Global Market Size, Forecast and Trend Highlights Over 2025-2037
Automotive V2X Market size was valued at USD 2.1 billion in 2024 and is expected to secure a valuation of USD 287.6 billion in 2037, expanding at a CAGR of 46% during the forecast period, i.e., 2025-2037. In 2025, the industry size of automotive V2Xs is evaluated at USD 3 billion.
The cellular vehicle-to-everything (C-V2X) technology is rapidly gaining popularity as it offers wider coverage networks, improved scalability, and natural 5G network integration. Major authorities and automobile manufacturers are actively choosing C-V2X technology for upcoming deployments. Through its C-V2X function, vehicles establish direct connections with infrastructure components, pedestrians, and other vehicles to improve safety conditions and reduce traffic congestion. The abilities of C-V2X make it better suited for future deployments on a global scale.
Various companies focus on improving C-V2X adoption through their work on creating standardized licensing frameworks together with expanded connectivity solutions, advancing the implementation of vehicle communication systems. For instance, in August 2023, Avanci announced a connected vehicles 5G licensing program where customers have access to key patented technologies needed for connecting their vehicles to 5G, 4G, 3G, and 2G networks. This program provides the required technologies that make C-V2X connectivity possible so vehicles can establish communication with smart vehicles and transportation systems.
Automotive V2X Market: Growth Drivers and Challenges
Growth Drivers
- Advancements in edge computing and 5G: The rapid growth of 5G networks uses modern Vehicle-to-Everything (V2X) communication through advanced data transfer methods with ultra-low latency. 5G delivers real-time traffic information and hazard warnings, as vehicle response coordination, resulting in substantial improvements in road safety complemented by better efficiency. The technology is especially important for driverless and connected vehicles, as it enables immediate decisions to stop accidents and improve roadway operations. The reliable bandwidth capabilities of 5G enable smart cities to proceed with extensive V2X implementations, enabling their transportation systems to dynamically adapt to current roadway situations.
V2X functionality receives additional strength from edge computing that brings data processing to locations closer to its origin, therefore decreasing cloud server dependency. The local processing systems facilitate swift traffic analysis of pattern movements combined with vehicle behavior recognition for quick responses to roadway dangers. - Demand for real-time traffic management solutions: Urban congestion across the globe has resulted in an increasing demand for real-time traffic management solutions as vehicle-to-everything technology provides essential optimization for vehicle movement. The conventional traffic management system uses stationary signals and static information but creates performance issues during heavy travel times and unplanned road events. The implementation of V2X technology provides solutions to these limitations and enables infrastructure and vehicles to exchange data instantly, creating dynamic signal control and adaptive speed limit adjustments along with coordinated driving patterns. Cities can achieve better traveling conditions, less fuel consumption, and shorter commute times through modern traffic guidance systems, reducing gridlock and minimizing irregular traffic stops.
Challenges
- Cybersecurity and data privacy: The susceptibility of V2X technology arises from its requirement for real-time communication among vehicles, infrastructure components, and networks, making it prone to cyber threats, data breaches, and hacking attempts. Unauthorized entry into V2X systems creates multiple security problems, resulting in traffic disruptions along with vehicle manipulation and personal data theft. The adoption of V2X solutions remains limited due to the necessity of improved cybersecurity security solutions. Market confidence requires fundamental data protection measures, including encryption with authentication standards and regulatory frameworks that have to be implemented to decrease these security risks.
- Limited 5G availability: C-V2X technology adoption requires highly developed 5G infrastructure to support fast and reliable connections between automobiles and infrastructure, as well as pedestrians. The deployment speed of 5G technology in regions affects V2X communication integrity, which diminishes its performance capability in traffic control and safety monitoring applications. Poor 5G availability acts as a deterrent for both car manufacturers and transportation planners to support V2X solutions, so market growth remains constrained.
Automotive V2X Market: Key Insights
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Base Year |
2024 |
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Forecast Year |
2025-2037 |
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CAGR |
46% |
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Base Year Market Size (2024) |
USD 2.1 billion |
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Forecast Year Market Size (2037) |
USD 287.6 billion |
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Regional Scope |
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Automotive V2X Segmentation
By Vehicle Type (Commercial Vehicles, Passenger Cars)
In automotive V2x market, passenger cars segment is set to dominate revenue share of around 44.5% by the end of 2037, attributed to the increase in the integration of connected vehicle technology. Passenger car manufacturers implement V2X technology due to government-authored security protocols and technical safety standards. Multiple regulatory entities worldwide urge industry standards for vehicle communications to decrease traffic occurrences and strengthen road-based systems. Moreover, the 5G network transition is speeding up V2X deployment in passenger vehicles through its power to support low-latency communication and fast data transfers. Modern advancements are transforming the future of smart mobility through V2X technology, which stands as a mandatory feature in upcoming passenger vehicles.
Communication Type (Vehicle-To-Infrastructure (V2I), Vehicle-To-Grid (V2G), Vehicle-To-Vehicle (V2V), Vehicle-To-Home (V2H), Vehicle-To-Home (V2H), Vehicle-To-Pedestrian (V2P), Vehicle-To-Network (V2N))
The vehicle-to-vehicle (V2V) segment in automotive V2x market is expected to register rapid growth during the forecast period, owing to increasing road safety initiatives and accident prevention norms to cater to rising road accidents. With the V2V technology, drivers can receive real-time data, vehicle speed, and their position and condition updates from the road. Modern technological innovations and strategic business partnerships continue to accelerate the rise of V2V communication systems. For instance, TTTech Auto expanded its collaboration with ZettaScale Technology to introduce Zetta Auto in July 2023 as a single solution that unites in-vehicle and V2X communication systems.
