Vehicle to Infrastructure Communication Market Overview
As per MRFR analysis, the Vehicle to Infrastructure Communication Market Size was estimated at 24.46 (USD Billion) in 2022. The Vehicle Infrastructure Communication Market Industry is expected to grow from 28.85(USD Billion) in 2023 to 127.6 (USD Billion) by 2032. The Vehicle to Infrastructure Communication Market CAGR (growth rate) is expected to be around 17.96% during the forecast period (2024 - 2032).
Key Vehicle to Infrastructure Communication Market Trends Highlighted
The Global Vehicle-to-Infrastructure (V2I) Communication Market is on the brink of acquiring new heights in terms of profits and traction on account of the increasing government efforts in the development of effective road safety measures. V2 I systems, which enable exchanges of data between vehicles and any infrastructure sitting near the roadway, also known as roadside infrastructure, are now in demand as the trend of autonomous and connected vehicles becomes more rampant. Some of the factors propelling the V2I market are the increasing need for better traffic control, a reduction in traffic congestion, and increase in the safety of motorists and pedestrians. These are all aspects of the V2I market that are fully envisioned but not yet being availed; more development in V2I technologies, particularly in regard to complex applications like autonomous vehicles, remote maintenance, and intelligent transportation systems, will emerge. This is because it is likely that their effectiveness will be enhanced through the infusion of artificial intelligence and machine learning, which is anticipated to unlock opportunities and enhance innovation in the market.
Currently, notable projects include projected C-V2X networks incorporating small cell infrastructure and growing roadside DSRC deployment. While DSRC has gained significant penetration in the United States as well as in Europe, there is an increasing acceptance of C-V2X, particularly in the figure and other countries. The V2I market is also advancing owing to the coming of 5G networks that enable high-speed data transfer.
Figure1: Vehicle to Infrastructure Communication Market, 2018 - 2032 (USD Billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Vehicle to Infrastructure Communication Market Drivers
Increasing Demand for Vehicle Safety Features
The growing demand for vehicle safety features is a major driver of the Vehicle to Infrastructure Communication Market Industry. As vehicles become increasingly automated, the need for reliable and efficient communication between vehicles and infrastructure becomes more critical. V2I systems can provide real-time information about traffic conditions, road hazards, and other potential dangers, helping to improve vehicle safety and prevent accidents.For instance, according to a study by the National Highway Traffic Safety Administration (NHTSA), V2I systems could help to reduce rear-end collisions by up to 80%. As a result, governments around the world are increasingly mandating the installation of V2I systems in new vehicles. This is expected to drive significant growth in the V2I market over the coming years.
Rising Adoption of Electric Vehicles
Another important driving force for the development of the Vehicle to Infrastructure Communication Market Industry is the increasing adoption of electric vehicles. Electric vehicles require special charging infrastructure, and V2I systems can help in the management and optimization of the charging process. They can provide real-time information about the availability and status of charging points, assisting EV drivers in quickly finding and accessing a suitable point of charge.V2I systems can also be used in the integration of electric vehicles into the smart grid, allowing them to take part in the demand response program and to help maintain the grid’s stability. As a result of the growing popularity of electric vehicles, the demand for V2I systems will increase.
Government Initiatives and Standards
Besides government initiatives, government standards are also strong driving factors that determine the fast growth of the Vehicle to Infrastructure Communication Market Industry. Recently, more and more governments worldwide started understanding the importance of V2I systems in enhancing road safety and traffic efficiency. Regarding this, many of them implement corresponding regulations and standards that encourage the use of V2I technologies. For instance, the European Union has already legislated the issue by stating that from 2022, all new vehicles sold in the European markets ought to have inbuilt V2I systems.Similarly, the United States Department of Transportation has announced a $1 billion plan to foster the further development and implementation of V2I systems in the country. Such a tendency is likely to provide substantial support for the V2I market in the future.
