Global Vehicle-to-Everything (V2X) Test Equipment Market is expected to Exhibit a CAGR of 18.3% during the forecast period (2023 - 2030), Owing to Rapid Development and Testing of V2X Vehicles
According to Global Vehicle-to-Everything (V2X) Test Equipment Market Report, " 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).
The growth of the Vehicle-to-everything (V2X) test equipment market is anticipated to be aided by the rising demand for intelligent transportation systems to reduce environmental harm and improve vehicle safety during the forecast period. Development and evaluation of intelligent transportation systems require laboratory testing to identify and resolve signal-related problems, improve the effectiveness of post-production field evaluations, and help save time and money.
Global Vehicle-to-Everything (V2X) Test Equipment Market - Drivers
Growing Collaborations in connected car technology
The automobile industry is undergoing a significant transformation, and OEMs are focusing more and more of their efforts on advanced mobility technologies like connected and driverless vehicles. Global manufacturers like Ford (U.S.), GM (U.S.), Mercedes-Benz (Germany), and Volkswagen (Germany) are investing more in R&D of the hardware, software, and related services to vehicle connection and autonomous driving in order to stay competitive. Through direct investment, Hyundai Motor (South Korea) and Autotalks established a strategic agreement in August 2021 to accelerate the creation and adoption of the subsequently connected car chipset. For autonomous driving, this technology would increase mobility and improve vehicle and road safety.
Global Vehicle-to-Everything (V2X) Test Equipment Market - Restraints
Lack of Infrastructure
The V2X ecosystem depends heavily on fast connectivity. On highways, automobiles must have access to data such as lane change, object recognition, vehicle distance, traffic status, and connectivity and navigation services. However, automobiles are not connected or the cloud due to the poor network coverage on motorways. Highway connectivity infrastructure is being built in Mexico, Brazil, and India more slowly than in wealthy nations. For connectivity, 3G and 4G-LTE communication networks are generally available in urban and semi-urban areas. There are a lot of third-party logistics businesses operating in semi-urban and rural locations, but connectivity is a problem. Consequently, the absence of IT and communication infrastructure in developing countries and the slow adoption of government regulations might hinder the development of
Key Takeaways
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 - Key Developments
In March 2023, Autotalks, a world leader in V2X (Vehicle-to-Everything) communication solutions, announced that it is collaborating with Volkswagen (VW), Bosch eBike Systems, and Commsignia to demonstrate how V2X can prevent one of the most common bike-vehicle collisions. The demonstration will take place at the SECUR (Safety Enhancement through Connected Users on the Road) Final Event, which will be held between March 29 and March 30 near Paris.
In June 2022, Audi acquired China's first "LTE-V2X Safety Warning Function Certification" at International Forum on Testing and Certification Technology for Intelligent Connected Automobile Products, indicating the application effectiveness of telematics warning function and powering OEMs in the installation of C-V2X technology
Global Vehicle-to-Everything (V2X) Test Equipment Market - Impact of COVID-19
The ongoing COVID-19 pandemic had a negative impact on the V2X market specifically. Declining car sales and a shutdown of manufacturing plants have hampered market growth. The lockdown and social distancing regulations have led to a fall in the sales of vehicles, impacting the growth of the V2X market. The strategies adopted by key manufacturers to overcome the huge loss can help recover damages resulting from the pandemic to strengthen the supply chain and encourage the global V2X market.
Most companies have offered the option of working from home, so the increase in remote working options has declined the need for passenger cars as well as the market demand for modern connected vehicle technologies. Furthermore, the semiconductor industry is experiencing a shortage in finished goods, components, and materials that is affecting suppliers.
There is a rapid growth of urbanization and industrialization due to the development of economies and a rise in disposable income in various developed countries across the globe.
V2X communication technology is being customized to offer ITS solutions to improve road safety, traffic efficiency, and driving experience. Furthermore, the increase in disposable income, rise in employment rates and surge in overall GDP are encouraging advancements including smart cities with smart infrastructure facilities. These factors are playing a crucial role in the growth of the V2X market.
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Key Trends and Analysis of the Global Vehicle-to-Everything (V2X) Test Equipment Market:
- Asia Pacific held a dominant position in the global Vehicle-to-everything (V2X) test equipment market in 2022 and is expected to retain its dominance over the forecast period. This is attributed to the increasing demand for automotive vehicles in the region.
- Moreover, North America is also expected to witness significant growth over the forecast period, owing to the growing demand for safe and efficient driving options, favorable government policies, and regulations for V2X-enabled vehicles in North America.
- Furthermore, Europe, Middle East, and Africa are expected to witness significant growth during the forecast period, owing to increasing demand for connected vehicles in these regions.
- Among connectivity type, cellular connectivity segment is expected to dominate the Vehicle-to-everything test equipment market in 2030. This is attributed to the development of 5G technology across the globe.
- 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.
