Automotive V2X Market

Market Definition

The automotive vehicle-to-everything market focuses on the development and deployment of communication technologies that enable vehicles to connect and interact with other vehicles, infrastructure, pedestrians, and networks. 

It encompasses hardware, software, and connectivity solutions designed to enhance road safety, traffic efficiency, and autonomous driving through real-time data exchange. The report offers a thorough assessment of the main factors driving market expansion, along with detailed regional analysis and the competitive landscape influencing industry dynamics.

Automotive V2X Market Overview

The global automotive V2X market size was valued at USD 838.4 million in 2024 and is projected to grow from USD 1240.5 million in 2025 to USD 19413.2 million by 2032, exhibiting a CAGR of 48.08% during the forecast period. 

This growth is attributed to the increasing deployment of connected vehicle technologies and intelligent transportation systems across the automotive sector. Rising demand for enhanced road safety, real-time traffic management, and improved driving experiences is accelerating the integration of V2X communication solutions. 

The rollout of 5G networks and advancements in dedicated short-range communications and cellular V2X (C-V2X) technologies are enabling faster, more reliable data exchange between vehicles and infrastructure.

Major companies operating in the automotive V2X industry are Infineon Technologies AG, Qualcomm Technologies, Inc., Autotalks, Continental AG, DENSO CORPORATION, HARMAN International, Cohda Wireless, STMicroelectronics, Aptiv, Kapsch TrafficCom AG, LG Electronics, The Ford Motor Company, Cisco Systems, Inc., NXP Semiconductors, and Commsignia.

In addition, supportive government regulations, strategic collaborations among automakers and tech firms, and growing investments in autonomous and electric vehicle ecosystems are further driving market expansion. Supportive government regulations, strategic collaborations among automakers and tech firms, along with growing investments in autonomous and electric vehicle ecosystems, are further propelling market expansion. 

The convergence of edge computing, artificial intelligence, and sensor fusion within V2X platforms is enhancing situational awareness and decision-making capabilities, propelling market expansion.

• In June 2023, LG Electronics introduced a cloud-based soft vehicle-to-everything (Soft V2X) system designed to improve traffic safety by enabling real-time communication among vehicles, pedestrians, and infrastructure. In a Seoul school zone pilot with 6,700 participants, the system delivered over 40,000 safety alerts, with nearly 75% of pedestrians and 68% of drivers responding to avoid potential hazards.

Key Highlights

1. The automotive V2X market size was valued at USD 838.4 million in 2024.
2. The market is projected to grow at a CAGR of 48.08% from 2025 to 2032.
3. Asia-Pacific held a market share of 35.77% in 2024, with a valuation of USD 299.9 million.
4. The cellular segment garnered USD 522.0 million in revenue in 2024.
5. The vehicle-to-pedestrian (V2P) segment is expected to reach USD 5812.3 million by 2032.
6. The commercial vehicle segment is anticipated to witness the fastest CAGR of 48.38% over the forecast period.
7. Europe is anticipated to grow at a CAGR of 47.98% through the projection period.

Market Driver

Rising Demand for Road Safety and Traffic Efficiency

The growth of the market is propelled by the growing emphasis on enhancing road safety and optimizing traffic efficiency across both urban and interurban transport networks. As vehicle density rises and road infrastructure faces increasing strain, the need for intelligent communication systems to prevent collisions and manage traffic flows becomes critical. 

Automotive V2X technology facilitates real-time communication between vehicles and traffic infrastructure, enhancing hazard detection, optimizing traffic flow through coordinated signal timing, and supporting dynamic route adjustments to alleviate congestion. 

These capabilities significantly reduce the likelihood of accidents and enhance the overall efficiency of transport systems. The integration of V2X solutions into smart city frameworks and connected transport ecosystems is further supported by regulatory initiatives, public-private partnerships, and growing consumer demand for safer mobility.

• In August 2024, the U.S. Department of Transportation (USDOT) launched the "Saving Lives with Connectivity" plan to accelerate vehicle-to-everything (V2X) deployment and improve road safety. Nearly USD 60 million in grants were awarded to Arizona, Texas, and Utah to support V2X projects aimed at reducing traffic fatalities. This initiative aligns with the USDOT’s National Roadway Safety Strategy to create a safer, more efficient transportation network nationwide.

