Cellular Vehicle-to-Everything Market Expands at 41.81% CAGR from 2025 to 2034: AI, 5G, and V2X Tech

According to Towards Automotive consultants, the global cellular vehicle-to-everything (C-V2X) market is projected to reach approximately USD 56.44 billion by 2034, increasing from USD 2.43 billion in 2025, at a CAGR of 41.81% during the forecast period 2025 to 2034.

Ottawa, July 02, 2025 (GLOBE NEWSWIRE) -- The global cellular vehicle-to-everything (C-V2X) market size was valued at USD 3.45 billion in 2024 and is expected to grow to USD 56.44 billion in 2034, as noted in a study published by Towards Automotive a sister firm of Precedence Research.

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New Trends of Cellular Vehicle-to-Everything (CV2-X) Market

5G integration has helped in improving the CV2-X market by making communication easier, reliable networks helpful for real-time traffic management, and improved road safety features. The technology also helps in aiding autonomous traffic.
The CV2-X market has also observed a spike in recent years due to integration with ADAS. It has helped to enhance the safety of drivers and enhance their driving experience by lowering the causes of accidents and unfortunate events.
The market is also supported by the development of smart cities. Such cities help in the involvement of different types of technologies such as V2X to manage traffic flow, improved urban facilities, and various other technological facilities. Hence, the CV2-X market is spiked by such reasons as well.
The increasing demand for autonomous vehicles is also helping to enhance the CV2-X market growth by raising the demand for enhanced communication and enhanced road safety.
Government and city initiatives to integrate advanced technology for smooth traffic management and improved road safety are also helping in the expansion of the market.

Market Overview

CV2-X technology helps different types of vehicles communicate with each other (V2V), infrastructure (V21), pedestrians (V2P), and the broader network (V2N). The technology helps in lowering high chances of accidents and is also helpful in the smooth management of traffic. Real-time information sharing is easy with the help of technology. The technology is also helpful for autonomous driving vehicles when integrated with ADAS. It helps in enhanced safety of drivers by providing easy road and traffic assistance and helping in lowering accidental incidents.

How Smart City Initiatives Promote Cellular Vehicle’s Market?

Government initiatives for the development of smart cities have also helped the CV2-X market to hike in recent years. The development of smart cities will help in the involvement of different types of smart technologies for easy traffic management, smooth road assistance, along easy urban management.

Hence, the government is releasing heavy funds for the development of such cities. Another important factor helpful in the enhancement of CV2-X is 5G deployment. It helps in high-speed and low-latency communication for CV2-X applications. It also helps in managing different types of technological applications for easy traffic management. The technology helps in effective, smooth, and barrier-free communication helpful for managing traffic and lowering potential accident scenarios.

What is the Role of Artificial Intelligence in CV2-X Market Growth?

AI forms the base of cellular vehicle-to-everything technology. AI algorithms help in improving safety, enhancing traffic management, and improving connectivity between different vehicles. Predictive traffic management, detection of potential road hazards, and lowering accidental scenarios are some of the advantageous points helping CV2-X grow. AI also forms the base for autonomous driving and offers an improved and enhanced experience when paired with CV2-X technology.

It helps in improving driver’s safety and assistance and aids in safe driving and lower accident chances. Autonomous driving vehicles benefit from CV2-X technology in the form of proper lane keeping, adaptive cruise control, along automatic emergency braking, helpful for vehicle safety and enhanced comfort. The technology also helps in managing traffic and guiding with improved navigation for a smooth driving experience.

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Rising Investments from Multiple Manufacturers: Market’s Largest Potential

One of the major opportunities observed for the growth of the CV2-X market is government funding. It helps the industry in its development and timely maintenance. Government funding also helps in encouraging the development of smart cities equipped with similar technologies. It also helps to attract investment in the industry from multiple big manufacturers in the fields of R&D, technology, and communication. Higher investments in the CV2-X industry will help in improved road safety, better communication, ease for autonomous driving, improved drivers’ safety, and lowered accidental situations as well.

Government Initiatives for the Growth of the CV2-X Market

Governments globally are promoting CV2-X technology for improved communication for better road safety. The governments are promoting the technology to lower congesting traffic observed in cities during peak hours, lower accidental scenarios, and enhance the safety of drivers. Hence, governments are also making it mandatory in different countries to provide vehicles with CV2-X technology for driver’s safety, and enhanced communication.

Heavy funding in countries like Europe and the U.S. is passed by their governments to support the technology and its development. Such initiatives by the government are helping the growth of the CV2-X market and encouraging investment in the development of the industry as well.

Market Dynamics

What are the growth drivers of the CV2-X Market?

The CV2-X technology helps in connecting different types of vehicles. It helps in better traffic management and improved road safety. Deployment of 5G helps in low-latency communication allowing vehicles for faster and barrier-free communication. High demand and adoption of autonomous vehicles with the integration of CV2-X technology is helpful for the boost of the CV2-X market. When the technology is paired with ADAS it helps in improving driver assistance and allows one to access smooth features enabled due to technology such as easy lane assistance and improved connectivity between vehicles.

