Global V2I Communication Market Size, Forecast, and Trend Highlights Over 2025-2037
Vehicle-to-Infrastructure Communication Market size was valued at USD 424.3 million in 2024 and is projected to reach USD 25.17 billion by the end of 2037, rising at a CAGR of 37% during the forecast period, i.e., 2025-2037. In 2025, the industry size of V2I communication is estimated at USD 557.2 million.
The global V2I communication market is driven by the hardware input-cost inflation. For instance, by April 2025, the producer price index (PPI) for communication and related equipment increased by 5.7% YoY. The increase is attributed to the rising costs of control units, antennas, and receivers. Moreover, the U.S. capacity utilization for semiconductor and other electronic component manufacturing was estimated at 79.1% in April 2025. In terms of government grant pipelines, the Safe Streets and Roads for All program has funneled USD 3 out of USD 5 billion between 2020 to 2026, supporting pilot V2I deployment leading to the creation of a multi-year pipeline for vendors Additionally, the USDOT’s SMART grants, where stage 1 awards totaled over USD 148 million, have seeded dozens of municipal V2I projects.
The vehicle-to-infrastructure communication market’s supply chain is characterized by module assembly, integrated circuit fabs, system integration, and field deployment. The table below highlights the key geographic concentrations of the supply chain.
|
Component |
Region(s) |
Key Players |
Function |
Strategic Notes |
|
Advanced 5G/C-V2X Chipsets |
Taiwan, South Korea |
TSMC, Samsung |
Wafer fabrication (Foundry services) |
>75.3% global capacity; high geopolitical risk; U.S. CHIPS Act ($53B) aims to reshore |
|
SoC Design (Tier-1) |
U.S., Europe |
Bosch, Continental |
Application-specific SoC design |
Design localized; fabrication outsourced to Asia |
|
Module Assembly |
Eastern China, Southeast Asia |
Foxconn, Pegatron (typical EMS) |
PCB assembly, RF testing |
Low labor cost; electronics cluster concentration |
|
Final System Integration |
Germany (EU), Mexico (NA) |
Continental, Aptiv (example integrators) |
Integration into RSUs |
Regional integration; cross-border logistics exposure |
Vehicle-to-Infrastructure (V2I) Communication Sector: Growth Drivers and Challenges
Growth Drivers
- C-V2X mid-band spectrum allocation accelerates V2I hardware uptake: The global V2I market is poised to expand due to a supportive regulatory ecosystem. For instance, in November 2024, the FCC allocated 30 MHZ of the 5.9 GHz spectrum band, i.e., 5.895-5.925 GHz, exclusively for cellular vehicle-to-everything communications. This created a regulatory milestone that has now favorably impacted the demand for V2I modules. To measure the impact of regulatory decisions on an inflection in commercial demand, the hastening pilot deployments in over 49 U.S. cities remain a major indicator. The deployment favors mid-band-certified vendors. Additionally, tier-1 suppliers such as Continental AG and Qualcomm have reported over 80% growth in RSU orders in the fourth quarter of 2024.
- Expansion of intelligent transport infrastructure: A structural driver of the V2I communication market is the increasing scaling of intelligent transport infrastructure across China, Europe, and the Middle East. The growth is favorably reinforced by major fundings. For instance, the International Transport Forum (ITF) and the World Bank reported that over USD 70 billion has been committed globally between 2023 and 2025 to improve connected roadways and digital corridor pilots. Notably, the C-ITS Deployment Platform of the European Commission mandated interoperable Cellular Vehicle-to-Everything across member states by 2027. In APAC, China’s New Infrastructure initiative has supported the installation of over 240,000 5G-enabled RSUs across major urban zones by the end of Q4 2024, to support the trials of autonomous vehicles. A measurable impact has been the growth experienced by the V2I technology vendors offering end-to-end C-V2X solutions.
