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V2X Communication technology enables connection between vehicles and enables them to share critical safety and mobility information. It enables vehicles to communicate with other vehicles on road (V2V), infrastructure such as traffic signals (V2I) and network provides (V2N) through cellular networks and other connected services. This technology helps drivers receive real-time alerts about potential collision risks, traffic jams and blackspots on road to maneuver proactively and prevent accidents. V2X technology is key enabler for autonomy as it allows vehicles to share intent and ensure coordination even without human intervention required. The increasing demand for improved safety and traffic efficiency is fueling investments in V2X platforms.
The global V2X Communication Market is estimated to be valued at US$ 3.63Bn 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 key trends:
The key trend in V2X communication market is growing vehicle connectivity and increasing 5G network rollout. 5G technology enables low latency high bandwidth connections between large number of devices on road. Leading 5G network providers are upgrading infrastructure to support V2X technology to enable connectivity based services. Automakers are integrating V2X modules in new models to support over-the-air updates. Governments globally are unveiling policies to mandate V2X technology to improve road safety. The EU has mandated V2X technology for all new vehicles from 2022 while US DOT is working with automakers for early adoption. Growing 3G-LTE networks and emerging 5G networks will accelerate widespread adoption of V2X communication technology.
Porter’s Analysis
Threat of new entrants: The threat of new entrants is moderate as there are high costs associated with R&D of V2X technology. However, technological advancements have lowered the entry barriers.
Bargaining power of buyers: The bargaining power of buyers is high as there are many existing and emerging OEMs and system integrators in the market providing alternatives. Buyers can negotiate on price and demand additional features.
Bargaining power of suppliers: The bargaining power of suppliers is moderate as there are few technology providers with specialized expertise in V2X communications. However, established automotive suppliers have capabilities to enter the market.
Threat of new substitutes: The threat of new substitutes is low as V2X technology provides a unique value proposition of vehicle-to-everything communication. Alternative connectivity options are not direct substitutes.
Competitive rivalry: The competitive rivalry is high given the presence of global technology giants competing to gain leadership in this emerging technology space. Companies compete on technology, product features, and partnerships.
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. Major players are focusing on partnerships to develop globally compatible V2X solutions and extend their product portfolios.
Key Takeaways
The global V2X Communication Market is expected to witness high growth. North America is expected to dominate the market during the forecast period supported by ongoing large-scale trials and deployments across major cities in the US. Rising focus on road safety and efficient transportation are driving investments in V2X infrastructure projects.
Europe is also anticipated to gain significant market share owing to favorable regulatory environment and initiatives like the C-ITS Platform and NordicWay project promoting adoption. Asia Pacific is projected to emerge as the fastest growing region with China and Japan emerging as key markets. Considerable R&D investments and pilot projects for autonomous and connected vehicles applications present opportunities.
*Note:
- Source: Coherent Market Insights, Public sources, Desk research
- We have leveraged AI tools to mine information and compile it
