The need to improve road safety, save energy, and traffic efficiency on roads, fuel the increasing adoption of V2X technology, eventually growing to $ 11.72 billion by 2027.
According to Valuates Reports under the Automotive Industry Category, the market size was valued at $ 2.57 billion in 2019 and is projected to grow at a CAGR of 28.4% over the forecast period from 2020 to 2027.
The automotive V2X market is segmented by communication such as vehicle-to-vehicle, vehicle-to-infrastructure, vehicle-to-pedestrian, vehicle-to-grid, vehicle-to-cloud and vehicle-to-device. Further, it is divided by connectivity (dedicated short-range communication (DSRC), and cellular-V2X (C-V2X) Communication) and by vehicle type.
Major players in the automotive V2X space include Altran, Autotalks, Continental, Harman, Infineon, NXP Semiconductors, Qualcomm Technologies, Robert Bosch, Savari, STMicroelectronics.
The rise in the adoption of connected cars and the rapid increase in urbanisation & industrialisation are expected to drive the market growth. In addition, the automotive market is likely to benefit from the future potential of 5G and AI technologies, as well as advancements in cellular-V2X (C-V2X) technology and developments in semi-autonomous and autonomous vehicles.
The rise in the adoption of connected cars is expected to increase the growth of the automotive V2X market. Connected vehicles allow cars to connect with other vehicles, road infrastructure, and the cloud via a V2X platform. These vehicles gather data from their surroundings, communicate it to one another, connect it to intelligent transportation infrastructure, and send real-time traffic data to transportation authorities for better road management and infrastructure planning.
Valuates Reports stated that the rapid increase in urbanisation & industrialisation is expected to further fuel the growth of the automotive V2X market. In addition, the expansion of the automotive V2X industry is predicted to be fueled by macroeconomic variables such as an increase in disposable income, an increase in employment rates, and an increase in overall GDP, which are encouraging projects such as smart cities with smart infrastructure facilities.
The future potential of 5G & AI technology coupled with the advancement in cellular-V2X (C-V2X) technology is expected to increase the growth of the Automotive V2X Market. Furthermore, Artificial Intelligence (AI) and 5G have an important role in the future of the automotive industry, as predictive capabilities are becoming more prevalent in cars, personalising the driving experience.
Moreover, V2X is better equipped with 5G and AI to carry out vital communications for safer and more secure driving. In addition, the C-V2X technology is built to interact with impending 5G network technologies, allowing mission-critical V2X and C-V2X to serve as ultimate platforms for cooperative intelligent transportation systems (C-ITS) services and technology.
Based on region, Europe was the highest revenue contributor, accounting for $ 851.8 million in 2019, and is estimated to reach $ 3.03 billion by 2027, with a CAGR of 24.4%. This dominance of Europe is attributed to the increase in penetration of connected vehicles and technological shifts in the automotive industry across the country.
Asia Pacific to grow at highest CAGR
On the other hand, Asia Pacific is expected to exhibit the highest CAGR of 32.4% during 2020-2027.
Based on communication, the vehicle-to-infrastructure (V2I) segment is expected to register significant growth during the forecast period.
Based on connectivity, the cellular-V2X (C-V2X) communication segment is projected to lead the global market in terms of market share by the end of the forecast period.
Based on vehicle type, the passenger cars segment is expected to register significant CAGR during the forecast period, Valuates Reports said.
Courtesy: Valuates Reports. NB: Photo is representational. Courtesy: Continental.