DSRC Safety Modem Market Size, Share, Growth, and Industry Analysis, By Type (Active DSRC, and Passive DSRC), By Application (Passenger Vehicles, and Commercial Vehicles), and Regional Insights and Forecast to 2034

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DSRC SAFETY MODEM MARKET OVERVIEW

The global DSRC Safety Modem Market size is valued at approximately USD 0.91 billion in 2025 and is expected to reach USD 0.97 billion in 2026, progressing steadily to USD 1.7 billion by 2034, exhibiting a CAGR of about 6.5% over the forecast period 2025-2034.

The DSRC safety modem market is in a position to witness growth due to the rising emphasis on vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication in order to enhance road safety and traffic management. DSRC safety modems facilitate the instantaneous communication between transport vehicles and infrastructure allowing various safety features such as preventing accidents, adjusting traffic lights accordingly, and giving priority to ambulances among others.

The increasing deployment of self-driving and connected cars is one of the key market growth enablers, alongside the enforcement of laws by governments across the world to curb accidents and enhance the safety of the public. Several countries are making efforts to implement policies that encourage the development and implementation of intelligent transport systems which has increased the need for DSRC technology. Moreover, DSRC modems are distinguished by their low latency and high reliability in data communication, thus finding applications in safety-critical networks for efficient transportation communication systems.

The expansion of the market is also driven by technological improvements in DSRC modems, such as better communication distances and enhanced data security through encryption. However, due to some regional differences, growth may be stifled in some areas due to competition from other communication solutions, such as cellular vehicle-to-everything and infrastructural expenses.

KEY FINDINGS

COVID-19 IMPACT

DSRC Safety Modem Market Had a Negative Effect Due to  slowdown in automotive production and transportation infrastructure projects

The global COVID-19 pandemic has been unprecedented and staggering, with the market experiencing lower-than-anticipated demand across all regions compared to pre-pandemic levels. The sudden market growth reflected by the rise in CAGR is attributable to the market’s growth and demand returning to pre-pandemic levels.

Both globally and regionally, COVID-19 negatively affected the DSRC Safety Modem market owing to the decline in automotive production and transportation infrastructural activities. Since lockdowns were imposed and various industries were in disarray, the research enhancement and implementation of vehicle-to-everything (V2X) communication, including DSRC safety modems, could not gain traction. In addition, the reduced appetite for new cars coupled with a stoppage in smart transport initiatives dealt the market a deadly blow. Nevertheless, as countries bounce back from stagnation, the projection for the market is growth with a better emphasis on safety and intelligent transport systems.

LATEST TRENDS

Growing adoption in vehicle-to-everything (V2X) communication to Drive Market Growth

In the market for DSRC Safety Modem, there is a growing trend of usage in vehicle to everything (V2X) communication, integration with advanced driver assistance systems (ADAS), and road safety technology regulation by the government Agencies. It is also observed that there is a trend of transition from pure DSRC to a combination of adapted cellular networks (C-V2X) with DSRC. Thanks to this deployment, vehicles and the road side can also instantaneously communicate, and this hybrid model has Numerous Benefits especially towards better connectivity and enhanced safety within the intelligent transportation systems Is more used.

• In November 2020, the U.S. Federal Communications Commission reallocated 45 MHz of the 75 MHz DSRC spectrum for unlicensed uses, leaving only 10 MHz specifically reserved for DSRC usage—indicating significant spectrum pressure and adaptation in vehicular communications regulation

• The U.S. National Highway Traffic Safety Administration (NHTSA) estimates that deploying a V2V (Vehicle-to-Vehicle) system could reduce traffic collisions by at least 13%, translating to about 439,000 fewer crashes annually—highlighting the tangible safety impact potential of DSRC-enabled systems

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DSRC SAFETY MODEM MARKET SEGMENTATION

By Type

Based on Type, the global market can be categorized into Active DSRC, and Passive DSRC

• Active DSRC: The operational DSRC modems can also effectively communicate as vehicles and infrastructure can already actively transmit and receive safety information on a real-time basis. This makes it possible to respond more quickly to issues in an active setting thereby enhancing traffic management and collision avoidance. Active DSRC stands as a basic feature in any self-driving vehicle system and vehicle to vehicle communication (V2V) systems.

• Passive DSRC: The passive DSRC modems mainly serve as receivers able to receive data from outside sources but incapable of transmitting data by themselves. Such devices are often utilized in applications like tolling and monitoring where two-way active communication is not necessary. Though simpler in functionality compared to active DSRC systems, passive DSRC systems are cheaper and abundantly used in intelligent transport infrastructure.

