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The V2X communication market facilitates connectivity between vehicles, infrastructure, network providers, and pedestrians through wireless access in vehicular environments (WAVE) for enhancement of road safety and traffic efficiency. V2X technologies enable uninterrupted connectivity between vehicles with the help of cellular networks or dedicate short range communication (DSRC) technologies to share real-time traffic, road condition, and hazard information. Vehicles equipped with V2X communication system can receive alerts about road conditions and hazards ahead or the presence and speed of other vehicles in difficult driving conditions like fog to avoid accidents. Major applications of V2X communication include autonomous emergency braking, forward collision warning system, blind spot detection, lane change assistance, left turn assistant, and do-not-pass warning.
The global V2X Communication Market is estimated to be valued at US$ 3.63Bn in 2023 and is expected to exhibit a CAGR of 39.% over the forecast period 2023 to 2030, as highlighted in a new report published by Coherent Market Insights.
Market Dynamics:
Growing Trend of Connected and Autonomous Vehicles: Connected and autonomous vehicles require real-time dynamic communication between vehicles and infrastructure for navigation assistance, route optimization, emergency response and traffic management. The ability of V2X communication technology to offer connectivity for advanced driver assistance functionalities in autonomous vehicles is expected to boost the market growth over the forecast period. Development of 5G cellular network will further enhance the communication range and reliability of V2X connectivity solutions.
Safety and Traffic Efficiency: V2X communication helps to reduce road accidents and traffic congestion through real-time sharing of traffic information. Alerts about potential collisions, halted vehicles ahead, vulnerable road users and inclement weather conditions help drivers make informed decisions to avoid accidents and reach destinations faster. Focus on road safety and traffic decongestion initiatives by governments worldwide is fueling the adoption of V2X systems.
Segment Analysis
The V2X communication market can be segmented into device and communication type. Based on device, the market can be categorized into onboard unit and roadside unit segments. The onboard unit segment accounts for the lion’s share as it acts as the core unit that facilitates vehicle-to-everything communication. In terms of communication type, the market is bifurcated into DSRC and Cellular-V2X. Here, DSRC dominates as it is considered more reliable for critical transportation applications and allows for fast and direct vehicle-to-everything transmissions without internet dependency.
PEST Analysis
Political: Governments across regions are supporting V2X initiatives through efforts like allocating dedicated spectrum for connected vehicles to curb road accidents and improve traffic flow.
Economic: Large infrastructure investments by automakers and governments to deploy RSU networks will boost business opportunities. Further, reduced traffic congestion through optimized traffic management saves economic costs.
Social: V2X improves road safety by enabling direct vehicle communication and prevents accidents. It also enhances mobility experience through features like prioritizing emergency vehicles.
Technological: Advent of 5G networks allows for designing new cellular-based V2X solutions with capabilities like multi-Gbps speeds and low latency required for autonomous driving. Integration of technologies like AI and big data also opens up opportunities.
Key players operating in the V2X communication market are Delphi Automotive Plc, Aptiv PLC, Autotalks Ltd., Continental AG, Qualcomm Inc, Infineon Technologies A., Robert Bosch GmbH, Cisco Systems Inc., Infineon Technologies AG, Mobileye NV, Marben Products, Sasken Technologies Ltd and Siemens Mobility GmbH and Denso Corporation. Delphi and Qualcomm have established a leading position due to their focused product portfolio and partnerships with automakers forinstalling V2X modules in vehicles.
Key Takeaways
The global V2X Communication Market is expected to witness high growth. North America currently dominates owing to large scale operational deployments and supporting regulatory norms in countries like the US. Europe is also an important regional market driven by implementation projects across Germany, Netherlands and UK for uses like truck platooning.
The market is witnessing rising collaborations between players to launch advanced connectivity solutions. For instance, Autotalks partnered Mobileye to introduce C-V2X technology in their product offering. Also, market participants are investing in 5G deployments and triallings ranging from platooning to HD mapping to strengthen capabilities and tap new opportunities from connected vehicles.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
