Cellular Vehicle-to-Everything (C-V2X) Market Size (USD 39.54 Bn) by 2033

Cellular Vehicle-to-Everything (C-V2X) Market Size, Analysis, Report 2023-2033

The global cellular vehicle-to-everything (C-V2X) market size is estimated to reach USD 39.54 billion by 2033, up from USD 1.21 billion in 2023, at a compound annual growth rate (CAGR) of 41.81% between 2023 and 2033.

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The cellular vehicle-to-everything (C-V2X) technology serves as a comprehensive connectivity solution aimed at providing vehicles with seamless vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), and vehicle-to-pedestrian (V2P) communication capabilities. By interconnecting individual vehicles, C-V2X holds the promise of revolutionizing the delivery of information and safety services both on highways and within urban areas, thereby elevating the overall travel experience.

The C-V2X market has been gaining momentum due to the increasing demand for connected and autonomous vehicles (CAVs) and the need for advanced driver assistance systems (ADAS). It utilizes cellular networks such as 4G LTE and upcoming 5G networks to enable high-speed, low-latency communication between vehicles and their surroundings.

Key Trends and Findings

• The integration of 5G networks with C-V2X technology is a significant trend driving innovation in the market. The high-speed, low-latency connectivity offered by 5G networks enhances the performance and capabilities of C-V2X systems, enabling real-time communication between vehicles and their surroundings.
• The advancement of autonomous driving technology is fueling the demand for C-V2X systems. C-V2X helps in enabling autonomous vehicles to communicate with each other, with infrastructure, and with pedestrians, facilitating safe and efficient navigation in complex environments.
• Smart city initiatives and infrastructure modernization projects are driving the deployment of C-V2X technology in urban environments.
• Governments and city authorities are investing in connected infrastructure and intelligent transportation systems (ITS) to improve traffic management, reduce congestion, and enhance road safety.
• Europe emphasizes interoperability, data privacy, and cybersecurity in C-V2X deployments, supported by initiatives such as the European Union's Cooperative Intelligent Transport Systems (C-ITS) framework. Investments in smart mobility, connected infrastructure, and cross-border cooperation drive the adoption of C-V2X technology across European countries.
• Asia-Pacific economies like China, Japan, and South Korea lead in 5G deployment, driving the integration of C-V2X with next-generation networks.

Market Drivers

Demand for Enhanced Road Safety

The rise in the number of road accidents is likely to contribute to the growth of the market for safety technologies such as cellular vehicle-to-everything (C-V2X). According to World Health Organization, annually, about 1.19 million individuals lose their lives due to road traffic accidents; while an additional 20 to 50 million sustain non-fatal injuries, often resulting in disabilities. If the frequency of road accidents increases, there is a sharp awareness among governments, regulatory bodies, automotive manufacturers, and consumers regarding the need for advanced safety solutions. This increased focus on road safety drives investment and innovation in technologies like C-V2X, which offer real-time communication and collision avoidance capabilities.

C-V2X facilitates instantaneous exchange of information between vehicles, notifying drivers about potential collisions or hazards. For example, if a vehicle abruptly decelerates or a pedestrian crosses the road unexpectedly, C-V2X can issue alerts to nearby vehicles, enabling them to take pro-active action and mitigate the risk of accidents. Furthermore, through C-V2X, vehicles can communicate with traffic signals and other infrastructure at intersections, optimizing traffic flow and minimizing congestion. This technology fosters improved coordination among vehicles, ensuring safer traversal through intersections and reducing the probability of collisions.

Market Restraints

High Cost of Deploying New Infrastructure

Setting up new infrastructure entails significant upfront costs, including land acquisition, construction materials, labor expenses, and equipment procurement. These initial investments represent a considerable portion of the total deployment cost and can pose financial challenges for project sponsors and stakeholders. As highlighted by the U.S. Department of Transportation (DOT). Estimates suggest that the average cost ranges from $6,000 to $7,000 per intersection, encompassing expenses such as intersection mapping, procurement of Road side Units (RSUs), and their installation in the field.

