V2X to Grow to More than $35 Billion Connected Cars in 2030

Driving authorities around the world are encouraging – or mandating – the deployment and use of vehicle-to-everything (V2X) for safety and traffic management, according to a new report from Tractica. The arrival of 5G brings enhanced capabilities for C-V2X using the dedicated spectrum set aside for intelligent transportation applications and network-based automotive applications of many kinds.

However, vehicle connectivity is an extremely complicated topic. The number of standards bodies, industry associations, and technology vendors is very large. There are also many vested interests – political as well as commercial – and a long legacy of trial after trial, with little mass-market adoption. Still, Tractica expects the market for in-vehicle V2X components to grow rapidly from 2019 as automotive OEMs begin to build C-V2X and 802.11p connectivity into new vehicles, peaking at $39.2 billion in 2023 and remaining above $35 billion annually from that point until 2030.

“The introduction of V2X will bring a range of benefits, including reduced numbers of road traffic accidents and injuries, and consequent savings to society in the form of fewer personal injury payments and lower costs associated with the repair of vehicles,” says contributing analyst Simon Sherrington. “At the same time, large-scale transport systems employing V2X technologies are expected to bring increased economic productivity by improving transport efficiency.”

Tractica’s report, “Cellular V2X”, examines the reasons cars are becoming more connected and the drivers and barriers related to V2X communications. It provides historical and technical context for today’s technology and market war between networks based on the 802.11p and 3GPP C-V2X standards and explains the position of various industry stakeholders. The report also summarizes the key trials and use cases of C-V2X around the world and profiles the most important players in the market. Finally, it provides 2019-2030 forecasts of the C-V2X and 802.11p vehicle technology component, network and roadside infrastructure, and service aspects of the V2X market. An Executive Summary of the report is available for free download on the firm’s website.