V2X communication enables vehicles to communicate with other vehicles and roadway infrastructure using dedicated short range communications technology. V2X communication helps in improving road safety by enabling applications such as forward collision warning, blind spot warning, lane change warning, intersection movement assist and others. The growing demand for connected and autonomous vehicles to support vehicle-to-vehicle and vehicle-to-infrastructure communication is estimated to drive the growth of the V2X communication market. The global V2X Communication Market is estimated to be valued at US$ 3.63Bn in 2023 and is expected to exhibit a CAGR of 39. % over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market key trends
Increasing adoption of connected and autonomous vehicles is one of the key trends driving the growth of the V2X communication market. As connected and autonomous vehicles need real-time communication with other vehicles and road infrastructure to support applications such as autonomous driving, remote driving, extending sensor capability and cooperative driving. This is increasing the demand for V2X communication technology from automotive OEMs. According to International Transport Forum, global sales of connected and autonomous vehicles are expected to grow from around 3 million in 2020 to over 66 million in 2035 and V2X communication plays a major role in enabling connectivity in such vehicles. Rising focus on improving road safety is another factor propelling the V2X communication market value as V2X supports various safety applications for accident prevention.
Segment Analysis
The global V2X Communication market is dominated by vehicle-to-infrastructure (V2I) communication segment, which held around 60% market share in 2024. V2I communication allows vehicles to communicate with nearby infrastructures such as traffic lights, toll booths, and networks to provide real-time traffic, safety, and navigation information. This segment is dominating owing to growing focus of automakers and governments on connected infrastructure technology to reduce traffic congestion and enhance road safety.
Key Takeaways
The global V2X Communication market is expected to witness high growth at a CAGR of 39% during the forecast period of 2023 to 2030. The market is projected to reach a size of US$ 3.63Bn by 2024.
Regional analysis: North America held the largest share of the overall V2X communication market in 2024 owing to the huge investments by the governments to develop connected transportation infrastructure and high vehicle adoption rate. The region is expected to continue its dominance during the forecast period supported by growing 5G deployment and increasing partnerships between automakers and communication technology providers to enhance vehicle connectivity.
Key players analysis: 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. Delphi Automotive Plc holds the leading market share with its strong product portfolio and global presence across major automotive markets.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
