Automotive V2X Market by Connectivity (DSRC, and C-V2X), Communication (V2V, V2I, V2P, V2G, V2C), Vehicle Type (Passenger Cars & Commercial Vehicles), Propulsion, Offering (Hardware and Software), Unit, Technology and Region - Global Forecast to 2030
[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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Report Metric |
Details |
Market size available for years |
2019–2030 |
Base year considered |
2022 |
Forecast period |
2022-2030 |
Forecast units |
Volume (Thousand Units) and Value (USD Million/Billion) |
Segments covered |
Offering, Aftermarket Offering, Communication, Propulsion, Connectivity, Technology, Vehicle Type, Unit, and Region |
Geographies covered |
Asia Pacific, Europe, North America, and RoW |
Companies Covered |
Qualcomm Incorporated (US), Autotalks (Israel), Harman International (US), Huawei Technologies Co., LTD. (China), NXP Semiconductors (Netherlands). |
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:
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Asia Pacific (APAC)
- China
- India
- South Korea
- Japan
-
North America (NA)
- US
- Canada
- Mexico
-
Europe (EU)
- Germany
- France
- UK
- Italy
- Spain
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Rest of the World (RoW)
- Brazil
- Argentina
Recent Developments
Frequently Asked Questions (FAQ):
What is the current size of the global automotive V2X market?
The global automotive V2X market is projected to grow from USD 0.5 billion in 2023 to USD 9.5 billion by 2030, at a CAGR of 51.9%
Who are the winners in the global automotive V2X market?
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).
Which region will have the largest market for automotive V2X?
The Asia Pacific region will the largest market for automotive V2X due to the commercialization of 5G technology and increasing trials pertaining to Cellular-V2X technology in the region.
Which country will have the largest market for automotive V2X in the APAC region?
China will be the largest market for automotive V2X due to strong government support towards Cellular-V2X technology.
Which technology will lead the market in coming years?
Automated driver assistance will lead the market in coming years, as the demand for autonomous vehicles is increasing. .
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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.
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.
Secondary Research
In the secondary research process, various secondary sources such as company annual reports/presentations, press releases, industry association publications [for example, 5G Automotive Association, International Organization of Motor Vehicle Manufacturers (OICA), National Highway Traffic Safety Administration (NHTSA), International Energy Association (IEA)], articles, directories, technical handbooks, trade websites, technical articles, and databases (for example, Marklines, and Factiva) have been used to identify and collect information useful for an extensive commercial study of the global automotive V2X market.
Primary Research
Extensive primary research was conducted after acquiring an understanding of the automotive V2X market scenario through secondary research. Several primary interviews were conducted with market experts from both the demand (automotive OEMs) and supply (automotive V2X providers) sides across major regions, namely, North America, Europe, and Asia Pacific. Approximately 30% and 70% of primary interviews were conducted from the demand and supply sides, respectively. Primary data was collected through questionnaires, emails, and telephonic interviews.
In the canvassing of primaries, various departments within organizations, such as sales, operations, and marketing, were covered to provide a holistic viewpoint in the report. After interacting with industry experts, brief sessions were also conducted with highly experienced independent consultants to reinforce the findings from primaries. This, along with the in-house subject matter experts’ opinions, led to the findings described in the remainder of this report.
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Market Size Estimation
The bottom-up approach was used to estimate and validate the size of the automotive V2X market. This method was also used extensively to estimate the size of various subsegments in the market. The research methodology used to estimate the market size includes the following:
- The key players in the industry and markets have been identified through extensive secondary research.
- The industry’s supply chain and market size, in terms of volume, have been determined through primary and secondary research processes.
All percentage shares, splits, and breakdowns have been determined using secondary sources and verified through primary sources.
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Market Size Validation
The top-down approach was used to determine the size of the automotive V2X market for the offering, communication, propulsion, connectivity, technology, and vehicle type. The total market size in value (USD million) was derived using the top-down approach.
