Global Automotive V2X Market Outlook
Revenue, 2024
$2.2B
Forecast, 2034
$124B
CAGR, 2025 - 2034
49.8%
The Automotive V2X industry revenue is expected to be around $3.3 billion in 2025 and expected to showcase growth with 49.8% CAGR between 2025 and 2034. This innovative communication technology holds the potential to redefine the way vehicles communicate with each other and their surroundings by offering levels of safety, reliability and ease, in our everyday travels.
With its wide range of connectivity options and capabilities in playt here are two aspects to Automotive VEX technology. VEX to VEX (Vehicle to Vehicle ) and VEX to I (Vehicle to Infrastructure). These components work together to enable the development of self driving cars The progression of this cutting edge trend has been remarkable in times thanks, to the arrival of 5th generation wireless technology leading to faster communication speeds, lower delays and better detection of nearby objects.
Market Key Insights
- The Automotive V2X market is projected to grow from $2.2 billion in 2024 to $125 billion in 2034. This represents a CAGR of 49.8%, reflecting rising demand across Vehicle to Vehicle Communication (V2V), Connected Infotainment Services and Intelligent Traffic System (ITS).
- Qualcomm Technologies Inc, Continental AG, Intel Corporation are among the leading players in this market, shaping its competitive landscape.
- U.S. and Germany are the top markets within the Automotive V2X market and are expected to observe the growth CAGR of 47.8% to 69.7% between 2024 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 37.3% to 51.8%.
- Transition like Shift to Electric Vehicles is expected to add $2 billion to the Automotive V2x market growth by 2030.
- The Automotive V2X market is set to add $122 billion between 2024 and 2034, with service providers targeting Vehicle-to-Infrastructure & Vehicle-to-Pedestrian Communication Type projected to gain a larger market share.
- With Increasing adoption of advanced technologies, and Government regulations and initiatives, Automotive V2X market to expand 5590% between 2024 and 2034.
Opportunities in the Automotive V2X
The emerging and quickly expanding sector of self driving vehicles offers an exciting opportunity for Vehicular, to Everything technology.
Growth Opportunities in North America and Europe
In North America— in the United States—the Automotive Vehicular to Everything market stands out with its focus on autonomous vehicle studies and the seamless incorporation of Vx technology aided by strict safety regulations imposed by the government officials there. This region's market scenario is characterized by research and development efforts that spawn patents and encourage technological partnerships—ultimately paving the way for significant growth prospects in various sectors such, as smart city initiatives and the rollout of 5th generation wireless technology.
In Europe's automotive VTX market is significantly influenced by leading car manufacturers and a notable emphasis on improving road safety using technology along with regulations in place to support this cause efficiently. The market is highly competitive with VTX technology mostly integrated into premium vehicles. There are chances, for development by extending these technologies to a wider range of vehicles and the increasing popularity of connected transportation solutions.
Market Dynamics and Supply Chain
01
Driver: Increasing Adoption of Advanced Technologies, and Surge in Demand for Real-Time Traffic and Incident Alerts
The automotive sector is also seeing a rise in the integration of cutting edge technologies such, as AI and the IOT . These innovations are also reshaping vehicles into smart and interconnected systems that enhance safety and efficiency while improving the overall driving experience. As traffic jams worsen globally the need for traffic control and accident notifications is also, on the rise.
Countries worldwide are also introducing rules to improve the safety and efficiency of vehicles leading to the advancement and use of Vehicular to Everything technologies. These guidelines are also designed to boost road safety and alleviate traffic congestion fostering the expansion of V ̶ to Everything solutions, within transportation networks and urban areas.
02
Restraint: Cybersecurity Concerns
The Automotive VTX technology includes sharing information between vehicles and other entities that impact them bidirectionally; nevertheless this interaction raises concerns about cyber attacks possibility. Even with cybersecurity progressions made due, to threats the market growth faces a major challenge. The apprehension of scenarios where vehicles are hacked and manipulated remotely could potentially impede consumers willingness to adopt VTX technologies consequently hindering market expansion.
03
Opportunity: Enhanced Driver Safety Mechanism and Smart Traffic Management Systems
Despite the progress in technology today and despite all the advancements weve made far in that realm road accidents continue to be a significant issue worldwide that we are grappling with. This has led to a growing recognition and realization of the importance of combining V two X technology with driver assistance systems . By enabling communication among vehicles pedestrians and infrastructure V two X has the potential to warn drivers about potential collisions, road dangers and much more. This could lead to improvements in ensuring vehicular safety for everyone, on the road.
