Vehicle-to-Infrastructure (V2I) Communication Strategic Insights: Analysis 2025 and Forecasts 2033

Key Insights

The global Vehicle-to-Infrastructure (V2I) Communication market is projected to reach a valuation of USD 109.99 million by 2033, expanding at a CAGR of 39.6%. The market growth is attributed to the increasing adoption of connected and autonomous vehicles, growing government initiatives for smart city development, and rising concerns over road safety. Additionally, advancements in cellular and Wi-Fi technologies are enabling seamless V2I communication, further contributing to market growth.

In terms of market segmentation, hardware and cellular technologies hold a significant share due to their prevalence in connected vehicles and infrastructure. DSRC, Wi-Fi, and WiMAX are also gaining traction, particularly in specific applications. Regionally, North America and Europe are expected to remain dominant markets, while Asia Pacific is projected to witness substantial growth due to rapid urbanization and increasing investments in smart city infrastructure. Key players in the V2I communication market include Robert Bosch, Infineon Technologies, Audi, AT&T, and Qualcomm Incorporated, among others. The competitive landscape is expected to intensify as companies strive to gain a larger market share through strategic partnerships, product innovations, and technological advancements.

Vehicle-to-Infrastructure (V2I) Communication Trends

The global vehicle-to-infrastructure (V2I) communication market is projected to reach USD 26.8 billion by 2027 from USD 12.5 billion in 2022, at a CAGR of 15.2% during the forecast period. The growing need for enhanced road safety, increasing adoption of connected vehicles with advanced driver assistance systems (ADAS), and government initiatives to promote smart transportation are some of the key factors driving the growth of the V2I communication market.

V2I communication enables vehicles to exchange information with roadside infrastructure, such as traffic signals, sensors, and cameras, to improve safety and efficiency. By leveraging real-time data, V2I systems can provide drivers with alerts about upcoming hazards, optimize traffic flow, and facilitate automated driving functions.

Key Market Insights:

• North America and Europe are expected to dominate the V2I communication market due to the early adoption of connected vehicle technologies and government support for smart transportation initiatives.

• Cellular V2I (C-V2X) technology is expected to gain significant traction owing to its wide coverage, high bandwidth, and ability to support a wide range of applications.

• Dedicated Short-Range Communication (DSRC) technology is also expected to play a significant role, especially in applications requiring low latency and high reliability.

• The growing adoption of electric vehicles and the development of autonomous driving systems are expected to further drive the demand for V2I communication solutions.

Driving Forces: What's Propelling the Vehicle-to-Infrastructure (V2I) Communication?

• Enhanced Road Safety: V2I communication systems can provide drivers with real-time information about road conditions, upcoming hazards, and traffic flow, enabling them to make informed decisions and avoid accidents.

• Improved Traffic Management: V2I systems can optimize traffic flow by coordinating with traffic signals and providing drivers with real-time information about congestion and alternative routes.

• Automated Driving Enabler: V2I communication is essential for the development and deployment of autonomous driving systems, providing vehicles with the necessary information to navigate complex traffic situations safely and efficiently.

• Reduced Emissions: By improving traffic flow and reducing congestion, V2I communication can contribute to reduced vehicle emissions and improved air quality.

• Government Support: Governments worldwide are actively promoting the adoption of V2I communication technologies through funding initiatives and regulatory frameworks to enhance road safety and transportation efficiency.

Challenges and Restraints in Vehicle-to-Infrastructure (V2I) Communication

• Cybersecurity Concerns: V2I systems rely on wireless communication, which introduces cybersecurity risks. Ensuring the security and privacy of data transmitted between vehicles and infrastructure remains a critical challenge.

• Standardization and Interoperability: The lack of harmonized standards and interoperability between V2I systems from different vendors can hinder their widespread adoption and deployment.

• Cost and Infrastructure Deployment: Implementing V2I communication systems requires significant investment in roadside infrastructure and vehicle equipment. This can be a barrier to large-scale deployment, especially in developing regions.

• Driver Acceptance: Gaining public acceptance and trust in V2I technologies is crucial for their successful adoption. Drivers need to be educated about the benefits and safety implications of V2I systems.

Key Region or Country & Segment to Dominate the Market

Region Dominating the Market:

• North America is expected to dominate the global V2I communication market, driven by early adoption of connected vehicle technologies and government initiatives to promote smart transportation.

Segment Dominating the Market:

By Application

• Dedicated Short Range Communication (DSRC) segment is expected to hold a significant market share due to its low latency and high reliability, making it suitable for safety-critical applications.

By Vehicle Type

• Passenger cars segment is projected to dominate the market, driven by the increasing adoption of advanced driver assistance systems (ADAS) and the growing popularity of connected vehicles.

Growth Catalysts in Vehicle-to-Infrastructure (V2I) Communication Industry

• Advancements in Wireless Communication Technologies: 5G and LTE-V2X technologies are expected to revolutionize V2I communication by providing high bandwidth and low latency, enabling new applications and services.

• Government Regulations and Support: Governments are actively promoting the adoption of V2I technologies through regulations, standards, and funding initiatives to enhance road safety and transportation efficiency.

• Partnerships and Collaborations: Collaboration between industry players, research institutions, and government agencies is accelerating the development and deployment of V2I systems.

• Rising Consumer Demand for Connected Vehicles: The increasing demand for connected vehicles with advanced safety and convenience features is driving the adoption of V2I communication technologies.

Leading Players in the Vehicle-to-Infrastructure (V2I) Communication

• Robert Bosch
• Infineon Technologies
• Audi
• AT&T
• Daimler
• [Qualcomm Incorporated]( solutions#wireless-connectivity)
• Unex Technology
• MediaTek
• Quectel Wireless Solutions
• Savari
• Delphi Automotive
• [Renesas Electronics]( energy)

Significant Developments in Vehicle-to-Infrastructure (V2I) Communication Sector

• September 2022 - Qualcomm Technologies and Savari announced a collaboration to develop and deploy V2I communication solutions for smart cities.
• August 2022 - AT&T and Daimler announced a partnership to develop and implement V2I technologies for commercial vehicles.
• June 2022 - The US Department of Transportation (USDOT) announced the launch of a pilot program to evaluate V2I technologies in real-world environments.

Vehicle-to-Infrastructure (V2I) Communication Segmentation

• 1. Type
  • 1.1. Hardware
  • 1.2. Software
  • 1.3. Services
• 2. Application
  • 2.1. Dedicated Short Range Communication (DSRC)
  • 2.2. Cellular
  • 2.3. Wi-Fi
  • 2.4. WiMAX
  • 2.5. Others

Vehicle-to-Infrastructure (V2I) Communication Segmentation By Geography

• 1. North America
  • 1.1. United States
  • 1.2. Canada
  • 1.3. Mexico
• 2. South America
  • 2.1. Brazil
  • 2.2. Argentina
  • 2.3. Rest of South America
• 3. Europe
  • 3.1. United Kingdom
  • 3.2. Germany
  • 3.3. France
  • 3.4. Italy
  • 3.5. Spain
  • 3.6. Russia
  • 3.7. Benelux
  • 3.8. Nordics
  • 3.9. Rest of Europe
• 4. Middle East & Africa
  • 4.1. Turkey
  • 4.2. Israel
  • 4.3. GCC
  • 4.4. North Africa
  • 4.5. South Africa
  • 4.6. Rest of Middle East & Africa
• 5. Asia Pacific
  • 5.1. China
  • 5.2. India
  • 5.3. Japan
  • 5.4. South Korea
  • 5.5. ASEAN
  • 5.6. Oceania
  • 5.7. Rest of Asia Pacific