Automotive V2X Market is projected to be worth USD 52.41 billion by 2028, registering a CAGR of 50.2% during the forecast period (2021 - 2027), The market was valued at USD 767 million in 2020., reveals the current Market Research Future (MRFR) report. The strong growth is due to the advances in 5G technology.
The ongoing COVID-19 pandemic had a negative impact on the V2X market. Fall in customer footfalls at showrooms and shutdown of manufacturing plants has hindered the market growth. The lockdown and physical distancing trends has led to a fall in the sales of vehicles that in turn will impact the V2X market growth. The efforts and fast track strategies made by key manufacturers to overcome the huge loss can help in recovering the damage resulting from the pandemic that in turn will reinforce the supply chain as well as accelerate the global V2X market size. Besides most companies have offered the option of work from home, thus the increase in remote working options has declined the need for passenger cars as well as the market demand for modern connected vehicle technologies. Again the semiconductor industry is experiencing shortage in finished goods, components, and materials that is successively affecting the suppliers. Further, the auto industry is experiencing reduced vehicle sales worldwide and shutting down of production facilities that are seriously impacting the availability chains. However, with an aim to fight the deadly virus, suppliers and OEMs are reconfiguring the plant capabilities to supply PPE and medical equipment. Mahindra, for instance, aims in building personal ventilators while Ford in association with General Motors is manufacturing PPE surgical gear and ventilators.
The global V2X market is highly fragmented and competitive in nature with the presence of several key players. These industry players have encompassed several strategies to widen their portfolios and also strengthen their position in the market such as acquisitions and mergers, partnerships and collaborations, extensive R&D, new product launches, and more.
Prominent players profiled in the global V2X market report include STMicroelectronics NV, Denso Corporation, Delphi Technologies, Robert Bosch GmbH, Infineon Technologies AG, and Continental AG.
Demand for Semi-Autonomous Cars to Bolster Market Growth
The growing demand for semi-autonomous cars that are equipped with advanced driver assistance systems is likely to bolster V2X market value over the forecast period. OEMs are putting in a lot of efforts to expand their autonomous vehicles.
Additional factors adding to the global automotive vehicle-to-everything market growth include the rise in fuel consumption, wastage of time due to traffic congestion, growing need for better traffic management and automobile safety features, growing technological advances, growing trend for connected cars, favorable government initiatives regarding traffic management, participation of different automotive manufacturers, rising pollution and vehicular congestion, and growing need for real-time traffic. Besides, incident alerts for public safety, increasing environmental concerns, high competition in the car manufacturing market, the need for lower fuel wastage, and rise in the use of electronics in cars due to digitalization are also adding market growth.
Technological Advances in Automotive Electronics to Offer Robust Opportunities
Advancements in technology in automotive electronics like cloud technology that is used for vehicle platooning is likely to offer robust opportunities to market players in the future.
Dip in Car Sales to Act as a Market Restraint
The dip in the sales of cars during the COVID-19 pandemic may act as a market restraint in the forecast period.
Security Issues to Act as a Market Challenge
Security of data communication coupled with the need for robust legal framework may act as major market challenges for market players in the future.
V2X Industry has been bifurcated based on Propulsion, Communication Type, and Component.
Hardware Segment to Lead V2X Market
By component, the global V2X market is segmented into software and hardware. Of these, the hardware segment will lead the market over the forecast period. It is likely to develop at a stellar 60.49% CAGR by 2026.
V2V Segment to Dominate V2X Market
By communication type, the global V2X market is segmented into V2I, V2V, V2P, V2G, V2D, and V2C. Of these, the V2V segment will dominate the market over the forecast period. It is likely to develop at a healthy 44.27% CAGR by 2026.
ICE Segment to Spearhead V2X Market
By propulsion, the global V2X market is segmented into ICE and EV. Of these, the ICE segment will spearhead the market over the forecast period. It is likely to develop at a whopping 56.48% CAGR by 2026.
Europe to Dominate V2X Market
The automotive V2X market geographically has been bifurcated into Europe, the Asia Pacific (APAC), North America, and Rest of the World (RoW). Of these, Europe will dominate the market over the forecast period. Improved infrastructure facility that allows easy use of V2X, the presence of several top players, the automotive industry being governed by stringent safety and strict emission norms, blind-spot detection and adaptive cruise control that uses V2V communication to become absolute features, and growing adoption of semi-autonomous and autonomous cars are adding to the global V2X market share in the region. Besides, the growing adoption in England, France, and Germany, and the presence of several V2X communication manufacturers and automotive OEMs, are also adding market growth.
North America to Have Healthy Growth in V2X Market
In North America, the global V2X market is predicted to have healthy growth over the forecast period. The presence of several technologically advanced countries like Canada and the US, ease of technological adoption, the presence of one of the largest automotive markets, lower gas emissions and better traffic control, and increasing production of luxury cars in the US are adding to the global V2X market growth in the region.
APAC to Have Notable Growth in V2X Market
In the Asia Pacific region, the V2X market is predicted to have notable growth over the forecast period. Several favorable government initiatives for large-scale digitalization of urban infrastructure in India, South Korea, and China, constantly increasing smartphone penetration that is facilitating the increasing awareness associated to modern communication technologies, and rapid adoption and production of cars are adding to the global V2X market growth in the region. It is predicted to grow at a high CAGR by 2026.
The V2X market report by Market Research Future throws light on the current trends and niches in the industry. The report also lays emphasis on the various market drivers, opportunities, market restraints, and challenges, as well as offers insights for the forecast period. It also throws light on the different market segments for a comprehensive understanding of the reader.
By Communication Type
|Market Size||2028: USD 52.41 billion|
|CAGR||50.2% CAGR (2020-2027)|
|Forecast Units||Value (USD Million)|
|Report Coverage||Revenue Forecast, Competitive Landscape, Growth Factors, and Trends|
|Segments Covered||Component, Communication Type, Propulsion|
|Geographies Covered||North America, Europe, Asia-Pacific, and Rest of the World (RoW)|
|Key Vendors||STMicroelectronics NV, Denso Corporation, Delphi Technologies, Robert Bosch GmbH, Infineon Technologies AG, and Continental A|
|Key Market Opportunities||Advancements in technology in automotive electronics like cloud technology that is used for vehicle platooning|
|Key Market Drivers||
Frequently Asked Questions (FAQ) :
The global V2X is expected to record a substantial market valuation due to the increasing expansion of the automotive industry over the world
The global V2X is projected to register a CAGR of 50.2% in the forecast period.
The hardware segment is slated to expand as the fastest-growing segment.
The ICE segment is slated to expand as the fastest-growing segment.
A few major market players operating in the global V2X are Continental (Germany), NXP Semiconductors (Netherlands), Robert Bosch (Germany), Qualcomm (US), among others.