Market Challenge

Cybersecurity and Data Privacy Concerns

The increasing connectivity in automotive V2X systems introduces critical cybersecurity and data privacy risks, limiting the growth of the automotive V2X market. Continuous exchange of sensitive data, which includes vehicle location, speed, and driver behavior, makes systems vulnerable to interception, unauthorized access, and cyberattacks.

Threats such as hacking, data manipulation, and denial-of-service attacks can disrupt communication, leading to incorrect vehicle responses, system failures, and compromised road safety.

To address these risks, developers are implementing advanced encryption methods, secure authentication protocols, and continuous software updates to safeguard data transmission and device integrity. 

Regulatory agencies and industry groups are establishing standardized cybersecurity frameworks to ensure consistent protection across regions and manufacturers. Additionally, real-time threat detection and response systems are being integrated to identify and mitigate attacks promptly, enhancing overall system resilience.

Market Trend

Expansion of 5G and Edge Computing Infrastructure

The expansion of 5G and edge computing infrastructure is reshaping the market by enabling ultra-fast, low-latency communication essential for real-time data exchange between vehicles and surrounding networks. 

The widespread rollout of 5G networks provides the high bandwidth and reliable connectivity needed to support advanced V2X applications such as autonomous driving, traffic optimization, and enhanced safety systems. Edge computing complements this by processing data closer to its source, significantly reducing latency and alleviating the load on centralized servers. 

This proximity allows for faster decision-making and improved responsiveness, which are critical for time-sensitive V2X functions. Moreover, these technological advancements enable more efficient, secure, and scalable V2X solutions, driving smarter transportation systems and accelerating the adoption of connected vehicle technologies across global markets.

• In July 2024, Autotalks and Rolling Wireless collaborated to advance 5G-V2X technology in the automotive and e-bike markets. Rolling Wireless launched the RX135x module with Autotalks’ SECTON3 chipset, compatible with current and next-gen standards. Mass production is planned for 2026.

Automotive V2X Market Report Snapshot

Segmentation	Details
By Connectivity	DSRC, and Cellular
By Communication	Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), Vehicle-to-Home (V2H), Vehicle-to-Grid (V2G), and Vehicle-to-Network (V2N)
By Vehicle	Passenger car, and Commercial vehicle
By Region	North America: U.S., Canada, Mexico
	Europe: France, UK, Spain, Germany, Italy, Russia, Rest of Europe
	Asia-Pacific: China, Japan, India, Australia, ASEAN, South Korea, Rest of Asia-Pacific
	Middle East & Africa: Turkey, U.A.E, Saudi Arabia, South Africa, Rest of Middle East & Africa
	South America: Brazil, Argentina, Rest of South America

Market Segmentation

• By Connectivity (DSRC and Cellular): The cellular segment earned USD 522.0 million in 2024, mainly due to its widespread coverage, faster data speeds, and growing integration with 5G networks, enabling enhanced V2X communication.
• By Communication (Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), Vehicle-to-Home (V2H), Vehicle-to-Grid (V2G), and Vehicle-to-Network (V2N)): The vehicle-to-pedestrian (V2P) segment held a share of 29.90% in 2024, propelled by increasing focus on pedestrian safety and the implementation of advanced communication technologies to prevent accidents in urban areas.
• By Vehicle (Passenger Car and Commercial Vehicle ): The passenger car segment is projected to reach USD 11948.8 million by 2032, owing to the rising adoption of connected vehicle technologies and growing demand for enhanced safety and infotainment features.

Automotive V2X Market Regional Analysis

Based on region, the global market has been classified into North America, Europe, Asia Pacific, Middle East & Africa, and South America.

The Asia-Pacific automotive V2X market share stood at around 35.77% in 2024, valued at USD 299.9 million. This significant share is attributed to rapid urbanization, growing investments in intelligent transportation infrastructure, and the widespread deployment of 5G networks throughout the region. 

Additionally, increasing concerns over road safety and traffic management, coupled with the rising integration of Internet of Things (IoT) technologies in smart city initiatives, are fueling regional market expansion. This growth is further bolstered by supportive government policies promoting advanced mobility solutions and the presence of prominent automotive and technology companies. 

Moreover, continuous technological advancements and strengthened collaboration between the public and private sectors are enhancing the region’s V2X capabilities, aiding regional market development.

