Rising Traffic Safety Concerns to Create a Favorable Outlook for Automotive V2X Companies in 2022

Automotive Vehicle-to-everything or V2X is the protocol that allows communication between an automobile and any entity that can be affected by the vehicle. Combatively, it is a vehicular communication system that encompasses various specific systems that include V2I (vehicle-to-infrastructure), V2N (vehicle-to-network), V2V (vehicle-to-vehicle), and V2P (vehicle-to-pedestrian). Automotive V2X systems are often integrated to incorporate road safety, improve traffic efficiencies, and increase energy savings. Generally speaking, the V2X communication technology is based on two underlying offerings, WLAN-based and cellular-based. According to Fortune Business Insights™, the market for automotive V2X is projected to grow from USD 628.9 million in 2021 to USD 7,351.9 million by 2028, at a CAGR of 42.1% during the 2021-2028 period.

The demand for automotive V2X is expected to hold dominance during the forecast period due to the increasing requirement of traffic safety and rising incidences of fatalities resulting from road incidents. Increasing technological developments and rising awareness regarding economic savings from V2X systems will grow the market's footprint. These factors are expected to proliferate the adoption rate of these V2X systems. However, the market is expected to experience a negative impact due to a rising number of challenges related to V2X that include higher costs in setting up test tracks and a low number of infrastructure required. Additionally, some tests are often regarded as fatal toward humans, further hindering market growth.

COVID-19 Impact: Will the Automotive V2X Change Course During the Pandemic?

The ongoing pandemic has positively impacted the market as rising investment activities fueled the continuous development cycle. In addition, accelerated and fast-tracking regulatory changes regarding vehicle-to-everything C-V2X or cellular vehicular-to-everything increased the market footprint during the forecast period. The pandemic forced digital transformations, which increased the market size. Before the pandemic, limited technical capacities did not allow for wider implementation. However, those conditions changed as the pandemic loomed on. The pandemic further paved the way for creating efficient supply chains, improving safety features, and continuing new infrastructures. These factors played a variable role in driving the growth of the market.

Fortune Business Insights™ Presents Top 5 Automotive V2X Companies Globally

1. Continental AG (Hanover, Germany)

Continental AG is among the dominant Automotive V2X companies in the market, with employee strength of 236,386 spread across 561 locations in 58 countries. Continental AG consolidates various departments, including autonomous mobility & safety, powertrain, vehicle networking & information, and currently working toward developing advancements in automated and connected automobiles technologies. In January 2021, Qualcomm announced deploying reliable, smart, connected, and GPS-aware next-generation automobiles by partnering with Continental AG and other significant players. Similarly, in April 2021, Continental AG announced its collaboration with Iteris for developing smart infrastructure solutions for North America. This collaboration was developed for achieving advancements in automated & connected vehicle technologies. This will ensure that consumers have been provided with safe and effective mobility solutions.

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

Qualcomm Technologies Inc. has 170 offices in more than 30 countries globally. The organization operates in various sectors, including designing, developing semiconductors, software, digital telecommunications products & services, and others. Qualcomm Technologies has three business verticals, Qualcomm CDMA Technologies (QCT), Qualcomm Technology Licensing (QTL), and Qualcomm Strategic Initiative (QSI). In June 2021, it announced a collaboration with Jacobs Engineering Group for developing end-to-end intelligent solutions in the U.S., powered by connected vehicle technology and infrastructure. Additionally, in October 2020, Qualcomm Technologies announced its collaboration with many firms in China to showcase an ecosystem with C-V2X aimed at improving industrial development & commercialization at a larger scale.

3. Infineon Technologies AG (Neubibery, Germany) 

Infineon Technologies AG manufactures semiconductors, microelectronics, and system solutions for the automotive industry. The company is integrated within four business verticals, power & sensor systems, industrial power control, connected secure systems, and automotive. The connected secure systems vertical provides this technology. The company is expanding its business practices to capture a larger consumer base worldwide. In November 2020, it entered into a contract agreement with GT Technologies for expanding its supply base for silicon carbide (SiC) boules. This agreement aims to cater to the needs of the ever-increasing consumer demand for semiconductors.

4. Autotalks Ltd. (Kfar-Netter, Israel)

Autotalks Ltd. is often regarded as the global semiconductor industry leader with a specialized focus on V2X communication for autonomous & manned vehicles. The company is also touted as the global leader in producing V2X communication chipsets. Autotalk’s 2^nd generation chipsets provide a higher quality on performance and reliability with various connectivity options. They are often governed by the stringiest and most secure functional elements. In May 2021, Sreda Solutions and Autotalks announced their collaboration for launching V2X automated wireless data communication technology to the global and Russian markets.

5. Cohda Wireless (Wayville Australia)

Cohda Wireless is headquartered in Australia. At the same time, the firm has offices in China, Europe, and the U.S. It is the leading supplier of connected vehicle solutions and is an expert in providing V2X V2V, V2I, and V2P solutions for connected & autonomous vehicles. It also partners with the leading suppliers to provide various software & hardware solutions for smart cities, car manufacturers, and mine operators. In February 2021, Cohda Wireless announced that it will initiate deliveries of its new cellular vehicle for global carmakers, which will be integrated with the Qualcomm Snapdragon Automotive 4G 5G platform. In March 2021, Cohda Wireless announced that it devised a solution in positioning accuracy through its V2X locate a solution.

What Does the Future of Automotive V2X Sector Look Like Moving Forward?

The rapid adoption of connected cars combined with increasing industrialization & urbanization is expected to drive the growth of the market. While some technical complexities will hold the market at bay for some period, future potential for 5G and AI technology coupled with advancements in C-V2X technology will push the market toward an inflated state. The current technological pace also allows for a great push in the autonomous & semi-autonomous vehicles sector. Therefore, this will allow for significant market flexibility in terms of responsiveness of the market expanding into future technological horizons.