Furthermore, on-board hardware costs pose another financial challenge, particularly for Original Equipment Manufacturers (OEMs). Currently, OEMs bear the burden of covering the expenses for the On-board Unit (OBU). However, they encounter a dilemma the limited adoption of Vehicle-to-Vehicle (V2V) applications hampers the realization of benefits. Consequently, consumers exhibit reluctance to pay for C-V2X functionalities. If OEMs fail to generate profits, they may reduce investment in C-V2X, impeding its development progress.

Moreover, there are additional costs associated with vehicle hardware. According to ITS America, integrating C-V2X within an existing telematics control unit incurs costs ranging from $160 to $170 per vehicle for the On-board Unit (OBU). These financial challenges may deter investment in new infrastructure projects, limit the scope of development initiatives, and impede progress in addressing critical infrastructure needs.

Market Opportunities

Increasing Investment from Government and Manufacturers

Governments are recognizing the importance of fostering innovation and technological advancement to drive economic growth and address societal challenges. As a result, they are allocating more resources towards research and development (R&D) initiatives, infrastructure projects, and incentive programs to support industries such as automotive, telecommunications, and transportation. Similarly, manufacturers are ramping up their investment in R&D, product development, and market expansion strategies to stay competitive and meet evolving consumer demands.

For instance,

• In October 2023, United States Department of Transportation (U.S. DOT) announced that it would be providing $40 million for a new V2X program titled “Saving Lives with Connectivity Accelerating Vehicle to Everything (V2X) Deployment.” This exciting new program is designed to fund V2X deployment at scale at two locations within the United States, and will represent a targeted investment aimed at demonstrating the tangible safety benefits that these technologies can provide.
• In May 2023, The U.S. Department of Transportation (USDOT) funding announced a new $9.8 million federal grant to assist efforts at the University of Michigan to deploy cellular vehicle-to-everything (C-V2X) technology, allowing a new generation of cars to exchange safety-enhancing data with the world around them.
• In September 2023, Commsignia, Inc., the largest company focusing on Vehicle-to-Everything (V2X) solutions, announced the closing of an USD 15 million Series B fundraising round. With this investment, the company aims to strengthen its leadership and grow faster in new markets and geographies as the digital transformation of the transport and automotive industry gains momentum.

This increased investment from government and manufacturers can lead to the creation of more advanced on-board units (OBUs), roadside units (RSUs), and communication protocols. This can result in improved performance, reliability, and interoperability of C-V2X systems, enhancing their appeal to consumers and driving the market adoption in future.

Key Segment Analysis

Vehicle Type Segment Analysis Preview

The passenger car segment captured a substantial market share of 68.56% in 2023. The passenger vehicles represent the largest segment of the automotive market globally, with a substantial consumer base and diverse vehicle types ranging from sedans to SUVs and electric vehicles. This widespread adoption of passenger vehicles translates into a larger addressable market for C-V2X technology. Additionally, there is a growing emphasis on safety, convenience, and connectivity features in passenger vehicles, fueled by increasing consumer demand for advanced driver assistance systems (ADAS) and infotainment solutions.

Application Segment Analysis Preview

The collision avoidance segment dominated the market with share of 33.94% in 2023. The advancements in automotive safety technologies and regulatory mandates aimed at reducing road accidents have propelled the demand for collision avoidance systems. These systems leverage C-V2X technology to enable real-time communication between vehicles, allowing them to exchange critical information about speed, direction, and proximity. For instance, in congested urban areas or high-speed highways, collision avoidance systems can alert drivers about potential hazards such as sudden braking, lane changes, or pedestrian crossings, thereby mitigating the risk of accidents.

Regional Insights

North America is likely to grow at a considerable CAGR of 41.99% during the forecast period. C-V2X is seeing increased adoption in the United States owing to the increasing number of trials taking place in the economy.

For instance,

• In September 2023, Audi of America and Navistar have effectively showcased the utility of direct communication through Cellular Vehicle to Everything (C-V2X) technology in the United States, aimed at enhancing safety at school bus stops. Audi has already proven the advantages of direct communication within school and construction zones, as well as for cyclists and construction workers.
• In October 2017, AT&T, Nokia, Ford, and Qualcomm have announced intentions to conduct trials in San Diego, demonstrating the potential of C-V2X technologies in enhancing automotive safety, facilitating automated driving, and improving traffic efficiency.

