Automotive Vehicle to Everything (V2X) Market Size & Share, by Connectivity (Dedicated Short-Range Communications (DSRC), Cellular); Components {Vehicle to Infrastructure(V2I), Vehicle to Vehicle (V2V)}; Propulsion Type {Internal Combustion Engines (ICEs), Electric Vehicles}; Unit (On-Board, Roadside) - Global Supply & Demand Analysis, Growth Forecasts, Statistics Report 2023-2033

  • Report ID: 4458
  • Published Date: Feb 24, 2023
  • Report Format: PDF, PPT

Global Market Size, Forecast, and Trend Highlights Over 2023-2033

Automotive V2X Market size is estimated to surpass USD 20 billion by the end of 2033, growing at a CAGR of 39% during the forecast period, i.e., 2023-2033. In the year 2022, the industry size of automotive V2X was over USD 3 billion. The growth of the market can primarily be attributed to the growing awareness of automotive V2X, along with rising concern over the increasing incidence of road traffic injuries and crashes worldwide. For instance, according to the Global Status Report on Road Safety 2018, published by the World Health Organization (WHO), more than 1 million deaths occur each year owing to road traffic crashes worldwide.

V2X communication system shares information, such as speed, with other entities around the vehicle. This information travels from the vehicle sensors and other sources through high-bandwidth, high-reliability links, allowing it to communicate with other vehicles, infrastructure such as traffic lights, parking spaces, and smartphone-tossing pedestrians. The technology enhances the driver’s awareness of potential dangers and aids in reducing road accident fatalities, the severity of injuries, and collision, with other vehicles. With the recent advancements in V2X technology as well as increasing penetration of vehicles, the demand for automotive V2X is on the rise amongst vehicle users, which in turn, is expected to create massive revenue generation opportunities for the key players operating in the global automotive V2Xmarket during the forecast period. According to the data released by the Federation of Automobile Dealers Associations (FADA) in May 2022, there was a surge in total vehicle retail in India by 207%.

Congested highways in Europe cost approximately USD 109 billion per year. The possible financial funds of a more secure and effective transportation network are immense. In accordance with the US DOT, automotive V2X could save approximately USD 871 billion in the United States each year. Closed roads induce distribution network delays, raise the difficulty and expense of doing business, and reduce efficiency. Congestion-causing aspects can be discovered beforehand using these advanced technologies, and vehicles can respond accordingly. By incorporating simulators with real-time data, streamlined routes can be recognized to make vehicles quicker and more effective. These variables are linked to the increasing consumption of vehicle-to-everything connectivity in the automotive sector.


Automotive V2X Market
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Automotive V2X Sector: Growth Drivers and Challenges

Growth Drivers

  • Growing Connectivity in Vehicles – V2X being a vehicular communication system supports the transfer of information from a connected vehicle to moving parts of the traffic system that can affect the vehicle. With the surge in vehicle connectivity, the global automotive V2X market is also expected to escalate in the forecasted period. It is projected that there will be around 80 million new connected cars in the United States with more than 25% of new vehicles having 5G by 2025.
  • Rapid expansion in urban growth & industrialization - Owing to the rapid economic progress of several developed economies around the world, urban development has expanded. Furthermore, in recent decades, the V2X-based intelligent transport system (ITS) has evolved, which is regarded as the critical empowering technology for improving traffic safety, traffic effectiveness, and driving dynamics. Furthermore, macroeconomic indicators including a boost in disposable income, an upsurge in workforce participation, and a boost in overall GDP are captivating advancements such as smart buildings with smart transportation infrastructure facilities, which are predicted to accelerate the expansion of the global automotive V2X market. As per the data reported by the World Bank, nearly 7 out of 10 people are expected to live in cities by the end of 2050.
  • Rising Pedestrian Fatality Risk – According to the World Health Organization, the death risk grew for pedestrians hit by car fronts nearly 4.5 times, in the year 2018, worldwide.
  • Upsurge in the Number of Autonomous Vehicles – it is estimated that there will be more than 30 million autonomous vehicles on the road by 2040 across the globe.
  • Increasing Installation Advanced Driver Assistance System (ADAS) - it was observed that ADAS features were installed in about 10% of the more than 1 billion cars worldwide in 2020.
  • Rising Penetration of Global Positioning Systems (GPS)- more than 74 million cars have a GPS system across the globe, and in the next few years over 97% of cars will have them.

