The V2X market is projected to grow at a CAGR of 17.61% during the forecast period, to reach a market size of USD 99.55 Billion by 2025.
The key factors driving the growth of the market include the rising demand for real-time traffic and incident alerts for increasing public safety, increase in government funds for better traffic management, and the development of connected vehicles.
Software is estimated to be the leading segment of the V2X market, by offering type. Software helps to manage the content and configuration of the device as well as assists in policy and compliance management. The growing demand for access and control over the V2X system is expected to drive the software market.
The V2C communication is estimated to hold the largest share, by value, of the V2X market. V2C communication is expected to play a pivotal role in connected and autonomous vehicle applications. Various systems and applications of such vehicles will be offered in the cloud from where they will control the entire operations of a vehicle. This widens the scope for the growth of the V2C segment.
The automated driver assistance segment of the V2X market is expected to witness the highest growth during the forecast period. V2X communication offers features such as intersection collision warning, obstacle detection, lane change assistance, lane departure warning, rollover warning, road departure warning, forward collision warning, rear impact warning, and safety margin for assistance vehicles. The increasing demand for these features is driving the growth of the automotive V2X market in automated driver assistance.
The electric vehicle segment is expected to witness the highest growth in the V2X market during the forecast period. In 2017, Toyota Prius is the only EV model that has vehicle-to-vehicle communication technology. The cars can communicate up to 300 m (nearly 1000 feet) in a 360-degree radius.
North America is estimated to be the largest V2X market during the forecast period. The market growth in the region can be attributed to better infrastructure and high income, favorable policies and regulations by the government, and need for a better and effective transportation system.
The European region is estimated to be the second largest V2X market for automotive during the forecast period. The increasing concerns about the safety of travelers and vehicles on the road have led to the adoption of V2X technology by the European Transport Safety Council (ETSC). The increasing demand for V2X systems with telematics applications is expected to drive the market in this region.
The V2X market is dominated by a few global players. Some of the key manufacturers operating in the market are Continental (Germany), Qualcomm (US), Delphi Automotive (UK), NXP Semiconductors (Netherlands), and Robert Bosch (Germany).
Demand for Real-Time Traffic and Incident Alerts for Increasing Public Safety
Increasing Initiatives From Various Governments for Better Traffic Management
Increasing Environmental Concerns to Lead the Adoption of Connected Vehicles
Intense Competition Among Car Manufacturers
Lack of Cellular Connectivity Coverage in Developing Countries