V2X Market Size, Share, Growth, Trends, and Global Industry Analysis: By Communication Type (Vehicle-to-Vehicle, Vehicle-to-Infrastructure, Vehicle-to-Pedestrian, Vehicle-to-Grid, and Vehicle-to-Cloud), By Component Type (Hardware and Software), By Application (Safety Applications, Traffic Management, Environmental Monitoring, Smart Parking, and Fleet Management), and Region Forecast 2020-2031

V2X Market size was valued at US$ 3,950.5 million in 2024 and is expected to reach US$ 18,111.3 million by 2031, growing at a significant CAGR of 24.3% from 2025-2031. Moreover, the U.S. market is projected to grow significantly, reaching an estimated value of US$ 5,650.7 Million by 2031.

The V2X (Vehicle-to-Everything) market encompasses technologies and services that enable wireless communication between vehicles and external entities such as infrastructure, other vehicles, pedestrians, the power grid, and cloud services. The global vehicle-to-everything (V2X) market is being primarily driven by the urgent need to enhance road safety and reduce traffic-related fatalities through real-time vehicle communication. V2X enables critical features like collision alerts, emergency braking, and blind-spot detection, aligning with global visions for zero-fatality roads. A key trend shaping the market is the accelerated adoption of Cellular-V2X (C-V2X) over DSRC, as it leverages existing 4G/5G networks to deliver scalable, cost-effective, and low-latency communication, essential for connected and autonomous vehicle systems.

 A major opportunity lies in integrating V2X with smart city infrastructure and energy grids, especially with rising EV penetration and the emergence of vehicle-to-grid (V2G) applications. This convergence allows cities to optimize traffic, reduce congestion, and support sustainable mobility. However, market growth is hindered by the lack of global standardization between communication protocols, creating interoperability and deployment challenges. Fragmentation, particularly between DSRC and C-V2X backers across the U.S., China, and Europe, slows progress and investment. Secondary challenges include cybersecurity risks and high infrastructure costs. Overall, the market shows strong momentum driven by regulatory support, 5G deployment, and the rise of smart mobility, but its long-term scalability depends on overcoming these structural and technological barriers.

Facts & Figures 

• 5G & Cellular V2X (C?V2X) Rollout: The V2X ecosystem depends heavily on ultra-low latency and high data throughput, which only 5G networks can provide. C-V2X technology enables direct communication between vehicles (V2V), infrastructure (V2I), pedestrians (V2P), and networks (V2N) in real time, critical for safety alerts, collision avoidance, and traffic optimization.
• Autonomous and Connected Vehicle Adoption: V2X plays a critical role in enabling Level 4 and Level 5 autonomous driving by extending perception beyond line of sight (e.g., seeing through other vehicles or around corners). It also facilitates cooperative driving, platooning, and synchronized traffic behavior. For instance, Waymo and Cruise have begun integrating V2X modules in test cities like Phoenix and San Francisco to improve AV response times and reduce traffic incidents.
• Government Safety Mandates and Smart City Initiatives: Governments worldwide are pushing toward Vision Zero and intelligent transport infrastructure through mandates and funding for V2X systems. These initiatives aim to reduce traffic accidents, improve public transit efficiency, and manage congestion via data exchange between vehicles and infrastructure. For instance, the U.S. Department of Transportation (DOT) plans to equip 20% of national highway systems with V2X-enabled infrastructure by 2028, targeting 50% by 2031. The EU Cooperative Intelligent Transport Systems (C-ITS) strategy mandates the deployment of interoperable V2X solutions starting in 2025.
• Edge Computing and Infrastructure Integration: V2X applications, such as emergency braking alerts or intersection management, require sub-millisecond latency, which is achieved through edge computing. Roadside units (RSUs), integrated with edge processors, act as micro data centers that relay and process data locally. For instance, Cities like Tokyo, Singapore, and Amsterdam have implemented smart traffic corridors equipped with RSUs and edge nodes.

Recent Developments 

• In July 2025, in New Delhi, Qualcomm collaborated with AWS to unveil its Snapdragon Auto platforms, including V2X-enabled Cockpit, Ride, and Car-to-Cloud, aimed at Indian OEMs and Tier?1 suppliers. The event signalled Qualcomm’s intent to accelerate V2X deployment in South Asia’s emerging smart?mobility ecosystem
• In June 2025, Qualcomm finalized a purchase of Israeli V2X chipmaker Autotalks for approximately US?$80-90 million, sharply below its initial $350M valuation. This move adds Autotalks’ dual-mode 5G-V2X/DSRC chipsets to Qualcomm’s Snapdragon Digital Chassis suite, reinforcing its leadership in V2X hardware and enabling future safety use cases like ASIL?B compliant automatic braking.
• In November 2024, German automaker and supplier Continental signed an MoU with semiconductor maker NOVOSENSE to co?develop automotive safety ICs, key enablers for embedded V2X sensors, airbag triggers, and battery monitors, reflecting cross?sector cooperation to enhance vehicle safety via V2X-integrated hardware.

V2X Market Segmentation

Based on the communication type 

• Vehicle-to-Vehicle (V2V)
• Vehicle-to-Infrastructure (V2I)
• Vehicle-to-Pedestrian (V2P)
• Vehicle-to-Grid (V2G)
• Vehicle-to-Cloud (V2C)

Vehicle-to-Vehicle (V2V) communication holds the largest market share in the global market due to its critical role in enhancing road safety and reducing collisions through real-time data exchange between vehicles. V2V is widely supported by regulatory bodies and automakers for its immediate impact on lane-change warnings, blind-spot alerts, and emergency braking systems. With increased deployment in commercial fleets and advanced driver-assistance systems, V2V adoption continues to rise. On the other hand, vehicle-to-pedestrian (V2P) communication currently holds the smallest market share, as its integration remains limited by device compatibility, cost barriers, and infrastructure gaps, especially in developing urban regions.

Based on the component type 

• Hardware
• Software

The hardware segment holds the largest market share in the global market. This is because V2X communication relies heavily on physical infrastructure, such as on-board units (OBUs), roadside units (RSUs), antennas, and sensors, to enable secure and real-time data exchange. These hardware components are essential for both dedicated short-range communication (DSRC) and Cellular-V2X (C-V2X) systems, which are being actively deployed across highways and smart cities. In contrast, while software is growing rapidly, especially for security protocols, edge computing, and AI-based decision-making, it still contributes a smaller portion of the overall market value compared to the capital-intensive hardware infrastructure.

Based on the application 

• Safety Applications
• Traffic Management
• Environmental Monitoring
• Smart Parking
• Fleet Management

The safety applications hold the largest market share in the global market. This dominance is driven by the urgent need to reduce road accidents and enhance vehicle and pedestrian safety through technologies like forward collision warnings, blind-spot detection, and emergency electronic brake light alerts. Governments and automakers worldwide prioritize safety-focused V2X deployments, often making them regulatory requirements in new vehicles. The widespread integration of ADAS features further supports this segment’s growth. While smart parking and environmental monitoring are gaining traction, especially in smart cities, they currently represent smaller shares of the market due to slower infrastructure rollout and lower immediate return on investment.