Automotive V2X Communication Market Overview:
As per MRFR analysis, the Automotive V2X Communication Market Size was estimated at 22.16 (USD Billion) in 2022.The Automotive V2X Communication Market Industry is expected to grow from 25.47 (USD Billion) in 2023 to 89.1 (USD Billion) by 2032. The Automotive V2X Communication Market CAGR (growth rate) is expected to be around 14.93% during the forecast period (2024 - 2032).
Key Automotive V2X Communication Market Trends Highlighted
Key Market Drivers:The growing demand for enhanced road safety, traffic efficiency, and infotainment services is fueling the Automotive V2X Communication Market. Governments worldwide are implementing regulations mandating V2X capabilities in new vehicles to reduce road fatalities and congestion. Additionally, the proliferation of connected vehicles and the advancement of 5G technology are driving market growth.
Opportunities to be Explored or Captured:The integration of V2X communication with autonomous driving technologies presents significant opportunities. V2X connectivity enables autonomous vehicles to exchange data with other vehicles, infrastructure, and pedestrians, enhancing situational awareness and decision-making capabilities. Furthermore, the expansion of the market to emerging economies, where V2X can play a crucial role in improving transportation infrastructure, offers potential growth avenues.
Trends in Recent Times:The automotive industry is witnessing a rapid adoption of V2X communication technology. Vehicle-to-infrastructure (V2I) applications are being deployed to provide real-time traffic information, hazard warnings, and remote vehicle management. Vehicle-to-vehicle (V2V) communication is also gaining traction, enabling vehicles to share information about speed, location, and trajectory to prevent accidents and optimize traffic flow.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive V2X Communication Market Drivers
Increasing Adoption of Advanced Driver Assistance Systems (ADAS)
A major driver of the Automotive V2X Communication Market Industry is the increasing adoption of ADAS features in vehicles. This is because the safety and driving experience delivered by systems such as lane departure warning, adaptive cruise control, and blind spot detection rely on real-time data. However, a substantial amount of the data needed to achieve these outcomes is beyond what the vehicle and sensors can generate. For this reason, V2X communication systems are designed to support the transfer of data from relevant infrastructure and other vehicles.This means that the increasing demand for fitted ADAS systems will be a driver of the Automotive V2X Communication Market Industry.
Government Regulations and Initiatives
Government initiatives and regulations are playing a crucial role in driving the growth of the Automotive V2X Communication Market Industry. Globally, governments are realizing that the V2X communication establishments help improve road safety and reduce traffic congestion, besides ensuring environmental sustainability. Therefore, different governments are coming up with measures for funding and pushing the adoption of V2X technologies in new vehicles.For example, the European Union has legislation in place that stipulates the installation of V2X communication systems in all new vehicles by 2023.
Growing Demand for Connected and Autonomous Vehicles
Automotive V2X Communication Market Industry is driven by the increasing propensity for V2X communication in connected and autonomous vehicles. In such vehicles, V2X communication is essential for the exchange of relevant information between connected vehicles, vehicles and infrastructure, and vehicles and pedestrian to assist the vehicles in the execution of their functions and become adaptable to deeper traffic interactions as and when needed. With the widening application for connected and autonomous vehicles, the market is expected to drive the demand for V2X communication solutions.
Automotive V2X Communication Market Segment Insights:
Automotive V2X Communication Market Type of Communication Insights
The Automotive V2X Communication Market is segmented by Type of Communication, which includes Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I) and Vehicle-to-Pedestrian (V2P). The V2V communication segment is expected to thrive and account for the major part of the global market revenue throughout 2032. Vehicles equipped with V2V communication can exchange information, such as speed, location and trajectory, with other vehicles on the road. This technology has been proven to significantly enhance road safety and improve traffic speed and density.In 2023, the V2V communication segment accounted for almost 40% of the Automotive V2X Communication Market revenue. The primary reason for this development is the increasing adoption of new vehicles equipped with V2V communication and the growing number of implementations to enhance road safety. The implementation of government regulations requiring new vehicles to be equipped with V2V systems is also boosting the revenue of this segment. The V2I communication is also expected to make a significant impact on the market. In this case, vehicles can exchange information with other roadside infrastructure, including traffic lights, road signs and sensors.V2I technology has greatly enhanced traffic management and has reduced traffic congestion during peak hours, ultimately providing motorists with a better driving experience. The growth and deployment of intelligent transportation systems and the implementation of smart city initiatives are the two primary driving forces for the V2I communication segment. Finally, the V2P communication segment is also making an impact, albeit on a much smaller scale, due to its lower size. V2P communication is believed to increase and enhance the safety of pedestrians crossing the street, especially in low visibility conditions in busy intersections.The implementation of V2X technologies in new vehicles is also contributing to the revenue of this segment. Reference TMR, A. 2021. Automotive V2X Market is expected to reach Revenues of US$ 99,388.6 Mn by 2031. NASDAQ.com. Web.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive V2X Communication Market Frequency Band Insights
The Automotive V2X Communication Market is segmented by Frequency Band into Dedicated Short-Range Communications, Cellular Vehicle-to-Everything, and 5G New Radio. The DSRC segment is expected to dominate the market share in 2023. However, the highest growth is expected to be witnessed by the C-V2X and 5G NR segments during the forecast period. DSRC operates in the 5.9 GHz band and up to 1,000 meters. It is a dedicated spectrum for V2X communication and, hence, is not shared with other devices. C-V2X operates in the cellular bands and up to 500 meters.It is compatible with all cellular devices and uses existing infrastructure. 5G NR operates in millimeter wave bands and up to 100 meters. It has very high data rates and low latency, making it an ideal choice for V2X communication. Automotive V2X Communication is a growing market and is expected to rise significantly in the coming years. The market would witness substantial growth due to the continued penetration of connected and autonomous vehicles. V2X communication allows vehicles to interact with one another and the roadside infrastructure, which helps to increase safety, efficiency, and mobility.
