The automobile industry is shifting toward producing vehicles that are more environmentally sustainable. Vehicles should be able to interact with infrastructure and Internet-based networks. The term "vehicle-to-everything" (V2X) has been coined to describe the cases such as vehicle to vehicle, vehicle to infrastructure, vehicle to cloud etc. Many application scenarios are becoming a reality as a result of advancements in electronics, sensor technologies, and computing approaches such as machine learning and computer vision. New vehicles equipped with V2X can play a major role in avoiding collisions with oncoming traffic, assisting with emergency braking, and monitoring intersections. The V2X market was valued at US$ 1,044.5 million in 2020, and it is expected to reach over US$ 13,404.1 million by 2027. The market is expected to grow at a CAGR of 44% over the forecast period.
Interesting Facts of V2X Market
The number of road accidents, resulting in the loss of life and property, is increasing, which is a key growth factor for the V2X market. Every year, approximately 1.2 million people are killed and 20-50 million are injured in motor vehicle accidents
Rising disposable income, employment rates, and total GDP are encouraging innovations like smart cities with smart infrastructure, which will benefit the V2X market
Falling automobile sales and the closure of manufacturing plants due to covid-19 have hampered market growth.
Throughout the forecast period, the North American V2X market will lead the revenue share backed by strong demand from U.S.
The V2X market in Europe is expected to grow at the fastest rate during the forecast period
Cellular-V2X testing and deployments are expected to increase over the forecasted timeframe
The market's growth can be attributed to growing public and government concerns about road traffic accidents around the world. According to the National Highway Traffic Safety Administration, V2V communications could prevent 615,000 road accidents. Another major factor driving the growth of the automotive V2X market is the increase in environmental pollution caused by transportation, as V2X is expected to increase vehicles fuel efficiency optimizing traffic flow and thus reducing pollution. V2X would be critical in reducing fuel consumption. Traffic congestion alone consumes 15 billion litres of gasoline in the United States each year (according to the US EPA).
COVID-19 Impact
COVID-19's global ramifications are already being felt, and the automotive V2X sector will be significantly impacted by 2020. There are fears that the lockdown will be extended, causing manufacturing to suffer across the board, particularly in the automotive industry. Manufacturing facilities around the world have halted production as a result of the imposed shutdown, which is likely to have an impact on the purchase of vehicles with V2X capabilities. The COVID-19 issue has caused market instability, supply chain disruption, company loss, and increased client anxiety. Several governments have already declared a total lockdown and a temporary halt to industry, resulting in a decrease in overall output and sales. As a result, the global spread of the COVID-19 pandemic has had a negative impact on the global vehicle V2X market.
In terms of connectivity, the cellular segment is expected to be the fastest-growing segment in the market.
The market is divided into two segments based on connectivity: cellular and DSRC. Throughout the projection period, the cellular connection category is predicted to increase at the fastest CAGR. 5G technological advancements will enable the implementation of 5G-V2X applications, which are projected to improve cyber security and the processing of a high number of messages in congested traffic conditions. Another element that might increase the cellular business is the cost of hardware components. The DSRC portion necessitates the purchase of extra hardware components to offer V2P communication, making it more costly than C-V2X. In January 2019, Audi, Ducati, and Ford exhibited C-V2X technology. As a result of such advancements, the commercialization of C-V2X technology would be accelerated.
Europe is expected to grow with the highest CAGR throughout the forecast period.
Europe is expected to grow with the highest CAGR throughout the forecast period. Stringent safety and environmental regulations govern the European automotive industry. According to the European Environment Agency, automobile emissions continue to be the largest source of greenhouse gas emissions in the EU. As safety regulations tighten, technologies that use V2V communication, such as adaptive cruise control and blind-spot detection, will become mandatory, allowing the vehicle V2X sector to thrive.
Global V2X Market key Players:
Autotalks LTD., Cohda Wireless, Continental AG, Delphi Technologies, Denso Corporation, Harman International, Infineon Technologies AG, NXP Semiconductors, Qualcomm Technologies, Inc., Robert Bosch GmbH, Savari, Inc., Stmicroelectronics are some of the major competitors in the global V2X market. The major strategy employed by top firms in the automotive V2X industry is the introduction of new products. Qualcomm Technologies introduced the Qualcomm® C-V2X reference platform for car and roadside units in January 2020. (RSUs). This device is designed to provide processing power as well as message security, among other things.
Frequently asked questions about global V2X market
The V2Xs market is expected to grow from US$ 1,044.5 million in 2020 to US$ 13,404.1 million by 2027, with a CAGR of 44% from 2020 to 2027.
The market's key opportunities are government support for V2X technology increased, 5G technology advances.
Rising demand for fully autonomous driving and safe vehicles, as well as growing concerns about vehicle-related pollution, are some of the market's driving forces.
Throughout the forecast period, North America is expected to have the largest market share.
The V2V communication sector is expected to account for the majority of the V2X market.
