Automotive V2X Market Size, Share, and Trends 2024 to 2034

Automotive V2X Market Size and Forecast 2024 to 2034

The global automotive V2X market size accounted for USD 1.91 billion in 2024 and is expected to be worth around USD 80.49 billion by 2034, at a CAGR of 45.4% from 2024 to 2034. The growth of automotive V2X market is driven by increasing demand for safety features in an automobile along with better traffic management system.

Automotive V2X Market Key Takeaways

• Asia Pacific led the global market with the highest market share of 42% in 2023.
• By Communication Type, the Vehicle-To-Vehicle (V2V)segment registered the maximum market share in 2023.
• By Vehicle Type, the passenger cars segment recorded more than 75% of revenue share in 2023.

Asia Pacific Automotive V2X Market Size and Growth 2024 to 2034

The Asia Pacific automotive V2X market size was estimated at USD 550 million in 2023 and is predicted to be worth around USD 33,810 million by 2034, at a CAGR of 45.6% from 2024 to 2034.

Asia Pacific led the automotive V2X market in 2023 with 42% market share and the region alongside is observed to sustain the position during the forecast period. The overall expasion of the automotive industry along with the presence of major automotive manufacturers in the region acts as largest contributing factors to the market’s growth. The rising penetration of advanced technology, especially for sensors, cameras and wireless communications act as driver for the market growth. Countries that are emerging focus on the adoption of technologies such as India, China and Japan create major contribution to the market. The rising number of internet users in these countries are seen to promote the expansion of the automotive V2X market with the rising demand for connected cars.

Similarly, European countries have also imposed stringent emission as well as safety norms. As per the European Environment Agency, vehicle emission is still responsible to a great extent for the greenhouse gas emission in the region. Thus, the regulatory bodies have mandated the implementation of safety features in a vehicle such as blind-spot detection and adaptive cruise control that uses V2X communication, thereby propels the market growth in the region. In addition, the region registered prominent growth in battery-powered vehicles that again influence the V2X communication market growth positively over the coming years. Battery-powered or electric vehicles empower automotive manufacturers to implement ACC, smart parking, sensors, and other advanced technologies.

Automotive V2X Market Growth Factors

The automotive industry has witnessed significant momentum and expected to grow substantially over the coming years. Integration of various safety features and communication technologies in an automobile has enhanced the convenience aspect of a vehicle. In addition, prominent demand of consumers for these advanced features act as a catalyst to the market growth.

Driverless cars and autonomous vehicles are a concept and under their research phase, further their commercialization is no sooner. Meanwhile, Vehicle to Everything (V2X) communication technology helps in achieving the driverless mobility. A definite regulation for the implementation of V2X technology expected to further boost the demand for V2X technology in the coming years. However, threat to security of the vehicle such as hacking and manipulation may hamper the market growth. The V2X technology mainly refers to the communication between vehicles and thus security of data communication is a critical aspect.

Market Scope

Communication Type Insights

Vehicle-to-vehicle (V2V) projected to dominate the global automotive V2X market throughout assessment period. Increasing safety regulations have spur the adoption of various types of communication technologies in a vehicle such as Adaptive Cruise Control (ACC), driver assistance system, lane change assistance, blind spot detection, and many more. This expected to significantly drive the demand for V2V communication.

Besides this, incorporation of Vehicle-To-Network (V2N) and Vehicle-To-Infrastructure (V2I) would facilitate to overcome from traffic congestion, emission, and other types of problems caused due to traffic. This will also promote some convenient facilities such as automated toll payment and e-parking. The aforementioned factors anticipated to boost the market growth of V2N and V2I in the near future.

Vehicle Type Insights

Based on vehicle type, passenger cars accounted for the largest market value share of nearly 75% in the year 2023 and analyzed to continue its dominance throughout assessment period. High demand of passenger cars for convenient mode of transportation has significantly driven the growth of the segment.

However, increasing demand for commercial vehicles due to boom in the commercial sector flourishes the growth of commercial vehicles in the near future. Subsequently, the commercial vehicle segment expected to register a rapid growth throughout assessment period. OICA has also stated that the percent increase in the sale of commercial vehicles was nearly 6% between 2015 and 2016. Furthermore, drastic changes in the infrastructure would propel the growth of construction sector, thereby fuel the demand for commercial vehicles in the coming years with a rate of nearly 30%.

Automotive V2X Market Companies

• Continental AG
• Delphi Automotive LLP
• NXP Semiconductors
• TomTom International B.V.
• Qualcomm, Inc.
• Robert Bosch GmbH
• HARMAN International
• Cisco Systems, Inc.
• Mobileye
• Infineon Technologies AG

Key Companies Share Insights

The global automotive V2X market is dominated by the presence of major electronic component manufacturers. These players have strong global presence, diversified product portfolio, and are significantly involved in various strategic initiatives to retain their market position. In addition, the market experience high competition due to rapid change in the consumer preference and significant investment in research & development by market players. The market players are also involved in partnership, collaboration, and merger & acquisition strategies to grab maximum market share in the coming years. For example, in October 2016, a subsidiary company of SAIC Motors, SAIC USA, has signed an agreement with Savari Inc. Under this agreement, the SAIC USA has agreed to manufacture and distribute the V2X solutions of Savari Inc. in China and other Asian countries.

Segments Covered in the Report

By Communication Type

• Vehicle-To-Infrastructure (V2I)
• Vehicle-To-Grid (V2G)
• Vehicle-To-Vehicle (V2V)
• Vehicle-To-Home (V2H)
• Vehicle-To-Pedestrian (V2P)
• Vehicle-To-Network (V2N)

By Vehicle Type

• Commercial Vehicles (CV)
• Passenger Cars

By Connectivity Type

• Cellular Connectivity
• DSRC

By Regional Outlook

• North America
  • U.S.
  • Canada
• Europe
  • U.K.
  • Germany
  • France
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
• Rest of the World