Automotive Vehicle to Everything Market Trends

Growth Drivers

• Growing Connectivity in Vehicles – V2X being a vehicular communication system supports the transfer of information from a connected vehicle to moving parts of the traffic system that can affect the vehicle. With the surge in vehicle connectivity, the global automotive V2X market is also expected to escalate in the forecasted period. It is projected that there will be around 80 million new connected cars in the United States with more than 25% of new vehicles having 5G by 2025.
• Rapid expansion in urban growth & industrialization - Owing to the rapid economic progress of several developed economies around the world, urban development has expanded. Furthermore, in recent decades, the V2X-based intelligent transport system (ITS) has evolved, which is regarded as the critical empowering technology for improving traffic safety, traffic effectiveness, and driving dynamics. Furthermore, macroeconomic indicators including a boost in disposable income, an upsurge in workforce participation, and a boost in overall GDP are captivating advancements such as smart buildings with smart transportation infrastructure facilities, which are predicted to accelerate the expansion of the global automotive V2X market. As per the data reported by the World Bank, nearly 7 out of 10 people are expected to live in cities by the end of 2050.
• Rising Pedestrian Fatality Risk – According to the World Health Organization, the death risk grew for pedestrians hit by car fronts nearly 4.5 times, in the year 2018, worldwide.
• Upsurge in the Number of Autonomous Vehicles – it is estimated that there will be more than 30 million autonomous vehicles on the road by 2040 across the globe.
• Increasing Installation Advanced Driver Assistance System (ADAS) - it was observed that ADAS features were installed in about 10% of the more than 1 billion cars worldwide in 2020.
• Rising Penetration of Global Positioning Systems (GPS)- more than 74 million cars have a GPS system across the globe, and in the next few years over 97% of cars will have them.

Challenges

• Lack of Infrastructure
• Vulnerability to Cyberattacks
• High Cost of Infrastructure - High costs for constructing test tracks, precise vehicles, and testing facilities are expected to create obstacles to the market expansion. Furthermore, implementing a high volume of traffic with vast numbers of scenarios is both difficult and expensive. For instance, testing of applications including Abnormal Vehicle Warning (AVW), Control Loss Warning (CLW), and Hazardous Location Warning (HLN).