V2X Communication Chipset Market
The market for V2X Communication Chipset was estimated at $896 million in 2024; it is anticipated to increase to $2.39 billion by 2030, with projections indicating growth to around $5.43 billion by 2035.
Report Summary
Market Data
Methodology
Table of Contents
Global V2X Communication Chipset Market Outlook
Revenue, 2024
$896M
Forecast, 2034
$4.61B
CAGR, 2025 - 2034
17.8%
The V2X Communication Chipset industry revenue is expected to be around $1055.4 million in 2025 and expected to showcase growth with 17.8% CAGR between 2025 and 2034. The growing demand for V2X Communication Chipset is mainly due to key factors such as the continuous advancements in the automotive industry and the increasing communication requirements within vehicular networks along with the rise of Connected and Autonomous Vehicles technology. Furthermore; the embrace of V2X technology is also backed by the shift towards smart cities; where these chipsets provide effective communication solutions for Intelligent Transport Systems ITS. Moreover; the strict regulations imposed by governments worldwide to install safety devices in vehicles drive market expansion; highlighting the continued importance of this technology, in security and transportation systems.
The V2X Communication Chipset is a technology that enables cars to interact with various elements that could influence them or be influenced by them such as other vehicles, pedestrians, road infrastructure and networks. When cars are equipped with these chipsets it enhances road safety. Greatly boosts traffic efficiency.
Market Key Insights
- The V2X Communication Chipset market is projected to grow from $895.9 million in 2024 to $4.61 billion in 2034. This represents a CAGR of 17.8%, reflecting rising demand across Autonomous Driving, Fleet Management & Asset Tracking and Traffic Management Systems.
- Qualcomm Incorporated, Autotalks Ltd., On Semiconductor are among the leading players in this market, shaping its competitive landscape.
- U.S. and China are the top markets within the V2X Communication Chipset market and are expected to observe the growth CAGR of 17.1% to 24.9% between 2024 and 2030.
- Emerging markets including India, Brazil and South Africa are expected to observe highest growth with CAGR ranging between 13.4% to 18.5%.
- Transition like Connectivity in Automotive Sector is expected to add $163 million to the V2x Communication Chipset market growth by 2030.
- The V2X Communication Chipset market is set to add $3.7 billion between 2024 and 2034, with manufacturer targeting Traffic Management & Fleet & Asset Management Application projected to gain a larger market share.
- With
rising advancements in autonomous vehicles, and
increased infrastructure development for intelligent transport systems, V2X Communication Chipset market to expand 415% between 2024 and 2034.
Opportunities in the V2X Communication Chipset
Collaborations among companies in the industry have the potential to significantly boost the V2X Communication Chipset markets growth trajectory. The idea is also that through collaboration companies can pool resources and broaden their impact collectively leading to adoption of advanced chipset technologies. Forming alliances is seen as a key approach, to navigating and competing in this market landscape.
Growth Opportunities in North America and Asia-Pacific
In the North American market, innovative strategies collectively adopted by top players are shaping the growth of the V2X Communication Chipset industry. With its significant investments in cutting-edge technologies like autonomous driving and smart city infrastructure, this region is emerging as a promising locus for the chipset technologys expansion. Tech giants such as Qualcomm and Intel are instrumental in driving the growth of the V2X Communication Chipset market with their sophisticated advancement in C-V2X modules, enhancing vehicle-to-everything communication by prioritizing safety, connectivity, and traffic efficiency.
The Asia-Pacific region, particularly countries like China and Japan, are making marked strides in the adoption of the V2X Communication Chipset. Fueled by governmental push for intelligent transportation systems and the flourishing automotive sector, the region is rapidly gaining pace in harnessing the chipsets technology. Companies like Huawei, with its increased focus on LTE-V2X, are poised to entrench their footprint in this burgeoning market providing a robust driving scenario for V2X Communication Chipset. This region, with its innovative vision, presents abundant opportunities and a competitive landscape for automobile manufacturers and semiconductor companies alike.
Market Dynamics and Supply Chain
01
Driver: Rising Advancements in Autonomous Vehicles, and Emergence of Connected Car Ecosystem
Studies indicate that the V2X Communication Chipset is also crucial for the advancement and development of connected and self-driving vehicles, as it enables seamless data exchange between vehicles and various entities such as infrastructure, pedestrians, and networks. This technology not only enhances road safety but also improves traffic flow efficiency and the overall driving experience. As the popularity of smart and autonomous vehicles continues to grow alongside rapid technological advancements, the demand for V2X communication chipsets is also expected to rise significantly. The V2X Communication Chipset is also integral to the connected car ecosystem. The advent of new advancements in incar connectivity, vehicle telematics, and an increased focus on vehicle safety has also led to the development of a connected car ecosystem.
The Vehicular to everything Communication Chipset sector is also anticipated to experience growth due to the advancement of Intelligent Transportation Systems . This innovative technology plays a role in enhancing traffic control strategies and safety on roads while also contributing to the reduction of environmental impact from transportation activities. As governments and private entities globally continue their investments in and advancements of infrastructure for ITS applications the demand for V2X ̣ Communication Chipset is also expected to escalate. paving the way, for significant market expansion.
02
Restraint: High Costs of Implementation
The V2X Communication Chipset is considered technology and integrating it into automotive and transportation systems comes with substantial costs attached to it; consequently driving up the overall pricing of vehicles and transportation infrastructure which may potentially deter customers and affect market demand negatively in the process. Manufacturers are confronted with a dilemma; whether to bear these expenses themselves leading to an impact their profit margins or transfer them to buyers which might result in reduced consumer interest and sales figures.
