Automotive V2X Market

[332 Pages Report] The global automotive V2X market size was valued at USD 0.5 billion in 2023 and is expected to reach USD 9.5 billion by 2030, at a CAGR of 51.9%, during the forecast period 2023-2030. 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.

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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.

Additionally, V2P communication enables pedestrians to convey their locations and intentions, assisting self-driving cars in prioritizing safety. The proactive nature of V2X technology equips vehicles with the capability to respond swiftly to emerging threats, significantly reducing the risk of accidents and improving overall road safety. Amidst growing consumer awareness and regulatory pressures, there is an increasing prioritization of safety features in the automotive sector. Consumers are actively seeking vehicles equipped with advanced safety technologies, and regulatory bodies advocate for the integration of such systems to meet stringent safety standards. Consequently, the demand for V2X technology is experiencing a notable upswing, positioning it as a fundamental and non-negotiable component in the evolution of modern and secure transportation systems.

Restraint: Lack of infrastructure for proper functioning

High-speed connectivity is pivotal in the Vehicle-to-Everything (V2X) ecosystem, where the transmission of critical information, including lane changes, object detection, vehicle spacing, traffic conditions, and services such as navigation and connectivity, is integral for vehicles navigating highways. However, the limitation of network connectivity on highways impedes the connection of vehicles to the cloud. In emerging economies like Mexico, Brazil, and India, the progression of connectivity infrastructure on highways lags behind that of developed economies. The deployment of 3G and 4G-LTE communication networks, essential for connectivity, is predominantly concentrated in urban and semi-urban areas. Despite the presence of several third-party logistics companies operating in semi-urban and rural regions, challenges related to low connectivity persist.

Consequently, the absence of robust information technology and communications infrastructure and delays in government regulatory frameworks may impede the growth of the automotive V2X market in these nations. Industry stakeholders may also become subject to country-specific telecommunications regulations, encompassing lawful intercept and in-country entity requirements. The interoperability of diverse platforms and the consideration of cross-border use cases necessitate thorough discussion and regulation. Moreover, reliance on data networks introduces concerns related to net neutrality, where certain data transmissions may receive priority from internet service providers. As of 2020, the International Telecommunication Union (ITU) reported a global disparity between the 85% coverage of 4G in urban areas and the inadequate 29% coverage in rural areas. The absence of universal coverage on roads and highways implies that the advantages of 5G for motor vehicles would only be fully realized in urban settings.

Further, the absence of 5G coverage in rural areas could significantly impede mobility business models reliant on effective connectivity. While the geographical distribution remains undetermined, the diverse array of use cases anticipated for future 5G networks must be considered when addressing coverage deficiencies. The proposed high frequencies for 5G necessitate a substantial number of relay antennas connected to the network via fiber optics, thereby escalating the costs associated with achieving rural coverage. The deficiency in a robust and widespread Vehicle-to-Infrastructure (V2I) network poses a barrier to seamless communication between vehicles and infrastructure, consequently limiting the complete potential of V2X technology. Without comprehensive V2I support, the realization of advanced safety features, traffic optimization, and other intelligent mobility solutions is curtailed, hindering the overall advancement of the automotive V2X market.

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. In September 2020, Keysight Technologies (US) collaborated with Qualcomm Technologies, Inc. (US) and SGS (Switzerland) to contribute to the advancement of testing for Cellular Vehicle-to-Everything (C-V2X) technology. The joint effort focuses on developing test cases addressing radio frequency (RF) and radio resource management (RRM) performance verification of devices intended for V2V deployment scenarios. In April 2020, Cohda Wireless introduced its C-V2X Evaluation Kit in a compact, rugged roadside unit (RSU) enclosure for outdoor trials in China. Utilizing the Qualcomm 9150 C-V2X chipset, the MK6C EVK supports V2V, V2I, and V2P applications with high-quality C-V2X software.

