V2X Communication Market Size and Share to See Modest Growth Through 2025
Vehicle-to-everything (V2X) is the technology, which enables cars to communicate with their surroundings by passing the information from one vehicle to other vehicle or any object and vice versa. It is a vehicular communication system that includes different types of communication systems such as V2I (Vehicle-to-Infrastructure), V2V (Vehicle-to-vehicle), V2P (Vehicle-to-Pedestrian), V2D (Vehicle-to-device), V2G (Vehicle-to-grid), V2H (Vehicle-to-home), V2N (Vehicle-to-Network), and V2C (Vehicle-to-Cloud).
Rising concerns regarding safety is the major factor driving growth of the global V2X communication market
Rising concerns regarding safety has led to adoption of connected vehicles and this is a major factor driving growth of the market. Connected vehicles are equipped with communication systems, which aids in reducing the risk of an accident. Communication systems in vehicles deliver a definite information of traffic situation across the road network. Moreover, it helps in obtaining information of traffic flows and in turn aids in reducing vehicles congestion. This also reduces the possibility of road accidents. For instance, according to World Health Organization (WHO), an estimated 1.25 million road accidents occurred globally in 2013. Therefore, people are increasingly concerned and cautious regarding road safety, which is expected to aid in growth of the global V2X communication market.
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Limited functionality of sensors is expected to restrain growth of the market
Major factor expected to restrain the market growth is limited functionality of sensors used in the V2X communication. V2X communication is dependent on sensors, microcontrollers, and semiconductors for its functioning. Sensors are responsible for detecting the information and convey the information to an Electronic Control Unit (ECU). This ECU, processes the data through an algorithm, and helps in assisting the driver by providing information related to traffic, pedestrian, and road condition, among others. However, these sensors have limited functionality, and this factor is expected to negatively impact of market growth.
Moreover, building a secure system with certified privacy, authenticity, and security for all types of V2X communication is also a major challenge faced by vendors in the market.
Passenger cars segment is expected to dominate and hold the largest market share over the forecast period
Passenger cars is expected to account for the largest share in the global V2X market during the forecast period. Increasing GDP is a factor expected to drive growth of passenger cars segment. For instance, according to the World Bank Group, GDP per capita has increased globally from US$ 9,509.4 in 2010 to US$ 10,150.8 in 2016. This is an indicator of increasing standard of living, which has significant impact on affordability and expenditure on luxury vehicles. These luxury cars are pre-fitted with advanced embedded systems, which includes collision warning systems, blind spot warning systems, emergency electric brake warning systems, and intersection movement assists, among others. This, in turn, is expected to lead to high growth of the global V2X market.
Advent of autonomous vehicles is expected to be the major growth opportunity
Advent of autonomous vehicle creates a growth opportunity for key players in the global vehicle-to-everything market. For instance, according to IHS Markit—an automotive database provider— the global autonomous vehicles sales is expected to surpass 600,000 units by 2025, increasing at a CAGR of 43% between 2025 and 2035. Furthermore, according to IHS Markit, autonomous vehicle sales in China is expected to reach around 5.7 million by 2035 and in the U.S. to around 4.5 million vehicles.
Key players in the automotive industry are focusing on offering enhanced safety features in their vehicles. For instance, Volkswagen Arteon comprises safety features including front airbag, knee airbag, side head airbag, side chest airbag, and child protection system. This car is rated 85% for pedestrian safety and 82% for safety assistant, by The European New Car Assessment Programme, in 2018, which is the highest rated car for pedestrian safety in 2018.
However, increase in autonomous vehicle sales is expected to further create a growth opportunity for global vehicle-to-everything market over the forecast period.
Global V2X Communication Market: Regional Insights
North America market is estimated to account for the largest market share in 2017. The U.S. and Canada are the major growth engines in North America market. This growth is owing to increasing initiatives by the U.S. government towards improvement of traffic within the country accounting for the safety aspect. For instance, the America’s Surface Transportation Act or ‘FAST Act’ was passed in 2015, in order to enhance the transportation within the country, improve working efficiencies in transportation systems & commercial vehicles, and minimize vehicle emissions. This is expected to positively affect growth of the market.
Global V2X Communication Market: Competitive Background
Major players operating in the V2X communication market are Continental AG, Volkswagen AG, Toyota Motor Corporation, General Motors Company, Qualcomm, NXP Semiconductors N.V., Robert Bosch GmbH, Tomtom NV, Savari Inc., Cisco Systems Inc., Infineon Technologies AG, and Denso Corporation.
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