Given the urban development and increasing number of vehicles on the roads today presents a promising chance for implementing Vehicle to Vehicle technology in smart traffic control systems! An effective system that can manage traffic flow effectively by offering real time route suggestions and minimizing congestion would not boost efficiency but also play a vital role, in promoting environmental sustainability through lower CO₂ emissions.
04
Challenge: High Infrastructure Costs
Implementating and advancing Vehicular to everything technology demands funding for infrastructure enhancements. The process of updating transportation systems to support V technology incurs substantial expenses such as investment, in V communication systems roadside communication units and backend servers.
Supply Chain Landscape
1
Component Manufacturing
NXP SemiconductorsContinental AG
2
Test Equipment Production
TektronixRohde & Schwarz
3
Firmware Development
Cohda WirelessSavari Inc
4
End-User Automotive Industries
General MotorsVolkswagen Group
1
Component Manufacturing
NXP SemiconductorsContinental AG
2
Test Equipment Production
TektronixRohde & Schwarz
3
Firmware Development
Cohda WirelessSavari Inc
4
End-User Automotive Industries
General MotorsVolkswagen Group
Use Cases of Automotive V2X in Vehicle to Vehicle Communication (V2V) & Connected Infotainment Services
Vehicle to Vehicle Communication (V2V) : Vehicle to Vehicle communication technology plays a role in Automotive Vehicular Communication applications facilitating the real time exchange of information between vehicles to alert them about potential dangers or upcoming collisions thereby minimizing the risk of accidents and improving overall road safety standards. Prominent industry players like General Motors and Audi AG are leading the way in utilizing Vehicular Communication capabilities, within their vehicle fleets.
Intelligent Traffic System (ITS) : Automotive Vehicular to everything technology plays a role in improving traffic management and efficiency through Intelligent Transportation Systems . By utilizing traffic information to enhance traffic signal coordination and alleviate congestion issues while ensuring seamless vehicle flow on the roads. One distinctive aspect of ITS is its ability to harmonize with city frameworks for enhancing urban transportation networks. Key industry leaders such as Siemens and Cisco are at the forefront of implementing ITS solutions integrated with Vehicular, to everything technology.
Connected Infotainment Services : Connected infotainment services are a product of V2X technology that offers both entertainment and informative features to enhance the driving experience by providing real time traffic updates and weather reports along with navigation services and streaming media content for an enjoyable ride, with connectivity while traveling.
Recent Developments
The Vehicular communication market has seen progress lately due to the increased emphasis on automotive connectivity and the development of self driving cars as key areas of focus. The emergence and swift expansion of 5th generation technology is among the trends, in this field.
December 2024 : GM revealed that they will be integrating Vehicle, to X ( communication technology in all their 2025 vehicle lineup.
October 2024 : Ford and Qualcomm teamed up to introduce Cellular Vehicle to Vehicle technology to enhance the safety of roads.
June 2024 : Harman International has unveiled a cutting edge Vehicular to everything solutionthat'sready for 5th generation networks to enhance communication, in self driving vehicles.
Impact of Industry Transitions on the Automotive V2X Market
As a core segment of the Automotive & Mobility industry,
the Automotive V2X market develops in line with broader industry shifts.
Over recent years, transitions such as Shift to Electric Vehicles and Integration of AI and IoT have redefined priorities
across the Automotive & Mobility sector,
influencing how the Automotive V2X market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Shift to Electric Vehicles
The worldwide Automotive VTX market is experiencing impact from the shift to electric cars. The emphasis on creating connections and communication setups within these vehicles is crucial for ensuring safe data transfer and enabling intelligent charging methods that are propelling market expansion. Electric vehicles and VTX technology mutually support one another – where VTX boosts EV effectiveness and EV uptake stimulates increased interest, in VTX solutions. VTX technology has the capability to regulate energy usage according-to traffic conditions resulting in environmentally friendly and effective driving practices. This industry transition is expected to add $2 billion in the industry revenue between 2024 and 2030.
02
Integration of AI and IoT
AI along with the IOT is having an impact on the current evolution of the Automotive Vehicular, to Everything .