Automotive V2X Market Driven by Rising Demand for Connected and Autonomous Vehicles 2032

Automotive V2X Market Poised to Reach USD 65.81 Billion by 2032 as 5G, AI, and Connected Mobility Transform Global Transportation

The global Automotive V2X (Vehicle-to-Everything) Market, valued at USD 4.94 billion in 2024, is expected to witness explosive growth over the next decade. Forecasts indicate the market will expand at an impressive CAGR of 38.2% between 2025 and 2032, eventually reaching USD 65.81 billion by 2032. The surge is driven by increasing vehicle intelligence, expanding connected vehicle ecosystems, rapid advancements in 5G, and accelerating adoption of autonomous and semi-autonomous vehicles.

Market Overview: Transforming Road Safety and Mobility

V2X technology enables real-time communication between vehicles and their environment, including infrastructure, pedestrians, networks, and the electrical grid. This capability enhances road safety, reduces congestion, and improves energy efficiency—making it a foundational technology for future mobility.

The rising emphasis on reducing road accidents is a major catalyst. With road accidents resulting in over a million fatalities annually, V2X solutions have the potential to cut accident rates by up to 80%. In the U.S. alone, nearly 615,000 crashes could be prevented through the adoption of V2X systems. Consumer sentiment is also shifting, with over 90% of U.S. drivers expressing interest in V2X-equipped vehicles.

The convergence of 5G, AI, and automotive telematics is reshaping the industry. These technologies enable faster, more secure, and ultra-low-latency communication—crucial for applications like cooperative driving, autonomous navigation, and intelligent traffic management.

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Market Dynamics

1. Innovations in Connected and Autonomous Vehicles

Global automakers are rapidly integrating advanced connectivity into their fleets. Companies such as Ford, General Motors, Mercedes-Benz, Hyundai, and Volkswagen are investing heavily in V2X-capable hardware and software.

Collaborations are accelerating technology deployment. Hyundai’s strategic agreement with Autotalks to develop next-generation connected vehicle chipsets is one example. General Motors is also gearing up to introduce 5G-enabled connectivity in new Cadillac models, signaling a shift toward next-generation in-vehicle communication systems.

1. Growing Role of 5G and AI in Automotive V2X

The fusion of AI and 5G is unlocking new possibilities for predictive driving, advanced driver assistance, and real-time communication.
Cellular V2X (C-V2X), designed for compatibility with future 5G networks, supports both short- and long-range communications, making it a critical enabler for cooperative intelligent transportation systems.

Emerging use cases include:

• Autonomous driving
• Platooning
• Emergency vehicle notification
• Traffic flow optimization
• Collision avoidance

As nations expand 5G infrastructure, these applications will scale rapidly.

1. Urbanization and Smart City Development

Rapid industrialization, rising disposable incomes, and smart city initiatives are contributing to V2X adoption, particularly in Asia Pacific. Intelligent Transport Systems (ITS) are becoming essential for improving traffic flow, reducing pollution, and enhancing mobility in dense urban centers.

1. Infrastructure Limitations in Developing Economies

Despite promising growth, the lack of high-speed connectivity infrastructure in emerging nations poses a challenge. In countries like India, Brazil, and Mexico, highway communication systems, robust LTE/5G networks, and clear regulatory frameworks are still evolving.
Inconsistent data networks and regulatory concerns regarding interoperability and data priority continue to restrain adoption.

Segment Analysis

By Vehicle Type

Passenger Vehicles are expected to dominate growth due to increasing demand for connected features, electrification, and passenger safety technologies. The rise of electric passenger cars further contributes to V2X adoption.

By Communication Type

Vehicle-to-Grid (V2G) is emerging as a high-growth segment as electric vehicle integration with the power grid becomes mainstream. With countries like India and China pushing for electrification, V2G systems will play a vital role in energy management, enabling EVs to both draw and supply electricity.

By Offering

The software segment will expand at the highest CAGR as OEMs integrate more features into V2X systems. Software platforms that support both DSRC and C-V2X, such as those offered by Commsignia, will be critical in enabling cross-platform compatibility.

By Connectivity Type

Cellular connectivity (C-V2X) is expected to be the fastest-growing segment. Its ability to support real-time, low-latency communication makes it superior to legacy DSRC systems, especially in next-generation mobility ecosystems.

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Regional Insights

Asia Pacific: The Global Growth Engine

Asia Pacific will lead the global Automotive V2X market through 2032.
Key drivers include:

• Rapid vehicle production in China, India, Japan, and South Korea
• Rising environmental awareness and EV adoption
• Presence of global leaders like Hyundai, Huawei, Denso, and Mitsubishi

China’s connected vehicle penetration rate—currently at 45.2%—is among the highest globally.

Europe: A Pioneer in Connected Vehicle Technology

Europe is making significant strides toward V2X commercialization.
Highlights include:

• EuroNCAP’s roadmap integrating V2X capabilities
• High regulatory support
• Strong ecosystem involving OEMs, telecom players, and system integrators

More than 97% of new vehicles sold in Europe comply with EuroNCAP standards, motivating OEMs to integrate V2X systems to enhance safety ratings.

North America, Middle East, South America, and Africa

North America continues to lead in early adoption and R&D investments, particularly in V2V and V2I applications. Developing regions in MEA and South America are gradually improving digital infrastructure, presenting future opportunities.

Competitive Landscape

The market is characterized by strong participation from semiconductor manufacturers, automotive OEMs, connectivity solution providers, and software companies. Key global leaders include:

• Intel Corporation
• Qualcomm Technologies
• Harman International
• Nvidia Corporation
• NXP Semiconductors
• TomTom
• Autotalks
• Cohda Wireless
• Continental AG
• Daimler AG
• Audi AG
• Infineon Technologies
• Robert Bosch GmbH

These companies are pursuing strategies such as partnerships, product launches, and cross-industry collaborations to expand V2X capabilities and market presence.

Conclusion

The Automotive V2X market is entering a period of unprecedented growth, underpinned by global efforts to improve road safety, expand smart mobility ecosystems, and accelerate the transition to autonomous and connected vehicles. With strong support from governments, rapid advancement in 5G and AI technologies, and rising consumer demand for safer and smarter mobility, V2X communication will become a foundational element of next-generation transportation.

By 2032, V2X technology will not only redefine how vehicles interact with the world but also reshape the entire mobility landscape, driving innovation across automotive, energy, infrastructure, and urban ecosystems.