Automotive V2X Market Size

Global Automotive V2X Market size was valued at USD 2.2 billion in 2023 and is poised to grow from USD 3.19 billion in 2024 to USD 62.72 billion by 2032, growing at a CAGR of 45.1% during the forecast period (2025-2032).

Growing emphasis on road safety, supportive government regulations, advancements in 5G and edge computing technologies, high demand for autonomous vehicles, and smart city initiatives are bolstering the adoption of automotive V2X going forward.

The increasing number of road accidents globally has led to growing automotive V2X adoption as it reduces collision risks and improves driver awareness. Regulatory backing for smooth V2X deployment, advancements in 5G and edge computing enable high-speed V2X communication, and growing investments in autonomous vehicle R&D are slated to influence global automotive V2X market growth. Global investments in smart cities have intensified the integration of connected transport technologies. V2X plays a critical role in smart traffic management systems, reducing congestion, optimizing public transport, and improving pedestrian safety.

On the contrary, regulatory and standardization challenges, cybersecurity & data privacy concerns, slow vehicle fleet replacement rates, and high costs of implementation are estimated to hamper the demand for automotive V2X on a global level through 2032 and beyond.

Which Technologies are Shaping the Demand for Automotive V2X Solutions?

AI (artificial intelligence) and edge computing are being embedded into V2X systems to enhance real-time decision-making and predictive analysis. Vehicles use AI to analyze V2X data for collision prediction, traffic pattern recognition, and route optimization. Edge computing allows data to be processed closer to the vehicle, reducing latency and reliance on cloud connectivity. This combination boosts system responsiveness, crucial for time-sensitive applications like emergency braking and pedestrian detection. Automakers are integrating onboard AI processors and partnering with tech firms to develop intelligent V2X platforms.

Can Startups Take the V2X Adoption Charge to the Next Level?

Automotive V2X is a technology that is expected to be omnipresent in the near future. Hence, widespread adoption of V2X is not possible without innovations from startups. Here are some startups that are driving innovation in the world of automotive V2X technology.

• EraNext Auto Private Limited: This Indian startup focuses on developing a Cellular Vehicle-to-Everything (C-V2X) ecosystem tailored for Indian road conditions. Founded in 2020, the company has gained expertise in creating Internet of Things (IoT) platform technologies for connected vehicles, aiming to enhance road safety and traffic efficiency.

• SpearEye Technologies: Founded in 2020, the company provides advanced navigation solutions based on high-definition mapping and V2X modem localization. The Israeli startup enables vehicles to interact with their environment and other vehicles without relying heavily on GPU or multiple sensors. This approach enhances safety and service delivery by providing accurate navigation and real-time environmental interaction, crucial for the development of autonomous driving systems