Automotive V2X Market Size, Share & COVID-19 Impact Analysis, By Connectivity Type (DSRC, Cellular), By Communication Type (Vehicle-to-Vehicle (V2V), Vehicle-to-Infrastructure (V2I), Vehicle-to-Pedestrian (V2P), Others), By Vehicle Type (Passenger Cars, Commercial Vehicles), By Unit Type (Onboard Unit, Roadside Unit) and Regional Forecast, 2021-2028

The global automotive vehicle-to-everything (V2X) market size was USD 529.6 million in 2020. The global impact of COVID-19 has been unprecedented and staggering, with automotive V2X witnessing a negative demand shock across all regions amid the pandemic. Based on our analysis, the global market exhibited a decline in growth of 10.8% in 2020 as compared to the average year-on-year growth during 2017-2019. The market is projected to grow from USD 628.9 million in 2021 to USD 7,351.9 million in 2028 at a CAGR of 42.1% in the 2021-2028 period. The sudden rise in CAGR is attributable to this market’s demand and growth, returning to pre-pandemic levels once the pandemic is over.

Vehicle-to-everything enables real-time communication between the vehicle and the surroundings, It includes vehicle-to-vehicle, vehicle-to-pedestrian, and vehicle-to-infrastructure, among other use cases. The technology also facilitates autonomous driving, traffic flow optimization, and road safety by enabling vehicles to communicate with each other and the surrounding infrastructure. This increased situational awareness enables more connected and intelligent solutions.

COVID-19 Pandemic has Accelerated the Development of Vehicle-To-Everything Worldwide

Investment in future-mobility technologies has continued throughout the pandemic. According to a study conducted by McKinsey regarding the mobility investment landscape, the ACES technologies that attract investment are mostly related to autonomous driving, connectivity, and electrification. According to the study, connectivity, vehicle-to-infrastructure, and vehicle-to-everything (V2I/V2X) communication solutions attracted approximately $18 billion in spending.

The pandemic has also accelerated regulatory changes with regards to cellular vehicle-to-everything (C-V2X). In late 2020, the Federal Communications Commission (FCC) voted to reallocate 75 MHz, with the upper 30MHz previously allocated for Dedicated Short-Range Communications (DSRC) services now assigned to C-V2X. DSRC was viewed as crucial to unlocking vehicle-to-vehicle use cases and increasing safety features. However, the FCC's decision will essentially eliminate DSRC progress and fast-track the adoption of C-V2X.

Since early 2020, the pandemic-induced challenges have also stimulated digital transformation and development. Before covid-19, autonomous vehicles (AVs) were limited by technical capabilities and not as widely used in China as they are now. The pandemic stimulated a need for AVs to deliver supplies, improve safety, and advance new infrastructures. For instance, in 2020, Baidu Apollo won bids to build V2X pilot zones in Shanxi province’s Yangquan city, Chongqing’s Yongchuan district, and Anhui province’s Hefei city.

LATEST TRENDS

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Increasing Adoption of C-V2X will Positively Influence Growth

Cellular V2X is supported by leading mobile equipment makers, telecommunications operators, and many automakers, including Daimler, SAIC, Ford, Tesla, Audi, PSA, Nissan, BMW, and Lexus. For instance, beginning in 2022, Ford has committed to deploying C-V2X in all new U.S. vehicle models, pending the Federal Communications Commission vote on spectrum allocation. The company also plans to deploy this technology in all Ford vehicles in China in 2021. Thus, the increasing adoption of C-V2X will positively influence the growth of this market.

DRIVING FACTORS

Traffic Safety Benefits Will Drive the Growth of the Market

According to a 2018 WHO report on road safety, vehicular traffic-related incidents result in more than 1.3 million fatalities every year. According to research conducted by the U.S. Department of Transportation (DOT), road accidents can be reduced by 80% with the help of this technology. It could help reduce road traffic deaths by detecting and alerting the driver of invisible objects.