Vehicle to Infrastructure Communication Market Segment Insights
Vehicle to Infrastructure Communication Market Vehicle Type Insights
The Vehicle to Infrastructure Communication Market is segmented into four main vehicle types, which are passenger cars, commercial vehicles, two-wheelers, and heavy vehicles- Bus, Track, etc., among which passenger cars had accounted for the largest market share in 2023 with over 55% of the market revenue. This was mainly due to the increasing adoption of ADAS and the growing popularity of connected cars. The highest CAGR rate is expected to be from the commercial vehicles segment, which will be growing rapidly over the forecast period, mainly due to the growing demand for fleet management systems and ITS in the industries.Also, the rapid rise in the sale of two-wheelers will see another side of the V2I system rising with an increase in the number of two-wheelers. With the growing adoption of electric vehicles, even heavy vehicles will require this system for optimal charging and battery life. A surge in demand for smart systems to reduce traffic piles up and accidents is expected to give rise to the heavy vehicles segment for V2I communication. The global Vehicle Infrastructure Communication Market is expected to grow rapidly over the forecast period mainly due to the rising popularity of connected and automated cars and growing demand for electric vehicles and smart city concepts.
Figure2: Vehicle to Infrastructure Communication Market, By Vehical Type, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Vehicle to Infrastructure Communication Market Communication Technology Insights
Vehicle to Infrastructure Communication Market ( The Vehicle to Infrastructure Communication Market was valued at $17.5 billion in 2020. The market is segmented by communication technology into DSRC, C-V2X, IEEE 802.11p, and 5G Cellular. The DSRC segment held the largest market share in 2023, accounting for 35.6%. However, C-V2X is projected to exhibit the largest CAGR of 22.5% during the forecast period due to its ability to support higher data rates and lower latency.
Vehicle to Infrastructure Communication Market Application Insights
The Vehicle to Infrastructure Communication Market is segmented into Traffic Management, Safety Systems, Fleet Management, Smart Parking, and Infotainment and Connectivity. The Traffic Management segment held the largest market share in 2023 and is expected to continue to dominate the market throughout the forecast period. The growing adoption of smart city initiatives and the increasing need for efficient traffic management systems are driving the growth of this segment. The Safety Systems segment is expected to witness significant growth in the coming years due to the rising demand for advanced driver assistance systems (ADAS) and autonomous vehicles.The Fleet Management segment is also expected to grow at a rapid pace as businesses increasingly adopt telematics solutions to improve fleet efficiency and reduce operating costs. The Smart Parking segment is expected to grow at a steady pace as cities and municipalities look for ways to address the growing problem of parking congestion. The Infotainment and Connectivity segment is expected to grow at a moderate pace as consumers demand more connected and personalized in-vehicle experiences.
Vehicle to Infrastructure Communication Market Deployment Model Insights
The deployment model segment of the Vehicle to Infrastructure Communication Market is categorized into Roadside Units (RSUs), Onboard Units (OBUs), and Hybrid (A combination of RSUs and OBUs). Among these, the Roadside Units segment held the largest revenue share in 2023, owing to the increasing adoption of RSUs in smart city initiatives and traffic management systems. The Onboard Units segment is anticipated to grow at a significant pace during the forecast period from 2024 to 2032, driven by the rising demand for connected and autonomous vehicles.Hybrid deployment models are also gaining traction as they offer a combination of the advantages of both RSUs and OBUs, providing a more comprehensive and cost-effective solution for V2I communication.
Vehicle to Infrastructure Communication Market End User Insights
The End User segment of the Vehicle to Infrastructure Communication Market is classified into Automotive OEMs, Tier 1 Suppliers, Telecom Operators, Government Agencies, and R Institutions. Automotive OEMs are expected to dominate the market in the coming years due to increasing demand for advanced driver assistance systems (ADAS) and autonomous vehicles. Tier 1 Suppliers will also experience significant growth due to their role in developing and manufacturing V2I components. Telecom Operators are expected to play a crucial role in providing the necessary connectivity infrastructure for V2I applications.Government Agencies will drive the adoption of V2I technologies through regulations and incentives. R Institutions will continue to play a critical role in developing new V2I technologies and applications. The Vehicle to Infrastructure Communication Market revenue is expected to reach USD 13.4 billion in 2024, growing at a CAGR of 18.5% during the forecast period (2024-2032).
