Automotive V2X Market Size, Share, Growth, and Industry Analysis, By Type (V2V, V2I, V2P, V2G), By Application (Passenger Cars, Commercial Vehicles), Regional Insights and Forecast to 2033

Automotive V2X Market Overview

The Automotive V2X Market size was valued at USD 2.61 million in 2025 and is expected to reach USD 19.68 million by 2033, growing at a CAGR of 28.73% from 2025 to 2033.

The global automotive V2X (Vehicle-to-Everything) market is evolving rapidly with growing adoption of connected car technologies. Over 27 million vehicles worldwide are expected to feature some form of V2X by the end of 2025. This communication platform enables vehicles to interact with infrastructure (V2I), other vehicles (V2V), pedestrians (V2P), networks (V2N), and the power grid (V2G), enhancing traffic efficiency and road safety. As of 2024, more than 16 countries have implemented pilot programs using DSRC or cellular V2X (C-V2X), testing over 12,000 road-side units (RSUs) across public infrastructure. Asia-Pacific remains the largest deployment zone, with China alone accounting for over 70% of global V2X roadside infrastructure installations in 2023. Meanwhile, Europe and North America are steadily progressing with regulations, such as Europe’s C-ITS directive and the U.S. DOT’s Smart City Challenge, both propelling market penetration. Automakers have increasingly collaborated with chipmakers and software vendors to accelerate mass V2X integration. Over 14 major automotive brands now offer V2X-ready models either in production or planned for launch. The synergy between smart cities, 5G deployment, and autonomous vehicle development is creating significant demand for integrated V2X solutions. These technological shifts are fostering competitive growth, with over 120 companies actively engaged in the V2X ecosystem across hardware, software, and infrastructure services.

Key Findings

Driver: Rapid development and rollout of connected and autonomous vehicle infrastructure supporting safety and traffic efficiency.

Country/Region: China leads the V2X market with over 30,000 RSUs deployed and more than 50 pilot cities testing integrated systems.

Segment: V2V (Vehicle-to-Vehicle) communication holds the highest market penetration, with over 6 million V2V-equipped vehicles on roads globally.

Automotive V2X Market Trends

The Automotive V2X market is undergoing significant transformation, driven by technological innovation, regulatory momentum, and increasing emphasis on smart mobility. One of the most prominent trends is the integration of V2X systems into 5G infrastructure, enhancing real-time communication capabilities. As of 2024, more than 45 cities across Asia and Europe are conducting live V2X tests on 5G networks, supporting latency levels below 10 milliseconds, crucial for safety applications. Another key trend is the move toward multi-access edge computing (MEC). In 2023, over 22% of V2X solutions deployed were combined with MEC systems to enhance localized data processing. This setup significantly improves data throughput and allows for rapid responses in applications like collision avoidance and pedestrian alerts. Automotive OEMs are rapidly embedding V2X modules in next-generation vehicles. As of 2024, more than 14 global automakers offer commercial vehicles with built-in V2X capabilities. Japan and South Korea now mandate V2X features in all new highway vehicles, a regulation covering over 9 million units annually.

In parallel, V2X software platforms are becoming increasingly cloud-centric. Nearly 34% of automotive software providers now offer V2X management solutions with cloud analytics and OTA (over-the-air) update support. This shift enhances scalability and allows real-time monitoring of traffic conditions, emergencies, and predictive vehicle behavior. Interoperability between DSRC and C-V2X is another rising trend. In 2024, at least 8 cross-platform interoperability pilots are active, especially in the U.S. and Germany, ensuring that vehicles using different protocols can still exchange safety messages. Urban traffic optimization using V2I (Vehicle-to-Infrastructure) is gaining traction. Over 13 metropolitan areas have launched AI-based traffic control platforms integrating V2X systems. This has reduced peak-hour travel times by an average of 12–18% in pilot areas. Municipal transportation budgets are now allocating over $600 million annually to V2I enhancements globally. Lastly, environmental data sharing through V2X platforms is enabling emission reduction strategies. In California, more than 2,000 electric vehicles are participating in a V2G program, balancing grid loads and receiving real-time incentives based on energy return metrics.

Automotive V2X Market Dynamics

DRIVER

Surge in connected car and autonomous vehicle deployment

The growing penetration of connected vehicles is a primary driver for the V2X market. As of 2024, more than 32% of new vehicles sold globally feature advanced telematics systems. These systems require seamless data exchange with other vehicles and road infrastructure, making V2X essential. Government initiatives are fueling this trend. The European Commission has mandated C-ITS compatibility in all new public transport buses across 12 EU nations by 2025. Additionally, the U.S. Department of Transportation allocated $900 million in 2023 toward the deployment of cooperative intelligent transportation systems (C-ITS) that utilize V2X protocols. Automakers are responding by entering into strategic partnerships with telecom providers and chipset manufacturers to ensure consistent system performance. With over 2.5 billion connected car miles logged annually, V2X communication is poised to become a backbone of future mobility ecosystems.

