Vehicle-to-Everything (V2X) Test Equipment Market Size and Trends

Vehicle-to-Everything (V2X) Test Equipment Market, By Product Type (By Device Type: Signal & Spectrum Analyzer, Simulator & Emulator, HIL Test System, RF Conformance & Communication Test Equipment), By Service Type (System Integration, Support & Maintenance, and Consulting), By Connectivity (DSRC Connectivity, Cellular Connectivity) and By Region (North America, Europe, Asia Pacific, Latin America, and Middle East& Africa)

Published In : Jul 2023

Code : CMI3256

Pages :170

Formats :

Excel and PDF

Industry : Automotive and Transportation

Vehicle-to-Everything (V2X) Test Equipment MarketSize and Trends

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).

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.

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.

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. 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. Rapid increase in urbanization & industrialization have created demand for V2X technology.

Market Trends:

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.