Technological Advances in the V2I Communication Market
The global V2I sector’s landscape is impacted favorably by the technological advancements in the market. Key advancements include four synergistic innovations, such as Edge AI, Reconfigurable Intelligent Surfaces (RIS), blockchain-based identity systems, and quantum-resistant (PQC) protocols. Additionally, these innovations are gradually converging to create real-time autonomous traffic management loops in urban zones. By the end of 2037, more than 50% of smart intersections are expected to embed edge AI, while RIS retrofitting is expected to reduce urban blind zone risk by over 65%. The table below highlights the key metrics of the technological advancements that impact the global V2I market:
|
Trend |
Key Metric & Value |
Impact Scale |
|
Edge AI for V2I |
40% latency reduction in V2I |
$15.6B infra savings projected by 2037 |
|
Reconfigurable Intelligent Surfaces |
2.4× signal reliability improvement |
70.3% blind zone risk reduction by 2037 |
|
Blockchain V2I ID Systems |
80% drop in spoofing incidents |
25.2B daily V2I authentications by 2030 |
|
Quantum-Resistant Protocols |
100% mitigation of quantum threats (Shor’s attack) |
93% compliance projected with EU mandates by 2030 |
Impact of 5G Deployment on the Global V2I Communication Market
The V2I market has been fundamentally transformed by the ultra-low latency (<10 ms) offered by 5G. The increased bandwidth has transformed V2I by transitioning intelligence from centralized clouds onto highly responsive edge networks. The shift has enabled a real-time signal phase and timing adjustment. Another direct impact of 5G can be observed in smart cities orchestrating traffic at millisecond granularity. The overall experience of the end user has improved via 5G-enable V2I infrastructures, anticipating and reacting to road conditions instantaneously. The table below highlights use cases and impact metrics:
|
Company |
Use Case |
Impact Metric |
|
Amazon & Stellantis |
5G-enabled ProMaster EV delivery vans in Chicago integrate V2I signal prioritization |
18.5% reduction in delivery time; 12.3% decrease in idle time |
|
Volvo Trucks + Ericsson + Telia |
Freight platooning on Swedish motorways using 5G V2X for coordinated braking |
6.4% fuel savings; 30.2% fewer emergency braking events |
|
Bosch & Port of Hamburg |
Urban freight corridor with dynamic signage and V2I route suggestions |
15/5% reduction in truck idling; 10.1% improvement in turnaround times |
Challenges
- Infrastructure-protocol mismatch dilemma: The global V2I market has faced a major challenge in the mismatch of infrastructure and protocols. The incompatibility between legacy transportation infrastructure and V2I communication protocols causes an impediment in the market. The mismatch is evident in regions marred with aging public infrastructure, slowing the deployment of V2I systems with lower latencies, causing fragmentation. For instance, more than 55% of municipalities in Europe and North America remain reliant on outdated traffic management systems that cannot support C-V2X or DSRC standards, pushing market players to engage in costly retrofitting.
Vehicle-to-Infrastructure (V2I) Communication Market: Key Insights
|
Base Year |
2024 |
|
Forecast Year |
2025-2037 |
|
CAGR |
37% |
|
Base Year Market Size (2024) |
USD 424.3 million |
|
Forecast Year Market Size (2037) |
USD 25.17 billion |
|
Regional Scope |
|
V2I Communication Segmentation
Communication Technology (Cellular-V2X, DSRC)
The cellular-V2X (C-V2X) segment in vehicle-to-infrastructure (V2I) communication market is poised to hold a leading revenue share of 61.7% during the anticipated timeline. C-V2X offers greater scalability in comparison to its predecessor, DSRC, by leveraging 4G LTE and 5G networks. The segment’s growth has eliminated the requirement for dedicated short-range roadside infrastructure. This has ensured that C-V2X is lucrative for private stakeholders as well as for governments seeking cost-effective deployments across rural and urban regions. Moreover, the transition has been accelerated by the strong backing of telecom giants such as Qualcomm and Ericsson, and OEMs such as Audi and Ford.
Application (Traffic Management, Safety, Toll Collection)
The traffic management segment in vehicle-to-infrastructure communication market is slated to hold a leading revenue share of 46% throughout the forecast timeline. A key driver is the advantage offered by the V2I-enabled traffic management systems in transforming static road infrastructure into intelligent, responsive systems. In major metro regions, such as Toronto and Tokyo, the application has reportedly decreased average travel time reductions of 20 to 25% during peak hours. The economic incentive of applications remains compelling, with the time lost in traffic improving productivity. With a greater number of cities implementing smart systems, V2I-based traffic management is poised to experience greater application opportunities throughout the forecast period across multiple regional markets.
