Vehicle to Infrastructure Market

The global Vehicle-to-infrastructure market size is projected to grow from USD 4.5 billion in 2025 to USD 11.8 billion by 2032, at a CAGR of 12.8 %. The growth of the Vehicle-to-Infrastructure (V2I) market is primarily fueled by increasing worldwide investment in smart transportation systems and intelligent mobility infrastructure. Governments of various regions like the US are actively integrating advanced communication technologies with existing road infrastructure to decrease traffic flow, improve road safety, and support autonomous vehicle deployment. Due to the larger population of vehicles on the road, cities need to modernize traffic management systems. V2I empowers real-time data exchange between vehicles and infrastructure such as traffic signals, signage, toll booths, and parking systems a transformation supported by large-scale initiatives like the European Commission's C-ITS (Cooperative Intelligent Transport Systems) program and the U.S. Department of Transportation's Smart City Challenge. These advancements are encouraging automotive OEMs, Tier 1 suppliers, and telecom providers to accelerate investment in V2I-compatible frameworks. Hyundai Motor Group unveiled a comprehensive investment strategy totaling KRW 120.5 trillion (approximately USD 90 billion) over the next decade, starting in 2024. A significant portion of this investment is directed towards the development of future mobility solutions, including V2I technologies, to enhance vehicle connectivity and infrastructure integration. ?

The hardware segment is the largest in the Vehicle-to-infrastructure market during the forecast period

The hardware segment holds the largest market share, driven by the increasing deployment of physical infrastructure components that form the foundation of intelligent transportation systems (ITS). These incorporate roadside units (RSUs), cameras, sensors, traffic signal controllers, communication modules, and vehicle on-board units (OBUs), which are essential for enabling real-time data exchange between vehicles and infrastructure. It helps in facilitating the exchange of data between vehicles and public infrastructure.

 A key factor fueling the expansion of this segment is the rising integration of AI-powered edge computing into RSUs, allowing data to be processed locally. This reduces latency, minimizes dependence on cloud infrastructure, and enhances decision-making speed—an essential capability for supporting autonomous driving systems. For instance, Qualcomm’s C-V2X platform, adopted in several smart city pilot programs in China and the U.S., integrates edge intelligence directly into the roadside hardware to enable split-second interactions between vehicles and traffic signals.

Government initiatives across North America and Europe have spurred rapid hardware adoption. For instance, the U.S. Department of Transportation's Intelligent Transportation Systems Joint Program Office (ITS JPO) continues to support large-scale deployment of DSRC- and Cellular-V2X-enabled RSUs and traffic management systems. Additionally, in Europe, Germany's Federal Ministry for Digital and Transport (BMDV) has promoted the rollout of connected infrastructure on major corridors such as the A9 Autobahn testbed. These establishments heavily depend on robust V2I hardware to support applications like cooperative adaptive cruise control (C-ACC), emergency vehicle warnings, and dynamic speed control.

Cellular V2X (C-V2X) is likely to showcase faster CAGR for the Vehicle to Infrastructure market

Among the connectivity modes within the Vehicle-to-Infrastructure (V2I) landscape, Cellular V2X (C-V2X) has emerged as the dominant and most scalable communication protocol, owing to its superior latency performance, broader network coverage, and seamless integration with existing cellular networks. As countries progress toward autonomous mobility and smart city development, C-V2X enables high-speed, real-time data exchange between vehicles and infrastructure supporting utilize cases such as adaptive traffic signal control, hazard alerts, speed limit advisories, and emergency vehicle prioritization.

One of the key drivers behind the rapid development of C-V2X is its forward compatibility with 5G networks. Unlike Dedicated Short-Range Communication (DSRC), C-V2X operates on the cellular range, permitting car OEMs and infrastructure providers to use carrier networks for low-latency V2I communication without contributing intensely to localized infrastructure. In 2024, the 5G Automotive Association (5GAA) reported solid global momentum for C-V2X, especially in nations like China, the U.S., and Germany, where public-private partnerships have quickened nationwide C-V2X pilots.

Telecom suppliers such as Vodafone and China Mobile are also playing a vital role by deploying edge cloud platforms to ensure ultra-low latency, essential for real-time V2I communication. This integration of cellular foundation with automotive ecosystems supports large-scale data orchestration and over-the-air upgrades, which are basic for software-defined vehicles.

As connected vehicle volumes grow and 5G penetration deepens globally, C-V2X is poised to be the default communication protocol for V2I implementations. Its flexibility, backward compatibility, and ability to scale across diverse geographies make it a foundational element for another decade of versatility foundation.

Asia Pacific is the largest region in the Vehicle-to-Infrastructure market during the forecast period.

The Asia Pacific region is projected to lead the global Vehicle-to-Infrastructure (V2I) market due to its high adoption rate and implementation scale through 2032. Rapid urbanization, increasing vehicle density, and assertive government mandates for smart transportation systems are the primary catalysts driving regional expansion. Major economies such as China, Japan, South Korea, and India are investing in intelligent transport infrastructure, with Vehicle infrastructure forming a foundational layer for a connected mobility ecosystem.

China continues to lead the worldwide V2I transformation through the execution of its “Intelligent Connected Vehicle” (ICV) strategy, which prioritizes the large-scale rollout of 5G-enabled Roadside Units (RSUs) over key urban centers. A prominent example is Baidu's Apollo Go platform, which, as of 2024, had expanded autonomous taxi operations to more than ten cities. These services rely intensely on V2I infrastructure to enable functions such as real-time traffic light coordination and proactive hazard detection. Meanwhile, Japan and South Korea are accelerating their adoption of V2I systems, particularly in the open transport and logistics sectors. South Korea's K-City in Hwaseong serves as a high-profile test environment for next-generation V2I networks, supporting autonomous and electric vehicle technologies through an integrated system of sensors, communication nodes, and intelligent traffic control. Together, these developments underscore the strategic importance of V2I hardware in forming national mobility ecosystems in Asia.

India, while in the nascent stages of V2I implementation, is making significant strides through public-private partnerships in smart highway projects, such as the Delhi-Mumbai expressway. These initiatives are backed by the Smart Cities Mission, aiming to modernize urban infrastructure and improve traffic management.?

The region's advancement is further supported by its authority in 5G infrastructure rollout, essential for low-latency V2I communications. Nations like China and South Korea have accomplished dense 5G coverage, encouraging large-scale deployment of 5G-V2X technologies in high-speed corridors and complex traffic zones. Leading technology providers, including Huawei Technologies Co., Ltd. (China), NTT (Japan), NEC Corporation (Japan), and Samsung (South Korea), are actively developing country-specific V2I solutions tailored to local traffic regulations and urban formats.