Vehicle-to-Infrastructure (V2I) Communication Market on Track to Gain US$ 7,280.8Mn by 2033 - Persistence Market Research

The Vehicle-to-Infrastructure (V2I) Communication Market is undergoing a transformative surge as cities worldwide embrace smarter, safer, and more efficient transportation networks. In 2022, the market was valued at US$ 230.3 million and is projected to skyrocket to US$ 7,280.8 million by 2033, registering an impressive CAGR of 37% from 2023 to 2033. In 2023 alone, the market is estimated at US$ 311.8 million, capturing 35% of the global automotive V2X market.

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V2I communication refers to the wireless exchange of data between vehicles and road infrastructure such as traffic lights, road signs, and control systems. The integration of V2I systems enhances traffic safety, reduces congestion, and contributes to environmental sustainability by optimizing vehicle routes and minimizing idle times. As urban centers become increasingly congested, the demand for intelligent transportation solutions like V2I is growing rapidly.

Among all regions, North America dominated the market in 2022 with a 28.4% share, driven by advanced driver assistance technologies and government policies supporting vehicle connectivity. Meanwhile, India emerged as the fastest-growing market, with a CAGR of 41.1%, owing to proactive governmental safety initiatives and increasing urbanization. The hardware segment leads in components with a 38.7% share, while Bluetooth-based communication accounts for 28.1%, highlighting its cost-efficiency and widespread compatibility.

Key Highlights from the Report

➤ The global V2I communication market is set to expand at a CAGR of 37% through 2033.
➤ The market value is expected to rise from US$ 311.8 Mn in 2023 to US$ 7,280.8 Mn by 2033.
➤ Hardware components accounted for 38.7% of the market in 2022.
➤ Bluetooth-enabled communication systems held a 28.1% share in 2022.
➤ North America remained the leading regional market with a 28.4% share in 2022.
➤ India is forecast to grow at the fastest rate, with a CAGR of 41.1% over the forecast period.

Market Segmentation: Understanding the Key Categories

The Vehicle-to-Infrastructure (V2I) communication market is segmented by component and application. On the component front, hardware, including telematics units, roadside units (RSU), and onboard units (OBU), dominates the market due to their critical role in enabling real-time data exchange. OBUs are installed in vehicles, while RSUs are fixed alongside road infrastructure, facilitating seamless communication.

In terms of application, the market is categorized into DSRC, cellular, Wi-Fi, WiMAX, and Bluetooth. Bluetooth is gaining traction owing to its low cost, widespread availability, and compatibility with existing infrastructure. Its established ecosystem in consumer electronics makes it a reliable and cost-efficient choice for V2I deployment. DSRC and cellular technologies also continue to grow, with cellular expected to play a pivotal role in 5G-enabled smart city ecosystems.

Regional Insights: North America Leads, India Emerges as Growth Engine

North America accounted for 28.4% of the market in 2022, spearheaded by the U.S., which alone held 22.1% of the market share. This dominance stems from high adoption rates of advanced driver-assistance systems (ADAS), regulatory mandates promoting vehicle safety, and robust infrastructure for V2I deployment.

Europe followed closely, representing 23.1% of the global share in 2023. France is a notable contributor in the region, fueled by increasing demand for fuel-efficient vehicle control systems and collaborative efforts between automotive manufacturers, tech firms, and transport authorities to roll out smart traffic solutions.

India stands out in South Asia, demonstrating exponential growth at a CAGR of 41.1%, largely driven by governmental support, environmental sustainability goals, and rising traffic congestion. Subsidies, infrastructure development, and mandates for smart vehicle technologies are accelerating V2I adoption in the country.

Market Drivers Fueling Growth

The proliferation of urban traffic congestion is prompting cities to adopt smart mobility solutions. V2I communication offers the potential to transform traditional traffic management by reducing vehicle idle times and rerouting traffic based on real-time conditions.

Another major driver is the regulatory push from governments worldwide. Many are now mandating or incentivizing the use of connected vehicle technologies, especially in newly manufactured vehicles. Enhanced focus on road safety and environmental sustainability is also bolstering the demand for V2I systems.

Moreover, rising adoption of ADAS and autonomous vehicle technologies requires a robust V2I framework to ensure safe and efficient operation. These systems depend on accurate real-time data from infrastructure, making V2I essential for next-generation mobility.

Market Restraints Hindering Adoption

Despite its potential, the V2I communication market faces several hurdles. The high cost of infrastructure implementation remains a major barrier. Installing OBUs, RSUs, and backend systems requires significant upfront investment, making it less feasible for developing nations.

There is also a lack of standardization, resulting in compatibility issues across regions and manufacturers. Without unified communication protocols, interoperability becomes a challenge. Additionally, privacy and data security concerns regarding the transmission of sensitive vehicle and user data could slow adoption, particularly in markets with stringent data protection laws.

Finally, the slow pace of regulatory approvals and urban infrastructure upgrades further delays widespread deployment.

Market Opportunities: A Connected Future Awaits

As urban areas embrace smart city initiatives, the demand for integrated traffic management solutions will rise. V2I communication fits seamlessly into this vision by connecting vehicles with intelligent infrastructure, enabling real-time optimization of traffic flow, parking, and route planning.

Emerging economies like India, Brazil, and Southeast Asian countries offer untapped potential due to rapid urbanization, increasing vehicle penetration, and improving digital infrastructure. Government-backed programs for road safety and pollution control provide fertile ground for V2I adoption.

Furthermore, integration with 5G networks presents a game-changing opportunity. With ultra-low latency and high bandwidth, 5G enables real-time, high-speed communication between vehicles and infrastructure-paving the way for fully autonomous transportation systems.

Reasons to Buy the Report

✔ Gain insights into a market expected to grow at a remarkable CAGR of 37%.
✔ Understand the role of V2I in enabling smart cities and autonomous mobility.
✔ Identify the leading segments, regions, and technologies driving market growth.
✔ Stay ahead of competitors with insights into key trends, restraints, and opportunities.
✔ Explore company strategies and recent innovations shaping the future of V2I technology.

Frequently Asked Questions (FAQs)

◆ How big is the Vehicle-to-Infrastructure (V2I) Communication Market in 2023?
◆ What is the projected growth rate of the Vehicle-to-Infrastructure (V2I) Communication Market through 2033?
◆ Who are the key players in the global market for Vehicle-to-Infrastructure (V2I) Communication?
◆ What is the market forecast for Vehicle-to-Infrastructure (V2I) Communication by 2032?
◆ Which region is estimated to dominate the industry through the forecast period?

Company Insights

• Qualcomm Technologies, Inc.
• Intel Corporation
• NXP Semiconductors
• Broadcom Inc.
• AT&T, Inc.
• Verizon Communications Inc.
• MediaTek Inc.
• Delphi Automotive
• Infineon Technologies AG
• Savari Inc.
• Quectel Wireless Solutions
• Unex Technology Corp.
• 3M
• Ericsson AB

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