Vehicle to Infrastructure Communication Market Regional Insights
The Vehicle to Infrastructure Communication Market segmentation by region includes North America, Europe, APAC, South America, and MEA. North America is expected to hold the largest market share due to the presence of major automotive manufacturers and the early adoption of advanced technologies. Europe is expected to follow North America in terms of market size due to government initiatives and supportive regulatory frameworks. APAC is expected to witness significant growth due to the increasing demand for connected vehicles and government support for smart city initiatives.South America and MEA are expected to experience steady growth due to increasing urbanization and the need for improved traffic management systems.
Figure3: Vehicle to Infrastructure Communication Market, By Regional, 2023 & 2032 (USD billion)
Source: Primary Research, Secondary Research, MRFR Database and Analyst Review
Vehicle to Infrastructure Communication Market Key Players and Competitive Insights
Major players in the Vehicle to Infrastructure Communication Market industry are continuously innovating and developing new technologies to gain a competitive advantage. Leading Vehicle to Infrastructure Communication Market players are focusing on developing advanced solutions that offer improved performance, reliability, and security. Partnerships and collaborations are also becoming increasingly common in the Vehicle to Infrastructure Communication Market development landscape as companies seek to combine their expertise and resources to create innovative solutions. The Vehicle to Infrastructure Communication Market Competitive Landscape is expected to remain highly competitive in the coming years, with new entrants and established players vying for market share.Qualcomm Technologies, Inc. is a leading provider of wireless communication solutions, including Vehicle to Infrastructure Communication technology. The company offers a wide range of chipsets, modules, and software solutions for V2I applications. Qualcomm Technologies, Inc. has a strong presence in the automotive industry and collaborates with major automakers to develop and deploy V2I solutions. The company is also a member of the 5G Automotive Association (5GAA), which is working to develop and promote 5G-based V2I solutions.Robert Bosch GmbH is another major player in the Vehicle to Infrastructure Communication Market. The company offers a range of V2I solutions, including roadside units, on-board units, and software solutions. Robert Bosch GmbH has a strong focus on safety applications and is working on developing V2I solutions that can help to prevent accidents. The company is also a member of the 5GAA and is actively involved in the development of 5G-based V2I solutions.
Key Companies in the Vehicle to Infrastructure Communication Market Include
- Denso Corporation
- QinetiQ
- Siemens
- Cohda Wireless
- Savari
- NXP Semiconductors
- Telenav
- Kapsch TrafficCom
- Delphi Automotive
- Qualcomm
- Danlaw
- Swarco AG
- Huawei
Vehicle to Infrastructure Communication Market Industry Developments
The global Vehicle-to-Infrastructure (V2I) communication market is projected to grow from USD 28.85 billion in 2023 to USD 127.6 billion by 2032 at a CAGR of 17.96%. The rising adoption of connected and autonomous vehicles, increasing government initiatives for smart city development, and growing investments in transportation infrastructure are key factors driving the market growth. The use of V2I technology improves road safety, traffic efficiency, and environmental sustainability, making it an attractive solution for governments and transportation authorities. Recent news developments include the launch of advanced V2I systems by major automotive companies, strategic partnerships between technology providers and infrastructure companies, and government regulations promoting V2I adoption. These developments indicate a positive outlook for the V2I market in the coming years.
Vehicle to Infrastructure Communication Market Segmentation Insights
Vehicle to Infrastructure Communication Market Vehicle Type Outlook
- Passenger Cars
- Commercial Vehicles
- Two-Wheelers
- Heavy Vehicles (Bus, Trucks, etc.)
