Vehicle-to-Everything (V2X) Communication System Market by Connectivity, Vehicle Type and Geography - Forecast and Analysis 2023-2027

Vehicle-to-Everything (V2X) Communication System Market Forecast 2023-2027

The Global Vehicle-to-Everything (V2X) Communication System Market is forecast to increase by USD 18.59 billion at a CAGR of 21.8% between 2022 and 2027. The Global Vehicle-to-Everything (V2X) Communication System 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. This market research and growth report also includes an in-depth analysis of drivers, trends, and challenges. Furthermore, the report includes historic market data from 2017 to 2021.

What will be the size of the Vehicle-to-Everything (V2X) Communication System Market During the Forecast Period?

To learn more about this report, Download Report Sample

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.

Get a glance at the market contribution of various segments Request a PDF Sample

The cellular segment was valued at USD 3.54 billion in 2017 and continued to grow until 2021. 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.

Key Regions

For more insights on the market share of various regions Request PDF Sample now!

Europe is estimated to contribute 33% 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. 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.

Market Dynamics 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. Our researchers analyzed the data with 2022 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

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.

Customer Landscape

The 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 growth strategies.

Global Vehicle-to-Everything (V2X) Communication System Market Customer Landscape

Who are the Major Market Companies?

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 report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Cisco Systems Inc.
• 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 NV
• 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 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 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.

Segment Overview

The report forecasts market growth by revenue at global, regional & country levels and provides an analysis of the latest trends and growth opportunities from 2017 to 2027. 

• 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

Vehicle-to-Everything (V2X) Communication System Market Scope
Report Coverage	Details
Page number	175
Base year	2022
Historic period	2017-2021
Forecast period	2023-2027
Growth momentum & CAGR	Accelerate at a CAGR of 21.8%
Market growth 2023-2027	USD 18.59 billion
Market structure	Fragmented
YoY growth 2022-2023(%)	18.08
Regional analysis	Europe, North America, APAC, South America, and Middle East and Africa
Performing market contribution	Europe at 33%
Key countries	US, China, Japan, South Korea, and Germany
Competitive landscape	Leading Companies, Market Positioning of Companies, Competitive Strategies, and Industry Risks
Key companies profiled	Aptiv Plc, Autotalks Ltd., BMW AG, Capgemini Service SAS, Cisco Systems Inc., 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 NV, Unex Technology Corp., and Cohda Wireless Pty. Ltd.
Market dynamics	Parent market analysis, Market growth inducers and obstacles, Fast-growing and slow-growing segment analysis, COVID-19 impact and recovery analysis and future consumer dynamics, and Market condition analysis for the forecast period.
Customization purview	If our market report has not included the data that you are looking for, you can reach out to our analysts and get segments customized.

Request PDF sample

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

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the market growth and forecasting between 2023 and 2027
• Precise estimation of the market and its contribution to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Market growth analysis Europe, North America, APAC, South America, and Middle East and Africa
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Market forecasting of factors that will challenge the growth of the key market companies

We can help! Our analysts can customize this report to meet your requirements. Get in touch