The global automotive V2X market is expected to grow from USD 0.5 billion in 2023 to USD 9.5 billion by 2030 at a CAGR of 51.9%. Government support toward C-V2X technology and improving road infrastructure is expected to support the automotive V2X market. Furthermore, the increasing adoption of V2X-equipped models such as Volkswagen ID 4, Volkswagen Golf, and Mercedes-Benz E-Class significantly impact the growth of the market. Moreover, Government regulations mandating the integration of safety features in vehicles serve as a potent growth driver for the market, compelling manufacturers to adopt these advanced communication systems to enhance road safety and facilitate intelligent transportation networks. Companies operating in the market are focusing on new product development. For instance, in February 2023, Qualcomm Technologies Inc. introduced a new Snapdragon Auto 5G Modem-RF Gen 2 for connected cars.
Market Dynamics:
Driver: Increasing demand for advanced technologies to address vehicle safety concerns
In recent years, the escalating statistics of road accidents and related fatalities have intensified the global emphasis on adopting advanced technologies to address and mitigate safety concerns on the road. In response to this urgent necessity, V2X technology has emerged as a transformative solution with the potential to enhance road safety significantly. V2X facilitates real-time communication between vehicles and among vehicles, surrounding infrastructure, pedestrians, and other road users. This interconnected network enables vehicles to exchange crucial information regarding their positions, speeds, and potential hazards, allowing for proactive hazard detection and collision avoidance. Autonomous vehicles utilize V2V communication to share information about speed, direction, and intentions, thereby enhancing safety in various maneuvers. Continuous communication empowers autonomous vehicles to avoid collisions and optimize routes proactively. V2I interaction provides traffic updates and road conditions, contributing to efficient routing and congestion reduction.
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Opportunity: Increasing adoption of V2V/V2I technology in connected vehicles
As the prevalence of connected vehicles increases on roadways, the integration of Vehicle-to-Infrastructure (V2I) and Vehicle-to-Everything (V2X) technologies has assumed critical significance in enhancing overall traffic management and safety. V2I, or V2I technology, enables vehicles to communicate with essential infrastructure components, such as traffic signals, road signs, and other roadside units. This communication facilitates real-time information exchange, allowing vehicles to receive timely traffic updates, optimize routes, and anticipate potential hazards. Incorporating V2X technology, which extends communication beyond infrastructure to include other vehicles and pedestrians, further augments the capabilities of connected vehicles. This interconnectivity introduces possibilities for advanced safety features, including collision avoidance systems and cooperative adaptive cruise control, significantly diminishing the likelihood of accidents. The advantages extend beyond safety and traffic management; V2I and V2X technologies play a pivotal role in supporting the development and deployment of autonomous vehicles. These technologies establish the necessary communication infrastructure for autonomous cars to interact seamlessly with their surroundings, ensuring their integration into the existing transportation ecosystem. This presents a lucrative market opportunity for automobile manufacturers and technology providers as they actively contribute to developing and implementing V2I and V2X solutions aligned with evolving industry standards and regulatory frameworks. In September 2020, Keysight Technologies (US) collaborated with Qualcomm Technologies, Inc. (US) and SGS (Switzerland) to contribute to the advancement of testing for Cellular Vehicle-to-Everything (C-V2X) technology. The joint effort focuses on developing test cases addressing radio frequency (RF) and radio resource management (RRM) performance verification of devices intended for V2V deployment scenarios. In April 2020, Cohda Wireless introduced its C-V2X Evaluation Kit in a compact, rugged roadside unit (RSU) enclosure for outdoor trials in China. Utilizing the Qualcomm 9150 C-V2X chipset, the MK6C EVK supports V2V, V2I, and V2P applications with high-quality C-V2X software.
Software segment is estimated to be the fastest-growing market during the forecast period.
Automotive Vehicle-to-Everything (V2X) software comprises a set of instructions that command various hardware components to execute specific tasks within the V2X technology framework. The performance of this software plays a pivotal role in determining the overall efficacy of V2X technology, particularly in high-traffic environments where substantial data processing is required. Compliance with fundamental standards, including SAE JS2735, IEEE 802.11p, IEEE 1609.3, and IEEE 1609.4, is essential for V2X software. Compatibility with diverse operating systems, such as Linux, PikeOS, ONX, Android, and ThreadX, enhances the versatility of V2X software. Prominent entities in the automotive V2X market provide software solutions that align with both Dedicated Short-Range Communication (DSRC) and Cellular Vehicle-to-Everything (C-V2X). Notably, Commsignia offers hardware and software components capable of supporting both DSRC and C-V2X, with the flexibility for performance and functionality enhancements through software updates. Altran (part of Capgemini Engineering) provides a V2X solution facilitating safety and non-safety applications for various scenarios, including Vehicle-to-Infrastructure (V2I), Vehicle-to-Vehicle (V2V), Vehicle-to-Pedestrian (V2P), and Vehicle-to-Network (V2N). Qualcomm, offering both hardware and software solutions, presents C-V2X systems through products like Snapdragon Auto 5G Modem, Snapdragon 4G Modem, and C-V2X 9150, providing comprehensive V2X solutions to automakers. Other companies, such as Visteon, Autotalks, Derg, and Commsignia, also contribute software solutions for automotive V2X. All these factors are expected to augment revenues for the software segment of the automotive V2X market during the forecast period.
“Asia Pacific is expected to be the largest market during the forecast period.”
The Asia Pacific region has emerged as a prominent center for automobile production in recent years. The escalating purchasing power of the populace and growing environmental concerns have stimulated the demand for Vehicle-to-Everything (V2X) technology in this region. Notably, South Korea and Japan, leaders in the global electronics industry, are positioned to design V2X solutions with enhanced performance at a competitive cost. China is committed to Cellular Vehicle-to-Everything (C-V2X) technology over Dedicated Short-Range Communication (DSRC). Consequently, the anticipated commercialization of 5G-V2X will drive rapid growth in the Asia Pacific region throughout the forecast period. The Chinese government has undertaken substantial efforts to deploy C-V2X. In August 2023, in collaboration with the China Mobile Research Institute, Huawei Technologies successfully conducted 5G-based V2X testing across diverse locations in China. The positive outcomes of this testing underscore the capability of 5G networks to support standard V2X services effectively. This validation establishes the feasibility of deploying advanced 5G solutions for commercial V2X operations and provides substantial data support for realizing 5G-based V2X services. The Asia Pacific region is home to key players in the automotive V2X market, including Denso Corporation (Japan), Mitsubishi Corporation (Japan), Hitachi Solutions, Ltd. (Japan), Huawei Technologies Co., Ltd. (China), and Hyundai Motor Company (South Korea). The presence of these influential companies is expected to further propel the growth of the automotive V2X market in the Asia Pacific region in the coming years.
Key Market Players
The automotive V2X market is dominated by major players, including Qualcomm Incorporated (US), Autotalks (Israel), Harman International (US), Huawei Technologies Co., LTD. (China), NXP Semiconductors (Netherlands). These companies offer automotive V2X technology and have strong distribution networks at the global level.
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