Vehicle to Infrastructure Communication Market Communication Technology Outlook
- Dedicated Short-Range Communication (DSRC)
- Cellular Vehicle-to-Everything (C-V2X)
- IEEE 802.11p
- 5G Cellular
Vehicle to Infrastructure Communication Market Application Outlook
- Traffic Management
- Safety Systems
- Fleet Management
- Smart Parking
- Infotainment and Connectivity
Vehicle to Infrastructure Communication Market Deployment Model Outlook
- Roadside Units (RSUs)
- Onboard Units (OBUs)
- Hybrid (Combination of RSUs and OBUs)
Vehicle to Infrastructure Communication Market End User Outlook
- Automotive OEMs
- Tier 1 Suppliers
- Telecom Operators
- Government Agencies
- RD Institutions
Vehicle to Infrastructure Communication Market Regional Outlook
- North America
- Europe
- South America
- Asia Pacific
- Middle East and Africa
| Report Attribute/Metric |
Details |
| Market Size 2022 |
24.46(USD Billion) |
| Market Size 2023 |
28.85(USD Billion) |
| Market Size 2032 |
127.6(USD Billion) |
| Compound Annual Growth Rate (CAGR) |
17.96% (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 |
Denso Corporation, QinetiQ, Siemens, Cohda Wireless, Savari, NXP Semiconductors, Telenav, Kapsch TrafficCom, Delphi Automotive, Qualcomm, Danlaw, Swarco AG, Huawei |
| Segments Covered |
Vehicle Type, Communication Technology, Application, Deployment Model, End User, Regional |
| Key Market Opportunities |
Autonomous and connected vehicles Smart city infrastructure Fleet management Traffic management Road safety |
| Key Market Dynamics |
Rising adoption of connected vehicles Government initiatives Increasing demand for safety and security Growing urbanization Technological advancements |
| Countries Covered |
North America, Europe, APAC, South America, MEA |
Frequently Asked Questions (FAQ) :
The Vehicle to Infrastructure Communication Market is expected to reach a valuation of USD 28.85 Billion in 2023 and is projected to reach USD 127.6 Billion by 2032, growing at a CAGR of 17.96% from 2024 to 2032.
The key regions in the Vehicle to Infrastructure Communication Market are North America, Europe, Asia Pacific, and the Rest of the World. North America is expected to hold the largest market share in 2023, followed by Europe and Asia Pacific. North America is expected to witness the highest growth rate during the forecast period.
Key applications of Vehicle to Infrastructure Communication include traffic management, safety applications, infotainment, and vehicle control. Traffic management applications are expected to hold the largest market share in 2023, followed by safety applications.
Key competitors in the Vehicle to Infrastructure Communication Market include Qualcomm, Autotalks, Savari, Cohda Wireless, and Kapsch TrafficCom. Qualcomm is expected to hold the largest market share in 2023, followed by Autotalks and Savari.
Key trends in the Vehicle to Infrastructure Communication Market include the increasing adoption of connected and autonomous vehicles, government initiatives to promote V2I technology, and the development of new V2I applications. The increasing adoption of connected and autonomous vehicles is expected to drive the growth of the V2I market.
Challenges in the Vehicle to Infrastructure Communication Market include the high cost of V2I technology, lack of standardization, and security concerns. The high cost of V2I technology is expected to hinder the adoption of the technology in some markets.
Opportunities in the Vehicle to Infrastructure Communication Market include the growing demand for connected and autonomous vehicles, government initiatives to promote V2I technology, and the development of new V2I applications. The growing demand for connected and autonomous vehicles is expected to create new opportunities for V2I technology.
Key factors driving the growth of the Vehicle to Infrastructure Communication Market include the increasing adoption of connected and autonomous vehicles, government initiatives to promote V2I technology, and the development of new V2I applications. The increasing adoption of connected and autonomous vehicles is expected to drive the demand for V2I technology.
Key restraints in the Vehicle to Infrastructure Communication Market include the high cost of V2I technology, lack of standardization, and security concerns. The high cost of V2I technology is expected to hinder the adoption of the technology in some markets.
The Vehicle to Infrastructure Communication Market is expected to reach a valuation of USD 28.85 Billion in 2023, and is projected to reach USD 127.6 Billion by 2032, growing at a CAGR of 17.96% from 2024 to 2032.
