Vehicle to Infrastructure Communication - Global Strategic Business Report

The global market for Vehicle to Infrastructure Communication was estimated at US$412.7 Million in 2024 and is projected to reach US$1.0 Billion by 2030, growing at a CAGR of 15.9% from 2024 to 2030. This comprehensive report provides an in-depth analysis of market trends, drivers, and forecasts, helping you make informed business decisions. The report includes the most recent global tariff developments and how they impact the Vehicle to Infrastructure Communication market.

Global Vehicle-to-Infrastructure (V2I) Communication Market - Key Trends & Drivers Summarized

Why Is Vehicle-to-Infrastructure Communication Essential to Modern Mobility Systems?

Vehicle-to-Infrastructure (V2I) communication refers to the wireless exchange of data between vehicles and roadside infrastructure, such as traffic signals, toll booths, parking systems, and signage. This connectivity supports real-time traffic management, improves road safety, and enhances energy efficiency by enabling dynamic interaction between vehicles and urban systems. V2I is a fundamental component of intelligent transport systems (ITS) and is crucial for the evolution of connected and autonomous vehicle platforms.

By transmitting data about signal timing, speed limits, lane closures, and congestion zones, V2I allows vehicles to adjust driving behavior and routing decisions in real time. This communication reduces idling time, prevents collisions at intersections, and enables emergency vehicle prioritization. V2I applications are particularly important in urban environments, where high traffic density and infrastructure complexity require coordinated traffic flow and responsive control.

How Are Governments and Infrastructure Agencies Driving V2I Deployment?

Public infrastructure modernization efforts are incorporating V2I technology into smart road and urban planning initiatives. Transportation authorities in several countries are investing in roadside units (RSUs), digital signal controllers, and cloud-connected platforms that facilitate secure data exchange with vehicles. Funding programs for smart city projects, emissions reduction, and congestion management are increasingly tied to implementation of V2I components.

In North America, Europe, and parts of Asia, pilot projects and phased rollouts are testing applications such as red light violation warnings, pedestrian detection, and adaptive traffic signal timing. Regulatory standards for interoperability and communication protocols, including DSRC and C-V2X, are being established to ensure uniform deployment. These initiatives are laying the groundwork for vehicle manufacturers and fleet operators to integrate V2I systems into their connectivity architecture.

What Technologies Are Supporting Reliable and Scalable V2I Communication?

V2I communication relies on a combination of short-range and cellular-based technologies to transmit critical data with minimal latency. Dedicated Short Range Communication (DSRC) has traditionally been used for time-sensitive V2I functions, while Cellular-V2X (C-V2X) is gaining traction for its broader range, scalability, and integration with 5G infrastructure. These systems are supported by multi-access edge computing, which reduces processing delays by managing data close to the network edge.

Sensors, cameras, and LiDAR units embedded in infrastructure work in conjunction with onboard vehicle systems to deliver contextual awareness. Advanced message encoding, cybersecurity layers, and authentication protocols are essential to protect communication integrity and prevent data manipulation. As vehicles become increasingly software-defined, V2I modules are being embedded into central control units, enabling over-the-air updates and seamless integration with navigation, safety, and infotainment systems.

What Are the Key Drivers Supporting Widespread Adoption of V2I Systems?

Growth in the vehicle-to-infrastructure communication market is driven by several factors related to connected vehicle expansion, infrastructure digitization, and traffic efficiency mandates. Deployment of smart road technologies by municipal and national governments is creating a foundational layer for V2I communication. Adoption of ADAS and autonomous driving features in passenger and commercial vehicles is increasing the need for real-time communication with infrastructure. Rising congestion in urban centers and increased prioritization of traffic safety are prompting investment in adaptive signal control, emergency routing, and digital signage systems compatible with V2I standards. Advancements in cellular connectivity and 5G network availability are enabling broader and more scalable V2I applications across diverse geographies. Additionally, collaborative initiatives between telecom providers, automotive OEMs, and public agencies are accelerating standardization efforts, supporting long-term integration of V2I into intelligent transportation ecosystems.

