VehicletoVehicleVehicletoInfrastructure Market

Vehicle-to-Vehicle/Vehicle-to-Infrastructure Market Size

The global vehicle-to-vehicle (V2V)/vehicle-to-infrastructure (V2I) market will see unprecedented growth between 2025 and 2034 based on an increasing focus on connected mobility, intelligent infrastructure, and autonomous transportation systems. With investment from global automotive OEMs and governments in intelligent transportation systems (ITS) and vehicular communication networks, interest is growing in V2V/V2I technologies in both passenger and commercial vehicle markets.

One of the hallmark accomplishments of 2024 was the integration between the Hyundai Motor Company, Kia Corporation, and Samsung Electronics in order to promote Car-to-Home and Home-to-Car connections. These first-class services underscore a trend in the industry toward connected smart mobility, in the sense that cars are no longer an isolated means of transportation but an extension of the connected world.

Further fuelling market growth is the movement towards autonomous and electric vehicles, which have an inherent high-fidelity dependence on systems of communication to publish information to other vehicles and infrastructure surrounding them. V2V enables vehicles to communicate with other vehicles in real time, such as how fast they are going, position, and how they are moving, which can improve predictive analysis and ultimately reduce accidents. V2I enables communication with different infrastructure, traffic lights, road signs, and cloud infrastructure to optimize route planning, ultimately improving fuel consumption and reducing environmental costs.

With the deaths resulting from road traffic crashes over 1.19 million people per year (WHO, 2023), vehicular safety has never been more in the global spotlight. Sophisticated driver-assistance technologies (ADAS) driven by vehicle to vehicle/vehicle to infrastructure market technologies are being integrated into vehicles to prevent collisions through anticipatory alarms and autonomous actions. Greater insight into vehicle trajectory, traffic flow, and infrastructure conditions drastically minimizes human error, the prime cause of traffic crashes.

Nations across the globe are accelerating investments in smart city projects, providing a lucrative field for V2I technology. Smart infrastructure, ranging from intelligent traffic signals to auto-tolling and vehicle priority systems, is becoming a cornerstone of future urban transportation. US, European, Chinese, and Middle Eastern governments have all launched specific programs and public-private initiatives to upgrade transport infrastructure, fuelling the adoption of V2I systems directly.

The AV and EV ecosystems are intrinsically dependent on real-time, two-way communication. V2V/V2I systems are pivotal in facilitating functionalities like platooning, parking automation, lane change assistance, and predictive maintenance. With EV sales globally anticipated to grow at double-digit CAGR until 2034, vehicle communication systems will be required to grow proportionally.

Governments and global regulatory agencies are promulgating guidelines to hasten the rollouts of vehicular communication systems. The US Department of Transportation (DoT) and European Telecommunications Standards Institute (ETSI) are spearheading efforts to standardize interoperability, enabling smooth communication between disparate vehicle brands and infrastructure configurations.

Vehicle-to-Vehicle/Vehicle-to-Infrastructure Market Trends

Processing of real-time data is essential for V2X communications. AI algorithms and edge processing decisions are being incorporated into onboard vehicle systems by companies in an effort to reduce latency and enable decision-making in fractions of a second. This allows for faster threat response, route generation, and even dynamic driver assistance capabilities.

The arrival of 5G technology is transforming vehicle communication networks. With ultralow latency, high bandwidth, and large-scale IoT device support, 5G is opening next-gen V2V/V2I apps like cooperative adaptive cruise control (CACC) and remote vehicle management.

The expansion of V2I systems to connect with public transport, pedestrian crossing signals, and emergency service providers gets closer to a multi-modal transport system. With this, it becomes increasingly important for the wide-scale coordination of different transport types in population-dense urban centers to happen fluidly to reduce congestion.

V2X technologies are being assessed increasingly through the shadow of the environment. Gains from optimum routing and congestion management, and overall idle time could contribute to carbon reduction and fuel consumption. Fleet operators and logistics are using V2V/V2I solutions to provide ESG outcomes and broaden sustainability across the supply chain.

Vehicle-to-Vehicle/Vehicle-to-Infrastructure Market Analysis

The passenger vehicle market will lead the V2V/V2I market until 2034. Connected technologies integration is becoming a common feature among mid-range and premium cars. Top car manufacturers like Audi, BMW, and Toyota are integrating V2X features to increase safety, navigation, infotainment, and autonomous capabilities.

The growing consumers' awareness of road safety and the ease of connected services are supporting market penetration in this category. At the same time, commercial vehicles — particularly logistics and public transportation — are embracing V2X systems for fleet management, predictive diagnostics, and driver behavior monitoring.

V2V communication is at the forefront today because of its inherent importance in collision prevention and driver notifications. V2I is picking up pace with the increasing adoption of smart traffic management systems, toll collection automation, and parking systems. Both types of communication need to harmonize to make autonomous vehicle ecosystems a reality.

North America remains the leading geographical market for the global V2V/V2I market as a result of the support of the government, world-class testing facilities, and presence of leading automotive and technology companies. The DoT Connected Vehicle Pilot Program and deployment of 5G will help to demonstrate and support acceptance of V2X technology in the major metropolitan cities.

Development in Europe is being driven by strict auto safety regulations, mass penetration of EVs, and government-funded smart mobility programs. Germany, the Netherlands, and the UK are developing V2X corridors and Intelligent Highways to facilitate real-time vehicle-infrastructure communication.

In Asia Pacific, market development is driven by investments in digital infrastructure, urbanization, and an increase in automotive production. South Korea, Japan, and China are leading the deployment of smart city and autonomous vehicle pilots, mainly in urban areas.

Vehicle-to-Vehicle/Vehicle-to-Infrastructure Market Share

The V2V/V2I market exhibits a vibrant combination of automotive OEMs, technology companies, and infrastructure providers. Key players are:

• General Motors
• Toyota Motor Corporation
• Volkswagen Group
• Daimler AG
• Volvo Cars
• BMW Group
• NXP Semiconductors
• Qualcomm Technologies Inc.
• Continental AG
• Denso Corporation
  

These players are putting money in V2X modules, chipsets, telematics systems, and cloud platforms to remain competitive in the transforming environment. Strategic partnerships, M&A transactions, and innovation in vehicle communication protocols are at the core of their market strategies.

Vehicle-to-Vehicle/Vehicle-to-Infrastructure Industry News

In July 2025, AstaZero, a research center operated by the Research Institutes of Sweden (RISE), unveiled a state-of-the-art testing facility for connected vehicles to test the safety and performance of future automated transport solutions. Far more than a traditional test track, AstaZero is a scale-model research center where autonomous vehicles, AI-based drones, and networked emergency response vehicles are put through stringent real-world simulations and tests.