Vehicle-to-Infrastructure (V2I) Communication Market Outlook:
Vehicle-to-Infrastructure (V2I) Communication Market size was valued at USD 47.36 billion in 2025 and is projected to reach USD 247.07 billion by the end of 2035, rising at a CAGR of 17.97% during the forecast period, i.e., 2026-2035. In 2026, the industry size of the V2I communication is assessed at USD 55.81 billion.
The vehicle-to-infrastructure (V2I) communication market is expanding rapidly, driven by urbanization and traffic congestion concerns, and by pressure to improve road safety. Smart city projects are a key driver of this expansion, bringing together automotive manufacturers, infrastructure developers, municipalities, and telecom service providers to partner for the deployment of Roadside Units (RSUs), sensors, and communication nodes. Regions, including Asia Pacific, are leading the charge in deployments in scale and in dollars. There are clear indicators of a shift to greater adoption of advanced communications technologies, particularly Cellular V2X (C V2X) and ultimately 5G services which, in many cases, can be deployed in combination with or instead of traditional Dedicated Short-Range Communications (DSRC), due in part to advances in latency, scalability, and support for other advanced (e.g., real time) transport applications.
Furthermore, there is increasing integration with edge computing, AI/ML for predictive analytics, faster response times, risk detection, adaptive signal control, and real-time traffic management. This integration enhances infrastructure use and supports real-time and adaptive traffic management options, especially in highly congested areas in the urban environment. While the opportunities are enormous, so are the challenges. Cybersecurity and data privacy issues are a challenge because many information exchanges are required as part of V2I. Even so, entering the new world of V2I is complicated by existing legacy infrastructure and protocols, as many jurisdictions maintain a relatively older traffic system not easily compatible with established near-field connectivity standards. This further complicates entry into V2I since the local governments must determine which legacy traffic signals and associated traffic infrastructure should also be upgraded at additional costs to achieve V2I.