Challenges

  • Lack of Infrastructure
  • Vulnerability to Cyberattacks
  • High Cost of Infrastructure - High costs for constructing test tracks, precise vehicles, and testing facilities are expected to create obstacles to the market expansion. Furthermore, implementing a high volume of traffic with vast numbers of scenarios is both difficult and expensive. For instance, testing of applications including Abnormal Vehicle Warning (AVW), Control Loss Warning (CLW), and Hazardous Location Warning (HLN).

Automotive V2X Market: Key Insights

Base Year

2022

Forecast Year

2023-2033

CAGR

~39%

Base Year Market Size (2022)

 ~ USD 3 Billion

Forecast Year Market Size (2033)

~ USD 20 Billion

Regional Scope

  • North America (U.S., and Canada)
  • Latin America (Mexico, Argentina, Rest of Latin America)
  • Asia-Pacific (Japan, China, India, Indonesia, Malaysia, Australia, Rest of Asia-Pacific)
  • Europe (U.K., Germany, France, Italy, Spain, Russia, NORDIC, Rest of Europe)
  • Middle East and Africa (Israel, GCC North Africa, South Africa, Rest of the Middle East and Africa)
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Automotive V2X Segmentation

Propulsion Type {Internal Combustion Engines (ICEs), Electric Vehicles}

The global automotive V2X market is segmented and analyzed for demand and supply by propulsion type into internal combustion engines (ICEs), and electric vehicles. Amongst these segments, the electric vehicles segment is anticipated to garner the largest revenue by the end of 2033, backed by the growing demand for electric vehicles, along with the surge in the sale of electric vehicles worldwide. For instance, it was estimated that the global sales of electric cars were around 2 million in the first quarter of 2022. Moreover, authorities are providing appealing subsidies and regulations to stimulate the sale of EVs. It offers consumers substantial advantages, including lower retail prices, no or minimal registration fees, and free EV charging facilities at various charging points. Furthermore, numerous governments around the globe excluded road tax, import costs, and buying tax based on various incentives. These incentives have also encouraged vehicle manufacturers to increase their EV manufacturing. Furthermore, the government has made expenditures in infrastructure development and implemented favorable policies. For instance, the US government plans to spend USD 287 billion on highway development over the next five years. Thus, these factors are expected to drive this segment’s growth in the market.

Components {Vehicle to Infrastructure(V2I), Vehicle to Vehicle (V2V)}

The global automotive V2X market is segmented and analyzed for demand and supply by components into vehicle to infrastructure(V2I), vehicle to vehicle (V2V), and others. Out of these vehicle-to-vehicle segment is anticipated to garner the largest revenue by the end of 2033. One of the primary reasons for the expansion of the vehicle-to-vehicle segment is the increasing issue of security and protection among OEMs, end users, and authorities. These V2V signals, based on the National Highway Traffic Safety Administration (NHTSA), have a spectrum of more than 300m and can predict threats occluded by traffic, terrain, or climate. V2V communication stretches and improves on existing collision mitigation systems that identify collision dangers using radars and cameras. Such innovations aid in the reduction of traffic rule violations, resulting in a decrease in road traffic accidents. 

