Vehicle-to-Everything (V2X) Communication System Market Analysis Europe, North America, APAC, South America, Middle East and Africa - US, China, Germany, Japan, South Korea - Size and Forecast 2024-2028

Vehicle-To-Everything Communication System Market Size 2024-2028

The vehicle-to-everything communication system market size is forecast to increase by USD 23.40 billion at a CAGR of 22.79% between 2023 and 2028. The market experiences growth driven by key factors reshaping the automotive industry. With a growing demand for smart road infrastructure, there's a heightened need for V2X systems to enable seamless vehicle communication. Additionally, the increasing popularity of autonomous vehicles drives the adoption of V2X technology to enhance safety and efficiency on the roads. Moreover, the rising adoption of technologically advanced mobile devices further propels market expansion, facilitating connectivity between vehicles and infrastructure. This dynamic market landscape underscores the pivotal role of V2X communication systems in shaping the future of transportation worldwide.

It also includes an in-depth analysis of market trends and analysis, market growth analysis, and challenges. Furthermore, the report includes historic market data from 2018 - 2022.

What will be the Size of the Market During the Forecast Period?

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Market Dynamic and Customer Landscape

The market integrates specific tasks like predictive vehicle maintenance and collision avoidance with advanced connected car technologies, utilizing sensors, cameras, and data recorders for road safety and traffic efficiency. It incorporates the V2X technology framework and SLS37 V2X hardware security module (HSM) to enhance vehicle-to-vehicle communication in high-traffic environments, optimizing energy savings and performance of software through fundamental standards like SAE JS2735 and operating systems.

Key Market Driver

The increasing adoption of technologically advanced mobile devices is notably driving market growth. The market growth is notably propelled by the increasing adoption of technologically advanced mobile devices. This surge in connected devices globally is a significant driver for the demand for V2X communication systems. Consequently, there has been a notable integration of advanced devices in automobiles. These advancements, characterized by improved user interfaces and the proliferation of high-speed processing mobile devices like smartphones and tablets, have led to the widespread use of V2X communication through mobile apps worldwide. Currently, V2X communication systems serve various purposes, including obtaining real-time information such as weather forecasts, directions to nearby locations, and traffic updates. These GPS-based applications are built on digital maps to provide accurate location information to end-users.

Industries such as transportation and logistics, retail (especially e-commerce), food and beverages, and manufacturing heavily rely on technology to enhance vehicle efficiency and reduce fuel costs in the transportation sector. The adoption of V2X communication systems in transportation has notably contributed to reducing fuel consumption by facilitating users to find the shortest routes to their destinations.

Significant Market Trends

Integration of IoT powered by AI technology in automobiles is the key trend in the market. The development of connected vehicles will support the development of IoT. IoT integration is necessary for connected vehicles as automotive AI would require inputs from multiple physical devices to perform its actions effectively. For instance, autonomous vehicles would require advanced global navigation satellite systems (GNSS) and advanced sensing capabilities for effective functioning.

Autonomous AI would require data analytics and sophisticated high-speed guiding features to support the self-drive function. This will encourage vehicle manufacturers to partner with V2X communication system companies to develop technological building blocks. Connected vehicles will benefit from the development of IoT networks, as most drivers would prefer to be connected with their smartphones, smart homes, and other digital appliances. Thus, the increasing use of AI and IoT in connected vehicles will boost the adoption of V2X communication systems which will boost the growth of the global market during the forecast period.

Major Market Challenge

Data privacy and security concerns is the major challenge impeding market growth. This is because these devices are interconnected to the Internet and depend on the use of private and public networks. In many countries, network security in high-security zones is assumed to be a threat to national security. This is because these network areas may be exposed to terrorist attacks. Increased data sharing over networks has given rise to cybersecurity and data breach issues in the use of V2X communication system networks.

Since present vehicles use an increased number of electronic control units (ECUs) and support connectivity, the threat of security breaches is high. Cases have been recorded when intruders electronically hacked into the operations of connected vehicles. Autonomous cars can be a potential target for hackers as their systems, including V2X communication, are controlled by machine intelligence and sensors, which use the Internet. Therefore, the threat of hacking into such network systems is prominent and might hamper the growth of the market during the forecast period.

Key Market Customer Landscape

The market forecasting report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their market growth and forecasting strategies.

Market Customer Landscape

Key Companies & Market Insights

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Cohda Wireless Pty. Ltd. - The company offers vehicle-to-everything (V2X) communication systems such as DSRC-V2X and C-V2X for connected vehicles as its key offerings. The company provides connected vehicle solutions that enable vehicles to connect with other vehicles and with smart city and mining infrastructure.

