PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1606443
PUBLISHER: AnalystView Market Insights | PRODUCT CODE: 1606443
Vehicle to Infrastructure Communication Market size was valued at USD 310.93 Million in 2023, expanding at a CAGR of 36.90% from 2024 to 2032.
Vehicle-to-Infrastructure (V2I) communication is a technology that enables vehicles to communicate with infrastructure components such as traffic lights, road signs, parking meters, toll booths, and other elements on the road. V2I communication, which helps to improve road safety, and traffic efficiency, and provides more convenience for drivers.
Vehicle to Infrastructure Communication Market- Market Dynamics
High demand for smart city infrastructure and growing need to improve road safety is expected to propel market demand
V2I communication is a key component of smart city infrastructure. Integrating transportation systems with data-driven technologies like V2I helps improve urban mobility, optimize public transit, and reduce congestion. This trend is driving investments from both the public and private sectors to implement V2I technology within city planning. V2I communication helps reduce fuel consumption, emissions, and traffic congestion by enabling smoother traffic flows and smarter routing. Vehicles equipped with V2I can receive information about traffic light timings or congestion, allowing them to avoid idling or heavy traffic zones, optimizing fuel efficiency, and contributing to environmental goals.
Governments worldwide are increasingly implementing policies and standards that support V2I infrastructure development. With the ability to provide real-time information about road conditions, traffic signals, and potential hazards, V2I communication reduces the likelihood of accidents. This is especially beneficial in high-traffic urban areas where timely information on infrastructure conditions can prevent collisions and alert drivers to potential dangers. The growth of autonomous vehicle technology is closely linked to V2I communication. Autonomous vehicles rely on real-time data from both other vehicles and infrastructure to make safe and informed driving decisions. V2I is essential in enabling fully autonomous systems to interact with infrastructure elements like traffic lights, road signs, and parking systems. As autonomous vehicle testing and adoption expand, so does the demand for compatible V2I infrastructure.
Vehicle to Infrastructure Communication Market- Key Insights
As per the analysis shared by our research analyst, the global market is estimated to grow annually at a CAGR of around 36.90% over the forecast period (2024-2032)
Based on Component segmentation, the hardware segment was predicted to show maximum market share in the year 2023, owing to high demand for chips, and integrated system devices.
Based on Application segmentation, the telematics segment was the leading Application segment in 2023, due to increasing applications in implanting V2I technologies.
Based on Technology segmentation, the cellular segment was the leading Technology segment in 2023, mainly due to the increasing adoption of cellular technology in communication.
On the basis of region, North America was the leading revenue generator in 2023, due to the rapid integration of elastography in the healthcare system.
Global Vehicle to Infrastructure Communication Market is segmented on the basis of Component, Application, Technology, and Region.
The market is divided into three categories based on the Component: hardware, software, and services. The hardware segment dominates the market. The growth of chips, sensors, and integrated devices is enhancing market growth.
The market is divided into four categories based on Application: telematics, roadside, onboard unit, and others. The telematics segment dominates the market. The increasing advancement in the telecom industry with connected cars is estimated to fuel segment demand.
The market is divided into five categories based on Technology: cellular, Wi-Fi, Bluetooth, DSRC, and others. The cellular segment is anticipated to grow at the fastest rate over the forecast period. The growing number of traffic congestion issues are increasing the need for cellular solutions, thereby boosting segment growth.
Vehicle to Infrastructure Communication Market- Geographical Insights
Geographically, this market is widespread in the regions of North America, Latin America, Europe, Asia Pacific, and the Middle East and Africa. North America dominates the V2I market due to early adoption of connected vehicle technology and strong government support for smart vehicles. U.S. Department of Transportation (USDOT) initiatives like the Connected Vehicle Pilot Program. Europe is the second-largest market, driven by stringent regulations for vehicle emissions and road safety. Asia Pacific is the fastest growing region with high adoption of connected vehicle technology, particularly in Japan and South Korea.
The Vehicle-to-Infrastructure (V2I) communication market is highly competitive, with several key players and emerging startups developing technology to support smart transportation systems. Companies in the market are competing by forming partnerships with automotive manufacturers, investing in R&D for 5G and C-V2X, and collaborating with municipal governments for V2I pilots and deployments. Some of the major players include Bosch, Continental AG, Huawei Technologies, Qualcomm Technologies, etc.
In 2023, Qualcomm Technologies partnered with automotive companies to bring 5G-based C-V2X technology to market, allowing vehicles to connect more efficiently with infrastructure.
In 2022, Intel Corporation developed the Mobileye Road Experience Management (REM) platform, which gathers real-time data from road infrastructure to support V2I.