Automotive Vehicle-to-Everything (V2X) Market Size - By Connectivity, By Vehicle, By Communication, By Component, By Application, Analysis, Share, Growth Forecast, 2025 - 2034

Automotive Vehicle-to-Everything Market Size

The global automotive vehicle-to-everything market size was valued at USD 4.1 billion in 2024 and is projected to grow at a CAGR of 25.1% between 2025 and 2034. The increasing demand for enhanced road safety, combined with advancements in autonomous driving technologies, is driving the adoption of connected vehicle systems. Government mandates for reduced traffic accidents, improvements in traffic flow, and the rollout of 5G networks enable real-time communication between vehicles and infrastructure, fostering efficiency, safety, and smarter urban mobility solutions across regions.
 

For instance, in April 2024, DENSO introduced MobiQ, a new brand dedicated to aftermarket smart mobility and vehicle-to-everything (V2X) solutions. This device seamlessly integrates with existing infrastructure, like traffic signal controllers, to optimize traffic flow and improve safety. It enables communication between connected vehicles and intelligent infrastructure, offering opportunities to enhance road safety and vehicle efficiency.
 

Furthermore, the rapid development of smart cities and infrastructure is fuelling the integration of connected technologies. Urbanization and the need for sustainable transportation solutions are encouraging investments in intelligent traffic management, electric vehicle charging networks, and V2X-enabled infrastructure. This shift supports smoother traffic, reduced emissions, and improved public safety, further accelerating the adoption of connected vehicle systems.
 

For instance, in August 2024, the U.S. Department of Transportation (USDOT) introduced a comprehensive plan for smart cities. This initiative presents a strategic roadmap for nationwide adoption of Vehicle-to-Everything (V2X) technologies, focusing on enhancing transportation safety and efficiency through improved communication between vehicles, infrastructure, and road users.
 

Automotive Vehicle-to-Everything Market Trends

The adoption of cellular-based communication technology is surging, driven by the global rollout of 5G networks. This shift enables faster, more reliable data exchange between vehicles, infrastructure, and pedestrians. Integration with artificial intelligence and edge computing enhances real-time decision-making capabilities, supporting advanced driver-assistance systems and the transition toward autonomous driving in increasingly connected urban environments.
 

For instance, in August 2024, Keysight Technologies, Ettifos, and Autotalks collaborated to successfully conduct the first interoperability test for 3GPP Release 16 sidelink radio communications. This milestone marks a significant advancement in 5G vehicle-to-everything (V2X) technology, paving the way for faster adoption. The technology offers higher throughput, improved reliability, and lower latency, revolutionizing vehicle communication systems.
 

The deployment of connected communication systems faces significant challenges due to high infrastructure costs, which hinder large-scale adoption, particularly in developing regions. Establishing robust roadside units, network connectivity, and maintenance requires substantial investment, limiting accessibility. Additionally, the reliance on real-time data exchange introduces cybersecurity vulnerabilities, posing risks to vehicle safety and user data.
 

Unauthorized access or hacking of these systems can disrupt traffic management, compromise personal information, and even jeopardize passenger safety. Overcoming these obstacles demands significant investment in affordable infrastructure solutions and robust cybersecurity measures to ensure reliability, safety, and widespread implementation of advanced communication technologies.
 

Automotive Vehicle-to-Everything Market Analysis

Based on component, the market is segmented into hardware and software. In 2024, the hardware segment accounted for 64% of the market share and is expected to exceed USD 24.8 billion by 2034. Advancements in hardware components, including high-performance sensors, antennas, and on-board units, are enhancing connectivity and data processing capabilities. The integration of multi-band antennas and edge computing within vehicles supports real-time communication with infrastructure and other vehicles. These innovations, coupled with cost reductions in chipsets and modules, are enabling widespread adoption in both passenger and commercial vehicles.
 

Furthermore, the shift toward compact, energy-efficient hardware designs is gaining traction, addressing space and power constraints in modern vehicles. Integration of V2X hardware with advanced driver-assistance systems (ADAS) and electric vehicle platforms is driving modular and scalable solutions. This trend supports seamless upgrades and compatibility, aligning with the growing demand for smarter, connected, and sustainable automotive ecosystems.
 

Based on communication, the automotive V2X market is divided into vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), and others. The vehicle-to-vehicle (V2V) segment held 42% of the market share in 2024. The adoption of vehicle-to-vehicle communication is accelerating, driven by advancements in low-latency technologies like 5G and C-V2X. This enables real-time data exchange for collision avoidance, lane merging, and cooperative driving. Enhanced algorithms for predictive analytics and AI-driven decision-making further improve safety and efficiency, laying a foundation for fully autonomous and synchronized vehicle operations on roads.
 

