Automotive V2X Technology Market Size, Share, Trends, Growth 2032

Automotive V2X Technology Industry Prospective:

The global automotive V2X technology market size was worth around USD 0.54 billion in 2023 and is predicted to grow to around USD 18.90 billion by 2032 with a compound annual growth rate (CAGR) of roughly 48.50% between 2024 and 2032.

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Automotive V2X Technology Market: Overview

Automotive V2X translates to vehicle-to-everything. The technology uses modern communication tools such as cameras, sensors, and wireless connectivity to connect with other vehicles on the road and its surroundings including pedestrians and other infrastructure units. Some of the most commonly used technologies enabling automotive V2X technology are 5G cellular systems, WiFi, and radio frequencies. The industry is at its early stage of development. It has not reached its true potential since it is difficult to make respective communication systems such as sensors and cameras work in the coherence that is required for the proper functioning of V2X systems.

In addition to this, other technologies such as 5G required for making communication systems work together are currently not available across the world which further impacts the market growth rate. The most well-regarded benefits of automotive V2X are improvements in road safety, better monitoring of traffic, and higher fuel efficiency. The primary sub-segments of V2X technology are vehicle-to-vehicle (V2V), vehicle-to-grid (V2G), vehicle-to-infrastructure (V2I), vehicle-to-network (V2N), and vehicle-to-pedestrian (V2P). However, the automotive V2X technology industry faces several challenges which may impede its growth rate during the forecast period.

Key Insights:

• As per the analysis shared by our research analyst, the global automotive V2X technology market is estimated to grow annually at a CAGR of around 48.50% over the forecast period (2024-2032)
• In terms of revenue, the global automotive V2X technology market size was valued at around USD 0.54 billion in 2023 and is projected to reach USD 18.90 billion, by 2032.
• The market is projected to grow at a significant rate due to the increasing power requirements
• Based on communication segmentation, vehicle-to-vehicle was predicted to show maximum market share in the year 2023
• Based on vehicle type segmentation, commercial was the leading segment in 2023
• On the basis of region, Asia-Pacific was the leading revenue generator in 2023

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Automotive V2X Technology Market: Growth Drivers

Increasing power requirements across the globe will drive market demand

The global automotive V2X technology market is projected to grow owing to the rising need for continuous power supply across the globe. Energy is the backbone of the modern industrialized and commercialized world. Energy requirements have sharply risen in the last few decades. The growing population rate, urbanization, and increased demand for basic infrastructure including access to power have led to mounting pressure on authorities to seek novel ways to improve power generation capacity. As per official reports, in 2022, the world’s power needs reached 25,500 terawatt-hours. In addition to this, while power demand is on the rise, global leaders are under pressure to reduce dependency on non-renewable sources of energy due to the negative implications of excessive consumption on the environment and the climate.

There is an urgent need to develop more sustainable solutions for generating power. Automotive vehicle-to-everything technology leverages stored and unused energy in the case of emergencies to meet the growing power needs of the general population and the commercial world. Vehicles equipped with V2X technology can transfer stored electric energy to the grid or other equipment that runs on electricity in time of need. Such practices help in creating a self-dependent ecosystem. The future of V2X technology seems bright especially when the sale of EV vehicles rises to new levels by the end of the decade.

Rising demand for advanced electric vehicles (EVs) will fuel more revenue in the industry

In the last five years, EVs have become a common sight on roads. More number of players have entered the EV segment and broken the dominant streak of limited players that were earlier driving the EV sector. The rise in consumer awareness about the long-term benefit of EVs along with rising government subsidies and availability of affordable EVs across brands has resulted in higher sales and subsequent demand for electric vehicles.

Moreover, regional governments are also spending heavily on transitioning public transport systems by introducing electric modes of transportation. Such trends are expected to push the revenue systems in the global automotive V2X technology market.

Automotive V2X Technology Market: Restraints

Extensive investment required to build infrastructure may restrict the market expansion rate

The global automotive V2X technology industry is expected to be restricted due to the high cost of deployment. Additionally, supporting infrastructure has to be built for the success of V2X systems. These infrastructural demands can be expensive. In addition to this, existing systems may have to be upgraded to meet the requirements of modern automotive V2X technology.

Another restriction for the industry growth trajectory is the time frame requirement for massive deployment of V2X systems across road infrastructure. This may take years or even decades to complete.

Automotive V2X Technology Market: Opportunities

Pressing need to improve road safety measures may generate high-growth opportunities

The global automotive V2X technology market is expected to generate several growth opportunities owing to the increasing demand for measures that can improve road safety. V2X systems are advanced tools. They allow vehicles and neighboring vehicles or people to communicate with each other. V2X delivers real-time updates on variables such as potential dangers, weather conditions, speed, and location subsequently helping in reducing the risk of road accidents. The introduction of the 5G network and its application in designing novel V2X systems with advanced functionalities has tremendous growth potential. This is further verified by the increase in the number of players exploring the integration of V2X and 5G networks.

