V2X Communication Technology Market Analysis and Global Forecast 2023-2033

V2X Communication Technology Market Overview

The V2X Communication Technology Market Size is expected to reach USD 18.74 Billion by 2033. The V2X Communication Technology Market industry size accounted for USD 0.52 Billion in 2023 and is expected to expand at a compound annual growth rate (CAGR) of 48.14% from 2023 to 2033. The V2X Communication Technology Market refers to the sector that encompasses the development, production, and deployment of Vehicle-to-Everything (V2X) communication systems. V2X technology enables vehicles to communicate with each other (Vehicle-to-Vehicle, V2V), with infrastructure (Vehicle-to-Infrastructure, V2I), with pedestrians (Vehicle-to-Pedestrian, V2P), and with networks (Vehicle-to-Network, V2N). This technology aims to enhance road safety, traffic efficiency, and the overall driving experience by enabling real-time exchange of information among vehicles, traffic lights, road signs, and other elements of the transportation ecosystem.

The market is driven by factors such as increasing demand for connected and autonomous vehicles, regulatory mandates for vehicle safety, advancements in communication technologies, and the need to improve traffic management and reduce accidents. Key players in the market include automotive manufacturers, technology providers, and infrastructure developers.

Global V2X Communication Technology Market Synopsis

COVID-19 Impact Analysis

The COVID-19 pandemic had significant impacts on the V2X Communication Technology Market. The pandemic led to factory shutdowns and disruptions in the supply chains, affecting the production of hardware components essential for V2X technology, such as onboard units and roadside units. Restrictions on transportation and movement created logistical challenges, delaying the delivery and installation of V2X infrastructure. Automotive manufacturers and technology providers delayed or reduced investments in new technologies, including V2X, as they focused on immediate operational challenges and cost-cutting measures. The pandemic heightened the focus on health and safety, which could drive interest in V2X technologies that promise to enhance road safety and reduce accidents. The pandemic accelerated digital transformation across industries, including automotive and transportation, leading to increased research and development in V2X and related technologies. Renewed investment in connected and autonomous vehicles, smart transportation, and infrastructure is likely to boost the V2X market in the long term.

V2X Communication Technology Market Dynamics

The major factors that have impacted the growth of V2X Communication Technology Market are as follows:

Drivers:

Ø  Enhancement of Road Safety

V2X technology enables real-time communication between vehicles and infrastructure, reducing the likelihood of collisions and accidents. Advanced safety features such as collision warnings, emergency vehicle notifications, and pedestrian alerts are major motivators for adopting V2X technology. Advances in communication technologies such as 5G, Dedicated Short-Range Communications (DSRC), and Cellular V2X (C-V2X) are enhancing the capabilities and reliability of V2X systems. Integration of data analytics and artificial intelligence in V2X systems enables more efficient processing and utilization of the vast amounts of data generated, leading to smarter and more responsive systems. Growing consumer demand for connected vehicle features, such as real-time navigation, infotainment, and safety alerts, is driving the adoption of V2X technology.

Restraint:

• Perception of High Costs and Fragmented Standards

The deployment of V2X infrastructure, including roadside units and communication networks, involves significant costs, which can be a barrier for widespread adoption, especially in less developed regions. Differences in regulatory standards and technology choices (e.g., DSRC vs. C-V2X) can lead to uncertainty and delays in infrastructure deployment. V2X systems involve the exchange of sensitive data, raising concerns about cybersecurity risks, including hacking and unauthorized access. Concerns about the collection, use, and sharing of personal and vehicle-related data may impact consumer acceptance and regulatory compliance.

Opportunity:

⮚   Expansion of Connected and Autonomous Vehicles (CAVs)

The rise of autonomous vehicles requires robust V2X communication systems to enable vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, offering opportunities for V2X technology providers. Increasing consumer demand for connected vehicle features, such as real-time traffic information and safety alerts, drives the adoption of V2X technology. V2X technology can significantly reduce traffic accidents by enabling real-time communication and collision avoidance systems, presenting a compelling opportunity for safety improvements. Enhancements in traffic flow management and congestion reduction through V2X technology offer opportunities to optimize transportation systems.

V2X Communication Technology Market Segment Overview

By Offering

Based on Offering, the market is segmented based on Hardware and Software. Hardware held the majority share in 2022. The hardware segment comprises various equipment used in a V2X system to monitor and control various aspects of a vehicle. At the core of any V2X system is on-board unit hardware installed in vehicles, including radios, antennas, processors, and other components. The OBU hardware interprets and responds to messages involving safety, mobility, or environmental applications.

By Vehicle Type

Based on Vehicle Type, the market segment has been divided into the Passenger Car and Commercial Vehicle. The Passenger Car segment dominant the market. A passenger car refers to a motor vehicle with at least four wheels used for transporting passengers and has a seating capacity of up to eight people, excluding the driver. V2X technology helps improve the safety and experience of passengers inside a vehicle. One key driver for the growth of V2X technology in passenger cars is the increasing demand for connected and autonomous vehicles.

By Communication

Based on Communication, the market segment has been divided into the Vehicle-To-Vehicle (V2v), Vehicle-To-Infrastructure (V2i), Vehicle-To-Pedestrian (V2p), Vehicle-To-Grid (V2g), Vehicle-To-Cloud (V2c) and Vehicle-To Device (V2d). V2V held the majority share in 2022. Vehicle-to-vehicle (V2V) communication allows vehicles to directly share information using dedicated short-range communications (DSRC) technology. Through V2V, vehicles broadcast their location, speed, direction, and other data multiple times per second. V2V improves road safety significantly by enabling vehicles to ‘see’ around corners and beyond line-of-sight through wireless information exchange.