• In August 2024, LG Electronics became the first company globally to receive Common Criteria (CC) certification for a vehicle-to-everything (V2X) device. The certification was granted for LG’s transceiver module used in Volkswagen’s MQB platform, following a rigorous security evaluation by Spain’s National Cryptologic Centre. This milestone highlights LG’s leadership in automotive cybersecurity.

The Europe automotive V2X industry is set to grow at a staggering CAGR of 47.98% over the forecast period. This growth is attributed to the implementation of stringent road safety regulations and substantial investments in intelligent transportation systems. 

The region’s emphasis on sustainable mobility and the strong shift toward electric and autonomous vehicles are fostering the adoption of advanced V2X communication technologies. Increasing collaboration between automotive manufacturers, technology firms, and government agencies is facilitating the deployment of connected vehicle infrastructure. 

Additionally, continuous advancements in V2X hardware and software, coupled with pilot projects and smart city initiatives, are enhancing traffic efficiency and safety, propelling regional market expansion.

• In September 2023, the 5G Automotive Association (5GAA) announced a major initiative to advance connected mobility in Europe using 5G-V2X technology. This aligns with the European Union’s updated Directive on Intelligent Transport Systems (ITS), which ensures technology neutrality and provides the legal framework for deploying 5G-V2X direct communication.

Regulatory Frameworks

• In the U.S., the Federal Communications Commission (FCC) Rules on Dedicated Short-Range Communications (DSRC) regulate the use of the 5.9 GHz spectrum for V2X communications. It allocates and manages radio frequencies to support vehicle safety applications while balancing spectrum sharing with other wireless technologies.
• In the European Union, the EU Intelligent Transport Systems (ITS) Directive (2010/40/EU) monitors the deployment and interoperability of cooperative ITS, including V2X communication systems. It aims to improve road safety and traffic efficiency across member states.
• In India, the Telecommunication Engineering Centre (TEC) Technical Report on Technologies and Standards for Intelligent Transportation Systems  outlines standards and technologies for Intelligent Transport Systems (ITS). It provides guidelines to ensure interoperability, security, and effective communication for V2X applications, supporting safe and efficient transportation infrastructure.

Competitive Landscape

The automotive V2X market is highly competitive, comprising established automotive manufacturers, major technology companies, and forward-thinking startups that drive innovation with cutting-edge technologies and fresh approaches. 

Companies are expanding their product offerings and market presence through technological advancements, geographic expansion, and strategic collaborations. Leading companies are heavily investing in research and development to improve V2X communication capabilities, focusing on enhancing safety features, connectivity reliability, and integration with autonomous driving systems.

Companies are also creating scalable and customizable solutions to address the growing demand across passenger vehicles, commercial fleets, and smart infrastructure. 

Furthermore, market players are forging partnerships with telecom providers, infrastructure developers, and government agencies to accelerate the widespread adoption of V2X technologies and support the growth of intelligent transport ecosystems.

• In November 2023, IPG Automotive and Spirent Communications partnered to improve testing of cellular vehicle-to-everything (C-V2X) systems by combining Spirent’s testing tools with IPG’s carmaker simulation. This collaboration aims to streamline validation and enhance the safety of C-V2X technologies in driver-assistance systems.

List of Key Companies in Automotive V2X Market:

• Infineon Technologies AG
• Qualcomm Technologies, Inc.
• Autotalks
• Continental AG
• DENSO CORPORATION
• HARMAN International
• Cohda Wireless
• STMicroelectronics
• Aptiv
• Kapsch TrafficCom AG
• LG Electronics
• The Ford Motor Company
• Cisco Systems, Inc.
• NXP Semiconductors
• Commsignia

Recent Developments (M&A/Partnerships)

• In May 2025, Indra, Audi of America, and Qualcomm Technologies, Inc. collaborated to showcase advanced tolling solutions using connected vehicle technology (C-V2X). This demonstration demonstrates the ability of C-V2X to streamline toll collection, enhance traffic flow, and improve road safety through real-time vehicle-to-infrastructure communication.
• In January 2024, Danlaw, Inc. acquired Australian V2X technology leader Cohda Wireless to strengthen its connected vehicle safety and smart city solutions. The acquisition enhances  Danlaw’s V2X capabilities and supports innovation globally.