Automotive Vehicle to Everything (V2X) Communications Market Size, Share, Growth, and Industry Growth By Type (Vehicle-to-Vehicle, Vehicle-to-Infrastructure, Vehicle-to-Pedestrian) By Application (Road Safety Services, Automatic Parking System, Emergency Vehicles, Auto Car Service) Regional Forecast to 2028

Updated On: 06 March 2023

REPORT OVERVIEW

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The global Automotive Vehicle to Everything (V2X) Communications market size is estimated to be worth US$ 1867.5 million in 2021 and is forecast to a readjusted size of USD 7114.2 million by 2028 with a CAGR of 21.1%  during the forecast period. The sudden spike in CAGR is attributable to the market's growth and demand returning to pre-pandemic levels once the pandemic is over.

Vehicle to everything (V2X) communications is a technology in which transmission of information from one vehicle to any object affects the vehicle. The major purpose of this technology is energy-saving, road safety, and traffic efficiency. Advancements in technology such as connected cars, digital devices, traffic signals, and communication devices are major factors fueling market development. These advancements have forced manufacturers to introduce the vehicle to communication solutions that offer advanced protection, efficacy, accessibility to its customers.

Factors such as developing economy, incorporation of the value chain, disposable income, growing urbanization, industrialization, rising automation, and technological advancement are expected to drive the market growth. The communication technology can be mainly associated with the increasing need for real-time traffic alerts for public safety. Rising environmental concerns, government initiatives, increasing competition in the automotive industry, reduced fuel consumption, safer roads, digitalization, traffic crowding, and connected agility solutions are likely to fuel industry growth during the upcoming years.

COVID-19 Impact: Halt on Production and Declining Sales in Automotive Industry to Impede Sales

The COVID-19 pandemic negatively affected automotive vehicle to everything (V2X) communications markets globally. The shutdown of manufacturing plants, declining car sales, and halt on production impact the market's growth. Increasing remote working options has declined sales in passenger vehicles and the demand for connected vehicle technologies. The pandemic has caused market uncertainty, supply chain disruption, business deterioration, and the temporary shutdown of factories. Factors such as changing consumer behavior, regulatory development, economic factors have a long-term impact on OEMs. However, manufacturers adopt strategies to recover losses during the pandemic, thereby strengthening the supply chain of the global market.

LATEST TRENDS

"Increasing Adoption of Connected Cars to Bolster Market Progress"

The automotive vehicle to everything (V2X) communications enables cars to communicate with other vehicles, road infrastructure, and the cloud through connected vehicles. It works by collecting information and communicating with transport infrastructure, providing real-time data to improve infrastructure planning. These facilities allow manufacturers, operators, and drivers to enhance resources, improve protection, and program certain driver functions while generating data regarding automobile performance and road situations.  Thus, the rising need for connectivity solutions, navigations, Introduction of IoT, and enhanced driving experience drives the demand for connected car services. Therefore, rising automotive vehicle to everything (V2X) communications services provided in connected cars drives the growth of the automotive vehicle to everything (V2X) communications market.   

Segmentation

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• By Type Analysis

By type, the market is segmented vehicle-to-vehicle, vehicle-to-infrastructure, vehicle-to-pedestrian.

The vehicle-to-vehicle segment is expected to lead automotive vehicles to everything (V2X) communications market. It improves vehicle safety performance by giving forward-collision warnings, lane changing signs. The growing safety concerns due to increasing traffic accidents are the major driving factor in this segment. These factors are likely to influence the growth of the industry. 

• By Application Analysis

Based on application, the market is classified into road safety services, automatic parking systems, emergency vehicles, and auto car service.

The automatic parking system segment is expected to lead automotive vehicles to everything (V2X) communications market. It improves vehicular safety and driver safety. It is considered an advanced ADAS system. It is designed to improve safety by avoiding potential crashes and reducing energy consumption which is expected to boost market progress. 

