Rise in the adoption of connected cars and the rapid increase in urbanisation and industrialisation drive the growth of the global automotive V2X (vehicle to everything) market. According to the report published by Allied Market Research, the global automotive V2X industry is projected to generate $11.71 billion by 2027.
The repo titled Automotive V2X Market by Communication (Vehicle-to-vehicle (V2V), Vehicle-to-infrastructure (V2I), Vehicle-to-pedestrian (V2P), Vehicle-to-grid (V2G), Vehicle-to-cloud (V2C), and Vehicle-to-device (V2D)), Connectivity (Dedicated Short-range Communication (DSRC), and Cellular-V2X (C-V2X) Communication) and Vehicle Type (Passenger Cars and Commercial Vehicles): Global Opportunity Analysis and Industry Forecast, 2020–2027 said, the industry garnered $2.56 billion in 2019, and is set to grow at a CAGR of 28.4% between 2020 to 2027.
Growth determinants
Allied Market Research, the full-service market research and business-consulting wing of Allied Analytics LLP based in Portland, Oregon, says the growth in the V2X market, though driven by connected cars on the back of rapid urbanisation and industrialisation, the high cost of implementation and security concerns related to data communication restrain the market growth. On the contrary, the future potential of 5G & AI technology coupled with the advancement in cellular-V2X (C-V2X) technology and growth in semi-autonomous and autonomous vehicles is expected to provide new opportunities in the coming years, the report stated.
The leading players in this segment include Infineon Technologies, NXP Semiconductors, Qualcomm Technologies, Robert Bosch, Savari, STMicroelectronics, Altran, Autotalks, Continental and Harman International.
COVID-19 scenario
The lockdown imposed by the government during the initial phase of COVID-19 affected the manufacturing units across the globe.
Further, the crisis has created uncertainty in the market, disruptions in the supply chain, the decline in businesses, and increased panic among customer segments. All these aspects impacted the market negatively, thereby affecting the sales.
Nevertheless, the industries are now continuing with their manufacturing processes, as the restrictions have been eased off. This is expected to support the market to recoup soon.
V2V
By communication, the V2V segment accounted for the largest market share, contributing to nearly two-fifths of the global automotive V2X market in 2019, and will continue its lead position during the forecast period. This is due to changing the infrastructural requirement for connected cars.
On the other hand, the V2I segment is expected to register the largest CAGR of 32.8% from 2020 to 2027. This is due to its ability to access the advisories from the infrastructure to the automotive, which transfers information regarding mobility management, driver safety, and environmental conditions.
Passenger segment
By vehicle type, the passenger type segment contributed to the largest share in 2019, holding around 90% of the global automotive V2X market, and is projected to maintain its dominance in terms of revenue by 2027. In addition, this segment is expected to manifest at the fastest CAGR of 28.9% from 2020 to 2027, owing to the high penetration of advanced technology in passenger cars across the globe.
Leadership status
By region, Europe, followed by North America, contributed to the highest market share in 2019, accounting for around one-third of the global automotive V2X market, and will maintain its leadership status by 2027. This is attributed to the increasing penetration of digital technologies in this region.
However, Asia-Pacific is expected to witness the highest CAGR of 32.4% during the forecast period, owing to an increasing number of connected cars in the region, the report added.
NB: Photo is representational. Courtesy: Continental.