The global automotive V2X market is entering a period of rapid expansion, with Stratview Research projecting a compound annual growth rate of 25.1% from 2024 to 2031. Market size is expected to climb from US$0.5 billion in 2024 to US$2.3 billion by 2031, representing a cumulative sales opportunity of US$27.48 billion over the forecast period. The report offers a detailed breakdown of technologies, communication types, and regional dynamics shaping this growth trajectory.
Two primary technology categories define the sector: DSRC (Dedicated Short-Range Communications) and C-V2X (Cellular V2X). DSRC has long held sway in Europe and was widely deployed in the USA through 2023. However, a pivotal shift occurred in April 2023 when the FCC approved C-V2X deployment for connected vehicles in the United States. This regulatory green light is accelerating adoption, with C-V2X offering clear technical advantages—greater range, higher bandwidth, lower latency, cost efficiency, and seamless compatibility with 5G networks. Strong backing from both automotive and telecom industries further cements its momentum. Europe remains anchored in DSRC, but the global trend is tilting toward C-V2X, especially as 5G infrastructure matures.
Communication type segmentation reveals integrated V2X as the dominant architecture moving forward. Integrated systems encompass vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), and vehicle-to-network (V2N) links. This holistic approach delivers comprehensive, real-time connectivity, enhancing road safety, supporting autonomous driving capabilities, optimizing traffic flow, and leveraging 5G for instantaneous data exchange. V2V alone plays a critical role in accident prevention by enabling vehicles to share location, speed, and directional data directly, but integrated V2X expands that scope to cover broader mobility ecosystems.
Regionally, Europe is forecast to retain its lead in market share through 2031. Factors underpinning this dominance include stringent safety regulations, early DSRC deployment, robust smart city investments, and leadership in automotive innovation. The presence of major automakers such as Volkswagen, BMW, Mercedes-Benz, Audi, and Volvo—each actively pursuing V2X integration—has been instrumental. Collaborations with telecom and technology firms are pushing forward both DSRC and emerging C-V2X solutions, particularly those leveraging 5G.
Asia-Pacific is poised for rapid acceleration, driven by strong government initiatives, regulatory frameworks, and its position as the largest automotive manufacturing hub. China, India, and Japan lead production volumes, while consumer demand for connected and autonomous vehicles grows steadily. Investments in intelligent transportation systems and smart city infrastructure are rising, with safety and advanced driving features becoming key differentiators in competitive markets.
Several core drivers are fueling the global expansion of automotive V2X. The rising demand for connected and autonomous vehicles is creating a fertile environment for deployment. Heightened safety concerns and tighter emissions regulations are prompting automakers to adopt V2X as part of broader compliance and performance strategies. Government-backed smart infrastructure projects, coupled with rapid 5G rollout, are enabling the high-bandwidth, low-latency communications essential for advanced driver assistance systems. Additionally, the integration of ADAS into passenger vehicles is boosting adoption, as manufacturers focus on delivering enhanced safety and improved passenger experiences.
Stratview Research identifies Harman International, a Samsung company, and LG Electronic Vehicle Solution among the leading players in the space. These firms are positioned at the intersection of automotive engineering and digital communications, developing solutions that meet both regulatory demands and consumer expectations.
The report provides extensive data, including market forecasts, segment attractiveness, competitive positioning, and environmental analyses such as Porter’s five forces and PEST frameworks. It covers 20 country-level markets, includes over 100 tables and graphs, and offers customization options for specific business objectives. For engineers, students, and enthusiasts tracking the evolution of connected mobility, the findings underscore how regulatory shifts, technological advancements, and infrastructure investments are converging to redefine vehicle communication systems.