Automotive V2X Market worth $9.5 billion by 2030

The global automotive V2X market is expected to grow from USD 0.5 billion in 2023 to USD 9.5 billion by 2030 at a CAGR of 51.9%. Government support toward C-V2X technology and improving road infrastructure is expected to support the automotive V2X market. Furthermore, the increasing adoption of V2X-equipped models such as Volkswagen ID 4, Volkswagen Golf, and Mercedes-Benz E-Class significantly impact the growth of the market. Moreover, Government regulations mandating the integration of safety features in vehicles serve as a potent growth driver for the market, compelling manufacturers to adopt these advanced communication systems to enhance road safety and facilitate intelligent transportation networks. Companies operating in the market are focusing on new product development. For instance, in February 2023, Qualcomm Technologies Inc. introduced a new Snapdragon Auto 5G Modem-RF Gen 2 for connected cars.

The study involved four major activities in estimating the current size of the automotive V2X market. Exhaustive secondary research was done to collect information on the market, the peer market, and the child markets. The next step was to validate these findings, assumptions, and sizing with the industry experts across value chains through primary research. The top-down and bottom-up approaches were employed to estimate the complete market size. Thereafter, market breakdown and data triangulation processes were used to estimate the market size of segments and subsegments.

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Market Dynamics:

Driver: Increasing demand for advanced technologies to address vehicle safety concerns

In recent years, the escalating statistics of road accidents and related fatalities have intensified the global emphasis on adopting advanced technologies to address and mitigate safety concerns on the road. In response to this urgent necessity, V2X technology has emerged as a transformative solution with the potential to enhance road safety significantly. V2X facilitates real-time communication between vehicles and among vehicles, surrounding infrastructure, pedestrians, and other road users. This interconnected network enables vehicles to exchange crucial information regarding their positions, speeds, and potential hazards, allowing for proactive hazard detection and collision avoidance. Autonomous vehicles utilize V2V communication to share information about speed, direction, and intentions, thereby enhancing safety in various maneuvers. Continuous communication empowers autonomous vehicles to avoid collisions and optimize routes proactively. V2I interaction provides traffic updates and road conditions, contributing to efficient routing and congestion reduction.

Opportunity: Increasing adoption of V2V/V2I technology in connected vehicles

As the prevalence of connected vehicles increases on roadways, the integration of Vehicle-to-Infrastructure (V2I) and Vehicle-to-Everything (V2X) technologies has assumed critical significance in enhancing overall traffic management and safety. V2I, or V2I technology, enables vehicles to communicate with essential infrastructure components, such as traffic signals, road signs, and other roadside units. This communication facilitates real-time information exchange, allowing vehicles to receive timely traffic updates, optimize routes, and anticipate potential hazards. Incorporating V2X technology, which extends communication beyond infrastructure to include other vehicles and pedestrians, further augments the capabilities of connected vehicles. This interconnectivity introduces possibilities for advanced safety features, including collision avoidance systems and cooperative adaptive cruise control, significantly diminishing the likelihood of accidents. The advantages extend beyond safety and traffic management; V2I and V2X technologies play a pivotal role in supporting the development and deployment of autonomous vehicles. These technologies establish the necessary communication infrastructure for autonomous cars to interact seamlessly with their surroundings, ensuring their integration into the existing transportation ecosystem. This presents a lucrative market opportunity for automobile manufacturers and technology providers as they actively contribute to developing and implementing V2I and V2X solutions aligned with evolving industry standards and regulatory frameworks.

Software segment is estimated to be the fastest-growing market during the forecast period.