For instance, an automotive V2X application such as Emergency Brake Light could alert the driver of the following vehicle in advance if it detects a sudden deceleration by the leading car in a blind turn, thus avoiding a crash. According to estimates by the U.S. DOT, The V2X technology would save more than 1,000 lives/year and reduce 2.3 million non-fatal injuries. Therefore, these factors will boost the growth of the market.

Economic Savings due to Vehicle-To-Everything to Augment Growth

Congested roads cost around 100 billion euros annually in Europe. Economic savings potential with a safer and more efficient transportation system are enormous. According to the U.S. DOT, annually, around USD 871 billion can be saved in the U.S. with the help of automotive V2X.

Blocked roads cause supply chain delays, increase the complexity and cost of doing business, and lower productivity. With vehicle-to-everything technology, congestion-causing factors can be detected in advance, and vehicles can react accordingly. By combining simulation models with real-time data, optimized routes can be identified to make rides faster and more efficient. These factors are attributed to the increasing demand for this technology in the automotive industry.

RESTRAINING FACTORS

Challenges Related to Vehicle-To-Everything Testing Will Restrain the Growth of the Market

Some of the challenges faced in automotive V2X testing include; 1) Huge costs in setting up test tracks, actual vehicles, and the infrastructure required for testing, 2) setting up high-density traffic with millions of scenarios is practically challenging & cost-intensive. 3) certain traffic scenarios are fatal to test with humans. For example, testing of applications such as Abnormal Vehicle Warning (AVW), Control Loss Warning (CLW), Hazardous Location Warning (HLN), 4) non-availability of the specific spectrum a deterrent to testing on real roads, 5) Replicating test scenarios in the real world is challenging. Hence, these factors will restrain the automotive V2X market growth.

SEGMENTATION

By Connectivity Type Analysis

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DSRC Segment Held Largest Market Share Owing to Ease of Implementation

By connectivity type, this market is segmented into DSRC and cellular. The DSRC segment held the largest market share in 2020 due to ease of implementation, fully designed technology, and verified data security standards.

The cellular segment is expected to exhibit a higher CAGR in the market during the forecast period. Cellular vehicle-to-everything is a cost-effective and versatile solution that can provide secure short-range and long-range connectivity over a wide area. It offers improved safety features, greater capacity and lowers the chance of interruptions in service. These factors will fuel the growth of this segment.

By Communication Type Analysis

V2V Segment Held the Largest Share Backed by Increasing Demand for Driving Assistance

By communication type, the market is segmented into vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), and others. The V2V segment held the largest share of the market. V2V can provide drivers with other vehicles information, including speed, direction, and location, and alert them of any potential danger in scenarios such as blind spots, heavy traffic, intersections, and terrain issues, among other situations. These factors will drive the growth of this segment.

The V2I segment is also expected to show considerable growth over the forecast period. V2I can assist the development of driver assistance systems such as autonomous driving and intelligent parking that can enhance future planning of parking lots, traffic lanes, and more to manage optimal traffic flow. This will drive the implementation of V2I technology.

By Vehicle Type Analysis

Passenger Cars Dominated the Market Owing to Higher Demand Among Private Consumers

Based on vehicle type, the market is segmented into passenger cars and commercial vehicles. The passenger car segment held the largest share of the market. Major automakers have already deployed V2X. For instance, Toyota has been instrumental in vehicle-to-everything progress, deploying more than 100,000 Lexus and Toyota vehicles equipped with DSRC technology. Similarly, in Europe, Volkswagen has implemented DSRC based vehicle-to-everything in its new Golf models. These factors are attributed to the dominance of this segment.

The commercial vehicle segment is also expected to show considerable growth in the market. Factors such as the potential to reduce collisions, decrease emissions, and improve platooning that can make goods transport more efficient will propel the growth of this segment.