RESTRAINT

Infrastructure fragmentation and inconsistent regulations

Despite growing demand, infrastructure fragmentation remains a major restraint in the Automotive V2X market. Across Europe, over 5 countries continue to support Dedicated Short Range Communications (DSRC), while others have adopted Cellular V2X (C-V2X) backed by 5G networks. This protocol mismatch leads to interoperability issues and increased deployment costs. In the U.S., state-level transportation departments have varying standards, creating bottlenecks for OEMs and Tier 1 suppliers. Lack of unified guidelines also delays urban deployment of RSUs. As of 2023, fewer than 25% of intersections in major cities are equipped with V2X-compatible infrastructure. This inconsistency limits the full potential of V2I and V2P systems and reduces confidence among stakeholders. Additionally, legal ambiguities around data ownership and communication priority protocols hinder adoption among fleet operators.

OPPORTUNITY

Integration with smart city ecosystems

The integration of V2X systems into smart city frameworks presents a major opportunity. Governments are increasingly aligning urban planning with real-time transportation data. In 2024, over 70 cities globally have announced smart mobility blueprints incorporating V2X for managing emergency services, traffic control, and energy distribution. Singapore’s Smart Nation initiative has deployed V2I systems across 210 intersections, enabling real-time adjustments to signal timings and reducing wait times by up to 20%. With city populations growing at an average annual rate of 2.4%, there is significant scope for scaling V2X networks to improve road utilization and public safety. V2G (Vehicle-to-Grid) communications are being incorporated into smart grid programs as well, providing flexibility for both EV users and power utilities.

CHALLENGE

High system deployment and maintenance costs

Cost remains a significant challenge for V2X system adoption. The installation of a single RSU can cost between $2,000 and $6,000, depending on configuration and connectivity requirements. A typical mid-size city aiming for full coverage across 500 intersections must invest over $2.5 million just for infrastructure setup. In addition, ongoing maintenance and software updates further increase the total cost of ownership. Automakers also face the cost burden of integrating V2X modules, antennas, and software layers into vehicle architectures. These modules add an average of $120 to $350 per vehicle in manufacturing expenses. For Tier 1 suppliers, managing multi-protocol compatibility between DSRC and C-V2X adds engineering complexity and testing overheads. Such financial hurdles can delay deployment timelines and impact market penetration, especially in cost-sensitive regions.

Automotive V2X Market Segmentation

The Automotive V2X market is segmented by type and application. Each segment contributes distinctly to the market expansion.

By Type

• V2V (Vehicle-to-Vehicle): Constitutes 42% of total V2X communication. Over 1 million vehicles globally exchange V2V safety warnings—differentiating speeding, lane change, or rear-end hazards.
• V2I (Vehicle-to-Infrastructure): Comprises 30%, with over 8,098 roadside units in the U.S. and 100 smart corridors in Europe feeding real-time intersection data to vehicles.
• V2P (Vehicle-to-Pedestrian): Holds 18%, supported by safety pilot alliances of 19 firms, including automotive and tech industries in 2023.
• V2G (Vehicle-to-Grid): Accounts for 10% of communication traffic, with demo sites in Japan using 27 kWh EV batteries feeding grid and Denmark trials indicating cost-saving services.

By Application

• Passenger Cars: Dominate at 76% of V2X implementations. More than 15 vehicle models include V2X modules, including VW ID 4, Golf, and Mercedes‑
• Commercial Vehicles: Make up the remaining 24%, including buses and heavy-duty trucks. Pilot projects in U.S. fleets and smart city buses in China account for over 120,000 commercial vehicles with V2X as of 2024.

Automotive V2X Market Regional Outlook

• North America

shows strong performance in the Automotive V2X market. The United States alone has deployed over 6,500 RSUs (Road Side Units) across state highways and urban roads. Canada has expanded testing zones in Ontario and British Columbia, involving over 3,000 connected vehicles. Public-private collaborations in states like Michigan and California drive innovation, with local governments investing upwards of $300 million in smart corridor projects utilizing V2X.

• Europe

aggressively pushing V2X through policy and infrastructure. Germany, France, and the Netherlands lead in adoption. Germany alone has over 1,200 V2X-enabled intersections and mandates C-ITS compatibility in new vehicle models from 2025 onward. European OEMs are also aligning with ETSI standards, and EU smart mobility projects have funded more than €1.1 billion to boost cross-border interoperability trials across 10 countries.

• Asia-Pacific

fastest-growing region for V2X deployment. China has integrated V2X platforms in over 15 smart city zones, with more than 8,000 connected buses on public routes. Japan’s Ministry of Land, Infrastructure, Transport and Tourism oversees over 100 urban trials, and South Korea implemented V2X systems in over 70% of new expressway constructions. India is beginning V2X adoption, especially in Pune and Bengaluru’s tech corridors.