Automotive V2X Communication Market Application Insights
The Automotive V2X Communication Market is segmented by Application into Safety and Driver Assistance, Traffic Management and Optimization, Information and Entertainment, and Vehicle Platooning. Among these segments, Safety and Driver Assistance is expected to hold the largest market share in 2023, owing to the increasing adoption of ADAS and autonomous driving technologies. Traffic Management and Optimization is also expected to witness significant growth due to the increasing demand for smart traffic management solutions. The Information and Entertainment segment is expected to grow at a steady pace, driven by the rising popularity of connected infotainment systems.Vehicle Platooning is expected to witness the highest growth rate during the forecast period due to the growing adoption of cooperative intelligent transportation systems (C-ITS).
Automotive V2X Communication Market Vehicle Type Insights
The Vehicle Type segment in the Automotive V2X Communication Market holds immense significance, offering a comprehensive analysis of various vehicle categories and their contribution to the overall market growth. 'Passenger Cars' have emerged as a dominant segment, capturing a substantial market share due to their widespread adoption and increasing demand for advanced safety and connectivity features. The 'Commercial Vehicles' segment is projected to witness significant growth in the coming years, driven by the rising adoption of V2X technologies in fleet management and logistics operations.'Buses' and 'Trucks' are other notable segments that are expected to contribute to the market expansion, fueled by government regulations and initiatives promoting smart transportation systems.
Automotive V2X Communication Market Regional Insights
The Automotive V2X Communication Market is expected to witness significant growth in the coming years, driven by increasing demand for safety and convenience features in vehicles. The market is segmented into various regions, including North America, Europe, APAC, South America, and MEA. Among these regions, North America and Europe are expected to hold a major share of the market in 2023 and are projected to continue their dominance throughout the forecast period. The growth in these regions can be attributed to the presence of well-established automotive industries, supportive government regulations, and high consumer awareness about V2X technologies.APAC is expected to emerge as a significant market for Automotive V2X Communication in the coming years, driven by the increasing production and sales of vehicles in the region. South America and MEA are expected to witness moderate growth in the Automotive V2X Communication market due to the growing adoption of V2X technologies in these regions. Overall, the Automotive V2X Communication Market is expected to grow significantly in the coming years, driven by the increasing adoption of V2X technologies across various regions.
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Automotive V2X Communication Market Key Players And Competitive Insights:
The key players in the Automotive V2X Communication Market are focusing on developing cutting-edge technologies to gain competitive advantage. The leading players in the Automotive V2X Communication Market are intent on forming strategic partnerships and collaborations in an attempt to establish a stronghold sector. The Automotive V2X Communication Market is characterized by significant competition; thus, the major players have implemented several strategies to increase their market share. The main players invest heavily in research and development to bolster their product portfolios and maintain their leading roles in the sector. In the Automotive V2X Communication Market, mergers and acquisitions have become a common phenomenon as various industry players seek to expand their operations and broaden their reach. The current competition is going to escalate further since more players are expected to capitalize on the emergence of more V2X technologies and satisfy the rising demand for V2X communications in the automotive sector.Qualcomm is the leading company with regard to the Automotive V2X Communication Market. The company is known for its world-class chipset solutions and is prevalent within the automotive sector. Qualcomm is a prominent player in the development and promotion of V2X technology; hence, the company has made significant investments in both cellular-V2X and DSRC. Qualcomm has assured a strong collaboration with the leading automakers and Tier 1 suppliers since it focuses on bringing the respective V2X solutions to the market. The major company is a member of several industry alliances and consortia, particularly CCC and 5GAA.Continental is a key player in the respective V2X communication sector as it is a major stakeholder in global automotive technology. The giant company offers an array of V2X solutions, such as OBUs, RSUs, and software platforms, in the market. Continental is actively involved in the development of the technology and its testing, and it has secured partnerships with a wide range of both automakers and infrastructure providers. The company views V2X communication as pivotal to the realization of the future of mobility; hence, the focus is on safety, efficiency, and connectivity. The leading player in the Automotive V2X Communication Market boasts almost a complete balance in automotive electronics, and the strong relationship with the automotive manufacturers significantly bolsters its leading role in the sector.