DRIVING FACTORS

"Increasing Traffic Safety Aids to Facilitate Industry Progress"

The rising air pollution, environmental concerns, and sales of vehicles are the major reasons for carbon emissions for governing agencies to implement strict regulations. The increasing number of road accidents inspires manufacturers to incorporate automotive vehicles into everything (V2X) communications in vehicles. It will enhance fuel-saving, traffic effectiveness, and road safety. The demand for connected vehicles is growing because of rapid development and disposable income. Moreover, leading manufacturers provide 5G networks to expand their consumer base. Companies also offer hybrid solutions and cellular communications to retain their position in the market. The rising utilization of 5G technology and partnership between transportation companies to deliver innovative solutions and drive market growth.

"Increasing Adoption of Artificial Intelligence (AI) to Magnify Market Growth"

AI has an important role in the automotive industry as analytical abilities are becoming more prevalent in cars, customizing the driving experience. AI is better equipped with the automotive vehicle to everything (V2X) communications for critical communication, road safety, and efficient driving. The technology is designed to be compatible with 5G technology to enable an intelligent transportation system. Autonomous driving, platooning, vehicle safety, traffic efficiency has created the requirement for the smart transportation system. 5G-enabled V2X communication operations are not compatible in the current stage with actual network traffic measurement. However, government agencies, manufacturers, and mobile networks have increased interest in conducting extensive trials with 5G connectivity technology due to its efficiency, compatibility to support safety features and services such as precise location, cooperative automated driving, and sensor-related data management. These factors are likely to drive the automotive vehicle to everything (V2X) communications market growth. 

RESTRAINING FACTORS

"High Costs to Impede Market Progress"

The challenges faced in the automotive vehicle to everything (V2X) communications are high setting cost, vehicle, and infrastructure cost. Testing of application in actual scenarios can be fatal with high-density traffic. These tests will be practically challenging and cost-intensive. These factors are likely to hamper market progress. 

REGIONAL INSIGHTS 

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"Presence of Key Players to Bolster Growth in Europe"

Regionally, the market is grouped into North America, Europe, Asia-Pacific, and the rest of the world.

Europe is expected to dominate the automotive vehicle to everything (V2X) communications market share because of the superior infrastructure, easy implementation of V2X systems, key players, increasing sales of vehicles. The industry is governed by strict safety, and pollution regulations are driving the market in the region.

North America is the second-largest shareholder globally in the automotive vehicle to everything (V2X) communications market. The region contains technologically established nations such as the U.S. and Canada, allowing for easy technical adoption. As per OICA, the region is also one of the world's greatest automotive marketplaces. Therefore, traffic jamming and moderate greenhouse gas emissions are two of the region's most persuasive concerns. Better traffic control and fewer gas emissions would result from the introduction of V2X technologies. Therefore, the automotive v2x market is undergoing substantial growth.

In the Asia Pacific, automotive OEMs and telecommunication technology providers are working on V2X communication development. Japan and China are the leading countries in terms of technological improvement.

KEY INDUSTRY PLAYERS

"Companies Adopt Technologically Advanced Production Techniques to Improve Market Position"

The market for an automotive vehicle to everything (V2X) communications is fragmented, with many companies competing. Leading players are currently concentrating on supplying clients with technologically advanced items.Increased demand for the automotive vehicle to everything (V2X) communications, along with lower long-term costs, is predicted to motivate investors to invest in this technology in the coming years, resulting in increased market rivalry.

List of Market Players Profiled

• Arada Systems (Banglore)
• Autotalks Ltd. (Israel)
• Cohda Wireless (Australia)
• Delphi Automotive (U.K.)
• Denso (Japan)
• Kapsch TrafficCom (Austria)
• Qualcomm (U.S.)
• Savari Inc. (U.S.)

INDUSTRY DEVELOPMENT

February 2021: Harman acquired Savari Inc., a Silicon Valley-based automotive company, developing V2X technology for automotive devices in 5G.

REPORT COVERAGE

The research report has included the analysis of several aspects that contribute to the automotive vehicle to everything (V2X) communications industry's growth. It consists of market trends, restraints, and drivers that positively or negatively impact the market. This section also discusses the many sectors and applications that may affect the market in the future. The data is based on current trends and historical milestones. This section also includes an analysis of the global market's production volume.