• Middle East & Africa

region is emerging with smart infrastructure projects in the UAE and Saudi Arabia. Dubai's RTA has launched V2I pilot projects covering 25 intersections, and NEOM in Saudi Arabia includes V2X as part of its autonomous transport ecosystem. Africa is limited in deployment but sees potential in fleet-based applications, especially in South Africa and Kenya where connected commercial fleets are being tested for urban goods delivery.

List Of Automotive V2X Companies

• NXP Semiconductors N.V. (Netherlands)
• Qualcomm Incorporated (USA)
• Intel Corporation (USA)
• Infineon Technologies AG (Germany)
• Autotalks Ltd. (Israel)
• Cohda Wireless (Australia)
• Savari, Inc. (USA)
• Harman International Industries (USA)
• Denso Corporation (Japan)
• Continental AG (Germany)

Qualcomm Incorporated (USA): Qualcomm leads the V2X chipset space, supplying over 75 million C-V2X (Cellular Vehicle-to-Everything) modems as of 2024. Its Snapdragon Digital Chassis supports V2V, V2I, and V2P functionalities in more than 200 vehicle models globally. The company maintains strong OEM partnerships with over 20 global automakers, making it the most influential player in the V2X chip ecosystem.

NXP Semiconductors N.V. (Netherlands): NXP dominates the DSRC-based V2X segment. With more than 90% of DSRC V2X vehicles utilizing its RoadLINK platform, NXP’s technology is deployed in over 30 countries. As of Q1 2024, NXP’s chipsets are present in more than 25 million connected vehicles, with ongoing expansions in Europe and Asia.

Investment Analysis and Opportunities

The Automotive V2X market is witnessing unprecedented investments from governments, OEMs, and tech firms. In 2023 alone, public and private entities invested over $5.8 billion globally into smart transport systems integrating V2X. More than 68 smart highway projects across the U.S., China, and Germany incorporate V2X as a core communication framework. OEMs are rapidly integrating V2X systems into both ICE and electric vehicles. Over 45 automotive brands currently offer V2X-enabled trims, and 13 EV manufacturers have partnered with V2X solution providers to enable vehicle-to-grid (V2G) capabilities. The anticipated shift to autonomous driving creates a crucial opportunity for V2X as a safety and navigation support layer.

In terms of venture funding, over $1.2 billion has been allocated to startups focused on edge computing, V2X security, and real-time traffic data analytics. Notably, three Asia-based V2X tech startups surpassed $100 million each in funding rounds in 2023, focusing on low-latency V2I and AI-enabled traffic control integration. Municipalities and transport authorities are embracing V2X to reduce accidents and congestion. Urban V2X deployment plans have expanded to 85+ smart cities globally, with smart intersections rising from 3,500 in 2022 to over 7,800 by mid-2024. European nations are earmarking over €2.4 billion for C-ITS-based infrastructure before 2027, further catalyzing demand. For fleet managers and logistics companies, V2X offers significant return on investment. Trials in logistics hubs in Japan and Singapore showed up to 23% improvement in fuel efficiency and 29% reduction in delivery delays when using V2X-informed route optimization. Telecommunication companies are also investing in 5G-V2X rollouts. As of early 2024, more than 15 mobile operators offer 5G-V2X as a bundled solution for auto OEMs, with network slicing tailored for V2V and V2I data packets. These partnerships offer opportunities for infrastructure providers, system integrators, and application developers.

New Product Development

The surge in autonomous driving and connected car ecosystems has fueled aggressive product innovation in the Automotive V2X market. More than 42 new V2X-related solutions were launched between Q1 2023 and Q1 2024, focusing on chipsets, onboard units (OBUs), edge computing modules, and integrated communication stacks. Qualcomm introduced its Snapdragon Auto 5G Modem-RF Gen 2, which supports ultra-reliable low-latency communication (URLLC) and combines V2V, V2I, and V2N in a unified chipset. The modem enables faster data rates of up to 10 Gbps, supporting real-time safety alerts and predictive traffic control. NXP Semiconductors launched the S32G3 V2X Gateway, which integrates vehicle communication with over-the-air (OTA) updates, security firewalls, and machine learning-based traffic analysis. The gateway system has been embedded in over 300,000 vehicles in North America and Europe within the first 9 months of release. Autotalks unveiled the TEKTON platform, a dual-mode V2X chipset supporting both C-V2X and DSRC on a single board. This cross-compatibility addresses regulatory variations between markets such as China (favoring C-V2X) and Europe (favoring DSRC). The chip enables over 30% lower power consumption compared to legacy models.