03
Opportunity: Unleashing Potential in Untapped Areas and Technological Innovations Driving Market Growth
The V2X Communication Chipset is becoming increasingly popular in the realm of cutting edge technology applications; however there are still market segments that have yet to be explored fully despite its rising prominence. Leveraging known uses like unmanned traffic management and automated road transport holds great potential for growth in the market and could attract more interest, from consumers if given more emphasis.
The future holds promise in the continuous evolution of technology with advancements such as improved vehicle connectivity and faster data transmission speeds alongside advancements, in chip design to boost the efficiency and adaptability of the chipset itself. The incorporation of these cutting edge technologies is driving the V 22 Communication Chipset sector to heights catalyzely further expansion and progress.
04
Challenge: Regulatory and Standardization Challenges
The V2X Communication Chipset industry faces numerous challenges related to regulatory standards and compliance. Governments and regulatory bodies worldwide have yet to establish a uniform standard for V2X communication systems. This lack of standardization creates uncertainty for chipset manufacturers as they navigate the logistics of producing and implementing this technology across varying regional laws and guidelines. This ultimately can slow the market adoption rate and inhibit the growth potential of the V2X Communication Chipset market.
Supply Chain Landscape
1
Raw Materials Acquisition
Intel CorporationQualcomm Inc
2
Component Manufacturing
NXP SemiconductorsInfineon Technologies AG
3
Chipset Assembly
Autotalks Ltd.STMicroelectronics
4
End User Industry Integration
AutomotiveSmart CitiesTraffic Management Systems
1
Raw Materials Acquisition
Intel CorporationQualcomm Inc
2
Component Manufacturing
NXP SemiconductorsInfineon Technologies AG
3
Chipset Assembly
Autotalks Ltd.STMicroelectronics
4
End User Industry Integration
AutomotiveSmart CitiesTraffic Management Systems
Use Cases of V2X Communication Chipset in Autonomous Driving & Fleet Management & Asset Tracking
Autonomous Driving : The V2X Communication Chipset plays a pivotal role in autonomous driving, where Vehicle-to-Network and Vehicle-to-Vehicle communication are integral. The primary chipset used here is Dedicated Short-Range Communications for its high-speed and immediate vehicle to vehicle communication capabilities. It accelerates information sharing on road conditions, traffic, and safety warnings, offering a real-time decision enhancement system for self-driven vehicles. Key players in this segment include NXP Semiconductors and Infineon Technologies AG, known for their advanced technologies and strong market presence
Traffic Management Systems : Traffic Management Systems heavily rely on V2X Communication Chipset, particularly the DSRC and Cellular-V2X for efficient control and management of traffic. These chipsets enable real-time data sharing about the traffic situation among different components of the traffic management system, helping reduce congestion and improve overall traffic flow. Companies like Continental AG and Qualcomm Technologies are significant contributors to this application with their innovative V2X solutions
Fleet Management & Asset Tracking : The application of V2X Communication Chipset in Fleet Management and Asset Tracking is advancing rapidly, with Cellular-V2X being predominantly used. It facilitates enhanced vehicle tracking, route optimization, and asset management, providing substantial economic benefits for logistics and transportation businesses. Top players in this field, such as Autotalks Ltd and Savari Inc.
Recent Developments
The V2X Communication Chipset market is going through an intense period of innovation and rapid expansion. Accelerated by the automotiveindustry'sshift towards Connected Car Systems, key trends like autonomous vehicles and Intelligent Transport Systems are driving adoption. This evolving market landscape marks the dawn of a new era, with V2X Communication Chipset at the forefront.
December 2024 : The leading semiconductor company, Intel, announced its advanced V2X Communication Chipset, with improved latency and coverage, designed to revolutionize vehicle-to-infrastructure communication.
October 2024 : Qualcomm Technologies expanded its portfolio by launching its brand-new V2X Communication Chipset, set to increase traffic efficiency and significantly reduce on-road accidents.
August 2024 : NXP Semiconductors, a dominant player in the field, released a state-of-the-art V2X Communication Chipset that supports rapid transmission and superior vehicle-to-vehicle communication.
Impact of Industry Transitions on the V2X Communication Chipset Market
As a core segment of the A&T Technologies industry,
the V2X Communication Chipset market develops in line with broader industry shifts.
Over recent years, transitions such as Connectivity in Automotive Sector and Emergence of Autonomous Vehicles have redefined priorities
across the A&T Technologies sector,
influencing how the V2X Communication Chipset market evolves in terms of demand, applications and competitive dynamics.
These transitions highlight the structural changes shaping long-term growth opportunities.
01
Connectivity in Automotive Sector
Driving the demand for V2X Communication Chipset is the ongoing industry transition towards connected vehicles and smart transportation. This innovation has spurred the incorporation of high-quality communication chipsets designed for V2X transmission. The chipset enables real-time information sharing between vehicles and infrastructure, significantly enhancing road safety, driving comfort, and traffic efficiency. As auto manufacturers increasingly embed smart features, the use of V2X chipsets with robust communication capabilities is surging, directly influencing the growth dynamics of the automotive, technology and telecommunication sectors.
02
Emergence of Autonomous Vehicles
Another significant transition impacting the V2X Communication Chipset market is the swift evolution of autonomous vehicles. Fully autonomous cars rely heavily on seamless V2X communication for safe operation, augmenting the demand for advanced communication chipsets. As industries gear up for the autonomous revolution, chipset manufacturers are aligning their products to meet this rising market demand, thus, stimulating a paradigm shift not only in the chipset manufacturing industry, but also in the broader spheres of automotive technology and future mobility solutions.