New Delhi, Oct. 15, 2024 (GLOBE NEWSWIRE) -- The global vehicle-to-everything market was valued at US$ 5.65 billion in 2023 and is projected to reach US$ 89.72 billion by 2032, with a CAGR of 36.1% during the forecast period 2024-2032.
The vehicle-to-everything market is poised for an exhilarating transformation as it enters a new era of technological advancements and widespread adoption. This due to increasing investments and technological innovations. The drive for smarter, safer roads is evident as governments around the world allocate resources to V2X infrastructure, with the U.S. committing $2.5 billion for national deployment over the next five years. In tandem, China leads in V2X technology adoption, deploying 100,000 smart traffic lights in urban areas by the end of 2023, aiming to streamline traffic and reduce congestion significantly.
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As cities become smarter and more connected, the integration of vehicle-to-everything market is a pivotal trend reshaping urban mobility. By the end of 2023, over 30 million vehicles globally will be equipped with V2X communication systems, fostering a new ecosystem of connected transportation. These advancements are further supported by the rollout of 5G networks, with 70 countries now offering commercial 5G services, enhancing the speed and reliability of V2X communications. In Europe, the introduction of the Cooperative, Connected and Automated Mobility (CCAM) initiative is expected to accelerate V2X deployment, impacting approximately 20 million road users by 2025. Additionally, tech giants like Intel and Qualcomm are investing heavily in V2X chipsets, with an estimated $1 billion dedicated to research and development in 2023 alone.
While the outlook is promising, the vehicle-to-everything market faces challenges, particularly in ensuring interoperability and data security. In 2023, there are over 15 different V2X communication standards globally, creating a complex landscape for manufacturers and regulators. To address these challenges, the International Telecommunication Union (ITU) is working to harmonize standards, with a target of establishing a global framework by 2025. Meanwhile, cybersecurity concerns are being tackled head-on, with the automotive industry investing $5 billion in 2023 to enhance data protection measures. As these challenges are addressed, the V2X market is set to revolutionize the way we think about transportation, paving the way for safer, more efficient roadways worldwide.
Key Findings in Vehicle-to-Everything Market
| Market Forecast (2032) | US$ 89.72 billion |
| CAGR | 36.1% |
| Largest Region (2023) | Asia Pacific (31.9%) |
| By Communication | V2V (36.2%) |
| By Component | Hardware (48.9%) |
| By Application | Fleet & Asset Management (15.4%) |
| By Connectivity | Cellular (45.0%) |
| By Vehicle Application | Passenger (63.4%) |
| By Vehicle Type | ICE Vehicles (97.8%) |
| Top Drivers |
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| Top Trends |
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| Top Challenges |
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Vehicle-to-Infrastructure Communication: Leading the Surge in V2X Technology Adoption
Vehicle-to-Infrastructure (V2I) communication is rapidly gaining traction in the vehicle-to-everything market, becoming one of the most dynamic areas of growth. This technology enables vehicles to interact with traffic signals, road signs, and other infrastructural elements, facilitating smoother traffic flow and reducing congestion. In 2023, over 120,000 traffic lights in major cities worldwide were equipped with V2I capabilities, significantly enhancing urban mobility. The growing implementation of smart city initiatives has been a critical driver of this expansion, with countries like China and the United States investing $45 billion and $30 billion, respectively, in smart transportation infrastructure. V2I communication supports dynamic traffic management, which has led to a reduction of up to 10 hours of travel time annually for urban commuters. Additionally, V2I technology has been shown to decrease fuel consumption by 15 million gallons across pilot projects in Europe.
The rise of V2I is also fueled by its ability to complement autonomous vehicle technologies. In 2023, approximately 85% of autonomous vehicle trials incorporated V2I systems to enhance navigation and safety. Moreover, V2I communication in the vehicle-to-everything market is pivotal in advancing cooperative intelligent transport systems (C-ITS), which are projected to save $8 billion annually in accident-related costs once fully implemented. The technology also addresses environmental concerns, contributing to a 20% reduction in emissions within cities that have adopted V2I solutions. With over 50,000 miles of roadways integrated with V2I technologies globally, the infrastructure is increasingly supporting this growth. Regulatory support is also on the rise, with the European Union mandating V2I technology in all new traffic management systems by 2025. These developments underscore the strategic importance of V2I in reshaping urban landscapes and affirm its status as the fastest-growing segment in the V2X market.
The Decline of Dedicated Short-Range Communication in the Evolving V2X Market
Dedicated Short-Range Communication (DSRC) has been a significant player in the vehicle-to-everything market, with approximately 100 million vehicles utilizing this technology worldwide in 2023. Despite its early adoption and reliability, DSRC is poised to experience a decline in market share, dropping from a substantial position in 2023 to a predicted 30.5% by 2032. This shift is largely attributed to the rapid advancements and widespread adoption of cellular V2X (C-V2X) technologies, which offer enhanced flexibility and integration capabilities. For instance, Toyota, one of the pioneers of DSRC, has begun transitioning toward cellular connectivity to leverage the global reach and scalability provided by the burgeoning 5G network, which now connects over 1.5 million base stations worldwide. DSRC's limitations in range, typically around 300 meters, are becoming more apparent as the demand for more comprehensive and integrated communication solutions grows.
Furthermore, the infrastructure costs associated with DSRC are significant, with only about 60,000 roadside units deployed in the U.S. vehicle-to-everything market, compared to the vast and continuously expanding cellular network infrastructure. General Motors, another early adopter of DSRC, announced plans to integrate C-V2X in future models, highlighting a trend among automotive manufacturers. The declining interest in DSRC is also evident from the global count of DSRC-enabled roadways, which remains stagnant at around 30,000, while cellular networks expand rapidly. Additionally, DSRC's inability to support over-the-air updates without significant modifications is a drawback in an era where 50 million vehicles receive software updates over cellular networks. With the global count of connected vehicles expected to reach 400 million by 2030, the industry favors technologies that promise broader compatibility, lower costs, and future scalability, accelerating the shift away from DSRC.