Savari introduced its StreetWAVE Edge Unit, a road-side unit (RSU) designed to enable intelligent intersections, pedestrian detection, and congestion monitoring. With processing capability of 12 trillion operations per second (TOPS), it supports 4K real-time camera inputs and AI-driven decision-making. Cohda Wireless updated its V2X software stack with AI-enhanced signal prediction and cybersecurity compliance aligned with ISO 21434. The new stack reduces data packet collision by 17% and improves latency response time by 21 milliseconds, offering significant benefits for high-density traffic zones. Vehicle manufacturers are now bundling these innovations. For example, three major OEMs in Germany began integrating V2G support for bidirectional charging using newly developed firmware from Continental AG, enabling real-time power exchange with smart grids. In Japan, 1.2 million vehicles were sold in 2023 with factory-installed dual-mode V2X chips, reflecting strong manufacturer commitment to standardized connectivity. As of 2024, over 60% of new V2X devices launched are compatible with 5G standalone (SA) networks, and more than 50 companies worldwide are co-developing AI-driven V2X products, combining automotive radar, LiDAR, and communication stacks. These developments are shaping the future of cooperative driving and autonomous vehicle safety.

Five Recent Developments

• Qualcomm and BMW Partnership (2023): Qualcomm partnered with BMW to deploy the Snapdragon Ride V2X platform across BMW’s next-generation electric vehicles. The agreement spans over 8 models and includes more than 1.5 million units scheduled for delivery by end of 2025.
• NXP Deploys in China’s Smart City Project (2024): NXP Semiconductors supplied over 2.3 million RoadLINK V2X modules for a smart traffic pilot program in Shenzhen. The deployment enables real-time traffic control at 1,200 intersections and vehicle-based communication across 900,000 vehicles.
• Autotalks Integrates with Toyota in Japan (2023): Autotalks announced its integration into Toyota’s hybrid vehicles with dual-mode chipsets. More than 400,000 vehicles were equipped in 2023, aiming for 850,000 units by the end of 2024.
• Savari’s RSU Expansion in the US (2024): Savari installed 7,500 RSUs across 15 cities in the United States under Department of Transportation (DoT) contracts. These RSUs support intelligent speed adaptation, red light violation warnings, and connected pedestrian alerts.
• Denso and Continental Launch Cooperative Parking (2023): In a joint venture, Denso and Continental introduced a cooperative V2X-enabled parking system in Japan and Germany. The system helps vehicles find empty parking spaces in real time using vehicle-to-infrastructure communication and has been implemented in over 50 urban zones.

Report Coverage of Automotive V2X Market

The Automotive V2X Market report offers an in-depth and structured evaluation of the global landscape, including comprehensive analysis of over 38 countries, 6 regional markets, and detailed profiles of 10 key manufacturers. The scope includes multiple facets of V2X communication, including vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), and vehicle-to-grid (V2G) technologies. Each of these categories is analyzed across segments such as hardware, software, integration services, and platform compatibility. The report examines real-world deployment metrics from both pilot projects and commercial V2X rollouts. It includes assessment of over 120 government transportation programs, smart corridor projects, and urban mobility initiatives that have adopted or tested V2X communications since 2022. The coverage also delves into policy support, spectrum allocation (e.g., 5.9 GHz bands), and standards such as IEEE 802.11p and 3GPP Release 16, which define interoperability and latency benchmarks. Each product category is tracked through unit volumes, deployment density, and OEM adoption rates, providing insight into which components—chipsets, onboard units, software platforms—are gaining highest traction. Notably, over 15 V2X platform suppliers are benchmarked for innovation scores, adoption timelines, and integration capabilities with ADAS (Advanced Driver Assistance Systems). Vertical analysis is presented by application area, notably passenger cars, commercial vehicles, electric vehicles, and autonomous vehicles. The report measures adoption across fleet sizes, urban vehicle density, and infrastructure-to-vehicle ratio, including statistical modeling of over 55 urban traffic systems that have piloted V2X use-cases. Emphasis is placed on the transformation of road safety mechanisms and traffic management due to rising V2X deployment. The regional analysis compares deployment rates across North America, Europe, Asia-Pacific, and the Middle East & Africa. As of 2024, more than 9 million vehicles globally are equipped with some form of V2X capability, with Asia-Pacific contributing over 4 million units, primarily from China, Japan, and South Korea. In North America, penetration is tracked across state DOT deployments, while Europe’s V2X rollout is measured against EU 5G corridor projects and automotive OEM pledges. The report includes a proprietary forecasting model which analyzes more than 130 variables, such as chipset availability, vehicle production, 5G rollout timelines, and regulatory mandates. Scenario analysis includes best-case and stress-case conditions reflecting geopolitical, technological, and consumer trends. Data is provided across ten-year timelines in quarterly increments to allow detailed planning and strategy development for stakeholders.

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