Automotive V2X Market Insights

Automotive V2X Market Insights

“The global automotive V2X market size was US$ 0.5 billion in 2024 and is likely to grow at an impressive CAGR of 25.1% in the long run to reach US$ 2.3 billion in 2031.”

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Introduction

V2X stands for vehicle-to-everything, this communication technology enables cars to communicate with various outside sources, such as other cars, pedestrians, infrastructure (such as traffic lights), and even the cloud. This system aims to enhance driving enjoyment, safety, and traffic efficiency by enabling real-time data sharing and interaction among various components of the transportation ecosystem. With the advent of 5G and the continued expansion of connected car technology. As more cars, roads, and devices become connected, V2X is expected to pave the way for fully autonomous transportation systems, smarter cities, and more sustainable transportation networks. The gradual rollout of 5G networks and ongoing efforts to standardize V2X systems will help accelerate the adoption of this game-changing technology.

DSRC is a Dedicated Short-Range Communications (DSRC), wireless technology designed for low-latency, secure, and reliable V2X communication. It operates on the 5.9 GHz frequency band and uses an IEEE 802.11p Wi-Fi-based network for direct communication between vehicles and infrastructure.

C-V2X is a Cellular Vehicle-to-Everything, V2X communication technology that operates on cellular networks (4G LTE and 5G) to enable vehicles to communicate with their surroundings.

Segments' Analysis

Technology Insights

“DSRC currently holds the dominant share of the market, whereas C-V2X is likely to experience the fastest growth during the forecast period.”

The automotive V2X market is segmented into DSRC and C-V2X.  DSRC (Dedicated Short-Range Communications) has been dominant in Europe and was also widely used in the USA by 2023. However, from 2024 onward, C-V2X (Cellular V2X) is expected to take over in the USA due to the FCC agreement in April 2023, which approved the deployment of C-V2X technology for connected vehicles. Europe continues to rely on DSRC, but the shift towards C-V2X is gaining traction globally, especially with advancements in 5G networks. C-V2X is rapidly gaining popularity and widespread adoption due to its better range, higher bandwidth, lower latency, cost efficiency, 5G compatibility, and strong support from the automotive and telecom industries.

Communication Insights

“Integrated V2X is likely to remain the dominant communication type of the market over the next six years.”

The market is segmented into V2V & V2I and integrated. V2V stands for vehicle-to-vehicle communication. It is a key component of V2X that enables direct communication between vehicles to enhance road safety and traffic efficiency. In V2V communication, vehicles share information about their location, speed, direction, and other relevant real-time data to avoid accidents and make driving safer and more efficient. The integrated communication type includes Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), and Vehicle-to-Network (V2N) communication types.

Integrated V2X (V2V, V2I, V2P, and V2N) provides more comprehensive, real-time, and future-proof solutions. It ensures broader connectivity, enhances road safety, supports autonomous vehicles, optimizes traffic flow, and leverages 5G for real-time data exchange.

Regional Insights

“Europe is the largest market for automotive V2X, whereas Asia-Pacific is expected to experience the fastest growth during the forecast period.”

In terms of region, the market is segmented into North America, Europe, Asia-Pacific, and the Rest of the World. Europe’s strict safety regulations, early DSRC adoption, strong smart city investments, leadership in automotive innovation, and growing 5G-based C-V2X deployment are key factors driving its dominance in the automotive V2X market. The presence of key automakers, such as Volkswagen, BMW, Mercedes-Benz, Audi, and Volvo, are pioneers in V2X adoption; partnerships with telecom and tech firms push C-V2X and 5G-based deployments in the region.

Asia-Pacific is likely to experience rapid growth in the automotive V2X market owing to key factors, such as strong government initiatives & regulations; the largest automotive market with China, India, and Japan being the leading vehicle producers; increasing demand for connected and autonomous vehicles; rising investment in smart city and intelligent transportation infrastructure; and increasing consumer focus on safety and advanced driving features.

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Key Players

The market is moderately concentrated with the presence of over 15 players across the region. The automotive V2X market involves a highly complex supply chain and requires seamless integration between automotive manufacturers, telecom providers, semiconductor suppliers, infrastructure developers, and regulatory bodies.

 The following are the key players in the automotive V2X market:

Here is the list of the Top Players (Based on Dominance)

• Harman International (A Samsung Company)
• LG Electronic Vehicle Solution
• NXP Semiconductor
• JOYNEXT
• Robert Bosch GmbH
• DENSO Corporation
• Continental AG

Note: The above list does not necessarily include all the top players in the market.

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Recent Developments of Automotive V2X Market

Recent Market JVs and Acquisitions:

A few strategic alliances, including M&As, have been performed over the past few years:

• In January 2024, Danlaw Inc. acquired Cohda Wireless to expand its global reach and enhance connected vehicle safety and smart city solutions. The acquisition significantly strengthens the global footprint of both companies.

Report Features

This report provides market intelligence most comprehensively. The report structure has been kept so that it offers maximum business value. It provides critical insights into market dynamics and will enable strategic decision-making for existing market players as well as those willing to enter the market. The following are the key features of the report:

• Market structure: Overview, industry life cycle analysis, supply chain analysis.
• Market environment analysis: Growth drivers and constraints, Porter’s five forces analysis, SWOT analysis.
• Market trend and forecast analysis.
• Market segment trend and forecast.
• Competitive landscape and dynamics: Market share, Service portfolio, New Product Launches, etc.
• COVID-19 impact and its recovery curve.
• Attractive market segments and associated growth opportunities.
• Emerging trends.
• Strategic growth opportunities for the existing and new players.
• Key success factors.

Market Segmentation

The global automotive V2X market is segmented into the following categories:

By Technology Type

• DSRC
• C-V2X

By Communication Type

• V2V & V2I
• Integrated

By Region

• North America
• Europe
• Asia-Pacific
• Rest of the World 

Research Methodology

This strategic assessment report from Stratview Research provides a comprehensive analysis that reflects today’s automotive V2X market realities and future market possibilities for the forecast period. The report segments and analyzes the market in the most detailed manner in order to provide a panoramic view of the market. The vital data/information provided in the report can play a crucial role for market participants and investors in identifying the low-hanging fruits available in the market and formulating growth strategies to expedite their growth process.

This report offers high-quality insights and is the outcome of a detailed research methodology comprising extensive secondary research, rigorous primary interviews with industry stakeholders, and validation and triangulation with Stratview Research’s internal database and statistical tools. More than 1,000 authenticated secondary sources, such as company annual reports, fact books, press releases, journals, investor presentations, white papers, patents, and articles, have been leveraged to gather the data. We conducted more than 10 detailed primary interviews with market players across the value chain in all four regions and industry experts to obtain both qualitative and quantitative insights.

Customization Options

With this detailed report, Stratview Research offers one of the following free customization options to our respectable clients:

Company Profiling

• Detailed profiling of additional market players (up to three players)
• SWOT analysis of key players (up to three players)

Competitive Benchmarking

• Benchmarking of key players on the following parameters: Service portfolio, geographical reach, regional presence, and strategic alliances

Custom Research: Stratview Research offers custom research services across industries. In case of any custom research requirement related to market assessment, competitive benchmarking, sourcing and procurement, target screening, and others, please send your inquiry to sales@stratviewresearch.com