Challenge: Prohibition of DSRC technology in the US

The prohibition of Dedicated Short-Range Communications (DSRC) technology in the US poses a significant challenge for the automotive V2X market. This restrictive measure came into effect when the Federal Communications Commission (FCC) reallocated 45 megahertz of the 5.9 GHz band to the 5.8 GHz Industrial, Scientific, and Medical (ISM) band, designating it for unlicensed non-intelligent Transportation System (ITS) applications. The decision to exclude DSRC from this spectrum shift reflects a broader trend away from DSRC-based technology in V2X communication. The ban on DSRC technology represents a setback for the automotive sector, as DSRC had been designated as the standard for ITS services in the 5.9 GHz band for over two decades. The rationale behind this move is rooted in the limited deployment and adoption of DSRC-based systems during this extended period, leading to underutilization of the allocated spectrum. This regulatory shift disrupts the continuity of DSRC-based V2X infrastructure and forces stakeholders to reassess their technology strategies. The challenge extends beyond the ban itself, as the FCC mandated the transition of ITS operations in the upper band to C-V2X technology. This transition involves a technological shift and necessitates significant investment and adaptation from automobile manufacturers, infrastructure providers, and other stakeholders. The sudden shift away from DSRC to C-V2X introduces uncertainties and complexities into the market, potentially delaying the widespread implementation of V2X communication systems. Stakeholders must navigate this regulatory landscape, adjust their technology roadmaps, and invest in developing and deploying C-V2X systems to ensure continued progress in connected vehicle communication and safety features. The ban on DSRC, while reflective of evolving technology preferences, introduces a period of adjustment and transformation in the automotive V2X market.

Market Ecosystem

DSRC is estimated to be the largest segment during the forecast period

DSRC, or Dedicated Short-Range Communication, is based on IEEE 802.11p connectivity, a Wi-Fi derivative. It operates in the unlicensed 5.9 GHz frequency band and is known as Wireless Access for Vehicular Environments (WAVE) and ITS-G5 in the European Cooperative Intelligent Transport Systems (C-ITS). DSRC enables V2X communication that extends beyond line-of-sight, distinguishing it from sensors such as radar, cameras, and LiDAR. Its applications encompass V2I and V2V scenarios, providing features such as speed limit alerts, electronic parking, toll payments, and collision warnings. Key functional characteristics of DSRC include low latency (-2 ms), short range (under 1 km), and high reliability. DSRC utilizes the IEEE 1609.2 connectivity protocol for authentication and optional encryption based on digital signatures and certificates. Its primary advantage lies in offering 360-degree non-line-of-sight awareness. The DSRC V2X market is propelled by its ability to facilitate effective communication among fast-moving vehicles, achieving data rates ranging from 3 to 27 Mbps over a distance of at least 300 m. Having matured since its introduction over a decade ago, DSRC has undergone testing and deployment. Major established OEMs, such as GM, Volkswagen, Toyota, and Honda, have been incorporating DSRC technology in their vehicles for several years. Examples include Volkswagen models like Golf 8, ID4, and ID6, Xpeng's P7, Toyota's Prius, Crown Majesta, and Royal, Honda's Civic Tourer and CR-V, GM's Cadillac CTS, and BMW's ix. OEMs like Mitsubishi, Nissan, Renault, and Subaru also plan to integrate DSRC into their upcoming vehicle models. However, in the United States, where regulations prohibit DSRC, demand experienced a decline in 2020. Consequently, DSRC holds a significant market share in Europe and the Asia Pacific, with a comparatively smaller market share in North America.