Automotive Vehicle-to-Everything (V2X) software comprises a set of instructions that command various hardware components to execute specific tasks within the V2X technology framework. The performance of this software plays a pivotal role in determining the overall efficacy of V2X technology, particularly in high-traffic environments where substantial data processing is required. Compliance with fundamental standards, including SAE JS2735, IEEE 802.11p, IEEE 1609.3, and IEEE 1609.4, is essential for V2X software. Compatibility with diverse operating systems, such as Linux, PikeOS, ONX, Android, and ThreadX, enhances the versatility of V2X software. Prominent entities in the automotive V2X market provide software solutions that align with both Dedicated Short-Range Communication (DSRC) and Cellular Vehicle-to-Everything (C-V2X). Notably, Commsignia offers hardware and software components capable of supporting both DSRC and C-V2X, with the flexibility for performance and functionality enhancements through software updates. Altran (part of Capgemini Engineering) provides a V2X solution facilitating safety and non-safety applications for various scenarios, including Vehicle-to-Infrastructure (V2I), Vehicle-to-Vehicle (V2V), Vehicle-to-Pedestrian (V2P), and Vehicle-to-Network (V2N). Qualcomm, offering both hardware and software solutions, presents C-V2X systems through products like Snapdragon Auto 5G Modem, Snapdragon 4G Modem, and C-V2X 9150, providing comprehensive V2X solutions to automakers. Other companies, such as Visteon, Autotalks, Derg, and Commsignia, also contribute software solutions for automotive V2X. All these factors are expected to augment revenues for the software segment of the automotive V2X market during the forecast period.

Automated Driver Assistance segment is expected to hold the largest share in the automotive V2X market during the forecast period

The escalating demand for assisted driving technology and connected cars has propelled substantial growth in Vehicle-to-Everything (V2X) communication technology within vehicles. Assisted driving technology is integral to enhancing driving safety, and V2X facilitates real-time communication, primarily among vehicles and their immediate surroundings. Vision-based systems, such as Lane Departure Warning (LDW), Forward Collision Warning (FCW), and Blind Spot Detection (BSD), form the cornerstone of automated driver assistance. However, the efficacy of vision-based systems diminishes under adverse conditions like fog or low-light scenarios. In such contexts, V2X communication, relying on Wi-Fi and cellular technology, emerges as an optimal solution, eliminating dependency on external lighting conditions. While driver assistance systems can only react to situations, radio-based V2X systems provide predictive support. They empower assistance systems to anticipate events around corners and through obstructions. Both the On-Board Unit (OBU) and Roadside Unit (RSU), the hardware components of V2X, offer diverse functionalities conducive to automated driving. RSU features encompass emergency electronic brake lights, wrong-way driving warnings, stationary vehicle warnings, traffic condition warnings, collision risk warnings, and roadwork warnings. OBU functionalities include emergency vehicle warnings, slow vehicle indications, and intersection collision warnings. The automated driver assistance segment is anticipated to dominate the automotive Vehicle-to-Vehicle (V2V) market, driven by the increasing trend toward autonomous driving and the imperative for enhanced safety. Prominent Original Equipment Manufacturers (OEMs) such as BMW (BMW IX), Ford (models like the Ford F-150 and Mustang Mach E), Honda (Honda Civic Tourer), and Mercedes-Benz (including the E-Class and S-Class) have integrated V2V communication technology into their respective vehicle offerings.

“Asia Pacific is expected to be the largest market during the forecast period.”

The Asia Pacific region has emerged as a prominent center for automobile production in recent years. The escalating purchasing power of the populace and growing environmental concerns have stimulated the demand for Vehicle-to-Everything (V2X) technology in this region. Notably, South Korea and Japan, leaders in the global electronics industry, are positioned to design V2X solutions with enhanced performance at a competitive cost. China is committed to Cellular Vehicle-to-Everything (C-V2X) technology over Dedicated Short-Range Communication (DSRC). Consequently, the anticipated commercialization of 5G-V2X will drive rapid growth in the Asia Pacific region throughout the forecast period. The Chinese government has undertaken substantial efforts to deploy C-V2X. In August 2023, in collaboration with the China Mobile Research Institute, Huawei Technologies successfully conducted 5G-based V2X testing across diverse locations in China. The positive outcomes of this testing underscore the capability of 5G networks to support standard V2X services effectively. This validation establishes the feasibility of deploying advanced 5G solutions for commercial V2X operations and provides substantial data support for realizing 5G-based V2X services.

Key Market Players

The automotive V2X market is dominated by major players, including Qualcomm Incorporated (US), Autotalks (Israel), Harman International (US), Huawei Technologies Co., LTD. (China), NXP Semiconductors (Netherlands). These companies offer automotive V2X technology and have strong distribution networks at the global level.

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