Real-time information about road conditions, lowered road accidents, and improved communication are some of the major growth drivers of the CV2-X market. Government initiatives for the development of smart cities involving the support of multiple technologies for enhanced development are also a major growth driver of the market.

What are the Challenges faced by the CV2-X Market?

The emerging technology though is beneficial for enhanced road safety and lowering accidental scenarios, but there is also an array of challenges faced by the CV2-X market. One of the major challenges faced by the market is cybersecurity issues. Being reliant on communication the technology is vulnerable to tampering, data breaches, and interception. This may lower the trust issues of the people using the technology and hence may lower the chances of people adopting the technology. Another major barrier faced by the CV2-X market is the high infrastructure costs required to maintain roadside units, communication networks, and other required infrastructure. Hence, it may lower the chances of the development of smart cities in many countries as well.

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Segmental Insights

Component Type:

The Hardware Segment to Maintain its Dominance in 2024

With the accelerating adoption of autonomous and connected vehicles, OEMs and Tier-1 suppliers are heavily investing in advanced communication hardware that ensures low-latency, high-reliability data exchange between vehicles and their environments. Moreover, the increasing integration of 5G-compatible CV2X modules and the need for robust edge-computing capabilities are further driving demand for hardware components.

Communication Type:

Vehicle-to-Person Segment Led in 2024

V2P technology enables vehicles to communicate directly with pedestrians, cyclists, and vulnerable road users through smartphones or wearable devices, providing real-time alerts to prevent collisions. With increasing urbanization and traffic congestion, governments and smart city projects are integrating V2P systems at crosswalks, school zones, and public transport hubs. The rise in investments aimed at reducing road fatalities, especially in densely populated areas, further fueled the adoption of V2P solutions.

Vehicle Type:

By Vehicle Type, the Passenger Car Segment dominated the CV2-X Market in 2024

The passenger car segment observed a huge growth in the CV2-X market in 2024. Passenger cars hold a huge revenue share in the market globally due to their high utility and demand. High demand for different types of passenger cars in the form of SUVs, sedans, and different types of electric vehicles equipped with CV2-X technology helped in the growth of the cellular vehicle-to-everything market in 2023.

The huge consumer base of such types of vehicles directly impacts the growth of the CV2-X market. The technology in passenger cars helps in improving connectivity, safety, convenience, and an array of helpful options for autonomous vehicles for safe driving. The technology also aids the infotainment system allowing one to enjoy longer drives.

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Application Type:

The Collison Avoidance Segment dominated the CV2-X Market in 2024

With the increasing population, the traffic has also increased leading to the growth of safety measures as well. Hence, the collision segment dominated the CV2-X market in 2023. The technology aims to reduce traffic and lower the chances of accidents leading to fatal situations. The use of CV2-X technology helps in improved communication among vehicles paving the way for lower traffic and enhanced communication between vehicles. Hence, vehicles in traffic can experience real-time communication and exchange useful information such as speed, direction, and proximity in congested situations. It helps in easy traffic clearance and lowers the chances of collision and accidents.

Regional Insights:

Asia Pacific: Rapidly Growing Marketplace for Cellular Vehicles

Increasing disposable incomes, developing infrastructure, and high investments in the CV2-X industry have helped the CV2-X market grow in the region at a notable pace in the foreseen period. Countries like India, China, and South Korea, play a major role in the growth of the market due to rapid urbanization and high investment in the technological industry. The countries are also inclined towards high vehicle production equipped with such technologies helpful for improved road safety. Government initiatives and funding have also helped the market to grow in the region and allowed the region to develop various technological units to support the CV2-X industry.

Japan, China & India to Boom Rapidly: Countries Analysis, Insights & Potential

The Ministry of Industry and Information Technology (MIIT) has made CV2X integral to its “Intelligent Connected Vehicle” (ICV) strategy. Over 500+ pilot zones and test sites have been established across cities like Shanghai, Beijing, and Wuxi. Automakers such as SAIC, Geely, and BYD are actively equipping new vehicles with CV2X modules, while tech players like Huawei and ZTE are building advanced V2X infrastructure.
The Japanese government supported CV2X trials during the Tokyo 2020 Olympics, and urban deployments continue in smart cities like Kashiwa-no-ha. Japan's well-developed infrastructure and strong automotive base make it a stable yet progressive CV2X environment.
The government's Smart Cities Mission and push for electric vehicles (EVs) could pave the way for future CV2X adoption. While infrastructure challenges exist, India’s expanding 5G network and rising road safety concerns create a fertile ground for V2X innovation in the coming years.

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What Factors Made North America a Notable Shareholder in 2024?