Commercial vehicles is estimated to be the fastest growing segment during the forecast period

Commercial vehicles encompass both light commercial vehicles and heavy commercial vehicles, which include heavy trucks, buses, and vans, among other categories. These vehicles are utilized for transporting goods or fare-paying passengers, and due to their higher capacity compared to passenger cars, ensuring safety is paramount. A critical driving force for the commercial vehicle segment, particularly trucks, is the platooning feature facilitated by V2X technology. In platooning, vehicles travel in a tightly coordinated convoy with minimal spacing between each vehicle. This feature, notably advantageous for trucks, reduces fuel consumption and operating costs. The sophisticated maneuverability achieved through truck platooning, enabled by V2X, optimizes traffic flow and leads to fuel savings, with an expected 12% reduction in fuel consumption.

Consequently, the platooning feature offered by V2X stands out as the principal driving factor for the commercial vehicle segment within the automotive V2X market. In alignment with the industry-wide commitment to enhancing vehicular safety, a growing number of commercial vehicles equipped with V2X technology are anticipated to be introduced in the upcoming years. Leading original equipment manufacturers (OEMs) such as Ford and Stellantis strategically plan to integrate V2X capabilities into their respective lines of pickup trucks and vans. This strategic move reflects the industry's recognition of the pivotal role V2X technology plays in advancing safety and operational efficiency within the commercial vehicle segment.

“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. The Asia Pacific region is home to key players in the automotive V2X market, including Denso Corporation (Japan), Mitsubishi Corporation (Japan), Hitachi Solutions, Ltd. (Japan), Huawei Technologies Co., Ltd. (China), and Hyundai Motor Company (South Korea). The presence of these influential companies is expected to further propel the growth of the market in the Asia Pacific region in the coming years.

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. These companies have adopted extensive expansion strategies and undertaken collaborations, partnerships, and mergers & acquisitions to gain traction in the market.

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Scope of the Report

This research report categorizes the automotive V2X market based on offering, aftermarket offering, communication, propulsion, connectivity, technology, vehicle type, unit, and region.

Based on Offering:

• Hardware
• Software

Based on Aftermarket Offering:

• Hardware
• Software
• Service

Based on Communication:

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Pedestrian (V2P)
• Vehicle-to-Grid (V2G)

Based on Propulsion:

• Internal Combustion Engines
• Electric Vehicles

Based on Connectivity:

• Cellular
• DSRC

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

Based on Vehicle Type:

• Passenger Cars
• Commercial Vehicles

Based on Unit:

• On-Board Units
• Roadside Units

Based on the Region:

• Asia Pacific (APAC)
  • China
  • India
  • South Korea
  • Japan
• North America (NA)
  • US
  • Canada
  • Mexico
• Europe (EU)
  • Germany
  • France
  • UK
  • Italy
  • Spain
• Rest of the World (RoW)
  • Brazil
  • Argentina

Recent Developments

Frequently Asked Questions (FAQ):

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• • In October 2023, Huawei unveiled the industry's comprehensive suite of solutions for 5.5G. This solution is expected to expedite the advancement of V2X services, contributing to the evolution of intelligent transportation systems.
  • In February 2023, Qualcomm unveiled its connected car 5G modem-RF platform during the Mobile World Congress (MWC) held in Barcelona on February 27, 2023. The latest addition, known as the Snapdragon Auto 5G Modem-RF Gen 2, is a key component of Qualcomm Technologies' Snapdragon Digital Chassis connected car technology portfolio. This platform introduces notable enhancements in 5G technology, aiming to elevate in-vehicle broadband connectivity, and introduces novel support for in-car satellite communications.
  • In December 2022, Cohda Wireless engineered a V2X connectivity solution, which aimed to facilitate the integration of connected vehicles on intelligent roadways and highways worldwide. The MK6 RSU and OBU are equipped with the most comprehensive connectivity features as standard, encompassing DSRC, C-V2X, LTE/5G, and Wi-Fi/Bluetooth.
  • In June 2022, Autotalks introduced its third-generation chipsets, TEKTON3 and SECTON3, specifically engineered to meet the upcoming V2X requirements. These innovative devices represent the world's initial offerings supporting 5G-V2X for Day 2 scenarios.