Our in-depth analysis of the global market includes the following segments:

              By Connectivity

  • Dedicated Short-Range Communications (DSRC)
  • Cellular

               By Component

  • Vehicle to Infrastructure(V2I)
  • Vehicle to Vehicle (V2V)
  • Vehicle to Cloud (V2C)
  • Vehicle to Pedestrian (V2P)
  • Vehicle to Device (V2D)
  • Vehicle to Network (V2N)
  • Vehicle to Grid (V2G)

                By Propulsion Type

  • Internal Combustion Engines (ICEs)
  • Electric Vehicles

                 By Unit

  • On-Board
  • Roadside

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Automotive V2X Industry - Regional Synopsis

APAC Market Statistics

The Asia Pacific automotive V2X market, amongst the market in all the other regions, is projected to hold the largest market share by the end of 2033 backed by the presence of a strong manufacturing network in the region, the growing sale of vehicles, as well as rising awareness amongst the populace about the benefits of V2X. It was found that China sold over 25 million vehicles in 2020, which included nearly 19,994,000 cars. The important stakeholders in this region operating on automotive vehicle-to-everything advancement are wireless communications technology suppliers and automotive OEMs. In regard to technological advancement, Japan and China are expected to dominate the Asia Pacific region. In Chongqing, for instance, a vehicle-to-everything pilot zone within 20 kilometers of Yongchuan district is evaluating level 4 automated vehicles, which can drive almost entirely autonomously.

North American Market Forecast

On the other hand, North America is expected to experience substantial sales growth owing to the increased implementation of vehicle-to-everything technology by big manufacturers in this region. For instance, Honda is utilizing the high-density V2X surroundings of its type, the US State Route 33 Smart Mobility Corridor, in collaboration with the Ohio Department of Transportation. Correspondingly, Audi declared a pilot program for cellular vehicle-to-everything implementations beginning in Q3 2020 in collaboration with the Virginia Department of Transportation. Furthermore, there has been an increasing trend of connected motorcycle, that is expected to drive the market’s growth in the region.

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Companies Dominating the Automotive V2X Landscape

top-features-companies
    • Ford Motor Company
      • Company Overview
      • Business Strategy
      • Key Product Offerings
      • Financial Performance
      • Key Performance Indicators
      • Risk Analysis
      • Recent Development
      • Regional Presence
      • SWOT Analysis
    • Hyundai Motor Company
    • Mercedes-Benz Group AG
    • General Motors
    • Volkswagen AG
    • Bayerische Motoren Werke Aktiengesellschaft
    • FCA US LLC
    • Nissan Motor Co., Ltd.

In-the-news

In The News

  • Mercedes-Benz Group AG – collaborated with Qualcomm to power the next Mercedes vehicles with snapdragon digital chassis solutions.

  • Honda Motor Co., Ltd. – associated with V2X Suisse to advance vehicle-to-grid charging technology in Switzerland.

Author Credits:  Harshita Srivastava, Saima Khursheed


  • Report ID: 4458
  • Published Date: Feb 24, 2023
  • Report Format: PDF, PPT

Frequently Asked Questions (FAQ)

Increasing demand of vehicles along with rising number of road accidents as well as pedestrian fatalities are some of the major factors anticipated to drive the growth of the market.

The market is anticipated to attain a CAGR of 39% over the forecast period, i.e., 2023-2033.

Rising vulnerability to cyberattacks with rising connectivity as well as lack of infrastructure are some of the factors estimated to hamper the market growth.

The market in Asia Pacific is projected to hold the largest market share by the end of 2033 and provide more business opportunities in the future.

The major players in the market are Ford Motor Company, Hyundai Motor Company, Mercedes-Benz Group AG, General Motors, Volkswagen AG, Bayerische Motoren Werke Aktiengesellschaft, FCA US LLC, Nissan Motor Co., Ltd.

The company profiles are selected based on the revenues generated from the product segment, geographical presence of the company which determine the revenue generating capacity as well as the new products being launched into the market by the company.

The market is segmented by connectivity, component, propulsion type, unit, and by region.

The electric vehicle segment is anticipated to garner the largest market size by the end of 2033 and display significant growth opportunities.
Automotive Vehicle to Everything Market Report Scope
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