Scope Of Study:

The report analyzes the Vehicle to Infrastructure Communication market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments: Component (Hardware Component, Software Component, Services Component); Application (Cellular Application, Wi-Fi Application, DSRC Application, WiMAX Application, Bluetooth Application); End-Use (Passenger Cars End-Use, Commercial Vehicles End-Use, Public Transportation End-Use, Emergency Vehicles End-Use, Other End-Uses)

Geographic Regions/Countries: World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Key Insights:

• Market Growth: Understand the significant growth trajectory of the Hardware Component segment, which is expected to reach US$612.6 Million by 2030 with a CAGR of a 16.5%. The Software Component segment is also set to grow at 14.1% CAGR over the analysis period.
• Regional Analysis: Gain insights into the U.S. market, estimated at $112.4 Million in 2024, and China, forecasted to grow at an impressive 21.1% CAGR to reach $219.1 Million by 2030. Discover growth trends in other key regions, including Japan, Canada, Germany, and the Asia-Pacific.

Why You Should Buy This Report:

• Detailed Market Analysis: Access a thorough analysis of the Global Vehicle, covering all major geographic regions and market segments.
• Competitive Insights: Get an overview of the competitive landscape, including the market presence of major players across different geographies.
• Future Trends and Drivers: Understand the key trends and drivers shaping the future of the Global Vehicle.
• Actionable Insights: Benefit from actionable insights that can help you identify new revenue opportunities and make strategic business decisions.

Key Questions Answered:

• How is the Global Vehicle expected to evolve by 2030?
• What are the main drivers and restraints affecting the market?
• Which market segments will grow the most over the forecast period?
• How will market shares for different regions and segments change by 2030?
• Who are the leading players in the market, and what are their prospects?

Report Features:

• Comprehensive Market Data: Independent analysis of annual sales and market forecasts in US$ Million from 2024 to 2030.
• In-Depth Regional Analysis: Detailed insights into key markets, including the U.S., China, Japan, Canada, Europe, Asia-Pacific, Latin America, Middle East, and Africa.
• Company Profiles: Coverage of players such as AECOM Technology Corporation, Aptiv PLC, Autotalks Ltd., Cisco Systems Inc., Cohda Wireless and more.
• Complimentary Updates: Receive free report updates for one year to keep you informed of the latest market developments.

Some of the 34 companies featured in this Vehicle to Infrastructure Communication market report include:

• AECOM Technology Corporation
• Aptiv PLC
• Autotalks Ltd.
• Cisco Systems Inc.
• Cohda Wireless
• Continental AG
• DENSO Corporation
• Econolite Group Inc.
• Ericsson
• Ford Motor Company
• Hitachi Ltd.
• Infineon Technologies AG
• Iteris Inc.
• Kapsch TrafficCom
• Magna International Inc.
• Nokia Corporation
• NXP Semiconductors
• Qualcomm Technologies Inc.
• Robert Bosch GmbH
• Siemens Mobility

This edition integrates the latest global trade and economic shifts as of June 2025 into comprehensive market analysis. Key updates include:

• Tariff and Trade Impact: Insights into global tariff negotiations across 180+ countries, with analysis of supply chain turbulence, sourcing disruptions, and geographic realignment. Special focus on 2025 as a pivotal year for trade tensions, including updated perspectives on the Trump-era tariffs.
• Adjusted Forecasts and Analytics: Revised global and regional market forecasts through 2030, incorporating tariff effects, economic uncertainty, and structural changes in globalization. Includes segmentation by product, technology, type, material, distribution channel, application, and end-use, with historical analysis since 2015.
• Strategic Market Dynamics: Evaluation of revised market prospects, regional outlooks, and key economic indicators such as population and urbanization trends.
• Innovation & Technology Trends: Latest developments in product and process innovation, emerging technologies, and key industry drivers shaping the competitive landscape.
• Competitive Intelligence: Updated global market share estimates for 2025, competitive positioning of major players (Strong/Active/Niche/Trivial), and refined focus on leading global brands and core players.
• Expert Insight & Commentary: Strategic analysis from economists, trade experts, and domain specialists to contextualize market shifts and identify emerging opportunities.
• Complimentary Update: Buyers receive a free July 2025 update with finalized tariff impacts, new trade agreement effects, revised projections, and expanded country-level coverage.