Automotive V2V & V2I Technologies Market Size and Share Analysis - Growth Trends and Forecasts (2025-2032)

Market Size and Trends

The Automotive V2V & V2I Technologies market is estimated to be valued at USD 9.2 billion in 2024 and is expected to reach USD 28.7 billion by 2031, growing at a compound annual growth rate (CAGR) of 17.4% from 2024 to 2031. This rapid growth is driven by increasing adoption of connected vehicle technologies and government initiatives to enhance road safety and traffic management through vehicle-to-everything communication systems.

A key market trend is the rising integration of advanced driver assistance systems (ADAS) with V2V and V2I technologies, enabling real-time data exchange between vehicles and infrastructure to prevent accidents and improve traffic efficiency. Additionally, the expansion of smart city projects and advancements in 5G connectivity are accelerating the deployment of V2X solutions, fostering safer, more efficient, and environmentally friendly transportation ecosystems.

Segmental Analysis:

By Technology Type: V2V Communication Leading Market Adoption Through Enhanced Vehicle Safety and Connectivity

In terms of By Technology Type, V2V Communication contributes the highest share of the market owing to its critical role in enabling real-time vehicle-to-vehicle data exchange. This technology facilitates direct communication between vehicles to share vital information such as speed, heading, and braking status, which significantly enhances situational awareness on the road. The increasing emphasis on road safety and the demand for reducing collision rates drive the rapid adoption of V2V communication systems. Moreover, stringent safety regulations and governmental initiatives to promote intelligent transportation systems further fuel this segment's growth. V2V Communication empowers vehicles to anticipate potential hazards, leading to improved traffic flow and accident prevention, which aligns closely with the global push toward safer and smarter mobility. Its relatively lower infrastructure requirements compared to V2I communication also accelerate adoption among automakers and technology providers. Additionally, V2V communication's interoperability with existing vehicular systems and compatibility with emerging autonomous vehicle technologies make it an indispensable component in the evolution of connected vehicles. As a direct enabler of safer roads and enhanced driving experiences, V2V Communication steers significant market momentum.

By Component: Onboard Units Driving Market Expansion via Integration of Advanced Sensor and Processing Capabilities

By Component, Onboard Units dominate the market share as the key enablers of effective V2V and V2I communication within vehicles. These units are integral hardware assemblies embedded inside vehicles to manage radio communication, data processing, and interface with sensors. Onboard Units integrate advanced processing capabilities that allow instantaneous analysis of incoming signals from other vehicles or infrastructure elements, ensuring timely and precise decision-making. The rising incorporation of sophisticated sensors, GPS modules, and dedicated short-range communications (DSRC) technologies in these units boosts their performance, making them central to the connected vehicle ecosystem. The push from automotive manufacturers to embed next-generation safety features and improve vehicular intelligence is accelerating the on-vehicle housing of these components. Additionally, the modular design of Onboard Units supports scalable upgrades and compatibility with hybrid communication systems, which offers manufacturers greater flexibility. The growing emphasis on data security and low latency communication further underscores the importance of equipped and robust Onboard Units that can process and transmit information securely at rapid speeds. Overall, evolving vehicle architectures and consumer demand for advanced connectivity elevate the prominence of Onboard Units within the Automotive V2V & V2I Technologies market.

By Application: Collision Avoidance Transforming Road Safety and Driving Automation Standards

By Application, Collision Avoidance leads the market share driven by its fundamental contribution towards improving traffic safety and reducing vehicle-related accidents. This application harnesses V2V and V2I technologies to detect and alert drivers of imminent crashes, sudden stops, or hazardous road conditions in real time. Increasing vehicle density and urbanization worldwide underscore the necessity for intelligent collision avoidance systems to mitigate human errors and enhance driver reaction times. Collision avoidance applications incorporate advanced algorithms and sensor fusion techniques, making them highly effective in alerting drivers or autonomously initiating preventive actions such as emergency braking or lane corrections. Regulatory mandates and safety standards, which increasingly prioritize crash mitigation technology in passenger vehicles, further propel investment and adoption in this segment. Moreover, collision avoidance technologies serve as foundational blocks for advanced autonomous driving systems, ensuring that such vehicles maintain a high safety benchmark. The growing consumer preference for vehicles equipped with comprehensive safety packages also amplifies the deployment of these solutions. As governments and industry stakeholders strive to lower road fatalities and promote smarter mobility, collision avoidance applications remain at the forefront of automotive innovation and market growth.

Regional Insights:

Dominating Region: North America

In North America, the dominance in the Automotive V2V (Vehicle-to-Vehicle) and V2I (Vehicle-to-Infrastructure) technologies market is driven by a well-established automotive ecosystem, advanced technological infrastructure, and strong government support. The U.S. Department of Transportation has actively promoted V2X (Vehicle-to-Everything) initiatives through pilot programs and regulatory guidance, encouraging automakers and infrastructure providers to adopt these smart communication technologies for enhancing road safety and traffic efficiency. The presence of major automotive manufacturers such as General Motors, Ford, and Tesla, alongside leading technology firms like Qualcomm and Continental AG (with significant U.S. operations), fosters innovation and accelerates market adoption. Additionally, North America benefits from high consumer awareness and robust collaboration between private and public sectors, ensuring rapid integration of connected vehicle technologies into existing transport frameworks.