Our in-depth analysis of the global automotive vehicle-to-everything market includes the following segments:
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Communication Type |
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Vehicle Type |
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Connectivity Type |
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Customize this ReportAutomotive V2X Industry - Regional Scope
Asia Pacific Market Analysis
By 2037, Asia Pacific automotive V2X market is poised to hold more than 44.5% revenue share, driven by the increasing V2X deployment in the region and rapid adoption of advanced technologies. Several companies in the region are heavily investing in R&D activities to cater to the rising demand. Moreover, governments across the region are focused on building smart traffic management systems and connected vehicle networks through financial investments to create safer roads and minimize traffic delays. In addition, there have been rapid advancements in V2X technology as major automotive companies push passenger and commercial vehicle manufacturers to integrate these systems swiftly.
China automotive V2X market is expected to grow owing to the active government initiatives to develop advanced transportation infrastructure while implementing V2X technology across highway and urban planning sectors. The adoption of V2X technology in the country has also increased through government support of programs for connected vehicles, smart cities, and intelligent roadway development. Digital infrastructure development through vehicle-to-vehicle and vehicle-to-infrastructure communication makes China a top automotive vehicle-to-everything market leader in automotive connectivity.
The automotive vehicle-to-everything (V2X) market in India is expected to accelerate at a rapid pace due to new technological developments and business partnerships. In February 2025, The Carlyle Group purchased a majority ownership of a merged consolidated platform that comprised the Indian auto component manufacturers Roop Automotives and Highway Industries. The investment seeks to improve the production of automotive parts essential to V2X communication systems while strengthening the supply chain infrastructure and stimulating automotive sector development in India. The automotive technology development acts as a fundamental element that drives market expansion for V2X technology in India. The automotive companies in India and their component suppliers work together with global technology enterprises to engineer specialized connectivity systems to optimize performance for roads in the country. Moreover, as India continues its transition towards connected and autonomous vehicles, a substantial increase in V2X solution deployments is expected in the forthcoming years.
North America Market
The North America automotive V2X market is expected to witness a rapid expansion between 2025 and 2037 due to the government’s support and multiple advanced road safety advancement initiatives. Federal government agencies in the region adopt new regulations to expedite V2X communication system adoption in vehicle fleets. During real-time operations, these initiatives work to cut down road accidents by setting up connectivity between vehicles, pedestrians, and roadside infrastructure. The growth of V2X technology adoption receives support from increasing smart infrastructure development that includes automatic traffic signals and connected roadways throughout the region. In addition, the market expands due to the ongoing regional initiatives to upgrade transportation systems and minimize city traffic delays. Automakers in the region invest more in developing advanced driver assistance systems and connected vehicle capabilities to fuel market expansion for V2X technology.
The U.S. automotive vehicle-to-everything (V2X) market is increasing rapidly, owing to the better cloud-computing V2X systems and rising partnerships between automotive and technology businesses. The U.S. automotive vehicle-to-everything market is also expanding due to the high utilization of AI in vehicle communication systems. V2X capabilities that use AI technology allow vehicles to predict road conditions so they can modify their responses in real time. Automotive companies, along with AI technology organizations, team up to design advanced V2X algorithms that enhance driving safety standards and accelerate response rates.
The automotive V2X market in Canada is expected to experience significant growth as governments actively support connected and autonomous vehicle technology. Intelligent transportation systems’ regulatory support from the local government creates an environment that speeds up development by technology firms and automakers. The government authorities jointly support the funding of real-world V2X deployment tests that run within smart cities. The programs work together to achieve safer roads, decreased traffic congestion, and better traffic management systems. The automotive V2X market strength increases through the country’s dedication to merge V2X technology with public infrastructure that includes vehicle-to-infrastructure (V2I) networks and adaptive traffic signals.
Companies Dominating the Automotive V2X Market
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The competitive landscape of the automotive vehicle-to-everything market is rapidly evolving, attributed to the integration of advanced technologies in the industry by key players. They are focused on developing new technologies and products catering to the stringent regulatory norms and consumer demand. These key players are adopting several strategies such as mergers and acquisitions, joint ventures, partnerships, and novel product launches to enhance their product base and strengthen their market position. Here are some key players operating in the global automotive V2X market:
- Continental AG
- Company Overview
- Business Strategy
- Key Product Offerings
- Financial Performance
- Key Performance Indicators
- Risk Analysis
- Recent Development
- Regional Presence
- SWOT Analysis
- Delphi Automotive LLP
- NXP Semiconductors
- TomTom International B.V.
- Qualcomm, Inc.
- Robert Bosch GmbH
- HARMAN International
- Cisco Systems, Inc.
- Mobileye
- Infineon Technologies AG
In the News
- In June 2024, TomTom International B.V. announced its selection by Miovision to improve the company’s growing line of traffic signal prediction and vehicle-to-everything (V2X) solutions, helping reduce congestion and emissions and improve public safety.
- In October 2023, a coalition of 19 leading innovators in the automotive, bicycle, and technology sectors joined forces to integrate bicycles into future V2X communication to create mutual awareness, thereby raising the possibility of lowering the number of injuries from crash situations.
Author Credits: Saima Khursheed
- Report ID: 4458
- Published Date: Mar 05, 2025
- Report Format: PDF, PPT