By Unit Type Analysis

OBU Segment Held the Largest Market Share in 2020 Owing to its Low Cost

Based on the unit type, the market is segmented into the onboard unit (OBU) and roadside unit (RBU). The OBU segment held the largest share of the market as it is the essential component necessary for sharing data with other vehicles OBUs and roadside networks in real-time and can enable adding applications through its established software platform. The RSU segment is also expected to show good growth in the market due to decreasing deployment cost, help in managing traffic flow, and improving pedestrian and driver safety, among other applications.

REGIONAL INSIGHTS

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Asia Pacific held the largest automotive V2X market share and stood at USD 251.5 million in 2020. Telecommunication technology providers and automotive OEMs are the key players working on vehicle-to-everything development in this region. Japan and China are expected to lead the Asia Pacific in terms of technology development. For instance, in Chongqing, a V2X pilot zone within 20 square kilometers of Yongchuan district is testing level-4 autonomous vehicles, which can drive almost all the time without human control.

Europe is expected to show good growth in the market. The region witnessed numerous research initiatives, industrial consortiums, and collaborative testing for vehicle-to-everything communication. For instance, the CAR 2 CAR Communication Consortium, comprising multiple technology developers and automakers, focuses on developing intelligent transport systems and implementing them on European roads.

North America is expected to have significant growth in the market owing to increasing technology deployment by major automakers in this region. In partnership with the Ohio Department of Transportation, Honda is deploying the highest-density V2X environment of its kind with the U.S. State Route 33 Smart Mobility Corridor. Similarly, in partnership with the Virginia DOT, Audi announced a pilot program for cellular vehicle-to-everything deployments starting in Q3 of 2020.

According to the Alliance for Automotive Innovation (AAI), the companies with deployed or announced deployments account for over 60% of the automotive market share in the U.S. Hence, these factors will propel the growth of the market in this region.

KEY INDUSTRY PLAYERS

LG Electronics is a Leading Player in the Market due to its Diverse Product and Patent Portfolio

LG Electronics accounts for the second-largest patent count for this technology behind Qualcomm. It holds the second position regarding C-V2X patents (2,707) and the first position regarding short-range or WLAN-based V2X patents. Hence, a diverse patent portfolio will allow the company to generate significant revenue through its licensing operations. These factors will fuel the leading position of the company in the market.

LIST OF KEY COMPANIES PROFILED:

• Denso Corporation (Aichi, Japan)


• Aptiv (Dublin, Ireland)


• Infineon Technologies AG (Neubiberg, Germany)


• Continental AG (Hanover, Germany)


• Qualcomm Technologies, Inc. (San Diego, U.S.)


• Autotalks Ltd. (Kfar-Netter, Israel)


• Cohda Wireless (Wayville, Australia)


• Kapsch TrafficCom (Vienna, Austria)


• Savari Inc. (California, U.S.)


• Lear Corporation (Michigan, U.S.)


• LG Electronics (Seoul, South Korea)


• Ford Motor Company (Michigan, U.S.)


• Robert Bosch GmbH (Gerlingen, Germany)


• NXP Semiconductors (Eindhoven, Netherlands)


• Harman International (Connecticut, U.S.)

KEY INDUSTRY DEVELOPMENTS:

• July 2021 – Ofinno, an American technology research company in wireless communications and video compression, announced a significant patent transaction. As part of the transaction, Ofinno sold over 100 high-value patents (such as 5G applications for vehicle-to-everything) to Honda Motor Co., Ltd.


• February 2021 – Harman announced the acquisition of Savari Inc., a Silicon Valley-based automotive technology company, developing vehicle-to-everything communications technology in 5G Edge and automotive devices.

REPORT COVERAGE

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The global automotive V2X market research report covers a detailed analysis of the market and focuses on key aspects such as leading companies, product types, and leading product applications. Besides this, the report offers insights into the market trends and highlights key industry developments. In addition to the factors mentioned above, the report delivers an in-depth market analysis of several factors contributing to its growth over recent years.

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