High government initiatives, developed infrastructure, and high investments from big manufacturers for R&D, and development communication have led to notable growth of the CV2-X market in North America. The market has also observed a spike due to the integration of various other technologies such as AI and ADAS with CV2-X for improved driver safety and lowered accidents. Hence, it supports the improved road safety factor helping in smooth and easy traffic management. Growing disposable incomes helping in the development of the industry is also a major factor in the growth of the market in the region.

Top Companies in the CV2X Market & Their Offerings

Continental AG
Continental develops advanced V2X communication modules and integrated vehicle connectivity solutions that enhance safety, traffic efficiency, and autonomous driving.
Aptiv
Aptiv offers end-to-end CV2X platforms that combine sensors, software, and connectivity to support real-time communication between vehicles, infrastructure, and pedestrians.
Qualcomm Technologies, Inc.
A global leader in CV2X chipset development, Qualcomm provides 5G and LTE-based communication platforms powering connected and autonomous vehicles.
NXP Semiconductors
NXP delivers secure and scalable CV2X chipsets and roadlink modules enabling low-latency communication and edge-based vehicle decision-making.
Robert Bosch GmbH
Bosch integrates CV2X technologies with its automotive control units and sensors, enhancing vehicle awareness and collision prevention capabilities.
TomTom International BV
TomTom contributes to the CV2X ecosystem with high-definition mapping and real-time traffic data services that improve navigation and vehicle-environment interactions.
HARMAN International
A Samsung subsidiary, HARMAN develops connected car platforms that incorporate CV2X capabilities with infotainment and telematics systems.
Mobileye
Known for its ADAS (Advanced Driver-Assistance Systems), Mobileye integrates CV2X with its vision-based technologies to improve autonomous driving decision layers.
DENSO CORPORATION
DENSO manufactures CV2X communication modules and cloud-based solutions that help vehicles share safety-critical information with surrounding infrastructure.
Infineon Technologies AG
Infineon provides robust CV2X security chips and microcontrollers that enable trusted communication and data processing in connected vehicle networks.

Recent Developments in the Cellular Vehicle-to-Everything (CV2-X) Market

In May 2025, Indra, Audi of America, and Qualcomm Technologies, Inc. launched their joint project of advanced and next-generation toll payment systems using cellular vehicle-to-everything technology. The main aim of the project is to display the benefits of such digital systems for lowering road congestion on toll roads nationwide and enhancing the driving experience.(Source: Business Wire)
In June 2025, Verizon Business, commercially launched their ‘Edge Transportation Exchange’ communication platform with multiple customers already signed in. The solution allows vehicles to share critical information helpful to clear congested traffic and enhance road safety as well. (Source- THE ARIZONA COMMERCE AUTHORITY)

More Insights of Towards Automotive:

Autonomous Utility Vehicles Market: https://www.towardsautomotive.com/insights/autonomous-utility-vehicle-market-sizing
Light Commercial Vehicles Market: https://www.towardsautomotive.com/insights/light-commercial-vehicles-market-sizing
Vehicle Intrusion Detection Market: https://www.towardsautomotive.com/insights/vehicle-intrusion-detection-market-sizing
Europe Electric Vehicle Market: https://www.towardsautomotive.com/insights/europe-electric-vehicle-market-sizing
U.S. Electric Vehicle Market: https://www.towardsautomotive.com/insights/us-electric-vehicle-market-sizing
Electric Vehicle Taxi Market: https://www.towardsautomotive.com/insights/electric-vehicle-taxi-market-sizing
India Electric Vehicle Adhesive Market: https://www.towardsautomotive.com/insights/india-electric-vehicle-adhesive-market-sizing
Micro Electric Vehicles Market: https://www.towardsautomotive.com/insights/micro-electric-vehicle-market-sizing
United Kingdom Electric Vehicle Adhesive Market: https://www.towardsautomotive.com/insights/united-kingdom-electric-vehicle-adhesive-market-sizing
Electric Vehicle (EV) Charger Cellular Connectivity Market: https://www.towardsautomotive.com/insights/electric-vehicle-ev-charger-cellular-connectivity-market-sizing

Segments Covered in the Report

By Component

Hardware
Software

By Communication Type

Vehicle-to-Person (V2P)
Vehicle-to-Infrastructure (V2I)
Vehicle-to-Network (V2N)
Vehicle-to-Vehicle (V2V)

By Vehicle Type

Passenger Vehicle
Commercial Vehicle

By Application

Fleet Management
Autonomous Driving
Collision Avoidance
Intelligent Traffic Systems
Parking Management Systems
Others

By Region

North America
- U.S.
- Canada
- Mexico
Europe
- U.K.
- France
- Germany
- Italy
- Spain
- Rest of Europe
Asia Pacific
- China
- Japan
- India
- South Korea
- South-East Asia
- Rest of Asia Pacific
Latin America
- Brazil
- Argentina
- Rest of Latin America
Middle East & Africa
- GCC Countries
- South Africa
- Rest of Middle East & Africa

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