Global Vehicle-to-Everything (V2X) Communications System Market Research Report: Forecast (2022-27)
Vehicle-to-Everything is a vehicular communication system that securely backs the transfer of information from vehicles to related infrastructure such as parking spaces, traffic lights, and pedestrians, among others, with the intent to improve road safety, energy savings, improve traffic efficiency, etc. The proliferation of autonomous vehicle manufacturing activities across the world & increasing changes in government policies for ADAS deployment in vehicles are the key factors driving the growth of the Global Vehicle-to-Everything Communication System market.
The Global Vehicle-to-Everything (V2X) Communication System Market is projected to grow at a CAGR of around 36.85% during the forecast period, 2022-27. The market growth imputes to the rising mandates of the international & national governments to deploy advanced connected car technologies to enhance traffic efficiency by warning drivers about the traffic & suggesting alternative routes to avoid the collision. According to the World Health Organization, road traffic accidents cause a total of around 1.3 million fatalities globally, with over 20-30 million suffering from non-fatal injuries, with any incurring disabilities as a result of their injuries. This notably increased the demand for the deployment of advanced communication systems in vehicles.
|Study Period||Historical Data: 2017-20|
|Base Year: 2021|
|Forecast Period: 2022-27|
|Regions Covered||North America: The US, Canada, Mexico|
|South America: Brazil, Rest of Latin America|
|Europe: Germany, The UK,Germany, France, Spain, Italy, Rest of Europe|
|Asia-Pacific: China, Japan, India, South Korea, Rest of Asia Pacific|
|Middle East & Africa: GCC, Turkey, Egypt, South Africa, Rest of Middle East and Africa|
|Key Companies Profiled||Autotalks Ltd., Continental AG, HARMAN International, Infineon Technologies AG, NXP Semiconductors, Qualcomm Technologies, Inc., Robert Bosch GmbH, STMicroelectronics, Cohda Wireless, Others|
|Unit Denominations||USD Million/Billion|
Furthermore, with the increasing government emphasis on reducing accidents on highways & flyovers, V2X technology has played a key role in providing vehicular data. In order to improve the safety of drivers and improve their awareness of potential hazards, the V2X technology has been integrated into vehicles & helps to share information, including speed, between entities, including traffic operators. Hence, this derived enormous growth opportunities for the V2X market globally.
Additionally, with the rising inclination of the government to boost the deployment of connected vehicle technologies in automotive, the demand for V2X communications systems is anticipated to gain significant revenue growth in the forthcoming years.
Key Trend in the Market
The rising traction of consumers towards adopting semi-autonomous & fully autonomous vehicles supported by an increase in purchasing power & a boost in government support have escalated the demand for V2X communication systems globally. Autonomous vehicles rely on advanced V2X technologies & systems to collect & share real-time data to verticals such as automotive, banking & insurance, among others, to monetize the vehicle-collected data for future technological developments.
Moreover, the increasing autonomous production activities & boost in R&D activities by the automotive manufacturers such as Ford Motors & Tesla to revolutionize the traditional way of driving would create lucrative growth opportunities for the V2X service providers.
Impact of COVID-19 on the Vehicle-to-Everything (V2X) Market
The COVID-19 pandemic negatively impacted the revenue growth of the Global Vehicle-to-Everything Communication Systems market in 2020. The halt in automotive manufacturing activities, owing to the imposition of government restrictions to temporarily suspend economic activities for curbing the pandemic situation, led to a decline in the demand for V2X communication systems from automotive manufacturing units globally. However, with the opening up of the economic activities in the Q4 of 2020 & an increase in vehicle production activities by prominent players such as Tesla, Ford, Hyundai, BMW, and General Motors, among many others, the V2X market regained its momentum in the market.
Furthermore, the inclination of the governments of the respective countries to curb traffic, reduce CO2 emissions & boost Intelligent Transport Systems has positively contributed to the growth of the Global V2X Communication System market & is anticipated to continue the same trend in the coming years.
Based on the Vehicle Type:
Of them all, the Passenger Vehicles captured a major market share in the Global Vehicle-to-Everything (V2X) Communication Systems market during 2017-21, owing to a significant increase in the vehicle ownership rates across North America, Europe, Asia-Pacific, and the Middle East & Africa. The factor driving the increasing vehicle ownership rates includes a substantial increase in the disposable income of consumers & tax exemption on Electric vehicles by the national governments. For instance:
Moreover, electric vehicles are already deployed with connected car technologies such as cooperative forward collision warning, Smart parking, GPS-based location services, ADAS, and weather information, among others. Consequently, automotive manufacturers across the globe demand more advanced electric & connected vehicles, thus driving demand for V2X communication systems. Hence, with the rising government interventions to escalate the deployment of V2X technologies in vehicles, the demand for V2X communication systems is anticipated to increase manifold during 2022-2027.
