Global Automotive V2X Market - 2022-2029

Global Automotive V2X Market - 2022-2029

Market Overview

The global automotive V2X market size was worth US$ XX million in 2021 and is estimated to reach US$ XX million by 2029, growing at a CAGR of XX% during the forecast period (2021-2029).

V2X is a communication system allowing a vehicle to connect with other vehicles, road users and infrastructure. The primary goal of V2X technology is to increase road safety, energy efficiency and traffic efficiency. V2X communication systems include vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), vehicle-to-grid (V2G), vehicle-to-cloud (V2C) and vehicle-to-device (V2D).

The automotive industry is moving ahead of technology, allowing cars to connect with infrastructures such as traffic lights, pedestrian communication devices and other digital equipment. These technological improvements have pushed automakers to adopt automobile V2X solutions to provide their customers with more safety, utility and convenience.

Market Dynamics

The automotive industry has gained traction and is on its way to long-term growth. Incorporating various communication technologies and safety features has improved the vehicle's convenience. Furthermore, consumer demand for such features has been a driver of market growth. The concept of driverless or autonomous cars is still in the research phase and commercialization is not expected to happen anytime soon.

The incorporation of V2X communication technologies, on the other hand, will lead to driverless mobility. A critical implementation component will be a clear regulatory framework for integrating V2X technologies. Because automotive V2X is all about communication between vehicles, it is vulnerable to threats such as hacking and manipulation.

Increase in demand for connected cars

Connected vehicles allow cars to communicate with drivers, other vehicles, road infrastructure and the cloud via the V2X platform. These services enable automotive dealers, fleet operators and drivers to optimize resource utilization, improve safety and automate certain driver functions while generating valuable data such as vehicle performance and road conditions.

Connected vehicles collect data from their surroundings and communicate it to one another, connect to intelligent transportation infrastructure and provide real-time traffic data to transportation authorities for better road management and infrastructure planning. Thus, the demand for connected car services has increased, owing primarily to basic vehicle connectivity applications such as real-time updates, navigation and in-car infotainment.

The rise of urbanization and industrialization

Industrialization and urbanization have increased due to the rapid economic development of several developed countries worldwide. Furthermore, the V2X-based intelligent transport system (ITS) has been created in recent years, which is regarded as the critical enabling technology for improving road safety, traffic efficiency and driving experience. Additionally, macroeconomic factors such as an increase in disposable income, an increase in employment rates and an increase in overall GDP are inspiring developments such as smart cities with intelligent infrastructure facilities, which are expected to propel the growth of the automotive V2X market.

Furthermore, the ongoing development and commercialization of cellular technologies and related infrastructure drive global growth. It includes LTE5G, LTE and radio access technology (RAT) systems, which support smart transportation applications such as collision warning and avoidance, lane-keeping assistance and obstacle detection.

Challenges related to V2X

The main difficulty with V2X performance is low latency and good dependability. The IEEE 802.11p-based DSRC employs the CSMA/CA (Carrier Sense Multiple Access protocols with Collision Avoidance) technique to avoid collisions. Although DSRC is anticipated to be highly reliable, its performance suffers in a congested vehicle environment. LTE-V2X features a lower latency and fewer interference (less than 100ms).

In a crowded vehicle environment, the communication delay of less than 100ms provided by LTE-V2X is insufficient, putting the driver's life in danger. The drawbacks of DSRC and LTE-V2X are expected to be overcome by 5G-V2X. The 5G network will also have a communication delay of less than 1ms and stability of 99.99 percent. As a result, the 5G-V2X will be able to offer automatic driving.

COVID-19 Impact Analysis

The global effects of COVID-19 are already being felt and will significantly impact the automotive V2X market in 2020. There are fears that the lockdown period will be extended, hampering production activity across all sectors, including the automotive industry. Due to the imposed lockdown, manufacturing units worldwide have halted production, likely affecting purchasing vehicles equipped with vehicle-to-everything (V2X) features.

COVID-19 is causing market uncertainty, supply chain disruption, business decline and increased panic among customer segments. Governments in various regions have already declared total lockdown and the temporary shutdown of industries, which has harmed overall production and sales. As a result, the global spread of the COVID-19 pandemic has damaged the global automotive V2X market.

