Automotive V2X Market Size & Share Analysis- Growth Trends & Forecasts (2025 - 2030)

Global Automotive V2X Market Trends and Insights

Surge in Connected & Autonomous Vehicle Roll-Outs

Autonomous driving programs offset sensor line-of-sight gaps with cooperative perception delivered by V2X. Hyundai Motor Group announced a significant investment of USD 21 billion in the United States from 2025 to 2028.^{[2]“2025 Strategy Update,” Hyundai Motor Group, hyundai.com} Japan’s Ministry of Internal Affairs validated V2N support for Level 4 trucks on the New Tomei Expressway, underscoring commercial transport as an early beneficiary. As fleets prove that V2X unlocks 360-degree situational awareness, capital spending pivots toward nationwide roadside unit grids. Each additional autonomous vehicle multiplies the value of the infrastructure, forging a self-reinforcing adoption loop that propels the automotive V2X market forward.

Proliferation of 5G URLLC Networks

Fifth-generation ultra-reliable low-latency communications supply the sub-10 millisecond response time demanded by collision-avoidance algorithms. General Motors and AT&T are equipping millions of U.S. vehicles with 5G modules, positioning V2X as a premium telematics tier. In Beijing, more than 7,000 5G-Advanced base stations now support vehicle-road-cloud coordination, demonstrating how densified radio grids correlate with service quality. As operators migrate from LTE-V2X to 5G NR-V2X, the technology shifts from broadcast warnings to coordinated maneuvers, widening the revenue canvas for the automotive V2X market.

Government Safety Mandates & Vision-Zero Targets

Binding regulations are translating road-safety objectives into direct demand for V2X-enabled vehicles. The European Union began enforcing ADAS requirements in July 2024, obliging every new car to support intelligent speed assistance, automated braking, and lane-keeping—features that rely on low-latency V2X data streams. In the United States, the “Saving Lives with Connectivity” plan calls for V2X coverage on 20% of federal highways by 2028 and 50% by 2031, a framework expected to avert 1,300 fatalities annually. Such clarity dismantles the network-effects barrier because OEMs can plan production volumes around known compliance dates. China’s NCAP now rewards V2X readiness, nudging automakers to exceed minimum benchmarks. Together these mandates build a predictable base load for the automotive V2X market, encouraging suppliers to scale production and invest in performance-enhancing innovations.

OEM Investment in Smart-Mobility Ecosystems

Carmakers are pivoting from hardware sales toward mobility subscriptions powered by V2X data. Volkswagen’s partnership with Valeo and Mobileye embeds cooperative perception directly into the MQB platform, signalling that connectivity will be standard, not optional. Hyundai’s Dutch smart-mobility pilot streams real-time traffic data over V2X links, proving that public-private ecosystems scale more rapidly when costs and benefits are shared. Suppliers such as HARMAN introduced “Ready Aware,” a SaaS model delivering infrastructure alerts via cloud APIs, further blurring the boundary between automotive and telecom value chains.^{[3]“CES 2025 Press Release: Ready Aware,” HARMAN International, harman.com}

High Infrastructure Cost & Standards Fragmentation

Installing roadside units costs USD 15,000–30,000 per intersection, a burden that falls on agencies managing shrinking budgets. Early DSRC deployments, such as Georgia’s 1,700-unit network, now face upgrade dilemmas after the FCC narrowed DSRC spectrum to 10 MHz and freed 20 MHz for C-V2X. Similar boundary lines divide European C-ITS and Chinese C-V2X profiles, hindering cross-border operability. Dual-mode equipment exists but at a premium, forcing planners into difficult sequencing decisions that slow universal coverage and put a brake on automotive V2X market adoption.

Escalating Cybersecurity Liabilities & Recalls

UN Regulation 155 subjects every new European vehicle sold after July 2024 to rigorous cybersecurity audits, obliging automakers to manage threats through the entire vehicle life cycle. Industry losses linked to automotive cyber-incidents increased in 2024, and V2X’s wireless pathways further enlarge the attack surface. A single breach could paralyze intersection management systems and expose OEMs to coordinated recalls running into billions. LG Electronics secured the first Common Criteria evaluation for a V2X module, illustrating the cost and complexity of compliance. Sustaining over-the-air patching and real-time intrusion detection is now an obligatory line item, nudging smaller suppliers out of the automotive V2X market.

Segment Analysis

By Communication Type: Energy Management Outpaces Safety

Vehicle-to-Vehicle services maintained 41.28% share of the automotive V2X market in 2024 because collision-avoidance remained the default deployment priority for regulators. Growth is now shifting toward Vehicle-to-Grid, which is forecast to expand at a 46.13% CAGR as utilities monetize distributed storage. The automotive V2X market size for V2G is projected to quadruple between 2025 and 2030, reflecting rising EV penetration and demand-response incentives. Dual-mode on-board chargers allow bidirectional power flows without hardware swaps, smoothing adoption curves. 

In developing economies, V2G roll-outs hinge on grid digitalization and time-of-use pricing reforms. Municipal pilots in India, Brazil, and South Africa illustrate interest but also expose the need for interoperable standards. Platform vendors are crafting API-driven marketplaces where fleet operators can auction battery capacity during peak hours, a model that could compress payback periods to under three years.

