Global Automotive V2X Market Research Report: Forecast (2024-2030)

Market Definition

Automotive V2X or “vehicle to everything” is a technology that uses different sensors, cameras, and network connectivity to help an automobile effectively communicate with its driver and surroundings. This technology is an important aspect of connected mobility and will help improve road safety and vehicle efficiency, and reduce traffic congestion while improving customer experience.

Market Insights & Analysis: Global Automotive V2X Market (2024-30):

The Global Automotive V2X Market size is valued at USD 0.74 billion in 2024 & is projected to reach USD 11.5 billion by 2030. Along with this, the market is estimated to grow at a CAGR of around 48% during the forecast period, i.e., 2024-30. The growth in the market is driven mainly due to the adoption of connectivity technologies in automobiles which gradually becoming a standard. This is largely due to the policy shift of the countries globally to improve their road safety. Auto manufacturers are deploying V2X technologies coupled with AI and 5G to enhance driver experience whilst complying with government guidelines. Additionally, these technologies are driving the adoption of autonomous and electric vehicles.

With increasing dependency on technology and a surge in the tech-savvy population, there has been an increase in demand for the deployment of network connectivity in vehicles. More than 90% of all new vehicles worldwide will be connected by 2030 and 45% of them will have intermediate to advanced connectivity features like multisensory interactions for all occupants, connection to other ecosystems and platforms, and intelligent decision-making through seamless environmental linkages.

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Global Automotive V2X Market Driver:

Policy Push Regarding Road Safety – The Global Automotive V2X Market shows healthy growth due to rising awareness and policy push regarding road safety. According to the United Nations, each year around 1.19 million deaths happen due to traffic accidents. To prevent such tragedies and improve road safety, authoritative bodies and automobile manufacturers are adopting smart connectivity technologies such as vehicle-to-everything (V2X). For Instance,

• August 2024: The US Department of Transportation announced that they will be deploying V2X technology throughout the country aligning with their commitment to decrease fatalities on road to zero
• September 2023: 5G Automotive Association in an open statement highlighted the commitment of the European automakers representing 70% of the market to adopt the 5G-V2X as the technology for direct connectivity in automobiles

These developments highlight the positive future outlook of the Global Automotive V2X Market, where it is expected to see a significant number of new automobiles getting equipped with smart connectivity from the start.

Global Automotive V2X Market Opportunity:

Rising Adoption of Electric and Autonomous Vehicles– Globally, the trend of adoption of autonomous and electric vehicles is rising. As per the International Energy Agency, in 2023, electric vehicle sales accounted for around 14 million, rising 35% YoY from 2022. The electric vehicle sales in the last during 2019-24 have grown by nearly six times. Whereas the semi-autonomous also showed significant growth. According to by Goldman Sachs, by 2030, 10% of total automobiles worldwide would have Level-3 autonomy.

These automobiles will come with various smart and connected technologies such as assisted driving or self-driving capabilities, that provide the driver with an enhanced driving experience. Apart from the changing policy across the globe regarding the adoption of V2X technologies, major automakers will also provide significant growth opportunities to the Global Automotive V2X Market over the forecasted period.

Global Automotive V2X Market Challenge:

Cybersecurity Risk – With the increasing risk of cyber threats, growth in the Global Automotive V2X Market can be impacted by the adoption of the technology. The deployment of V2X technology will connect the automobile to multiple other devices and networks present in the surroundings. These devices and networks are the potential sources of data breaches and the loss of private information. In case of wider cyber-attack from adversaries would potentially bring the whole roadway mobility to a standstill and would even lead to a potential major accident. Keeping this in mind governments will bring in stricter rules regarding data protection and privacy regulations that may negatively impact the V2X market worldwide. Apart from this, consumers may not prefer the adoption of vehicles that have features that potentially allow someone or the government to continuously track the movement of individuals.

Global Automotive V2X Market Trend:

Rising Adoption of Vehicle-to-Everything (V2X) with 5G – Earlier V2X technology had a latency problem which would effectively limit their ability to perform efficiently. As the world is going through a mass deployment of 5G, automakers are looking at 5 G-enabled C-V2X or V2X for better performance and reliable communication of connectivity systems. Through 5G, vehicles integrated with the V2X connectivity can now get real-time updates, blind spot monitoring, and an efficient Vehicle-to-Infrastructure (V2I) communication system. This will allow connected vehicles on the road to have better situational awareness by effectively communicating with each other and their surrounding infrastructures. Recently, Autotalks in collaboration with Rolling Wireless will provide the first 5G V2X connectivity solutions for vehicles and e-bikes in the market.

