Cellular Vehicle-to-Everything market is projected to exceed USD 800 million by 2025, according to a new report by Global Market Insights Inc. (gminsights.com).
Cellular Vehicle-to-Everything C-V2X market to see strong growth by 2025 due to the increase in demand for safe & reliable road transportation, the rising adoption of autonomous vehicles, and increase in the adoption of vehicle telematics by logistics & transportation companies. The smart city initiatives in developing countries are helping to improve the roadside infrastructure with the help of IoT technology. The improved roadside infrastructure is helping in improving the transportation system in smart cities with the help of C-V2X communication technology.
The advancements in cellular networks for the commercialization of 5G networks are supporting the Cellular Vehicle-to-Everything market growth. The enhanced bandwidth capabilities of 5G enable autonomous vehicles to be fully connected at all times with each other, roadside infrastructure, and pedestrians. The low latency of 5G technology helps in the fast response in autonomous driving, which will help in avoiding accidents that happen due to sudden lane changes. The low latency and high bandwidth of 5G network provide V2X technology benefits such as enhanced reliability over extended communication range, better non-line-of-sight performance, and great resilience for interference arising from other devices. The development of 5G technology supports a wide range of use cases such as enhanced Mobile Broadband (eMBB) and mission-critical applications.
The V2I communication segment is expected to grow at a CAGR of over 12% over the forecast period due to the increase in the adoption of smart traffic infrastructure. The smart traffic infrastructure involves smart traffic signals and smart surveillance cameras, which communicate with vehicles to provide information about traffic & road conditions. The V2I communication helps in reducing the traffic congestion in cities by providing alerts to connected vehicles regarding traffic congestion and suggesting alternate routes toward the expected destination. Many government authorities are focusing on the development of the infrastructure for connected vehicles with active deployment projects. For instance, Colorado's V2X Technology Safety and Mobility Improvement Project is focusing on creating commercial scale connected vehicle environment using V2X technology. The project will have a 537-mile network to provide real-time communication with connected vehicles and it will notify the Colorado Department of Transportation (CDOT) of collisions or accidents on the road through (V2I) communication.
The hardware segment is expected to hold a major share in 2025 due to the increase in the adoption of autonomous vehicles. The C-V2X communication technology hardware includes chipsets, modules, On-Board Units (OBUs), and Roadside Units (RSU). The major C-V2X technology companies are developing chipsets to boost connected vehicle technology. For instance, in September 2017, Qualcomm launched 9150 C-V2X chipsets for autonomous driving. This chipset is based on 3GPP Release 14 for PC5-based direct communication. This product helped the company in offering reliable V2X solution for improving road safety.
The autonomous driving application segment is expected to show the fastest growth over the forecast period due to advancements in driverless cars. The autonomous vehicles require precision & accuracy to avoid any fatalities on the road. C-V2X communication technology helps autonomous vehicles in detecting potential obstacles, traffic congestion, and road conditions over a long distance through its enhanced non-line-of-sight sensing capability. The major connected vehicle solution providers are developing C-V2X modules for supporting autonomous driving. For instance, in November 2018, Quectel, a leading provider of 5G LTE and C-V2X modules, released automotive grade C-V2X module AG15. This new product helped the company in offering the product, which meets the telematics and V2X connectivity requirements for autonomous driving.
The passenger vehicle segment is expected to hold the market share of over 50% in 2025 due to the increase in the awareness regarding passenger safety. There is a significant increase in the number of accidents taking place globally. According to the World Health Organization's (WHO) the Global Status Report on Road Safety 2018, the number of annual road traffic deaths reached 1.35 million in 2018 worldwide. The rising number of accidents is prompting the need for reliable and safe road transportation. C-V2X technology helps in reducing accidents by enabling vehicles to communicate with each other and with the roadside infrastructure.
Asia Pacific Cellular Vehicle-to-Everything market is expected to grow at the fastest rate over the forecast period due to the increase in government support for large-scale digitalization of urban infrastructure in countries including China, South Korea, and India. The major automobile manufacturers in the region are planning for the deployment of C-2VX technology in their vehicles. For instance, in March 2019, Ford announced its plans to start the deployment of C-V2X technology in its vehicles in China in 2021. In-line with the company's 'In China, For China' strategy, it is accelerating the commercial deployment to make Chinese roads safer and less congested.
The major chipset manufacturers are conducting C-V2X trials in collaboration with automotive manufacturers and other connected vehicles solution providers. For instance, in December 2018, Qualcomm, a leading chipset manufacturer, partnered with Continental, Ericsson, NTT DOCOMO, Nissan, and OKI for C-V2X trials in Japan. These successful trials helped the company in accelerating the development of its C-V2X products for future autonomous vehicles. C-V2X solution providers are also partnering with major telecom companies for the development of C-V2X communication technology. For instance, in February 2019, AT&T, a leading technology company partnered with the Vodafone, a global leading telecom company, for accelerating C-V2X connectivity in the automotive industry. This partnership helped the company in innovating faster and developing connectivity, entertainment, and telematics for its automotive customers.