According to Precedence Research, the global automotive V2X market size was reached at US$ 3.21 billion in 2021 and it is expected to hit USD 15.3 Billion by 2030, growing at a CAGR of 45% during the forecast period 2022 to 2030. The growth of automotive V2X market is driven by increasing demand for safety features in an automobile along with better traffic management system.
The automotive industry has witnessed significant momentum and expected to grow substantially over the coming years. Integration of various safety features and communication technologies in an automobile has enhanced the convenience aspect of a vehicle. In addition, prominent demand of consumers for these advanced features act as a catalyst to the market growth.
Driverless cars and autonomous vehicles are a concept and under their research phase, further their commercialization is no sooner. Meanwhile, Vehicle to Everything (V2X) communication technology helps in achieving the driverless mobility. A definite regulation for the implementation of V2X technology expected to further boost the demand for V2X technology in the coming years. However, threat to security of the vehicle such as hacking and manipulation may hamper the market growth. The V2X technology mainly refers to the communication between vehicles and thus security of data communication is a critical aspect.
Communication Type Insights
Vehicle-To-Vehicle (V2V) projected to dominate the global automotive V2X market throughout assessment period. Increasing safety regulations have spur the adoption of various types of communication technologies in a vehicle such as Adaptive Cruise Control (ACC), driver assistance system, lane change assistance, blind spot detection, and many more. This expected to significantly drive the demand for V2V communication.
Besides this, incorporation of Vehicle-To-Network (V2N) and Vehicle-To-Infrastructure (V2I) would facilitate to overcome from traffic congestion, emission, and other types of problems caused due to traffic. This will also promote some convenient facilities such as automated toll payment and e-parking. The aforementioned factors anticipated to boost the market growth of V2N and V2I in the near future.
Vehicle Type Insights
Based on vehicle type, passenger cars accounted for the largest market value share of nearly 75% in the year 2020 and analyzed to continue its dominance throughout assessment period. High demand of passenger cars for convenient mode of transportation has significantly driven the growth of the segment.
However, increasing demand for commercial vehicles due to boom in the commercial sector flourishes the growth of commercial vehicles in the near future. Subsequently, the commercial vehicle segment expected to register a rapid growth throughout assessment period. OICA has also stated that the percent increase in the sale of commercial vehicles was nearly 6% between 2015 and 2016. Furthermore, drastic changes in the infrastructure would propel the growth of construction sector, thereby fuel the demand for commercial vehicles in the coming years with a rate of nearly 30%.
North America estimated to dominate the global automotive V2X market due to presence of technologically advanced countries that provide ease in technology adoption. In addition, the region is one of the largest markets for automobile. For instance, OICA has stated that the region encountered around 26% of total automobiles population running on road. In addition, greenhouse emission and traffic congestion are some of the crucial problems in North America. Thus, implementation of V2X system would terminate these problems to a greater extent. The aforementioned factors significantly propel the market growth in the region.
Similarly, European countries have also imposed stringent emission as well as safety norms. As per the European Environment Agency, vehicle emission is still responsible to a great extent for the greenhouse gas emission in the region. Thus, the regulatory bodies have mandated the implementation of safety features in a vehicle such as blind-spot detection and adaptive cruise control that uses V2X communication, thereby propels the market growth in the region. In addition, the region registered prominent growth in battery-powered vehicles that again influence the V2X communication market growth positively over the coming years. Battery-powered or electric vehicles empower the automotive manufacturers to implement ACC, smart parking, sensors, and other advanced technologies.
Key Companies & Market Share Insights
The global automotive V2X market is dominated by the presence of major electronic component manufacturers. These players have strong global presence, diversified product portfolio, and are significantly involved in various strategic initiatives to retain their market position. In addition, the market experience high competition due to rapid change in the consumer preference and significant investment in research & development by market players. The market players are also involved in partnership, collaboration, and merger & acquisition strategies to grab maximum market share in the coming years. For example, in October 2016, a subsidiary company of SAIC Motors, SAIC USA, has signed an agreement with Savari Inc. Under this agreement, the SAIC USA has agreed to manufacture and distribute the V2X solutions of Savari Inc. in China and other Asian countries.
Some of the prominent players in the automotive V2X market include:
Report Scope of the Automotive V2X Market
|Market Size||USD 15.3 Billion by 2030|
|Growth Rate||CAGR of 45% from 2022 to 2030|
|Largest Market||North America|
|Fastest Growing Market||Asia Pacific|
|Forecast Period||2022 to 2030|
|Segments Covered||Communication Type, Vehicle Type, Connectivity Type, Regional Outlook|
|Companies Mentioned||Nolato AB, Freudenberg Medical LLC, Rochling Group, GW Plastics Inc., MedPlast Inc., Phillips Medisisze Corporation, C&J Industries Inc., Tekni-Plex, Inc., Pexco LLC, and Medical Plastic Devices Inc.|
Segments Covered in the Report
This research study comprises comprehensive assessment of the marketplace revenue with the help of prevalent quantitative and qualitative acumens, and forecasts of the market. This report presents breakdown of market into major and niche segments. Furthermore, this research study gauges market revenue growth and its drift at global, regional, and country from 2016 to 2027. This report includes market division and its revenue assessment by categorizing it depending on communication type, vehicle type, connectivity type, and region:
By Communication Type
By Vehicle Type
By Connectivity Type
By Regional Outlook
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