V2X communication refers to technologies that enable vehicles to communicate with each other as well as roadside infrastructure. It includes dedicated short range communications (DSRC) designed specifically for car-to-car and car-to-infrastructure communication. V2X communication helps improve road safety by enabling advanced driver assistance systems, traffic management, and emergency electronic brake lights. It allows vehicles to exchange information, such as location, heading, brake status and hazard warnings to prevent collisions and traffic jams.

The global V2X Communication Market is estimated to be valued at US$ 3.63 Bn 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:
The increasing adoption of connected and autonomous vehicles is expected to drive the growth of the V2X communication market over the forecast period. Autonomous vehicles heavily rely on vehicle-to-everything (V2X) communication as it provides critical situational awareness to the vehicles beyond the range of its own sensors. V2X technologies help autonomous vehicles perceive their surroundings, navigate safely, and anticipate unpredictable situations involving other road users. Moreover, next-generation autonomous vehicles are embedded with multiple applications and services depending on V2X connectivity. For instance, vehicles can autonomously communicate with traffic signals to coordinate signal timing with pedestrian crossings for smooth traffic flow. Wireless V2X connectivity offers flexibility, mobility, reliability, and security required for autonomous driving. Thus, growth in autonomous vehicles will considerably increase the demand for V2X communication globally.

SWOT ANALYSIS
Strength: The V2X communication market offers improved road safety by enabling constant communication between vehicles and infrastructure. V2X also enables traffic management systems to optimize traffic signal timing in real-time based on actual vehicle volume. Advanced driver assistance features such as forward collision and lane departure warning using V2X communication improves road safety.
Weakness: High investment costs and long return on investment period associated with the installation of roadside units limits the widespread adoption of V2X technology. Compatibility issues between communication protocols of different automotive manufacturers also poses integration challenges.
Opportunity: Growing demand for connected cars and autonomous driving creates opportunities for V2X vendors. Government initiatives for smart cities and regulations mandating V2X in new vehicles will drive additional revenues. Expanding aftermarket for retrofitting existing vehicles with V2X solutions presents new business avenues.
Threats: Slow pace of setting industry standards poses risks of fragmented development. Cyber security threats to vehicle networks connected via V2X needs careful attention and countermeasures. Competition from alternative technologies for vehicle communication can slow V2X adoption.

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, , Harman International Industries Inc. Cisco Systems Inc., Infineon Technologies AG, Mobileye NV, Marben Products, Sasken Technologies Ltd, Siemens Mobility GmbH and Denso Corporation. Delphi dominates currently with its comprehensive V2X platforms deployed worldwide across vehicle models. Qualcomm is making big investments in next-gen cellular V2X while Bosch markets integrated V2X chipsets.

Key Takeaways

The global  V2X Communication Market is expected to witness high growth over the forecast period. Growing demand for improved road safety and traffic efficiency will drive massive worldwide deployments of V2X systems. Asia Pacific dominates currently due to strong government support and rapid economic growth in countries like China and India. China alone accounts for over 30% of the total V2X market owing to aggressive smart city and driverless vehicle initiatives.

North America is a major V2X market led by the US where programs are underway in several states to test and deploy V2X technology. Collaboration between automakers and road authorities is driving large-scale vehicle-infrastructure communication projects. In Europe, Germany and Nordic nations have taken a lead in V2X backed by innovative public-private partnerships and technology trials.