Our in-depth analysis of the global vehicle-to-infrastructure (V2I) communication market includes the following segments:
|
Communication Technology |
|
|
Application |
|
|
Component |
|
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Customize this ReportV2I Communication Industry - Regional Scope
Europe Market Forecast
The vehicle-to-infrastructure (V2I) communication market in Europe is poised to hold a leading revenue share of 37.8% by the end of 2037. A major driver of the market in Europe is a favorable regulatory ecosystem, facilitating vendors. For instance, the European Commission’s Intelligent Transport Systems Directive, revised in 2023, requires all the member states to support interoperable V2I communication by 2027, creating a supportive stakeholder environment. The market growth is additionally supported by proactive investments, including the €1.6 billion by the European Investment Bank (EIB) in 2024 to bolster smart mobility infrastructure under the Connective Europe Facility. Moreover, the future of the regional market remains lucrative due to a sustained push for autonomy, which is bound to create steady opportunities to provide regional alternatives to non-EU V2I platforms.
The German vehicle-to-infrastructure communication market is projected to expand its revenue share during the forecast period. The launch of C-ITS corridors and digital test beds, spearheaded by regions such as Bavaria and Baden-Württemberg, has driven the application of V2I communication infrastructure. Moreover, Tier 1 automotive suppliers have invested in V2I sensor platforms to ensure compatibility with regional traffic management systems. The vehicle-to-infrastructure (V2I) communication market reflects a federated push and pull system, where regional industrial champions and labor stakeholders have defined the competitive map. With greater investments expected to be funneled to smart city infrastructure, the German market is poised to maintain its growth by the end of 2037.
Asia Pacific Market Forecast
The APAC V2I communication market is projected to exhibit the fastest expansion during the forecast period, rising at a 40.4% CAGR during the anticipated timeline from 2025 to 2037. The improving intra-Asian trade facilitated by agreements, including the Indonesia-Singapore Comprehensive Economic Partnership Agreement, has enabled the rapid deployment of smart infrastructure. Additionally, nuanced capital flows, from sovereign wealth funds such as Singapore’s GIC funneling
resources into pan-ASEAN V21 pilots, bolster the regional markets. The culturally embedded trust networks have driven an interconnected market that balances local adaptability with regional coherence.
The China vehicle-to-infrastructure (V2I) communication market is poised to account for a leading revenue share in APAC. The market’s growth is intricately linked with the dual circulation strategy, which experienced a surge in smart city investments in 2023. The market is also stratified by the vast behavioral differences between first-tier hubs such as Shanghai, with mature V2I ecosystems supported by SOE-led infrastructure reforms, and in the fourth-tier cities in the Western provinces of China, local governments have heavily incentivized private tech incubators to pilot scaled V2I models. Additionally, the heightened rollout of 5G in second and third-tier cities has fueled consumer adoption of connected car services, bolstering the V2I communication sector.
Companies Dominating the V2I Landscape
The V2I communication market is consolidating around companies that have both vertical integration and domain-specific IP in 5 G-V2X, edge computing, and traffic management infrastructure. Within the vehicle-to-infrastructure (V2I) communication market, the companies are leveraging supportive regulatory systems in regional markets and the expansion of smart traffic management infrastructure. The table below highlights the major players of the global V2I communication market:
|
Company Name |
Market Share (2025) |
|
Qualcomm Technologies |
10.7% |
|
Iteris, Inc. |
8.6% |
|
HCLTech |
7.9% |
|
Continental AG |
5.8% |
|
Bosch Mobility Solutions |
5.4% |
|
Siemens Mobility |
xx% |
|
Kapsch TrafficCom |
xx% |
|
Cohda Wireless |
xx% |
|
Savari Inc. |
xx% |
|
Autotalks Ltd. |
xx% |
|
Denso Corporation |
xx% |
|
Huawei Technologies |
xx% |
|
Ericsson |
xx% |
|
Panasonic Corporation |
xx% |
|
NXP Semiconductors |
xx% |
In the News
- In September 2024, Huawei introduced the Luxeed R7, in collaboration with Chery, which is an all-electric SUV set to compete with the Model Y of Tesla. The new vehicle features the Qiankun ADS 3 driver assistance systems, offering improved intelligent driving capabilities.
- In October 2024, Coredge IO Pvt Ltd. and Qualcomm Technologies announced a strategic partnership in launching an AI Inference-as-a-Service platform. The platform is powered by Qualcomm’s Cloud AI 100 Ultra in a bid to provide scalable AI solutions to large enterprises as well as SMEs.
Author Credits: Saima Khursheed
- Report ID: 3189
- Published Date: Jun 04, 2025
- Report Format: PDF, PPT
