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.
Growth Drivers
Challenges
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Base Year |
2022 |
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Forecast Year |
2023-2033 |
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CAGR |
~39% |
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Base Year Market Size (2022) |
~ USD 3 Billion |
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Forecast Year Market Size (2033) |
~ USD 20 Billion |
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Regional Scope |
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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:
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By Connectivity |
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By Component |
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By Propulsion Type |
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By Unit |
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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.
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
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