The research report also includes detailed analyses of the competitive landscape of the market and information about 20 market companies, including:

• Aptiv Plc
• Autotalks Ltd.
• BMW AG
• Capgemini Service SAS
• Cisco Systems Inc.
• Cohda Wireless Pty. Ltd.
• Continental AG
• DENSO Corp.
• General Motors Co.
• Huawei Technologies Co. Ltd.
• Infineon Technologies AG
• Kapsch TrafficCom AG
• Lear Corp.
• Neusoft Corp.
• NXP Semiconductors NV
• Qualcomm Inc.
• Robert Bosch GmbH
• Samsung Electronics Co. Ltd.
• STMicroelectronics International N.V.
• Unex Technology Corp.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

Market Segmentation 

The market share growth of the cellular segment will be significant during the forecast period. A unified connectivity platform called Cellular Vehicle-to-Everything (C-V2X) was created to enable low-latency V2V, V2I, and V2P communication. C-V2X, which offers 360-degree non-line-of-sight awareness and a better level of predictability for improved road safety and autonomous driving. Real-time route assistance to avoid traffic jams, altering vehicle dynamics for the best speed with less braking and idling for improved fuel efficiency, and personal mobility services for more travel possibilities are a few examples of its advantages.

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The cellular segment was valued at USD 4.05 billion in 2018. To communicate with vehicles, pedestrians, and wayside traffic control devices like traffic lights, cellular V2X uses 4G LTE or 5G mobile cellular communication that is 3GPP standardized. The ability to connect vehicles to one another and to infrastructure will be made possible by 5G mobile networks. The growing infrastructure of 5G in both developed and developing nations is expected to drive the growth of the C-V2X segment during the forecast period.

By Region

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APAC is estimated to contribute 31% to the growth of the global market during the forecast period. Technavio’s analysts have elaborately explained the regional trends and drivers that shape the market during the forecast period.

Another region offering significant growth opportunities to companies is Europe. Europe is one of the most developed automotive markets and holds high potential for the adoption of advanced features in automobiles. Europe has already made several strides in connected car technologies, and the expanding value chain participants include telematics service providers, telecommunications operators, telecom hardware providers, and mobile device manufacturers. Europe is positioned strongly in terms of smart mobility and developed information communication technology infrastructure. These factors drive the growth of the market in the region. In addition, the adoption of autonomous vehicles in countries such as Germany, Italy, Sweden, Belgium, the Netherlands, and Spain is very high. Moreover, automotive manufacturers in Europe are offering advanced features, which will increase the need for a highly efficient vehicle communication system, thereby augmenting the growth of the market in Europe during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD Billion" for the period 2024-2028, as well as historical data from 2018 - 2022 for the following segments.

• Connectivity Outlook 
  • Cellular
  • DSRC
• Vehicle Type Outlook 
  • Passenger
  • Commercial
• Region Outlook 
  • Europe
    • The U.K.
    • Germany
    • France
    • Rest of Europe
  • North America
    • The U.S.
    • Canada
  • APAC
    • China
    • India
  • South America
    • Brazil
    • Argentina
  • Middle East & Africa
    • Saudi Arabia
    • South Africa
    • Rest of the Middle East & Africa

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Market Analyst Overview

The market is witnessing rapid growth driven by increasing demand for parking spaces, energy savings, and enhanced traffic efficiency. With rising autonomous vehicle manufacturing activities, there's a surge in the adoption of advanced connected car technologies and Advanced Driving Assistance Systems (ADAS) to mitigate road traffic accidents. Integration of cameras and data recorders enables predictive vehicle maintenance and automotive performance enhancement, while Vehicle-to-Vehicle (V2V) technology facilitates collision avoidance. Key components like SLS37 V2X hardware security module (HSM) and Automotive Vehicle-to-Everything (V2X) software ensure secure communication within the V2X technology framework, meeting fundamental standards like SAE JS2735. Operating systems drive the performance of hardware components in high-traffic environments, optimizing data processing for efficient V2X communication solutions.

The market is experiencing rapid growth as it addresses critical challenges such as fatalities, non-fatal injuries, and disabilities by leveraging advanced communication systems. With a focus on enhancing road safety, V2X technology enables the exchange of vehicular data between vehicles and infrastructure, benefiting traffic operators and governments. The European Union (EU) is a key market driving adoption, with initiatives promoting dedicated short-range communication systems and DSRC-based V2X technology. Automakers and OEMs are integrating V2X capabilities into passenger vehicles and electric vehicles, facilitating features like cooperative forward collision warning and smart parking.

This technology leverages GPS-based location services and weather information to support intelligent transport systems and ensure sustainable mobility solutions. Additionally, the market is witnessing advancements in anti-locking braking systems (ABS) and combined braking systems (CBS) to enhance vehicle safety through vehicle-to-vehicle technology and connected vehicle technologies. The development of the C-v2X Software Development Kit and dual-mode V2X systems further underscores the commitment to enabling cooperative intelligent transport systems while addressing security concerns with measures against network-attacking gateways in the Internet of Things (IoT) landscape.

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What are the Key Data Covered in this Market Research and Growth Report?

• CAGR of the market report during the forecast period
• Detailed information of market analysis and report on factors that will drive the growth of the market between 2024 and 2028
• Precise estimation of the size of the market and its contribution in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the market across Europe, North America, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive analysis of factors that will challenge the growth of market companies

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