The Global Automotive V2X Market Size is Projected to Grow in USD 11,088.1 Million by 2029, Exhibiting a CAGR of 45.2%

Key Companies Covered in the electric utility vehicle market report are Denso Corporation, Aptiv, Infineon Technologies AG, Continental AG

PUNE, MAHARASHTRA, INDIA, September 24, 2025 /EINPresswire.com/ -- The global automotive Vehicle-to-Everything (V2X) market is entering a period of unprecedented growth, projected to climb from USD 813.9 million in 2022 to USD 11,088.1 million by 2029, achieving an extraordinary CAGR of 45.2%. The rise reflects accelerating investments in connected vehicle ecosystems, 5G infrastructure, and smart transportation solutions.
V2X technology allows vehicles to communicate with each other (V2V), with infrastructure (V2I), pedestrians (V2P), and networks (V2N), creating a real-time data exchange framework for safer, more efficient, and autonomous mobility.
Despite a pandemic-related dip of 10.8% in 2020, the market quickly rebounded. According to McKinsey, the pandemic period saw more than USD 18 billion in digital mobility and V2X-related investments, demonstrating the resilience and future-readiness of the industry.

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Regional Highlights
• Asia Pacific emerged as the largest regional market in 2021, accounting for 40.32% share. China has pioneered large-scale pilots such as Baidu Apollo’s V2X zones, while Japan continues to integrate V2X for its connected mobility ecosystem.
• North America is expected to witness strong growth, led by the U.S. market, which is forecast to reach USD 2,847.7 million by 2029. Pilot corridors in Ohio and Virginia, supported by Honda, Audi, and DOT, are testing large-scale deployments.
• Europe benefits from consortium-led development under the CAR 2 CAR Communication Consortium, and the EU’s commitment to cooperative intelligent transport systems (C-ITS).

Market Drivers
The growth of the automotive V2X market is strongly supported by several key drivers. One of the most significant is the promise of enhanced road safety, with the U.S. Department of Transportation estimating that V2X adoption could save up to USD 871 billion annually by preventing accidents and reducing fatalities. In addition, V2X technology plays a vital role in traffic optimization and efficiency, as smart intersections and intelligent traffic management systems help reduce congestion and cut emissions. Policy and spectrum allocation have also been pivotal, particularly the FCC’s 2020 decision to prioritize Cellular V2X (C-V2X) over DSRC, which has accelerated cellular adoption and 5G integration. Automakers are also driving momentum, with industry leaders like Toyota, Volkswagen, and Ford embedding V2X features in their next-generation vehicles to enhance safety and connectivity. Furthermore, global smart city initiatives are incorporating V2X into urban infrastructure planning, ensuring that connected mobility is seamlessly integrated into the broader vision of intelligent, sustainable transportation networks.

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Market Segmentation Insights
By connectivity type, the market has been historically dominated by DSRC (Dedicated Short-Range Communication) due to its maturity, proven security standards, and ease of implementation. However, cellular V2X (C-V2X) is quickly gaining ground and is projected to dominate in the coming years. Its ability to leverage 5G networks, offer broader scalability, and reduce costs makes it a preferred choice for governments, telecom operators, and automakers investing in next-generation mobility.
In terms of communication type, Vehicle-to-Vehicle (V2V) remains the leading category, primarily due to its critical role in collision avoidance, cooperative driving, and enhancing situational awareness in real time. Meanwhile, Vehicle-to-Infrastructure (V2I) is expanding rapidly, propelled by smart city initiatives and investments in intelligent traffic management systems, connected intersections, and digital road infrastructure.
Looking at vehicle type, passenger cars held the largest market share in 2021, driven by consumer demand for enhanced safety, convenience, and connectivity. Automakers such as Toyota, Volkswagen, and Ford have already integrated V2X into their latest passenger car models. However, the commercial vehicle segment is projected to grow at the fastest pace. This growth is underpinned by the increasing use of V2X in fleet management, truck platooning, goods delivery optimization, and reducing logistics inefficiencies.
By unit type, the Onboard Unit (OBU) segment accounted for the largest market share, as it acts as the core enabler of real-time communication between vehicles and infrastructure. OBUs are also relatively low-cost compared to roadside units, making them highly scalable for mass adoption. Nevertheless, the Roadside Unit (RSU) segment is also witnessing momentum, as cities and governments deploy them to improve traffic flow, enhance pedestrian safety, and integrate autonomous mobility ecosystems.

Notable Industry Development:
• October 2021 – Brandmotion LLC, an automotive safety technology company, announced that it is collaborating with DENSO Products and Services Americas to offer a one-stop service to cities seeking to equip their automobiles with advanced V2X technology.
• October 2021 – Infineon Technologies announced to launch the SLS37 V2X hardware security module (HSM) and plug-and-play security solutions for V2X communication. The SLS37 V2X HSM is based on a highly secured, tamper-resistant microcontroller tailored to the security needs in V2X applications within the telematics control unit.

Key Players in the electric utility vehicle market:
• Denso Corporation (Japan)
• Aptiv (Ireland)
• Infineon Technologies AG (Germany)
• Continental AG (Germany)
• Qualcomm Technologies, Inc. (U.S.)
• Autotalks Ltd. (Israel)
• Cohda Wireless (Australia)
• Kapsch TrafficCom (Austria)
• Savari Inc. (U.S.)
• Lear Corporation (U.S.)
• LG Electronics (South Korea)


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