V2X communication provides connectivity within transportation infrastructure and vehicles by establishing a wireless communication network between vehicles as well as between vehicles and infrastructure such as traffic signals, toll booths, and pedestrians. V2X communication enables vehicles to receive real-time traffic, safety, and environment data in order to warn drivers of potential hazards on the road and improve traffic flow. Technologies such as vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), and vehicle-to-network (V2N) allows connected vehicles to communicate with each other and share data to coordinate traffic movements. V2X communication is a key enabling technology for autonomous and connected vehicles as it provides real-time situational awareness of the vehicle’s surroundings to drivers and autonomous vehicles.
The global V2X Communication Market is estimated to be valued at US$ 3.63Bn in 2024 and is expected to exhibit a CAGR of 39% over the forecast period 2024 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends:
The adoption of Cellular V2X (C-V2X) technology standard is one of the key trends witnessed in the V2X communication market. C-V2X provides longer range and better building penetration compared to dedicated short-range communication (DSRC) technology. Leading automotive suppliers and OEMs are increasingly supporting C-V2X due to its integration with 4G and 5G cellular networks. For instance, in 2021, GSA reported 28 OEMs committed to deploying C-V2X technology for vehicles. Another major trend is the integration of V2X systems with advanced driver assistance systems (ADAS) to enable cooperative maneuver features like cooperative adaptive cruise control (CACC) for platooning of vehicles. As V2X technology evolves autonomous driving capabilities, it will herald new levels of driver assistance and traffic coordination.
Threat of new entrants: The V2X Communication Market requires significant capital investments in infrastructure and technology development. This acts as a barrier for new companies to enter the market.
Bargaining power of buyers: Individual buyers have low bargaining power as V2X technology aims at safety and convenience. However, large fleet operators can negotiate better prices with V2X providers.
Bargaining power of suppliers: Major technology providers like Qualcomm hold significant bargaining power due to their patented technologies, hardware and software capabilities.
Threat of new substitutes: Alternatives like DSRC are being tested but cellular V2X is emerging as the leading technology owing to greater scalability and availability of 5G networks.
Competitive rivalry: The market currently sees healthy competition between technology providers to establish their solutions as the industry standard. Interoperability will be a key point of focus.
The global V2X Communication Market is expected to witness high growth over the forecast period supported by the wider rollout of 5G networks. North America currently dominates the market owing to favorable policies and infrastructure availability for connectivity solutions. The region is expected to further its lead during the forecast period led by the US market.
Europe is another major region in the V2X Communication Market supported by EU regulations mandating V2X solutions in vehicles by 2025. China is an emerging market in Asia Pacific and is likely to see fastest growth through government initiatives for smart mobility.
Key players operating in the V2X Communication Market are Delphi Automotive Plc, Aptiv PLC, Autotalks Ltd., Continental AG, Qualcomm Inc, Infineon Technologies A., Robert Bosch GmbH, Harman International Industries Inc. Cisco Systems Inc., Infineon Technologies AG, Mobileye NV, Marben Products, Sasken Technologies Ltd, Siemens Mobility GmbH and Denso Corporation.
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it