Automated Driver Assistance (ADAS) to Surpass Fleet & Asset Management Application to Become the market Leader by 2032
By 2032, automated driver assistance systems (ADAS) are projected to capture a dominant share of over 14.8% from 13.1% in 2023 in the vehicle-to-everything market, driven by technological advancements and increasing demand for safety and convenience. One major factor is the proliferation of vehicles equipped with ADAS, which is expected to reach 1 billion globally by 2032. These systems, including lane-keeping assistance and adaptive cruise control, are becoming standard in new car models, with over 80 million vehicles already utilizing such technologies as of 2023. The demand for enhanced safety features is further underscored by the fact that ADAS technologies are anticipated to prevent 2.5 million accidents annually. The global ADAS market is valued at $60 billion, reflecting its critical role in the automotive industry. Additionally, the integration of AI and machine learning is propelling the development of more sophisticated ADAS, with 50 million vehicles projected to feature AI-based systems by 2025.
Moreover, regulatory mandates and consumer preferences are accelerating ADAS adoption in the vehicle-to-everything market. By 2032, it is expected that 30 countries will have implemented regulations requiring ADAS features in new vehicles. The push for reducing road fatalities, which currently sees 1.3 million deaths annually, is a significant driver for these regulations. In response, manufacturers are investing heavily in ADAS research and development, with $25 billion allocated annually to enhance these systems' capabilities. The insurance industry is also playing a role, with 20 million policies now offering discounts for vehicles equipped with ADAS, incentivizing consumers to opt for ADAS-equipped vehicles. Additionally, the shift towards autonomous vehicles is pushing the envelope for ADAS, serving as a critical component in the transition towards full autonomy. With 40 million semi-autonomous vehicles expected on the road by 2030, ADAS is set to become an integral part of the driving ecosystem, capturing a significant share of the V2X market by 2032.
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Asia Pacific's Strategic Position and Growth Opportunities in the Vehicle-to-Everything Market
The Asia Pacific region is strategically poised to capitalize on the burgeoning vehicle-to-everything (V2X) market, driven by its innovative automotive sector and robust technological infrastructure. In 2023, China leads with an impressive 30 million connected vehicles on its roads, supported by aggressive 5G rollout with over 2 million 5G base stations nationwide. Meanwhile, Japan is leveraging its advanced smart city frameworks; Tokyo and Osaka have more than 200 combined smart city projects incorporating V2X technologies. South Korea, having invested heavily in V2X R&D, is set to deploy V2X infrastructure along 12,000 kilometers of its highways. Moreover, India’s ambitious plan to introduce 100 smart cities by 2030, with V2X technology at their core, exemplifies the region's commitment to integrating advanced vehicular communication systems. The presence of tech giants like Huawei, which allocated $1 billion to V2X innovation in 2023, further accelerates Asia Pacific’s market leadership.
Looking ahead, the Asia Pacific region offers vast growth opportunities in the vehicle-to-everything market, underpinned by its massive urban population and rapidly expanding automotive industry. By 2025, the region is projected to have over 2.5 billion urban residents, creating significant demand for efficient and smart transportation solutions. This demographic trend is complemented by substantial investments from automotive leaders like Toyota and Hyundai, which collectively plan to inject over $7 billion into V2X technology advancements over the next few years. Additionally, government initiatives such as China’s "New Infrastructure" plan, which earmarks funding for intelligent transport systems, and Japan’s roadmap to deploy V2X across all major cities by 2030, highlight the policy support propelling the sector's growth. With these dynamics, Asia Pacific is not only enhancing its current capabilities but is also setting a global benchmark for V2X technology adoption and innovation.
Key Companies:
- IBM
- Oracle
- Microsoft
- Robert Bosch
- Denso Corporation
- Delphi Technologies
- TE Connectivity
- Nokia
- AT&T
- Ericsson
- Comcast
- Volkswagen
- Toyota Motor
- Daimler
- Ford Motor
- Cisco
- Adode
- Salesforce
- Autotalks LTD.
- Infineon Technologies AG
- NXP Semiconductors
- NEC
- NTT
- Alpha Networks
- General Motors
- Honda Motor
- BMW Group
- Vmware
- SAP
- Seamgen
- Stmicroelectronics
- Continental AG
- Qualcomm Technologies, Inc.
- CommScope
- Alpha Networks
- Mavenir
- SAIC Motor
- Stellantis
- Hyundai Motor
- Other Prominent Players
Key Segmentation:
By Component:
- Hardware
- Onboard Unit (Connectivity control unit)
- Road-side Unit
- Software Platform
- Services
By Communication:
- Vehicle-to-Vehicle (V2V)
- Vehicle-to-Infrastructure (V2I)
- Vehicle-to-Pedestrian (V2P)
- Vehicle-to-Grid (V2G)
- Vehicle-to-Cloud (V2C)
- Vehicle-to Device (V2D)
By Connectivity:
- Dedicated short-range communications (DSRC)
- Cellular
- Hybrid
By Application:
- Autonomous Driving (includes Platooning)
- Automated driver assistance (ADAS)
- Intelligent traffic systems
- Emergency vehicle notification
- Passenger information system
- Fleet & asset management
- Parking management system
- Line and non-line of sight
- Backing
- Others
By Vehicle Type:
- ICE Vehicle
- Electric Vehicles
By Vehicle Application:
- Passenger
- Commercial
- Off-highway
By Region:
- North America
- Europe
- Asia Pacific
- Middle East & Africa (MEA)
- South America
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