By Application

Based on application, the global market can be categorized into Passenger Vehicles, and Commercial Vehicles

• Passenger Vehicles: The integration of DSRC safety modems in the passenger cars makes possible the vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications which help enhances safety by providing real-time information concerning the conditions on the roads and any possible threats. These modems reduce the number of road accidents by providing features such as caution assist, resonance frequency alert, and emergency stopping. DSRC will also provide the enabling infrastructure for communication between passenger vehicles in the near future thanks to the development of autonomous driving systems.

• Commercial Vehicles: In business cars, DSRC safety modems play a crucial role in the management of fleets while enhancing safety within the vehicle using V2V communications and ensuring proper routing. They focus on improving security in heavy-duty trucks and long-haul movements by minimizing accidents and easing the movement of vehicles. DSRC technology also helps to ensure effective smart logistics practices and adherence to regulatory requirements which makes it beneficial for commercial vehicles.

MARKET DYNAMICS

Market dynamics include driving and restraining factors, opportunities and challenges stating the market conditions.

Driving Factors

Growing Demand for Vehicle Safety Systems to Boost Market Growth

Due to the rising importance of vehicle safety, the DSRC Safety Modem market is growing, especially with the governments around the world implementing tighter road safety policies. DSRC technology prevents accidents by enabling communication between vehicles in real-time and features such as collision warning and emergency braking. This is highly so in the case of communicating crucibles like the self-driving vehicle design.

• Since 2003, the U.S. FCC allocated 75 MHz in the 5.9 GHz band specifically for DSRC-based ITS (Intelligent Transportation Systems), underscoring early governmental support for vehicular communication infrastructure

• In August 2008, the European Commission designated 30 MHz of the 5.9 GHz band for ITS applications, reflecting international recognition of DSRC for safety-critical transport communications

Rising Adoption of Smart Transportation Infrastructure to Drive Market Growth

With investments in intelligent transport systems, cities are likely to adopt DSRC safety modems to enhance V2I systems. These facilitate Integrated Vehicle-Infrastructure Systems, which help in efficient traffic control, reduction of traffic jams and enhancing security, since information is collected and processed in real-time from both motorists and the infrastructure. This trend is more pronounced in developed areas often characterized by the rapid growth of DSRC Safety Modem market.

Restraining Factor

High Deployment Costs to Potentially Impede Market Growth

The implementation and maintenance of DSRC Safety Modem market entail considerable spending, especially in terms of employing vehicle-to-infrastructure (V2I) communication systems. These costs are incurred in rehabilitating the existing old infrastructure, costs due to the accommodating different technologies in different geographic areas, and the general upkeep of the technology in place. In certain areas of the world, third world regions especially, this cost barrier inhibits the mass deployment of DSRC technology.

• In November 2020, the U.S. FCC repurposed 45 MHz of DSRC bandwidth—over half of the original allocation—for unlicensed use, diminishing available spectrum for DSRC and raising concerns about interference and deployment viability

• Research notes that C-V2X (Cellular Vehicle-to-Everything) offers approximately 25% greater communication range compared to DSRC, implying that DSRC may be disadvantaged in range-dependent use cases

Expansion of Autonomous Vehicles Market To Create Opportunity for the Product in the Market

Opportunity

The fast-evolving market of autonomous vehicles comes as a boon for the DSRC safety modem market. This is mainly because autonomous cars heavily depend on vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communications for safety and navigation reasons, where DSRC modems are already in use to facilitate uninterrupted real-time data transfers. With such upward developments in the sector, there is also a heightened need for the provision of sophisticated communication facilities such as DSRC, hence fueling the market growth.

• As of 2003, the U.S. DOT had allocated 75 MHz in the 5.9 GHz band for ITS uses (e.g., DSRC), forming a regulatory foundation for vehicle-infrastructure communication expansion

• NHTSA estimates a potential reduction of 439,000 crashes per year via V2V systems, signifying a massive public safety and urban traffic management opportunity in deploying DSRC technology at scale

Competition with Emerging Technologies Could Be a Potential Challenge for Consumers

Challenge

The market for safety modems based on DSRC technology has a biting competition from emerging other technologies such as Cellular Vehicle-to-Everything (C-V2X). C-V2X also presents benefits that include network coverage and low latency using cellular systems, which makes it a formidable rival. This hostility leaves automobile manufacturers and state agencies in a dilemma on which form of technology to pour resources into, which in turn may delay the uptake of DSRC Safety Modem market.