Global Automotive V2X Market (2024-30): Segmentation Analysis

The Global Automotive V2X Market study of MarkNtel Advisors evaluates & highlights the major trends and influencing factors in each segment. It includes predictions for the period 2024–2030 at the global level. Based on the analysis, the market has been further classified as:

Based on Vehicle Propulsion Type:

• Internal Combustion Engine (I.C.E.)
  • Passenger Vehicles
  • Commercial Vehicles
• Electric Vehicles

Internal Combustion Engine vehicles hold the largest market share in the Global Automotive V2X Market based on the vehicle propulsion type segment. This is largely due to the large number of ICE-based vehicles present globally. According to the International Organization of Motor Vehicle Manufacturers, in 2023, global passenger and commercial vehicle sales were around 92 million vehicles. Compared to this, electric vehicle sales amount to nearly 14 million units according to the International Energy Agency. As the adoption of V2X technology rises, because of the policy to improve road safety and enhance the driving experience the Internal Combustion Engine segment will remain the dominant player. The rapid adoption of electric vehicles is accelerating its growth as the world is diverting from fossil fuel-based automobiles.

Based on Communication Type:

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Pedestrian (V2P)
• Vehicle-to-Home (V2H)
• Vehicle-to-Grid (V2G)
• Vehicle-to-Network (V2N)

The Vehicle-to-Vehicle (V2V) type of communication holds the largest market share in the Global Automotive V2X Market. This is primarily because automakers are integrating the V2V technology to provide vehicles with capabilities like Advanced Driver Assistance Systems. This will significantly improve the driving experience of the driver. The technology will inform the driver about upcoming traffic, intersections, blind spot detection, lane change assistance, no pass warning, and any terrain issues ahead.

Apart from this, the increase in automobile sales worldwide will boost the demand for V2V technology. Additionally, the integration of V2X technology in automobiles comes due to the rising policy shift towards improving road safety worldwide. The V2X connectivity solutions provider, L&T Technology Services reported that by 2030, there will be built-in connectivity from the start, in new vehicles.

Global Automotive V2X Market (2024-30): Regional Projections

Geographically, the Global Automotive V2X Market expands across:

• North America
• South America
• Europe
• Middle East & Africa
• Asia-Pacific

The Asia Pacific region accounts for the largest market share in the Global Automotive V2X Market, as it accounts for the largest number of automobile sales specifically from China, India, Japan, and South Korea. Furthermore, looking at the five-year trend of vehicle sales, while other regions saw a decline in their automobile sales, Asia-Pacific regions have shown a growth of 13.7% till 2023. Additionally, the automakers in these countries have announced or are already incorporating some form of connectivity in their automobile.

For instance, China which is a leading manufacturer and consumer of automobiles started introducing vehicle connectivity in 2018. In 2018, China’s Ministry of Industry and Information Technology (MIIT) jointly with the Standardisation Administration (SAC) and other related ministries issued guidelines for the construction of the Internet of Vehicle standard system. These enabled smart vehicle communications via Cellular Vehicle-to-Everything (C-V2X) mode for intelligent traffic management systems. In addition to this South Korean automakers have announced the use of C-V2X for communication methods using V2X technology as per their commitment towards Cooperative Intelligent Transport Systems (C-ITS).

Global Automotive V2X Industry Recent Development:

• August 2024: Commsignia and Bosch have joined forces to provide safety solutions for the vulnerable road users. Combing Bosch’s camera with AI-driven video analytics coupled with Commsignia’s V2X solution to create a digital twin of the traffic for better road safety on vulnerable roads. 
• April 2024: Denso has launched, MobiQ, an aftermarket smart-mobility and vehicle-to-everything product and solution. 
• January 2024: Infineon Technologies AG in partnership with OMRON Social Solution has created a small and light V2X charging system, that can increase its power efficiency by 10% on light load and 4% at rated load.

Gain a Competitive Edge with Our Global Automotive V2X Market Report

• Global Automotive V2X Market Report by MarkNtel Advisors provides a detailed & thorough analysis of market size & share, growth rate, competitive landscape, and key players. This comprehensive analysis helps businesses gain a holistic understanding of the market dynamics & make informed decisions.
• This report also highlights current market trends & future projections, allowing businesses to identify emerging opportunities & potential challenges. By understanding market forecasts, companies can align their strategies & stay ahead of the competition.
• Global Automotive V2X Market Report aids in assessing & mitigating risks associated with entering or operating in the market. By understanding market dynamics, regulatory frameworks, and potential challenges, businesses can develop strategies to minimize risks & optimize their operations.

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