Segment Analysis

The automotive V2X market is segmented by vehicle type: passenger cars and commercial vehicles.

Commercial vehicles are expected to be the dominant type during the forecast period.

The commercial vehicle accounts for the most significant global automobile V2X market share. However, commercial vehicles have a higher demand than passenger cars. According to OICA, commercial vehicle sales increased by approximately 6% from 2015 to 2016 due to the construction boom. It aims to improve the driver's experience by offering upcoming traffic warnings, alternate routes and parking spaces.

Aside from that, it helps to prevent traffic, severe injuries, road accidents and collisions with other vehicles. As a result, it is integrated into commercial vehicles worldwide to provide drivers with information about incoming vehicles, weather patterns, road conditions and other drivers' behaviors, thereby protecting the vehicle. Furthermore, because commercial vehicles have a longer travel time than passenger cars, the need for safety is more significant in the commercial vehicle segment, which will drive the automotive V2X market.

Geographical Analysis

North America holds the lion's share

The automotive v2x market will likely dominate the automotive V2X industry in North America. The region comprises technologically advanced countries such as U.S. and Canada, making technological adoption simple. In addition, the region has one of the major car marketplaces. According to OICA, the region accounts for approximately 26 percent of the world's automobile population on the road.

Thus, traffic congestion and high greenhouse gas emissions are two critical issues for this region. Implementing V2X systems would improve traffic control and lower greenhouse gas emissions. As a result, the automotive v2x market is experiencing rapid growth.

Competitive Landscape

The presence of companies along with advanced technological capabilities dominates the market. Companies in the automotive V2X market have a diverse product portfolio, a robust global presence and various strategic initiatives to maintain their market share.

The industry is distinguished by many vendors who provide market-specific products and services. The strategic alliance will assist the companies in establishing a stronghold in the highly competitive automotive v2x market. For example, in October 2016, SAIC USA, a wholly-owned subsidiary of SAIC Motor (China), signed a deal with Savari Inc. (USA) to manufacture and distribute Savari's V2X communications solutions in China and other ASEAN countries.

Major players in the global automotive V2X market include Continental AG, Delphi Automotive LLP, Qualcomm, Inc., NXP Semiconductors, Mobileye, Robert Bosch GmbH, TomTom International B.V., HARMAN International, Cisco Systems, Inc. And Infineon Technologies AG.

Qualcomm, Inc.

Overview: Qualcomm, Inc. is a global leader in creating and commercializing foundational technologies and products used in mobile devices and other wireless products. Qualcomm has 170 offices spread across more than 30 countries. It designs and sells integrated circuits and system software based on 3G/4G/5G and other technologies for mobile devices, wireless networks, internet of things (IoT) devices, broadband gateway equipment, consumer electronic devices, automotive telematics, and infotainment systems.

Product Portfolio: The Company's product portfolio includes processors, modems, platforms, RF systems and connectivity, and products based on the design's end-use application. Vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P) and vehicle-to-cloud (V2C) communication are all part of C-V2X solutions. Qualcomm C-V2X solutions are built into Qualcomm SnapdragonTM Automotive Cockpit Platforms. To enable secure V2X communications, Qualcomm AerolinkTM solutions are designed to work with C-V2X and other short-range radio access technologies.

Key Development: Audi of America, American Tower Corporation, Qualcomm Technologies, Inc. and the Virginia Department of Transportation (VDOT) announced a significant milestone in the initial cellular vehicle-to-everything (C-V2X) communication technology. The Virginia C-V2X deployment results from a collaboration between Audi of America, VDOT and Qualcomm Technologies announced earlier this year to improve work zone & vehicle safety for Virginia roadways while expanding safety use cases to reduce safety use cases the number of road hazards.

Companies are developing new deployment models with public & private sector participation so that C-V2X technologies can be quickly introduced to roadways worldwide. To achieve this significant C-V2X milestone, the companies are collaborating on the initial deployment with the Virginia Tech Transportation Institute (VTTI) and V2X solutions provider Commsignia, using the 5.9 GHz wireless communications band Federal Communications Commission (FCC) recently proposed allocating for C-V2X enhanced surface transportation safety.