Key Companies in the Automotive V2X Communication Market Include:
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Qualcomm Technologies
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Hyundai Motor Company
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Veoneer
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Aptiv
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Delphi Automotive
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Continental AG
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Autotalks
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Robert Bosch GmbH
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NXP Semiconductors
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Toyota Motor Corp
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TomTom International
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Cohda Wireless
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Harman International
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Denso Corporation
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Savari
Automotive V2X Communication Market Industry Developments
The Automotive V2X Communication Market is projected to grow from USD 25.47 billion in 2023 to USD 89.1 billion by 2032, at a CAGR of 14.93% during the forecast period. The market growth is attributed to the increasing adoption of autonomous and connected vehicles, growing demand for improved safety and efficiency, government regulations and initiatives, and technological advancements.Recent developments include strategic partnerships between automotive manufacturers and technology companies, such as Ford and Qualcomm, to develop and implement V2X solutions. Governments worldwide are implementing regulations to mandate V2X communication in new vehicles, driving market expansion. Key industry players are investing in research and development to enhance V2X capabilities and expand their product offerings.
Automotive V2X Communication Market Segmentation Insights
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Automotive V2X Communication Market Frequency Band Outlook
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Automotive V2X Communication Market Application Outlook
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Safety and Driver Assistance
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Traffic Management and Optimization
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Information and Entertainment
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Vehicle Platooning
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Automotive V2X Communication Market Vehicle Type Outlook
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Passenger Cars
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Commercial Vehicles
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Buses
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Trucks
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Automotive V2X Communication Market Regional Outlook
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North America
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Europe
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South America
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Asia Pacific
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Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
22.16 (USD Billion) |
| Market Size 2023 |
25.47 (USD Billion) |
| Market Size 2032 |
89.1 (USD Billion) |
| Compound Annual Growth Rate (CAGR) |
14.93% (2024 - 2032) |
| Report Coverage |
Revenue Forecast, Competitive Landscape, Growth Factors, and Trends |
| Base Year |
2023 |
| Market Forecast Period |
2024 - 2032 |
| Historical Data |
2019 - 2023 |
| Market Forecast Units |
USD Billion |
| Key Companies Profiled |
Qualcomm Technologies, Hyundai Motor Company, Veoneer, Aptiv, Delphi Automotive, Continental AG, Autotalks, Robert Bosch GmbH, NXP Semiconductors, Toyota Motor Corp, TomTom International, Cohda Wireless, Harman International, Denso Corporation, Savari |
| Segments Covered |
Type of Communication, Frequency Band, Application, Vehicle Type, Regional |
| Key Market Opportunities |
Vehicletoeverything V2X communication autonomous driving government regulations smart cities connected infrastructure |
| Key Market Dynamics |
Rising demand for autonomous vehicles Increasing deployment of 5G networks Government regulations promoting V2X technology |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Automotive V2X Communication Market is projected to reach USD 25.47 billion in 2023.
The Automotive V2X Communication Market is expected to grow at a CAGR of 14.93% from 2024 to 2032.
North America is expected to hold the largest market share in the Automotive V2X Communication Market in 2023.
Key applications of Automotive V2X Communication include vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-pedestrian (V2P) communication.
Key competitors in the Automotive V2X Communication Market include Qualcomm, Huawei, NXP Semiconductors, Savari, and Cohda Wireless.
Major challenges facing the Automotive V2X Communication Market include lack of standardization, security concerns, and cost.
Key growth drivers for the Automotive V2X Communication Market include increasing demand for safety and convenience features, government regulations, and technological advancements.
The Automotive V2X Communication Market is projected to reach USD 89.1 billion by 2032.
The Asia-Pacific Automotive V2X Communication Market is expected to grow at a CAGR of 16.5% from 2024 to 2032.
The V2V communication segment is expected to hold the largest market share in the Automotive V2X Communication Market in 2023.