Based on the Connectivity:
Here, the Dedicated Short Range Communication (DSRC) captured a considerable share in the Vehicle-to-Everything (V2X) market during 2017-21 & is expected to continue the same trend in the forthcoming years. The ease of implementation of DSRC compared to Cellular V2X & verified data security standards of DSRC is a prime factor driving the adoption of DSRC-based V2X technology in automotive worldwide. Moreover, DSRC-based V2X has the ability to directly communicate with other entities within short to medium ranges, without the interference of any intermediaries. This makes DSRC-based V2X technology highly useful for the rural & remote areas with low telecommunication infrastructure. Further, the demand for DSRC-based V2X communication systems increased consequently among automakers like Volkswagen, Toyota, etc. As a result, it is anticipated that during the forecast period, demand for V2X communication systems based on DSRC would increase significantly.
Based on the Technology:
Among them, vehicle-to-vehicle technology is expected to gain a significant share in the global V2X market during the forecast period. Increased mandates by the European Union & the US government to implement Advanced Driving Assistance Systems (ADAS) such as sensors, cameras, and data recorders will contribute immensely to the market growth. For instance, an Anti-Locking Braking System (ABS) & the Combined Braking System (CBS) have been made mandatory for all commercial vehicles in Europe & the US, including motorbikes.
Further, with the growing use of Advanced Driving Assistance System (ADAS) to monitor on-road driver & vehicle behavior to determine the consumers’ insurance benefit, predictive vehicle maintenance, automotive performance enhancement, etc. Hence, the demand for Vehicle-to-Vehicle communication systems is expected to grow noticeably in the coming years.
Based on the Demand Type:
Of them all, the OEMs acquired a major share in the Global Vehicle-to-Everything Communication Systems market during the historical period. The V2X is still an emerging technology globally, with many automotive OEMs continuously striving to develop automated vehicles to cater to the emerging needs for the connected vehicles from the consumers’ end. Furthermore, V2X technology is embedded in vehicles during the production process, hence it does not require frequent aftermarket maintenance. Consequently, V2X communication system providers acquired huge revenue gains from OEMs & this trend will continue in the future.
Geographically, the Global Vehicle-to-Everything (V2X) Market expands across:
Of all the regions globally, North America has been portraying a noticeable market growth since 2017 & is anticipated to acquire significant market share in the Global Vehicle-to-Everything market in the forecast years. The growing concerns of the governments of the North American countries such as the US, Canada, and Mexico to curb the increasing number of road accidents, caused majorly due to the unprofessional driver behavior, have notably increased the demand for connected vehicle technologies in the region. For instance, in 2021, the US National Transport Safety Board issued a list highlighting transport safety improvements in the country to prevent road accidents, reduce injuries and save lives. Under this issue, the government mandated the deployment of Collision Avoidance and Connected Vehicle Technologies on all the Vehicles running in the US.
In addition, the development of connected automotive units, along with the government vision for fuel efficiency & the implementation of smart transportation systems, has augmented the demand for V2X communication systems.
Recent Development by Leading Companies:
Key Driver: Rising Focus of Government Institutions to Integrate V2X Technology to Aid the Market Growth
The significant rise in industrialization, urbanization, and an increase in vehicle ownership rates across North America, Asia-Pacific, Europe, and the Middle East & Africa has notably increased accidents & emission rates. Moreover, a surge in the depletion of fossil fuel reserves and heightening prices of crude have raised concerns among the international government organizations to shift toward sustainable mobility solutions. This fueled the demand for electric and autonomous vehicles across the globe owing to their fuel efficiency & ability to minimize road accidents, owing to the deployment of advanced safety systems and sensors.
These initiatives launched by the national and international government organizations would substantially support the demand for Vehicle-to-Everything (V2X) Communication systems in the forecast years.
Possible Restraint: Potential Threats of Cyber Attacks to Hamper the Market Growth
The rising integration of various software in the connected vehicle has opened up several network attacking gateways for hackers to access & manipulate car data. Thereby, posing a threat to the vehicle owner due to compromised personal data, resulting in loss to both the automotive manufacturers & the customers. The V2X systems employ a wide range of hardware and networking options, including sensors & Internet of Things (IoT)-based vehicle solutions, which generate a ton of data that are typically examined by insurance companies & automakers, among other businesses.
Thus, the possibility of hackers getting access to the private information of the users & industry increases, as all the vehicle-related information is generally stored in cloud-based networks. As a result, this creates a challenge for V2X technology providers across the world to upgrade & develop advanced V2X devices & solutions continuously.
Key Questions Answered in the Market Research Report:
Frequently Asked Questions
A. The Global Vehicle-to-Everything (V2X) Communication Systems Market is projected to grow at a CAGR of around 36.85% during 2022-27.
A. Passenger vehicles are anticipated to emerge as an area of remunerative opportunities for the leading players in the Global Vehicle-to-Everything (V2X) Communication Systems Market during 2022-2027.
A. Rising Development of Level 4 Autonomous Vehicles by Prominent Automotive Manufacturers is expected to create new business horizons for the Global Vehicle-to-Everything (V2X) Communication Systems Market in the coming years.