Fastest-Growing Region: Asia Pacific

Meanwhile, the Asia Pacific exhibits the fastest growth in the Automotive V2V and V2I technologies market, propelled by rapid urbanization, increasing vehicle penetration, and government initiatives supporting intelligent transportation systems. Countries like China, Japan, and South Korea are heavily investing in V2X infrastructure as part of their smart city projects and national strategies focused on reducing traffic fatalities and congestion. The region's expanding automotive manufacturing base, led by companies such as Toyota, Hyundai, and BYD, along with technology giants like Huawei and Denso, significantly contribute to innovation and adoption. Moreover, supportive government policies, including subsidies and regulatory frameworks for connected and autonomous vehicles, coupled with growing consumer demand for safer and more efficient mobility solutions, catalyze the rapid market expansion.

Automotive V2V & V2I Technologies Market Outlook for Key Countries

United States

The United States' market advancement in Automotive V2V and V2I technologies is marked by federal and state-level programs encouraging deployment. Key players like Ford and General Motors actively develop and incorporate V2X systems into their new vehicle models, often in partnership with technology firms Qualcomm and NXP Semiconductors. Infrastructure development is supported by initiatives under the Intelligent Transportation Systems (ITS) program, creating an ecosystem conducive to widescale adoption. The presence of leading automotive research institutions further drives innovation and paves the way for integrated smart mobility solutions.

China

China's V2V and V2I market is rapidly evolving due to comprehensive government plans encompassing smart city development and environmental sustainability targets. The government's Made in China 2025 plan explicitly encourages the adoption of connected vehicle technologies. Companies such as Huawei, Baidu, and BYD play crucial roles in technology provision, network infrastructure, and automotive manufacturing. Significant investment in 5G networks enhances V2X communication reliability, and aggressive infrastructure upgrades in major urban centers underpin the expansion of V2X-enabled vehicles and systems.

Japan

Japan continues to lead in Automotive V2V and V2I technologies with its early adoption culture, innovative automotive manufacturers like Toyota and Honda, and a strong focus on safety enhancement. The government supports V2X deployment through regulatory facilitation and pilot projects coordinated by the Ministry of Land, Infrastructure, Transport and Tourism (MLIT). Japanese firms are pioneering cooperative intelligent transport systems (ITS) and vehicle communication platforms that integrate seamlessly with existing infrastructure. Collaboration between automakers and telecommunication companies like NTT DOCOMO fosters robust V2I ecosystems.

Germany

Germany's market reflects the country's stature as a global automotive hub, with leading manufacturers such as Volkswagen, BMW, and Daimler investing heavily in V2X technologies. The German government supports connected vehicle initiatives via the Federal Ministry of Transport and Digital Infrastructure, facilitating collaborative projects among automotive OEMs, suppliers like Bosch, and telecom providers. Germany's strategic emphasis on Industry 4.0 and smart infrastructure integration accelerates deployment. The extensive testing and validation on Germany's autobahn network highlight the country's commitment to real-world V2V and V2I applications.

South Korea

South Korea's V2V and V2I market growth benefits from strong government backing through smart city and intelligent transport policies. Companies like Hyundai and Kia spearhead innovation in connected vehicle systems, often in partnership with technology giants such as Samsung and LG Electronics. The government's focus on 5G adoption, coupled with infrastructure modernization efforts, enables superior communication channels critical for V2X technology. South Korea's integrated approach to mobility, combining automotive manufacturing expertise and ICT capabilities, fosters rapid market uptake and technology advancement.

Market Report Scope

Market Segmentation

Technology Type Insights (Revenue, USD, 2020 - 2032)

• V2V Communication
• V2I Communication
• Hybrid Communication Systems
• Others

Component Insights (Revenue, USD, 2020 - 2032)

• Onboard Units
• Roadside Units
• Communication Modules
• Data Processing Units
• Others

Application Insights (Revenue, USD, 2020 - 2032)

• Collision Avoidance
• Traffic Management
• Autonomous Driving
• Infotainment
• Others

Regional Insights (Revenue, USD, 2020 - 2032)

• North America
• U.S.
• Canada
• Latin America
• Brazil
• Argentina
• Mexico
• Rest of Latin America
• Europe
• Germany
• U.K.
• Spain
• France
• Italy
• Russia
• Rest of Europe
• Asia Pacific
• China
• India
• Japan
• Australia
• South Korea
• ASEAN
• Rest of Asia Pacific
• Middle East
• GCC Countries
• Israel
• Rest of Middle East
• Africa
• South Africa
• North Africa
• Central Africa

Key Players Insights

• Aptiv PLC
• Denso Corporation
• Continental AG
• NVIDIA Corporation
• Qualcomm Technologies, Inc.
• LG Electronics Inc.
• Bosch Mobility Solutions
• Panasonic Corporation
• Harman International Industries
• NXP Semiconductors N.V.
• Autotalks Ltd.
• Cohda Wireless Pty Ltd.
• ZF Friedrichshafen AG
• Telit Communications PLC
• Veoneer, Inc.
• Huawei Technologies Co., Ltd.
• Valeo SA
• Intel Corporation
• Marvell Technology Group Ltd.
• Renesas Electronics Corporation