VEHICLE-TO-EVERYTHING (V2X) TEST EQUIPMENT MARKET ANALYSIS

Global Vehicle-to-Everything (V2X) Test Equipment Market is estimated at US$ 2.5 Billion in 2023, and is projected to reach US$ 8.1 Billion by 2030, exhibiting a CAGR of 18.3% over the forecast period (2023-2030). 

V2X test equipment are the devices used for testing the V2X technology, which is implemented in the connected vehicles. V2X testing equipment are used for conformance testing, function testing, performance testing, penetration testing, accelerated testing, and field testing of V2x technology enabled vehicles. Moreover different V2X application requires different communication performance requirements. For instance, automated cars require low latency and video entertainment applications that require larger frequency bandwidth, which is expected to drive the vehicle-to-everything (V2X) test equipment market growth over the forecast period.

Global vehicle-to-everything (V2X) test equipment market is expected to witness a significant growth during the forecast period (2019–2027). The market growth for vehicle-to-everything (V2X) test equipment is majorly attributed to rising government initiatives for commercializing V2X technology and developing vehicle infrastructure to improve safety, performance, and environmental benefits.

Asia Pacific region held a dominant position in the global vehicle-to-everything (V2X) test equipment market in 2022

Statistics:

Asia Pacific held a dominant position in the global vehicle-to-everything (V2X) test equipment market in 2022, followed by the North America region.

Figure 1: Global vehicle-to-everything (V2X) test equipment market Share (%), By Region, 2022

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Asia Pacific held a dominant position in the global vehicle-to-everything (V2X) test equipment market in 2022, owing to rapid development and testing of V2X vehicles and growing investment on connected vehicles infrastructure.

Asia Pacific held dominant position in the global vehicle-to-everything (V2X) test equipment market in 2021, and is expected to retain its dominance throughout the forecast period. This is attributed to growing automotive sector in Asia Pacific coupled with growing investments in the automotive industry to develop C-V2X vehicles and V2X vehicles. In January 2020, Qualcomm Technologies Inc. introduced a new Qualcomm C-V2X reference platform for vehicular and roadside units (RSUs). It complements C-V2X communication solutions by offering computational power to deliver a full suite of 4G and 5G. In October 2021, Infineon Technologies announced to launch the SLS37 V2X hardware security module (HSM) and plug-and-play security solutions for V2X communication. The SLS37 V2X HSM is based on a highly secured, tamper-resistant microcontroller tailored to the security needs in V2X applications within the telematics control unit.

Dedicated Short Range Communications (DSRC) segment is expected to drive the global vehicle-to-everything (V2X) test equipment market during the forecast period.

The pandemic has also accelerated regulatory changes with regards to cellular vehicle-to everything (C-V2X). In late 2020, the Federal Communications Commission (FCC) voted to reallocate 75 MHz, with the upper 30MHz previously allocated for Dedicated Short-Range Communications (DSRC) services now assigned to C-V2X. DSRC was viewed as crucial to unlocking vehicle-to-vehicle use cases and increasing safety features. However, the FCC's decision will essentially eliminate DSRC progress and fast-track the adoption of cellular vehicle-to-everything.

Figure 2: Global Vehicle-To-Everything (V2X) Test Equipment Market Share (%), By Connectivity Type, 2022 

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The global vehicle-to-everything (V2X) test equipment market is estimated at US$ 2.5 Billion in 2023 and is expected to reach US$ 8.1 Billion by 2030, growing at a CAGR of 18.3% between 2023 and 2030.

Major players operating in the global vehicle-to-everything (V2X) test equipment market include Danlaw Inc, ROHDE & SCHWARZ, Spirent Communications, TATA ELXI, Autotalks Ltd., Science & Engineering Applications Datentechnik GmbH, OnBoard Security, Inc, ADAS iiT, 7layers GmbH, Anritsu, Intertek Group plc, DEKRA CERTIFICATION B.V., Sanjole,Inc, and Others.

Recent Developments:

1. In October 2021, Brandmotion LLC, an automotive safety technology company, announced that it is collaborating with DENSO Products and Services Americas to offer a one-stop service to cities seeking to equip their automobiles with advanced V2X technology
2. In March 2022, the U.K. government launched the Vehicle-to-Everything (V2X) Innovation Program to address barriers that enable energy flexibility from bi-directional electric vehicle charging. In addition, the US Department of Transportation (DoT) has undertaken several activities to improve the benefits of using V2X technology. The combination of V2X and in-vehicle sensors can support various innovative applications and the integration of automated vehicles.
3. In May 2023, InCharge Energy has launched its vehicle-to-everything (V2X) DC fast charger portfolio. The ICE-22 V2X, ICE-44 V2X and ICE-66 V2X chargers provide fleet operators with chargers that optimize operations, increase cost efficiencies while supporting grid stability and enable them to qualify for electric vehicle (EV) grant funds that include a vehicle-to-grid (V2G) compatibility requirement.

