CAGR of 54% during the forecast period. These vehicles' larger capacity for transporting goods or passengers contributes to the rapid adoption of V2X technologies.

APAC Leading the V2X Market

In 2023, the APAC region led the automotive V2X market with a 60% revenue share. Factors such as growing consumer purchasing power and environmental concerns, coupled with the region’s strong electronics industry, particularly in South Korea and Japan, are driving demand for V2X technology.

Competitive Landscape

In October 2023, Huawei introduced a 5G V2X solution to accelerate the development of intelligent transportation systems. Qualcomm, in February 2023, unveiled its connected car 5G technology at Mobile World Congress, aimed at enhancing vehicle connectivity and enabling satellite communications. Cohda Wireless launched a global V2X network in December 2022, designed to integrate connected vehicles on highways worldwide.