• The U.S. FCC reallocation in November 2020 removed 45 MHz from the DSRC allocation, representing over 60% of its initially assigned spectrum—creating regulatory hurdles for DSRC adoption

• C-V2X demonstrably surpasses DSRC in communication range by about 25%, posing a competitive challenge as newer cellular-based technologies may outcompete DSRC in long-range safety messaging contexts

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DSRC SAFETY MODEM MARKET REGIONAL INSIGHTS

• North America

Due to the aggressive progress that the automotive sector has made in this region combined with the policy backing patrol systems by the governments of the region, North America ranks first in the United States DSRC safety modems market. There have been several pilot programs and statutes enacted within the region in support of vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication systems. In addition, large scale automotive manufacturers together with technology firms are carrying out R&D activities on onboard DSRC technology hence fortifying Northern America’s position in the market. North America is also focused on improving road safety and minimizing traffic jams hence the need for DSRC solutions within the region.

• Europe

The DSRC safety modem market share in Europe is poised for growth above the rest of the regions due to the regulatory framework that places emphasis on road safety and the protection of the environment. The European union has taken steps towards development of intelligent transport systems (ITS) including systems that utilize vehicle to vehicle (V2V) and vehicle to infrastructure (V2I) communications. Moreover, there are automotive manufacturers within Europe’s borders that are producing vehicles with advanced safety systems which are a major driver for incorporating DSRC technology in their car models. The initiatives to promote smart mobility in the region, especially the partnership between government and industry, complement the region’s standing in the DSRC market.

• Asia

Asian region stands firm in the DSRC safety modem market share due to the flourishing automotive technology automotive market and inclination towards smart cities. Japan and South Korea are also first among the countries in the installation of V2V and V2I communication systems respectively, as propelled by the state’s interest in road safety and innovation. Also, the growing number of connected filtration vehicles and the development of intelligent transportation systems in the region serve to propel the region’s growth levels. Moreover, the increased uptake of self-driving technologies in the Asian market also strengthens its DSRC solutions market located in the area.

KEY INDUSTRY PLAYERS

Key Industry Players Shaping the Market Through driving innovation and technological advancements

The expansion of the DSRC safety modem market is being shaped chiefly by the competitive key players through innovations and technological developments. For instance, large automobile manufacturers and technology firms allocate a lot of resources into research and development of DSRC technology to improve vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. The growing collaboration among automobile companies and government promotes the usage of smart transportation systems hence increased usage of DSRC technology. Also, these players carry out strategic alliances and trial projects, which demonstrate the effectiveness of DSRC safety modem, thereby increasing its acceptance and growth in the market.

• NXP Semiconductors: NXP Semiconductors employs approximately 33,100 people as of 2024, making it one of the largest European semiconductor firms and a key technology provider in DSRC ecosystem components

• Qualcomm: While not tied to a specific numeric fact about DSRC, Qualcomm is consistently recognized as a leading player in the DSRC Safety Modem market—frequently cited alongside NXP among major technology providers in this domain

List of Top DSRC Safety Modem Companies

• NXP Semiconductors – (Netherlands)
• Qualcomm – (U.S.)
• Texas Instruments – (U.S.)
• Autotalks – (Israel)
• Hitachi – (Japan)

KEY INDUSTRY DEVELOPMENTS

March 2023: One industrial development in the DSRC Safety Modem Market is announced by Autotalks, a leader in V2X communication solutions. The third-generation DSRC safety modem was unveiled that has the capabilities of both DSRC and Cellular V2X (C-V2X). This dual-mode modem is intended for the global V2X roll out enabling the use of various safety applications: vehicle-to-vehicle (V2V) communication and vehicle-to-infrastructure (V2I) safety systems. This launch demonstrates Autotalks’ vision of making roads safer by making the advanced connectivity technology available in autonomous connected vehicles, which also places the company in the lead of the DSRC Safety Modem Market.

REPORT COVERAGE

The study encompasses a comprehensive SWOT analysis and provides insights into future developments within the market. It examines various factors that contribute to the growth of the market, exploring a wide range of market categories and potential applications that may impact its trajectory in the coming years. The analysis takes into account both current trends and historical turning points, providing a holistic understanding of the market's components and identifying potential areas for growth.

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