Automotive V2X Market - Size, Share, Industry Trends, and Forecasts (2025-2032)

By Connectivity Type:

Based on connectivity type, the market is segmented into DSRC and cellular.

Trends in the connectivity type:

• Significant integration of DSRC technology due to its ability to provide high-speed communication and operate in extreme weather conditions.
• There is a rising trend towards utilization of cellular V2X, attributing to its several benefits including direct communication over longer distance, improved non-line-of-sight performance, enhanced reliability of security messaging and features, and others.

The DSRC segment accounted for a significant revenue in the overall market in 2024.

• Dedicated short-range communication (DSRC) refers to a technology used for facilitating direct wireless exchange of V2X and other intelligent transportation system data among vehicles, other road users, as well as roadside infrastructure.
• DSRC typically operates in the 5.9 GHz band, and offers low latency, direct information exchange among vehicles and the infrastructure.
• Moreover, DSRC is capable of providing high-speed communication even in the presence of obstructions. It is also capable of handling fast-changing environment at high speeds and operating in extreme weather conditions.
• According to the automotive V2X market analysis, the aforementioned benefits of DSRC technology is increasing its adoption in vehicle V2X system, in turn driving the automotive V2X market size.

The cellular segment is anticipated to register a substantial CAGR growth during the forecast period.

• Cellular V2X is a communication technology that enables network and direct connection among automobiles and other vehicles, infrastructure, electronic and gadgets.
• Cellular V2X is capable of transmitting data on multiple variables such as vehicle position, direction, and speed, along with conditions on the road, between automobiles and other devices through LTE and 5G.
• For instance, Qualcomm offers cellular vehicle-to-everything (C-V2X) technology in its solution offerings. Qualcomm’s C-V2X technology can help in improving vehicle connectivity, enhancing autonomous driving, and supporting smart transportation.
• Thus, increasing advancements associated with cellular V2X technology are anticipated to propel the market during the forecast period.

By Communication Type:

Based on communication type, the market is segmented into vehicle-to-infrastructure (V2I), vehicle-to-grid (V2G), vehicle-to-vehicle (V2V), vehicle-to-home (V2H), vehicle-to-pedestrian (V2P), and vehicle-to-network (V2N).

Trends in the Communication Type:

• Rising trend towards integration of vehicle-to-vehicle (V2V) technology to enable vehicles to connect with one and share information related to speed, braking, geolocation, stability, and travel direction among others.
• Increasing adoption of vehicle-to-pedestrian (V2P) technology to provide warnings to the pedestrian of an approaching vehicle or warnings to the vehicle regarding vulnerable road users.

The vehicle-to-vehicle (V2V) segment accounted for the largest revenue share of 43.29% in the total automotive V2X market share in 2024, and it is anticipated to register a substantial CAGR growth during the forecast period.

• Vehicle-to-vehicle (V2V) refers to a communication technique in which vehicles connect with one another by using dedicated short-range communications (DSRC) or 5G connectivity, which further helps in crash avoidance.
• V2V communication primarily utilizes VANETs (vehicular ad hoc networks), which are wireless networks that enables vehicles to communicate and share information regarding their driving habits. The data consists of speed, braking, geolocation, stability, and travel direction.
• V2V communication technology plays a crucial role in improving road safety by sending out incident notifications before a driver notices them.
• For instance, Qualcomm’s cellular-vehicle-to-everything (C-V2X) technology enables vehicles to directly communicate with other vehicles (V2V), with low-latency messages for driving applications that have an immediate safety benefit.
• Therefore, increasing advancements associated with V2V communication technology are driving the automotive V2X market growth.

By Unit Type:

Based on unit type, the market is segmented into onboard unit and roadside unit.

Trends in the unit type:

• Increasing adoption of onboard unit for facilitating vehicular communication, data exchange, traffic management, and safety applications.
• Rising integration of roadside units for facilitating the exchange of information between vehicles and roadside infrastructure for enhancing traffic management and efficiency.

Onboard unit segment accounted for a significant revenue in the overall automotive V2X market share in 2024.

• An onboard unit (OBU) refers to a device installed within a vehicle as part of an intelligent transportation system (ITS) for allowing communication between the vehicle and transportation infrastructure.
• OBUs are vital components in the context of connected vehicle technologies, which supports V2X communication.
• Moreover, onboard units are typically integrated with the vehicle's onboard systems, which enables OBUs to access and share information regarding the vehicle's status, in turn contributing to enhanced overall performance and safety.
• For instance, iWave Systems Technologies Pvt. Ltd offers V2X on-board unit in its product offerings. The V2X on-board unit supports multiple wireless connectivity including 5G/cellular, Wi-Fi, and others.
• Therefore, increasing developments related to V2X on-board units are driving the automotive V2X market trends.

Roadside unit segment is anticipated to register a substantial CAGR growth during the forecast period.

• Roadside unit (RSU) refers to a device used in intelligent transportation systems and connected vehicle environments.
• It is usually installed alongside roads or highways for facilitating communication between vehicles and transportation infrastructure.
• RSUs play a vital role in facilitating vehicle-to-infrastructure (V2I) and vehicle-to-everything (V2X) communication.
• For instance, HARMAN International offers Savari StreetWAVE roadside unit for vehicular connectivity in its product offerings. It utilizes 5G and C-V2X technologies for supporting critical communication framework among vehicles and infrastructures.
• Therefore, the rising advancements related to V2X roadside units are anticipated to boost the market during the forecast period.

By Vehicle Type:

Based on the vehicle type, the market is segmented into passenger cars and commercial vehicles.

Trends in the vehicle type:

• Factors including the rising disposable income, growing popularity of luxury cars, and progressions in autonomous driving systems are key aspects propelling the passenger cars segment.
• Factors including the rising sales of heavy-duty vehicles, growing investments in commercial vehicles, and increasing need for economical modes of transportation and logistics are primary determinants for driving the commercial vehicles segment.

Passenger cars segment accounted for the largest revenue share in the total market share in 2024, and it is anticipated to register substantial CAGR growth during the forecast period.

• V2X system refers to vehicular communication system that includes cameras, sensors, and wireless connectivity.
• V2X system is primarily integrated in passenger cars for sharing real-time information with their drivers, other vehicles, along with pedestrians and roadway infrastructure such as traffic lights.
• For instance, according to the International Organization of Motor Vehicle Manufacturers, the total passenger car production in Europe reached up to 15,449,729 units in 2023, representing an increase of nearly 13% from 13,727,841 units in 2022.
• According to the analysis, the rising production of passenger cars is propelling the automotive V2X market trends.