By Technology

Based on Technology, the market segment has been divided into the 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 and Others.  Intelligent Traffic System Assistance utilizes sensors, cameras, and artificial intelligence to monitor traffic flow and conditions in real-time. It analyses data from connected vehicles and infrastructure to detect traffic issues and proactively recommend solutions to drivers. It can help reduce traffic by optimizing the flow of vehicles. ITS assistance also seamlessly integrates with V2X communication, allowing an intelligent traffic centre to receive updates from vehicles on road conditions. This two-way communication between vehicles and traffic infrastructure enables ITS assistance to provide customized assistance to drivers based on real-time traffic patterns.

Global V2X Communication Technology Market Regional Analysis

Based on region, the global V2X Communication Technology Market has been divided into North America, Europe, Asia-Pacific, the Middle East & Africa, and Latin America. North America is projected to dominate the use of the V2X Communication Technology Market followed by the Asia-Pacific and Europe regions.

V2X Communication Technology North America Market

North America holds a dominant position in the V2X Communication Technology Market. North America is one of the leading regions in the V2X Communication Technology Market. The US and Canada have been proactive in implementing regulations to promote V2X technology for road safety and traffic management. Adoption of technologies like DSRC and C-V2X is relatively high, with major automotive OEMs integrating V2X capabilities into their vehicles. Investments in smart city initiatives and transportation infrastructure support the deployment of V2X systems.

V2X Communication Technology Asia-Pacific Market

The Asia-Pacific region has indeed emerged as the fastest-growing market for the V2X Communication Technology Market industry. Asia Pacific is witnessing rapid growth in the adoption of V2X technology, driven by increasing vehicle sales and infrastructure development. Countries like China and Japan are investing in smart city projects and have regulatory frameworks that encourage the deployment of V2X systems. Asia Pacific is embracing 5G technology and C-V2X, which are crucial for the advancement of V2X communication.

Competitive Landscape

The global V2X Communication Technology Market is highly competitive, with numerous players offering a wide range of software solutions. The competitive landscape is characterized by the presence of established companies, as well as emerging startups and niche players. To increase their market position and attract a wide consumer base, the businesses are employing various strategies, such as product launches, and strategic alliances.

Prominent Players:

• Altran
• Autotalks Ltd.
• Continental
• HARMAN International
• Infineon Technologies
• NXP Semiconductors
• Qualcomm Technologies Inc.
• Robert Bosch
• Savari Inc.
• STMicroelectronics

Key Development

In May 2023, ProteanTecs and CEVA have announced a partnership to improve the performance and power/reliability of system-on-chips (SoCs) for shared customers. Mission-critical apps are already being used by corporations to serve one another’s clients. Autotalks, a pioneer in vehicle-to-everything (V2X) communications technology, has integrated the predictive system monitoring solutions from proteanTecs as well as CEVA’s vector and scalar DSP IP solutions into their chipsets.

Scope of the Report

Global V2X Communication Technology Market, by Offering

• Hardware
• Software

Global V2X Communication Technology Market, by Vehicle Type

• Passenger Car
• Commercial Vehicle

Global V2X Communication Technology Market, by Communication

• Vehicle-To-Vehicle (V2v)
• Vehicle-To-Infrastructure (V2i)
• Vehicle-To-Pedestrian (V2p)
• Vehicle-To-Grid (V2g)
• Vehicle-To-Cloud (V2c)
• Vehicle-To Device (V2d)

Global V2X Communication Technology Market, by 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

Global V2X Communication Technology Market, by Region

• North America
  • US
  • Canada
  • Mexico
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Benelux
  • Nordic
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • South Korea
  • Indonesia
  • Austalia
  • Malaysia
  • India
  • Rest of Asia Pacific
• South America
  • Brazil
  • Argentina
  • Rest of South America
• Middle East & Africa
  • Saudi Arabia
  • UAE
  • Egypt
  • South Africa
  • Rest of Middle East & Africa

 

Parameters	Indicators
Market Size	2033: $18.74 Billion/strong>
CAGR	48.14% CAGR (2023-2033)
Base year	2022
Forecast Period	2023-2033
Historical Data	2021
Report Coverage	Revenue Forecast, Competitive Landscape, Growth Factors, and Trends
Key Segmentations	Offering, Vehicle Type, Communication, Technology
Geographies Covered	North America, Europe, Asia-Pacific, Latin America, Middle East, Africa
Key Vendors	Altran, Autotalks Ltd., Continental, HARMAN International, Infineon Technologies, NXP Semiconductors, Qualcomm Technologies Inc., Robert Bosch, Savari Inc. and STMicroelectronics
Key Market Opportunities	• Expansion of Connected and Autonomous Vehicles (CAVs) • Improvement in Road Safety and Traffic Efficiency
Key Market Drivers	• Enhancement of Road Safety • Technological Advancements

REPORT CONTENT BRIEF:

• High-level analysis of the current and future V2X Communication Technology Market trends and opportunities
• Detailed analysis of current market drivers, restraining factors, and opportunities in the future
• V2X Communication Technology Market historical market size for the year 2021, and forecast from 2023 to 2033
• V2X Communication Technology Market share analysis at each product level
• Competitor analysis with detailed insight into its product segment, Government & Defense strength, and strategies adopted.
• Identifies key strategies adopted including product launches and developments, mergers and acquisitions, joint ventures, collaborations, and partnerships as well as funding taken and investment done, among others.
• To identify and understand the various factors involved in the global V2X Communication Technology Market affected by the pandemic
• To provide a detailed insight into the major companies operating in the market. The profiling will include the Government & Defense health of the company’s past 2-3 years with segmental and regional revenue breakup, product offering, recent developments, SWOT analysis, and key strategies.