For instance, the automotive V2X market for the offering segment was derived using the top-down approach to estimate the hardware and software subsegments. Mapping was carried out at the regional level to understand the contribution by type of offering. The market size was derived at the regional level in terms of value. The total value of the market was multiplied by the cost penetration percentage of each segment at the regional level.
Data Triangulation
After arriving at the overall market size—using the market size estimation processes as explained above—the market was split into several segments and subsegments. To complete the overall market engineering process and arrive at the exact statistics of each market segment and subsegment, data triangulation, and market breakdown procedures were employed, wherever applicable. The data was triangulated by studying various factors and trends from both the demand and supply sides.
Market Definition
Automotive V2X, or Vehicle-to-Everything, refers to a communication technology that enables vehicles to communicate with each other and with various elements in their environment. The "X" in V2X encompasses a wide range of entities, including other vehicles (V2V), infrastructure (V2I), pedestrians (V2P), and grid (V2G). This interconnected communication system aims to enhance road safety, traffic efficiency, and overall transportation ecosystem by facilitating the exchange of real-time information and data between different entities. V2X technology utilizes wireless communication protocols, such as Dedicated Short-Range Communication (DSRC) or Cellular Vehicle-to-Everything (C-V2X), to enable vehicles and other elements in the transportation network to share information.
List of Key Stakeholders
- Automotive Original Equipment Manufacturers (OEMs)
- Distributors and Retailers
- Electronic Design Automation (EDA) and Internet Protocol (IP) Core Vendors
- Navigation Devices and GPS Manufacturers
- ODM and OEM Technology Solution Providers
- Operating System (OS) Vendors
- Raw Material and Manufacturing Equipment Suppliers
- Regulatory and Transportation Authorities
- Software Providers
- V2X Providers
- Organizations, Forums, Alliances, and Associations
- State & National Regulatory Authorities
Report Objectives
- To segment and forecast the automotive vehicle-to-everything (V2X) market in terms of value (USD million) and volume (thousand units)
- To analyze and forecast the market based on unit, offering, communication, propulsion, connectivity, vehicle type, technology, aftermarket offering and region.
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To segment and forecast the market based on unit (on-board unit and
roadside unit) - To segment and forecast the market based on offering (hardware and software)
- To segment and forecast the market size based on communication [Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), Vehicle-to-Grid (V2G)]
- To segment and forecast the market based on connectivity [(Dedicated Short-Range Communication (DSRC) and Cellular V2X)]
- To segment and forecast the market based on vehicle type (passenger cars and commercial vehicles)
- To segment and forecast the market based on propulsion (ICE and EV)
- To segment and forecast the market based on technology (automated driver assistance, intelligent traffic system, emergency vehicle notification, passenger information system, fleet and asset management, parking management system, line of sight, non-line of sight, and backing)
- To segment and forecast the market based on aftermarket offering (hardware, software, and service)
- To forecast the market with respect to key regions, namely, North America, Europe, Asia Pacific, and the Rest of the World
- To analyze the technological developments impacting the market
- To analyze opportunities for stakeholders and the competitive landscape for market leaders
- To provide detailed information regarding the major factors influencing the market growth (drivers, challenges, restraints, and opportunities)
- To strategically analyze markets with respect to individual growth trends, prospects, and contributions to the total market
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To study the following with respect to the market
- Supply Chain Analysis
- Ecosystem Analysis
- Technology Analysis
- Case Study Analysis
- Patent Analysis
- Buying Criteria
- Pricing Analysis
- To strategically profile key players and comprehensively analyze their market shares and core competencies
- To track and analyze competitive developments such as new product developments, deals and other activities carried out by key industry participants
Available Customizations
With the given market data, MarketsandMarkets offers customizations in line with the company’s specific needs.
- Further breakdown of the automotive V2X Market by EV Type
- Additional countries (apart from those already considered in the report) with significant market presence
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Company Information
- Profiles of additional market players (up to five)
Growth opportunities and latent adjacency in Automotive V2X Market