Automotive V2X Market By Offering (Hardware, Software, Services), By Application (V2V, V2G, V2I, V2P), By Connectivity (Cellular, DSRC), and by Region; Global Insights & Forecast (2024 – 2030)

As per Intent Market Research, the Automotive V2X Market was valued at USD 0.4 billion in 2023-e and will surpass USD 6.8 billion by 2030; growing at a CAGR of 49.9% during 2024 - 2030.

The global Automotive Vehicle-to-Everything (V2X) market is poised for significant growth from 2024 to 2030, driven by advancements in connected car technologies, stringent government regulations for vehicle safety, and increasing demand for intelligent transport systems. V2X technology allows vehicles to communicate with each other and with surrounding infrastructure, pedestrians, and the cloud to enhance safety, efficiency, and driving comfort.

Hardware segment is largest owing to V2X infrastructure demand

The hardware segment is anticipated to dominate the global Automotive V2X market during the forecast period. Hardware components such as sensors, antennas, communication modules, and on-board units are crucial for establishing a reliable V2X communication system. These components are responsible for collecting data, transmitting it, and enabling real-time interaction between vehicles and their surroundings.

Within the hardware segment, On-board Units (OBUs) are expected to be the largest subsegment, driven by the rapid deployment of V2X-enabled vehicles. These units serve as the primary interface between vehicles and external communication networks. The integration of OBUs is becoming more prevalent in advanced vehicles as part of a broader push toward connected and autonomous vehicles (CAVs). The growing demand for intelligent transport infrastructure and smart city projects will further propel the expansion of the hardware segment, as governments and municipalities invest in V2X infrastructure to improve traffic management and road safety.

Software segment is fastest growing owing to advancements in data analytics

While the hardware segment is dominant, the software segment is projected to be the fastest-growing area of the Automotive V2X market. V2X communication relies on advanced software solutions for data analytics, real-time decision-making, and the seamless operation of connected systems. As vehicles generate vast amounts of data, sophisticated software platforms are needed to process and analyze this data for optimal functioning.

The data management software subsegment is forecasted to grow at the highest rate within this segment. This software ensures the proper collection, storage, and interpretation of data from various V2X communication channels, enabling vehicles to react quickly to real-time conditions such as traffic congestion, accidents, or hazardous weather. The continuous evolution of artificial intelligence (AI) and machine learning (ML) algorithms is also expected to drive the growth of the software subsegment, enhancing the predictive and self-learning capabilities of V2X systems.

Vehicle Type segment is largest owing to passenger vehicle adoption

In terms of vehicle type, the passenger vehicle segment is set to be the largest contributor to the Automotive V2X market. The integration of V2X technology in passenger vehicles is increasing at a rapid pace, driven by growing consumer interest in safety features, enhanced connectivity, and autonomous driving capabilities. Carmakers are responding to this demand by equipping their models with V2X-enabled features like real-time hazard warnings, automatic braking, and vehicle-to-infrastructure (V2I) communication for improved traffic management.

This trend is most notable in luxury and premium passenger vehicles, which account for a significant share of the passenger vehicle segment. These vehicles often serve as the testing ground for cutting-edge V2X technologies before they become more widely available in mass-market models. As automakers continue to invest in V2X technology as part of their strategy to develop semi-autonomous and fully autonomous vehicles, the passenger vehicle segment is likely to maintain its lead in the market.

Communication Type segment is fastest growing owing to cellular V2X (C-V2X) technology

The communication type segment is another critical component of the Automotive V2X market. The segment is bifurcated into dedicated short-range communication (DSRC) and cellular vehicle-to-everything (C-V2X) technologies. While both technologies play a vital role, the C-V2X subsegment is expected to grow at the fastest rate during the forecast period.

C-V2X technology leverages existing cellular networks to enable direct communication between vehicles, infrastructure, pedestrians, and the cloud, offering broader coverage and scalability compared to DSRC. With the rollout of 5G networks worldwide, C-V2X is gaining momentum as it offers higher data transfer speeds, lower latency, and the ability to support a more extensive range of connected devices. The integration of C-V2X with autonomous driving technologies is anticipated to accelerate its adoption, particularly in regions with well-established 5G infrastructure.

Application segment is largest owing to safety applications

The safety applications segment is expected to dominate the Automotive V2X market, as safety remains a top priority for automakers, regulators, and consumers. V2X technology plays a crucial role in preventing accidents by enabling vehicles to communicate with each other and their surroundings, alerting drivers to potential hazards and enabling timely interventions.

Within the safety applications segment, collision warning systems are projected to be the largest subsegment. These systems use V2X communication to detect imminent collisions and warn drivers, allowing them to take preventive action. As governments worldwide continue to enforce stringent vehicle safety regulations and mandate the adoption of advanced driver assistance systems (ADAS), the demand for collision warning systems is expected to surge.

Regional Analysis: North America is the largest market for V2X technology

Geographically, North America is expected to hold the largest share of the global Automotive V2X market throughout the forecast period. The region is home to several leading automakers and technology companies that are spearheading the development and deployment of V2X technologies. Furthermore, the U.S. government has been proactive in promoting the adoption of V2X systems through various initiatives, including the National Highway Traffic Safety Administration’s (NHTSA) regulations that encourage the use of V2X for improving road safety.

The presence of robust infrastructure, coupled with early deployment of 5G networks, is expected to fuel the growth of the Automotive V2X market in North America. Additionally, the region’s high adoption rate of connected vehicles and favorable regulatory environment are likely to maintain its position as the largest market for V2X technology in the coming years.

Competitive Landscape: Leading Companies and Market Dynamics

The global Automotive V2X market is characterized by intense competition, with several key players striving to enhance their market share through product innovation, strategic partnerships, and mergers & acquisitions. The top 10 companies leading the market include Qualcomm, NXP Semiconductors, Continental AG, Robert Bosch GmbH, Denso Corporation, Autotalks Ltd., Savari Inc., Infineon Technologies, Harman International, and Cisco Systems. These companies are at the forefront of developing cutting-edge V2X technologies that enhance vehicle connectivity, improve safety, and pave the way for autonomous driving.

The competitive landscape is shaped by a mix of established automotive OEMs, semiconductor manufacturers, and technology firms. Many companies are investing heavily in research and development to integrate V2X capabilities into their product offerings. Collaborations between automakers and technology providers are also common, as the ecosystem required for V2X communication involves a wide range of stakeholders, including telecom operators, software developers, and infrastructure providers.

Report Objectives

The report will help you answer some of the most critical questions in the Automotive V2X Market. A few of them are as follows:

1. What are the key drivers, restraints, opportunities, and challenges influencing the market growth?
2. What are the prevailing technology trends in the Automotive V2X Market?
3. What is the size of the Automotive V2X Market based on segments, sub-segments, and regions?
4. What is the size of different market segments across key regions: North America, Europe, Asia Pacific, Latin America, and Middle East & Africa?
5. What are the market opportunities for stakeholders after analysing key market trends?
6. Who are the leading market players and what are their market share and core competencies?
7. What is the degree of competition in the market and what are the key growth strategies adopted by leading players?
8. What is the competitive landscape of the market, including market share analysis, revenue analysis, and a ranking of key players?

Report Scope: