Vehicle to Infrastructure Communication (V2I) Market - Global Industry Analysis, Size, Share, Growth, Trends, and Forecast 2024-2031- (By Derivatives Coverage, Geographic Coverage and By Company)

The Vehicle-to-Infrastructure (V2I) communication market is undergoing a remarkable transformation, with a valuation of US$ 311.8 million in 2023. This burgeoning sector is anticipated to grow to an astounding US$ 6.16 billion by the end of 2031, showcasing an impressive compound annual growth rate (CAGR) of 43.7% from 2024 to 2031. V2I technology facilitates real-time data exchange between vehicles and surrounding infrastructure, including traffic signals, road signs, and other vehicles, with the goal of enhancing road safety, reducing congestion, and improving the overall driving experience.

Market Insights

The V2I communication technology relies on vehicles equipped with advanced sensors and communication devices, such as on-board computers and dedicated short-range communications (DSRC) modules. These components allow for a seamless exchange of information regarding road conditions and surroundings. The market's rapid expansion is primarily driven by increasing traffic congestion in urban areas, which necessitates the implementation of smart transportation systems, including V2I communication. Furthermore, government regulations encouraging the adoption of V2I systems are catalyzing this growth.

Notably, the V2I communication market comprises 35% of the global automotive Vehicle-to-Everything (V2X) market. The North American region led the market with a 28.4% share in 2023, while Europe is projected to hold a 23.1% market share in 2024.

Major Drivers

The primary factors propelling the V2I communication market include:

1. Adoption of Advanced Driver Assistance Systems (ADAS): The rising demand for enhanced mobility solutions, particularly for disabled individuals and those unable to drive, is bolstering the need for V2I systems in the U.S., which accounted for 22.1% of the market in 2024.

2. Government Initiatives: Increased governmental support for driver safety systems, including funding and regulatory incentives, is pivotal in promoting V2I technology adoption, especially in India, where the market is expected to grow at a CAGR of 41.1%.

3. Collaboration Among Stakeholders: The ongoing collaborations between automotive manufacturers, technology firms, and transportation agencies are accelerating the development and implementation of V2I technology.

4. Focus on Fuel-Efficiency: The rising demand for fuel-efficient vehicle control systems enhances the appeal of V2I communication, aiding in traffic management and route optimization.

Business Opportunities

The V2I communication market presents lucrative business opportunities, primarily driven by:

• Technological Advancements: The continuous development of smart vehicle connectivity and intelligent transportation systems is expected to create new revenue streams.
• Environmental Sustainability: V2I technology can significantly reduce emissions by mitigating congestion and enhancing vehicle efficiency, appealing to environmentally conscious consumers and governments.
• Investments in Research & Development: With various companies investing heavily in R&D to enhance V2I technology’s efficiency and effectiveness, market competition is set to intensify, inviting new players and innovations.

Regional Outlook

The North American market is currently the leader, driven by the high adoption of advanced driver assistance and safety technologies. In Europe, collaborative efforts among key stakeholders are anticipated to foster growth, while India's market is expected to see significant expansion due to governmental initiatives focused on driver safety systems. France is also expected to witness increased V2I adoption driven by demands for fuel-efficient vehicle control systems.

Key Players

The competitive landscape of the V2I communication market includes major players who are committed to pushing the technology's boundaries. Notable companies include:

• Qualcomm
• Intel Corporation
• NXP Semiconductor
• Broadcom
• AT&T, Inc.
• Verizon
• MediaTek
• Delphi Automotive
• Infineon Technology
• Savari
• Quectel Wireless Solutions
• Unex Technology
• 3M
• Ericsson

vehicle-to-infrastructure (V2I) communication Market Segmentation

By Component:

• Hardware
• Telematics Unit
• Roadside Unit
• Onboard Unit
• Software
• Services

By Application:

• DSRC
• Cellular
• Wi-Fi
• WiMAX
• Bluetooth

By Region:

• North America
• Latin America
• Europe
• East Asia
• South Asia Pacific
• Middle East and Africa

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