The Automotive V2X Market is estimated to be USD 689 million in 2020 and projected to reach USD 8950 million by 2027, at a CAGR of 44.2 %. The automotive industry has gained momentum and is moving toward sustainable growth. The integration of various communication technologies and safety features has enhanced the convenience aspect of the vehicles. Moreover, the consumer demand for such features has acted as a catalyst to the market growth.
Driverless cars or autonomous cars concept is still under the research phase and its commercialization is expected to be no sooner. However, the incorporation of V2X communication technologies will lead to achieving driverless mobility. A definite regulatory framework pertaining to the integration of V2X technologies will be a key aspect of the implementation of these technologies. As the automotive V2X is all about communication between the automobiles, thus is subjected to threats such as hacking and manipulation. Hence, the security of the data communication will be a critical aspect for the growth of the market.
The automotive industry is growing at a steady rate owing to the rising disposable income of the emerging economies in countries such as China and India, which has boosted automotive sales in recent years. The rising number of passenger cars is one of the main reasons for traffic congestion. Due to these traffic congestions, the fuel consumption of an automobile increases which adds to the emission and air pollution. Thus the increasing demand for real-time traffic alerts and increased environmental concerns will boost the automotive V2X market.
Increasing number of road accidents is fueling the need for increased public safety and rising government support for improving traffic management is expected to further boost the automotive V2X market in the next few years. V2X technology also aids in avoiding traffic congestion and thus, helps reduce excessive fuel consumption and vehicular emissions. Technological advancements in the field of automotive electronics such as cloud technology are being used for vehicle platooning. This is likely to fuel the automotive V2X market during the forecast period.
The hardware and software services associated with automotive V2X technology are considerably expensive and thus, key manufacturers are facing an issue of cost reduction while implementing vehicle-to-vehicle connectivity. This is anticipated to restrain the automotive V2X market to some extent during the forecast period.
The rapidly expanding automotive sector across the world is expected to drive the automotive V2X market during the forecast period. Vehicles operating with some degree of automation that are running alongside each other are likely to lead to accidents if the vehicles are not able to detect a human-driven vehicle crossing it. Thus, the rising demand for semi-autonomous vehicles that are equipped with advanced driver assistance systems (ADAS) and the increasing efforts by OEMs (original equipment manufacturers) to develop autonomous vehicles at the earliest is anticipated to further propel the automotive V2X market in the near future.
The major players in the automotive V2X market include Robert Bosch GMBH (Germany), Continental AG (Germany), Qualcomm Technologies, Inc. (US), Autotalks Ltd. (Israel), and Delphi Technologies (UK).
Qualcomm Technologies, Inc. is anticipated to be a dominant player in the automotive V2X market. It adopted the strategies of new product developments, partnerships, and M&A to retain its leading position in the automotive V2X market. Strengthening the product portfolio and global presence by building customer relationships has helped Qualcomm maintain its competitive edge in the automotive V2X market.
Europe is expected to have the largest automotive V2X market during the forecast period. The improved infrastructure facility in Europe allows easy deployment of V2X. The presence of top players in the Robert Bosch GmbH, Continental AG, and Delphi Technologies, along with large scale adoption of V2X-equipped vehicles, is expected to have a significant effect on the European automotive V2X market. Moreover, in European countries such as France and Germany, the likes of 5GAA, BMW Group, Ford, and Groupe PSA have teamed up with Qualcomm and Savari to showcase C-V2X communications.
Report : Automotive V2X Market - By Communication (Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), Vehicle-to-Grid (V2G), Vehicle-to-Cloud (V2C), Vehicle-to Device (V2D)), By Propulsion (ICE, EV), By Connectivity (Cellular, DSRC), By Vehicle Type (Passenger car, Commercial vehicle) And By Region (North America, Asia Pacific, Europe, Middle East & Africa and Latin America) - Industry Analysis, Opportunity and Forecast 2020 To 2027