V2X Market Outlook 2025: Accelerating Toward a Connected Future

 As the automotive and transportation industries rapidly evolve, Vehicle-to-Everything (V2X) communication is emerging as a transformative force poised to redefine mobility. By enabling real-time data exchange between vehicles, infrastructure, pedestrians, and networks, V2X prepares the way for safer roads, efficient traffic flow, and truly autonomous driving.

In this post, we explore the current state of the V2X market, key players, technological trends, and where this fast-growing sector is heading.

What is V2X?

Vehicle-to-Everything (V2X) refers to the communication system that allows vehicles to interact with their surroundings. V2X encompasses:

  • V2V (Vehicle-to-Vehicle)
  • V2I (Vehicle-to-Infrastructure)
  • V2P (Vehicle-to-Pedestrian)
  • V2N (Vehicle-to-Network)
  • V2C (Vehicle-to-Cloud)
  • V2G (Vehicle-to-Grid)

By leveraging technologies such as Dedicated Short-Range Communication (DSRC) and Cellular-V2X (C-V2X), this ecosystem enhances situational awareness and decision-making on the road.

V2X Market Size and Forecast

As per MRFR analysis, the US V2X Market Size was estimated at 406.8 (USD Million) in 2023. The US V2X Market Industry is expected to grow from 600(USD Million) in 2024 to 15,000 (USD Million) by 2035. The US V2X Market CAGR (growth rate) is expected to be around 33.994% during the forecast period (2025-2035).

Growth Drivers:

  • Government mandates on road safety and emissions
  • 5G deployment and edge computing advances
  • Rise in connected and autonomous vehicles (CAVs)
  • Increasing investments in smart city infrastructure

Key Players

Some of the leading companies shaping the V2X market include

    • Ericsson
    • Aptiv
    • Toyota
    • Cisco
    • Siemens
    • Harman
    • Qualcomm
    • Volkswagen
    • Intel
    • Cohda Wireless
    • Denso
    • Verizon
    • General Motors
    • Ford
    • NXP Semiconductors

Startups such as Cohda Wireless, GM, and Intel are also driving innovation in V2X software and edge-based platforms.

V2X Market Technology Outlook

    • Automated Driver Assistance
    • Intelligent Traffic System
    • Emergency Vehicle Notification
    • Passenger Information System
    • Fleet & Asset Management
    • Parking Management System
    • Line of Sight
    • Non-line of Sight
    • Others

V2X Market Component Outlook

    • Hardware
    • Software

V2X Market Communication Type Outlook

    • V2C
    • V2D
    • V2G
    • V2P
    • V2V
    • V2I

V2X Market Propulsion Outlook

    • Electric Vehicle (EV)
    • ICE Vehicle

V2X Market Connectivity Outlook

    • DSRC
    • Cellular

V2X Market Unit Type Outlook

    • Onboard Unit
    • Roadside Unit

V2X Market Vehicle Type Outlook

    • Passenger Car
    • Commercial Vehicle

Regional Insights

  • North America: Strong growth driven by National Highway Traffic Safety Administration safety mandates and pilot programs in smart cities.
  • Europe: High adoption due to stringent European Union regulations and C-ITS (Cooperative Intelligent Transport Systems) strategy.
  • Asia-Pacific: Fastest-growing market, led by China’s aggressive push for C-V2X and government-backed smart mobility initiatives.

C-V2X vs. DSRC: The Technology Race

While DSRC was the first V2X technology to gain traction, Cellular V2X (C-V2X) has become the preferred standard due to better scalability, broader coverage, and compatibility with 5G.

C-V2X Advantages:

  • Lower latency
  • Greater range
  • Higher throughput
  • Easier integration with existing cellular infrastructure

The industry trend is clearly moving toward 5G-enabled C-V2X, opening new possibilities for real-time edge analytics and cooperative autonomous driving.

Challenges Ahead

Despite promising growth, the V2X market faces several challenges:

  • Interoperability between DSRC and C-V2X systems
  • Cybersecurity threats and data privacy concerns
  • Regulatory fragmentation across regions
  • High cost of infrastructure deployment

OEMs, telcos, and governments must collaborate to establish universal standards and overcome these barriers.

Future Outlook

As we approach the second half of the decade, V2X is poised to become a cornerstone of autonomous and connected vehicle ecosystems. With advances in AI, sensor fusion, and low-latency communication, V2X will play a vital role in:

  • Enabling Level 4/5 autonomy
  • Powering intelligent traffic management
  • Facilitating vehicle platooning
  • Supporting EV-to-grid communication for energy optimization

By 2035, V2X won’t just be a niche technology—it will be an integral part of the transportation fabric.

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