Market Driver:

Rise in adoption of connected cars

Connected vehicles enable cars to communicate via V2X platform with drivers, other vehicles, road infrastructure, and the cloud. These services allow automotive dealers, fleet operators, and drivers to optimize resource usage, improve safety, and automate certain driver functions, while generating valuable data, including vehicle performance and road conditions. Connected vehicles work by collecting information from their surroundings and communicating it to each other, as well as connect to the intelligent transportation infrastructure and provide transport authorities with real-time traffic data for better road management and improved infrastructure planning.

 Thus, the demand for connected car services has been witnessed to increase majorly attributed to rise in need for basic vehicle connectivity applications, such as real-time updates, navigation, and in-car infotainments. Moreover, surge in demand for connectivity solutions, rise in demand for an enhanced driving experience, and introduction of Internet of Things (IoT) in the automotive industry are the other key factors that contribute toward the adoption of the connected cars. Therefore, increase in V2X-based services provided in connected cars drives the growth of the automotive V2X market.

Rapid increase in urbanization & industrialization

Owing to the rapid development of economy in several developed countries across the globe, industrialization and urbanization have increased. In addition, in recent years, the V2X-based intelligent transport system (ITS) has been developed, which is considered as the key enabling technology to improve road safety, traffic efficiency, and driving experience. Moreover, macroeconomics factors such as increase in disposable income, rise in employment rates, and surge in overall GDP are inspiring the developments such smart cities with smart infrastructures facilities, which, in turn, are expected to propel the growth of the automotive V2X market. Furthermore, the growth of the global growth is propelled by the ongoing development & commercialization of cellular technologies and related infrastructure. These include systems such as 5G, LTE, and radio access technology (RAT), which reinforce smart transportation applications such as collision warning & avoidance, lane keeping assistance, and obstacle detection.

Market Restraint:

High cost of V2X testing

The major restraining factor for global vehicle-to-everything (V2X) test equipment market include high cost while performing the V2X testing. V2X testing are performed under virtual and real environments before commercializing this technology in the market. Performing V2X test in real environment require lot of time and money, owing to which companies prefer performing V2X testing using virtual function testing system, which involves testing using software simulators. These factors are expected to hamper the market over the forecast period.

Market Opportunity:

Future potential of 5G & AI technology coupled with the advancement in cellular-V2X (C-V2X) technology    

Artificial intelligence (AI) and 5G have an important role in the future of the automotive industry, as predictive capabilities are becoming more prevalent in cars, personalizing the driving experience. In addition, 5G and AI is better equipped with V2X to carry out critical communications for safer & secure driving. Moreover, cellular-V2X is a key contributor to the expansion of vehicle automation by establishing lines of communication between vehicles, roadside units, and pedestrians, making the vehicle more aware of its surroundings. The C-V2X technology is designed to be compatible with upcoming 5G network technologies, which will further enable mission-critical V2X and C-V2X to act as ultimate platforms to enable the cooperative intelligent transport systems (C-ITS) services and technology. Thus, the rapidly emerging use cases include autonomous driving, platooning, vehicle safety, and traffic efficiency has created requirement for operational efficient communication technology to attain the desired output level, which is expected to offer lucrative growth opportunities for automotive V2X market. 5G-enabled V2X communication operations are not compatible in the current stage with actual network traffic measurement. However, increase in interest has been witnessed among government agencies, automakers, and mobile operators to conduct extensive tests & trails of C-V2X along with 5G connectivity technology due to its connectivity efficiency, including the compatibility to support a range of advanced safety features and services such as precise location, co-operative automated driving, and sensor-related data management. This technology adoption of 5G-enabled V2X technology is expected to offer potential growth opportunities for market.

Global Vehicle-to-Everything (V2X) Test Equipment Market- Impact of Coronavirus (Covid-19) Pandemic

The global impacts of the COVID-19 are already starting to be felt, and will significantly affect the automotive V2X market in 2020. There are apprehensions of extension to the lockdown period that could further hamper the production activity across all sectors, including the automotive industry. Thus, owing to the lockdown imposed, manufacturing units across the globe have halted their production, which is likely to affect the purchase of vehicles equipped with vehicle-to-everything (V2X) features. The COVID-19 crisis is creating uncertainty in the market, disruption of supply chain, decline in businesses, and increase in panic among customer segments. Governments of different regions have already announced total lockdown and temporarily shutdown of industries, which have affected the overall production and sales adversely. Therefore, the spread of the COVID-19 pandemic has negatively impacted the global automotive V2X market.

*Definition: Communication between a vehicle and any entity that could affect or be affected by the vehicle is known as "vehicle-to-everything" (V2X). The sensors, cameras, and wireless connectivity, such as WiFi, radio frequencies, LTE, and 5G cellular technology that would enable cars to communicate with one another, their drivers, and their surroundings make up vehicle-to-everything technology.