Note: Segment shares of all individual segments available upon report purchase

By Vehicle Type: Fleets Lead Practical Adoption

Passenger cars still comprised 67.15% of automotive V2X market share in 2024 because sheer unit volumes dwarf commercial fleet sales. Yet commercial vehicles deliver the higher 45.81% CAGR through 2030, a reflection of quantifiable cost savings in logistics, maintenance, and driver safety. Software-defined trucks under Daimler’s roadmap target Level 4 autonomy by 2027, mandating reliable C-V2X sidelink connectivity for platooning and remote diagnostics. Chinese express-delivery leaders such as ZTO now run autonomous freight convoys able to move 1,000 parcels without human intervention, showcasing immediate ROI. Fleet owners measure paybacks in reduced fuel consumption, lower insurance claims, and stricter regulatory compliance, leading them to pay premium prices for early functionality.

Consumer adoption is catching up. OEMs remove optional-equipment paywalls and instead embed V2X hardware as standard, spreading costs across larger production runs. Subscription services covering hazard warnings, parking payments, and authorization for bidirectional charging transform vehicles into digital wallets. The automotive V2X market therefore benefits from twin adoption curves, with fleets proving business cases upfront and passenger vehicles adding volume later. As chip costs fall and over-the-air updates enable new features post-sale, the ownership gap between commercial and personal segments will narrow, raising baseline connectivity expectations across the board.

By Connectivity: Cellular V2X Supplants Legacy DSRC

C-V2X captured 68.38% of the automotive V2X market in 2024, a lead cemented by carrier-grade reliability and reuse of existing 4G / 5G infrastructure, and is also growing at a robust CAGR of 45.57% through 2030. Automotive OEMs favor the technology’s path toward Release 18 upgrades, which promise improved sidelink throughput for sensor-sharing. Keysight’s Release 16 interoperability demonstration using Ettifos and Autotalks silicon proves multi-vendor readiness, easing supply-chain risk. The FCC’s decision to assign 20 MHz to C-V2X freed manufacturers from spectrum uncertainty, accelerating deployment timetables. Early DSRC installations hold an installed-base advantage in certain U.S. corridors and European C-ITS testbeds, but the cost of maintaining two parallel ecosystems is driving convergence toward dual-mode offerings.

From 2025 onward, the automotive V2X market size tied to DSRC is expected to contract slowly as upgrade cycles favor cellular. However, niche use cases such as rail-crossing alerts and mining operations may keep IEEE 802.11bd devices in service longer because they offer deterministic latency without dependence on operator networks. Hybrid modems handling both standards preserve backward compatibility and safeguard public investments. The long-term trajectory points to software-configurable radios capable of accommodating future waveforms, ensuring resilience against further spectral re-allocations.

By Application: Safety Dominates, Energy Monetization Accelerates

Safety solutions accounted for 46.53% of the automotive V2X market size in 2024, underpinned by mandates for collision-warning and emergency braking functions. The U.S. requirement for automatic emergency braking in all light vehicles by 2029 intensifies this baseline demand. Yet EV charging and energy services are forecast to post the fastest 46.12% CAGR, driven by utility incentives and carbon-neutral targets. Mobility-management layers leverage AI routing to ease congestion, lowering commute times and tailpipe emissions. Infotainment services round out the mix, transforming cars into rolling media hubs that exploit city-wide Wi-Fi offload and satellite redundancy.

The interplay between safety and energy applications unlocks multi-channel revenue streams. Toshiba’s multi-power conditioner uses V2X data to shift household loads, boosting overall efficiency compared with conventional designs. Municipalities employ intersection analytics to prioritize public transit vehicles, freeing curb space for micro-mobility modes. For OEMs, bundling these services into unified subscription tiers increases lifetime customer value, further amplifying the addressable opportunity in the automotive V2X market.

Geography Analysis

North America retained 34.71% of the automotive V2X market revenue during 2024, driven by coordinated federal investment, a mature telecom backbone, and early regulatory clarity. U.S. DOT grants totaling USD 60 million fast-tracked roadside installations across Arizona, Texas, and Utah, with 20% highway coverage targets by 2028. Proposals for FMVSS 150 and cross-border trials with Canada continue to solidify harmonized standards, enabling economies of scale. Mexico’s export-oriented auto industry is also embedding C-V2X modules into new models for delivery to both domestic and U.S. buyers, closing the regional technology gap.

Asia-Pacific is forecast to register a 45.93% CAGR through 2030, the fastest rate globally. China’s infrastructure initiative underpins provincial pilots linking 30 million V2X-ready vehicles annually to highway networks. Japan complements this momentum through V2N support for Level 4 freight corridors, and South Korea’s software-defined vehicle program ensures that V2X coding frameworks stay interoperable. These initiatives converge to form the largest contiguous testbed, attracting semiconductor and system-integration suppliers from Europe and North America. Consequently, the automotive V2X market size in Asia-Pacific is poised to eclipse North America before decade-end.

Europe progresses steadily on the back of binding ADAS mandates and the updated Intelligent Transport Systems Directive. Germany’s Autobahn GmbH collaborates with OEMs to upgrade C-ITS nodes along major corridors, while the Netherlands deploys public-private pilots linking Hyundai and Kia vehicles to smart-traffic platforms. Cybersecurity remains front-and-center, with UN Regulation 155 setting global benchmarks for over-the-air patch governance. Collectively, European best practices funnel into ISO, ETSI, and UNECE workstreams, shaping global rulebooks and anchoring long-term confidence in the automotive V2X market.