In February 2024, Rohde & Schwarz, a leading manufacturer of secure communications, test & measurement, broadcasting equipment, and monitoring & network testing, and Autotalks, a dominant player in the V2X technology sector, announced that the companies had successfully collaborated to test the efficiency of third-generation V2X chipset namely SECTON3 and TEKTON3 using R&S CMP180 radio communication tester with its latest 5G-V2X capability. This represents a massive foot forward in the direction of the successful launch of 5G-V2X technology.

Rising partnerships between stakeholders and service providers show high growth potential

The global industry for automotive V2X technology is expected to encounter more growth avenues due to the growing collaborations and partnerships between companies aspiring to leverage or develop the V2X technology. In August 2023, Autotalks and Hyundai Mobis announced a collaboration through which the companies will implement V2X technology for connected cars in the form of Hyundai Mobis' MTCU (Multi-functional Telematics Control Unit) connectivity modules.

Automotive V2X Technology Market: Challenges

Regulatory challenges related to V2X technology will restraint the growth rate

The global automotive V2X technology market faces challenges due to the several regulatory hurdles associated with the development and deployment of the technology. The modern engineering solution is relatively new and in its infancy stage in some parts of the world. Moreover, companies may face difficulty in obtaining the frequency range required for advanced transportation systems such as V2X. Unless more clear guidelines supporting automotive V2X technology are drafted, the market growth rate may not increase at a sharp rate.

Automotive V2X Technology Market: Segmentation

The global automotive V2X technology market is segmented based on communication, offering, vehicle type, and region.

Based on communication, the global market segments are vehicle-to-grid, vehicle-to-infrastructure, vehicle-to-pedestrian, and vehicle-to-vehicle. In 2023, the highest growth was witnessed in the vehicle-to-vehicle segment. This system allows connectivity between vehicles on the road. V2X systems assist in managing traffic by delivering real-time updates on essential parameters. Moreover, the rise in need for better management of road safety along with a growing number of vehicles on the road will fuel higher demand for V2X. As per official data, more than 1 billion deaths occur globally due to road accidents.

Based on the offering, the global automotive V2X technology industry is divided into software and hardware.

Based on offering, the global market segments are commercial and passenger. In 2023, the commercial segment was the highest revenue generator. This segment comprises heavy-weight and light-weight vehicles on the road. The massive number of commercial vehicles used for the transportation of people, animals, and goods is a major reason for the higher segmental growth rate. The passenger segment is projected to witness a steady rise as more automotive industries develop new automobiles equipped with V2X connectivity. In 2022, the global commercial vehicle market was valued at over USD 1000 million.

Automotive V2X Technology Market: Report Scope

Automotive V2X Technology Market: Regional Analysis

Asia-Pacific to witness the highest growth rate during the forecast period

The global automotive v2X technology market is expected to witness the highest growth rate during the forecast period. Asia-Pacific houses several emerging markets with intense economic growth rates. China is the world’s largest producer and consumer of electric vehicles. The country is home to large manufacturing centers catering to the global automotive sector. Additionally, the growing number of vehicles on the road equipped with advanced systems has assisted in higher regional market revenue. Densely populated countries such as China and India face regular traffic congestion. These nations are seeking ways to mitigate challenges with the growing number of vehicles on the road.

In January 2023, China announced the inclusion of V2X in the Chinese Car Safety Assessment Program starting in 2024. This will create massive growth avenues for technology in the country. Japan is a global leader in terms of automotive technologies. The regional players are collaborating with other associated parties for the technology’s proliferation in the coming years. India, on the other hand, is keen on investing in improved connectivity technologies to enhance road safety measures.

Automotive V2X Technology Market: Competitive Analysis

The global automotive V2X technology market is led by players like:

• NXP Semiconductors N.V.
• Qualcomm Technologies Inc.
• Savari Inc
• Continental AG
• Arada Systems Inc.
• Delphi Technologies (now part of Aptiv PLC)
• Harman International
• Robert Bosch GmbH
• Renesas Electronics Corporation
• Autotalks Ltd.
• Keysight Technologies Inc.
• Cohda Wireless
• Kapsch TrafficCom AG
• Ericsson
• Visteon Corporation

The global automotive V2X technology market is segmented as follows:

By Communication

• Vehicle-to-Grid
• Vehicle-to-Infrastructure
• Vehicle-to-Pedestrian
• Vehicle-to-Vehicle

By Offering

• Software
• Hardware

By Vehicle Type

• Commercial
• Passenger

By Region

• North America
  • The U.S.
  • Canada
• Europe
  • France 
  • The UK
  • Spain
  • Germany
  • Italy
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Southeast Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Mexico
  • Rest of Latin America
• Middle East & Africa
  • GCC
  • South Africa
  • Rest of Middle East & Africa