The automotive V2X market generated revenue of USD 633.8 million in 2023, which is expected to witness a CAGR of 49.9% during 2024–2030, to reach USD 10,225.5 million by 2030. This can be credited to the growing demand for enhanced technology with respect to car safety, rising ecological concerns, and long-term price advantages. 

  • Additionally, the demand is increasing for automatic vehicles, which compels manufacturers to incorporate advanced V2X systems in the vehicles.  

  • Further, government regulations are also being incorporated for road infrastructure and vehicle safety which act as a potent growth driver of the market. 

Market Drivers 

  • In the past few years, road accidents and deaths associated with them have increased pressure on countries worldwide to implement advanced technologies to solve and eliminate road safety issues.  

  • According to the WHO, approximately 1.19 million people die globally and 20–50 million people suffer from non-fatal injuries every year. 

  • V2X technology has emerged as a revolutionary solution that has the potential to significantly improve road safety.  

  • Real-time communication among automobiles, surrounding infrastructure, pedestrians, and other road users, becomes simpler through V2X. 

Incorporation of 5G and AI Technology in Cellular-V2X (C-V2X) Technology 

  • 5G and AI are pivotal for the automotive industry's future, especially in enhancing prediction capabilities crucial for personalized driving experiences. 

  • The integration of 5G and AI assists V2X (vehicle-to-everything) communications more efficiently, leading to essential communications that enhance security and safety while driving. 

  • Cellular-V2X technology plays a critical role in advancing vehicle automation by facilitating communication among roadside equipment, vehicles, and pedestrians. 

Software Category Is Growing at a High CAGR  

  • The software category is forecasted to experience a 55% compound annual growth rate (CAGR) from 2024 to 2030 in the market. 

  • This growth can be attributed to the integration of 5G technology and the continuous enhancement of features in vehicles. 

  • The widespread adoption of V2X (vehicle-to-everything) technology is contributing significantly to the increased demand for V2X software solutions. 

Vehicle-To-Vehicle (V2V) Category Holds the Largest Market Share  

In 2023, on the basis of communication, vehicle-to-vehicle category had the largest industry share, of around 90%. Vehicle-to-vehicle aid in providing other vehicle info to drivers such as location, direction, and speed, and signals them of any possible intimidations such as intersections, heavy traffic, terrain issues and blind spots. 

Vehicle-To-Infrastructure Category Is Growing with Fastest Pace  

  • Vehicle-to-infrastructure communication category is showing strong growth, manifested in its CAGR of 53% since 2024 till 2030. 

  • This boost is due to the use of V2I (vehicle-to-infrastructure) technology for enhancing driver assistance systems like smart parking and autonomous driving, providing better traffic lane and parking planning optimally for smoother traffic movement now and into the future. 

Commercial Vehicles Category to Experience the Fastest Development  

On the basis of vehicle type, the commercial Vehicles category is estimated to experience the highest CAGR, of 54%, over the projection period in the industry. Commercial vehicles cover both heavy and light commercial vehicles like large trucks, buses, and vans. Because of their better capacity than passenger cars, such vehicles are utilized for the transportation of goods or fare-paying passengers. 

APAC Is the Market Leader  

  • In 2023, the APAC region dominated the industry, with a revenue share of 60%. APAC has been a developing region for the making of cars in the recent years. 

  • The demand for V2X technology in this region has increased as a result of the population's growing purchasing power and growing concerns regarding the environment.  

  • Outstandingly, South Korea and Japan are ahead in the worldwide electronics industry and are situated to plan V2X arrangements with an upgraded performance at a competitive cost. 

Competition Analysis 

  • In October 2023, Huawei presented a comprehensive 5G solution for V2X services while emphasizing on how this would accelerate development of intelligent transportation systems. 

  • Qualcomm announced its connected car 5G technology at the Mobile World Congress (MWC) held in Barcelona in February 2023, with the primary aim being the improvement of vehicle broadband connectivity as well as the launching of capacities for in-car satellite communications. 

  • In December 2022, Cohda Wireless invented a V2X (Vehicle-to-Everything) network layout for the purpose of smoothly integrating connected vehicles on roads and highways worldwide. 

 

SOURCE: P&S Intelligence