In addition, the standardization of V2V communication protocols is fostering interoperability across different automakers and regions, ensuring seamless integration of connected systems. With increasing support from government safety mandates and pilot programs for autonomous convoys, V2V technology is evolving to handle complex traffic scenarios, enhancing road safety, fuel efficiency, and cooperative navigation in diverse driving environments.
 

Europe automotive vehicle-to-everything market accounted for 34% of the revenue share in 2024 and is expected to exceed USD 12.4 billion by 2034. Germany is at the forefront of implementing intelligent transportation systems, driven by its strong automotive sector and government initiatives. Investments in 5G infrastructure and pilot projects for autonomous driving are accelerating development. Collaboration between automakers, technology providers, and regulators ensures seamless integration of connected technologies, positioning the country as a leader in advanced mobility and smart road solutions.
 

Asia Pacific is experiencing rapid growth in connected vehicle technologies, driven by increasing urbanization, government support for smart cities, and high adoption rates of electric vehicles. Key markets like China, Japan, and South Korea are leading in 5G deployment and autonomous driving initiatives. Strategic partnerships between tech firms and automakers are accelerating V2X infrastructure development across the region.
 

In North America, there is a strong push for enhanced road safety through government regulations and infrastructure investments. The growing deployment of 5G networks and autonomous vehicle testing accelerates the integration of connected technologies. Collaborations between automotive manufacturers, telecom companies, and local authorities are driving advancements in smart city infrastructure, enabling seamless communication between vehicles and surrounding environments.
 

Automotive Vehicle-to-Everything Market Share

Qualcomm Technologies, Continental, and Infineon Technologies collectively held a substantial market share of 30% in the automotive vehicle-to-everything (V2X) industry in 2024. Qualcomm Technologies leads with its advanced chipsets enabling C-V2X communication, focusing on the development of 5G-based solutions. By partnering with global automakers and telecom providers, Qualcomm strengthens its position as a key player in vehicle connectivity, providing robust communication platforms for both autonomous and connected vehicle applications across the automotive industry.
 

Continental specializes in hardware and software solutions for V2X, including sensor systems, on-board units, and advanced driver assistance systems. Leveraging its strong automotive legacy, Continental collaborates with OEMs and infrastructure providers, contributing to the development of smart cities and enhancing vehicle safety and efficiency through integrated connectivity and cutting-edge V2X technologies.
 

Automotive Vehicle-to-Everything Market Companies

Major players operating in the automotive vehicle-to-everything (V2X) industry are:

• Aptiv
• Bosch
• Continental
• Denso
• Ficosa
• Harman
• Huawei
• Infineon
• NXP
• Qualcomm
   

Automotive Vehicle-to-Everything Industry News

• In April 2024, Panasonic introduced Cirrus 2.0, an advanced vehicle-to-everything (V2X) platform designed to enhance roadway intelligence and improve smart mobility. Acting as a "data broker," Cirrus 2.0 enables seamless communication between various connected systems, ensuring effective interaction between different tools and connected vehicles.
   
• In July 2023, TTTech Auto and ZettaScale Technology extended their collaboration to enhance in-vehicle and Vehicle-to-Everything (V2X) services. The partnership aims to launch a new software solution, MotionWise Cyclone DDS, which will deliver a safety-certified Data Distribution Service (DDS) tailored for automotive applications.
   

The automotive vehicle-to-everything (V2X) market research report includes in-depth coverage of the industry with estimates & forecasts in terms of revenue ($Bn) from 2021 to 2034, for the following segments:

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Market, By Connectivity

• Dedicated short-range communications (DSRC)
• Cellular vehicle-to-everything (C-V2X)

Market, By Vehicle

• Passenger vehicle
  • Sedan
  • SUV
  • Hatchback
  • Others
• Commercial vehicle
  • Light Commercial Vehicle (LCV)
  • Heavy Commercial Vehicle (HCV)

Market, By Communication

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Pedestrian (V2P)
• Others

Market, By Component

• Hardware
• Software

Market, By Application

• Fleet management
• Autonomous driving
• Collision avoidance
• Intelligent traffic system
• Parking management systems
• Others

The above information is provided for the following regions and countries:

• North America
  • U.S.
  • Canada
• Europe
  • UK
  • Germany
  • France
  • Italy
  • Spain
  • Russia
  • Nordics
• Asia Pacific
  • China
  • India
  • Japan
  • South Korea
  • ANZ
  • Southeast Asia
• Latin America
  • Brazil
  • Mexico
  • Argentina
• MEA
  • UAE
  • Saudi Arabia
  • South Africa