The trials' objective, as articulated, is to exhibit the capabilities of C-V2X technologies, encompassing support for enhanced automotive safety, automated driving, and traffic efficiency. Additionally, the trials are expected to explore advanced vehicle communication functionalities, including real-time mapping updates and event notifications, facilitated through AT&T's cellular network and Nokia Cloud infrastructure.

Asia Pacific held significant share of 35.22% in 2023 in the cellular vehicle-to-everything market. The Chinese government and the transportation ecosystem, comprising over 100 automotive and technology firms participating in China's 2020 C-V2X cross-industry and large-scale pilot plugfest, are leading the charge in advancing C-V2X technology and laying the groundwork for global deployments. A widespread deployment is projected in China by 2025, with C-V2X scheduled to be integrated into half of all new vehicles.

For instance,

• Huawei has conducted trials with China Mobile, SAIC Motor Corporation, Deutsche Telekom, Audi, and Toyota, including a live demonstration at the G20 Summit in Hangzhou in September 2016, replicating real-world driving scenarios.

Certain European countries are also positioned at the forefront of adopting this technology. In February 2017, Orange and PSA Group announced the successful conclusion of initial C-V2X field trials in France. These trials delved into two specific use cases "see through" communication between two connected vehicles on a road and "emergency vehicle approaching."

Similar trials are also underway in Germany, where Audi, Ericsson, Qualcomm, SWARCO Traffic Systems, and the University of Kaiserslautern collaborated to establish the ConVeX (Connected Vehicle to Everything of Tomorrow) initiative. Co-funded by the participating entities and the German Federal Ministry of Transportation and Digital Infrastructure, ConVeX has integrated C-V2X direct communications, utilizing the 5.9GHz ITS spectrum, into an Ericsson 5G test network spanning highways, roads, and urban areas in Germany.

Recent Developments by Key Market Players

• December, 2023: Anritsu Company announced a strategic partnership with Spirent Communications plc to enable the automotive industry to more efficiently meet the unique testing requirements presented by cellular vehicle-to-everything (C-V2X) and autonomous driving technologies. The collaboration establishes a complete C-V2X and automotive 5G testing portfolio with a unified framework that delivers unparalleled testing versatility and adaptability to verify designs incorporating autonomous driving technologies.
• January, 2022: Quectel Wireless Solutions announced the launch of its new AG18 automotive module, one of the next generation of cellular vehicle-to-everything (C-V2X) modules. The AG18 supports vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I) and vehicle-to-pedestrian (V2P) communications on the unified 5.9GHz intelligent transportation system (ITS) band without the need of a (U)SIM, cellular subscription, or network assistance.
• November, 2020: AUTOCRYPT Co., Ltd., a leading V2X security solutions provider, announced the launch of its new C-V2X solution, supporting Chinese Secure Credential Management System (C-SCMS) standards. AUTOCRYPT received verification tests for compatibility by the C-V2X working group at China Academy of Information and Communications Technology (CAICT), under the new International Mobile Telecommunications-2020 (IMT-2020(5G)) Standard for 5G networks, devices, and services.

Key Market Companies

Some of the key players in cellular vehicle-to-everything market are Qualcomm Technologies, Inc., Continental AG, Technologies, Nokia Corporation, Huawei Technologies Co., Ltd., Infineon Technologies AG, Quectel Wireless Solutions Co., Ltd., Intel Corporation, Keysight Rohde & Schwarz GmbH & Co. KG, NTT DOCOMO, Inc., Savari, Inc., Shenzhen Genvict Technologies Co., Ltd., and ZTE Corporation, among others.

Market Segments

By Component

• Hardware
• Software

By Communication Type

• Vehicle-to-Person (V2P)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Network (V2N)
• Vehicle-to-Vehicle (V2V)

By Vehicle Type

• Passenger Vehicle
• Commercial Vehicle

By Application

• Fleet Management
• Autonomous Driving
• Collision Avoidance
• Intelligent Traffic Systems
• Parking Management Systems
• Others

By Region

• North America
  • U.S.
  • Canada
  • Mexico
• Europe
  • U.K.
  • France
  • Germany
  • Italy
  • Spain
  • Rest of Europe
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • South-East Asia
  • Rest of Asia Pacific
• Latin America
  • Brazil
  • Argentina
  • Rest of Latin America
• Middle East & Africa
  • GCC Countries
  • South Africa
  • Rest of Middle East & Africa