The global vehicle-to-everything (V2X) market is poised for remarkable growth, with predictions indicating a surge to USD 89.72 billion by 2032, with a compound annual growth rate (CAGR) of 36.1%, according to market research firm, Astute Analytica.
Behind this rapid growth is the immense potential of cellular vehicle-to-everything (C-V2X) technology, fueled by the increasing demand for efficient traffic management and enhanced road safety measures.
As technology revolutionizes various industries, the mobility sector will be a critical contributor to the global digital transformation journey, transforming safety and user experience.
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Driving C-V2X with Network Advancements
An enhancement of the Third Generation Partnership Project (3GPP) long-term evolution (LTE) standard, C-V2X technology enables communication between vehicles (V2V), infrastructure (V2I), pedestrians (V2P), and devices (V2D), equipping cars with reliable connectivity for highly automated driving (HAD).
The latest network technology—5G—critically advances intelligent transportation systems (ITS), enabling efficient mobility and providing solutions to traffic congestion. The integration of 5G in the C-V2X landscape results in higher throughput, lower latency, and increased reliability in ITS.
Artificial intelligence (AI) and machine learning’s (ML) assimilation in C-V2X further enhance its decision-making capabilities, making it more intelligent and responsive to potential road hazards.
Upgraded global positioning systems (GPS) have also improved location accuracies, particularly in challenging environments.
Furthermore, C-V2X systems have enhanced application support due to their short, medium, and long-range communication structure. By leveraging the capabilities of existing cellular network infrastructure, cross-functional alerts—such as those received in response to hazardous road conditions, speeding cars, mercurial weather, and traffic congestion—will be supported.
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Navigating the Challenges in C-V2X
Despite the transformative potential of C-V2X, its widespread adoption and implementation is yet to be achieved.
Given C-V2X relies heavily on existing network infrastructure, network dependency remains a hurdle, potentially limiting its effectiveness. This dependency could lead to inconsistent vehicle performance, particularly in areas with poor network coverage.
Like any connected technology, C-V2X systems are susceptible to security threats and hacks, including data integrity breaches and authentication attacks. Robust security measures are paramount to ensure user data privacy while maintaining functionality. During the infrastructure panel at the 18th edition of the Telecom Review Leaders’ Summit, Tony Geheran, President, Strategic Broadband Consulting, elaborated on this, noting that, "Security isn't a siloed effort; it's about aligning technology stacks and partners with policies that ensure resilience." Thus, standardization and regulatory issues surrounding C-V2X implementation should also be explored as they aid countries in establishing traffic safety laws and policies, ensuring overall safety.
Beyond this, the high cost of C-V2X deployment appears to potentially limit its widespread adoption. According to the U.S. DOT, the average C-V2X infrastructure construction at a single intersection costs USD 6,000 to USD 7,000. This includes the cost of mapping the intersection, purchasing RSUs, and installing them in the field. On the other hand, interoperability among vehicles and infrastructure remains another critical challenge in system integration.
Additionally, sensor malfunctions may lag in relaying real-time communication, resulting in unfavorable incidents. Although the growing demand for C-V2X is fueled by the increasing frequency of road accidents on highways, real-world testing in various scenarios, such as bad weather conditions and interactions with other road users, should be prioritized to ensure safety.
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Reshaping the Future of Mobility
China has emerged as the leader in the V2X market, with plans to add 30 million new V2X-enabled vehicles to the road every year by 2032, according to an IDTechEx report. Supporting this allocation is China’s launch of the vehicle-road-cloud-integration of intelligent connected vehicles in 2024, ultimately enhancing the connectivity rates of vehicles. The country’s public transportation, including existing city buses, official vehicles, and taxis are encouraged to install C-V2X, with 50% of new vehicles integrated already with the new technology.
Additionally, the report projects that over 90% of the C-V2X market is poised to leverage the 5G network by 2034, with the United States and China significantly contributing to this growth.
In the United States, C-V2X is expected to entirely cover national highways and 75% of urban intersections, according to ResearchandMarkets. Countries such as India, Korea, and Japan, are slated to follow the trends set by the U.S. and China in the C-V2X market. Notably, in 2023, South Korea accelerated the adoption of LTE-V2X by abandoning DSRC technology.
In November, 2024, the Federal Communication Commission (FCC) finalized new spectrum rules to advance the adoption of C-V2X technology, utilizing the 5.9 GHz band to do so.
In the same year, leading provider of software-defined vehicle (SDV) solutions, Cubic Telecom, and non-terrestrial network (NTN) communications provider, Skylo Technologies, collaborated to enable satellite capabilities for vehicles. To ensure reliable communication is supported, the satellite network will enable a seamless transition between cellular and satellite networks, particularly in emergency cases.
The integration of Advanced Driver Assistance Systems (ADAS) with C-V2X technology provides another layer of communication, delivering real-time information and enabling more informed decisions.
Furthermore, in 2024, the 5G Automotive Association (5GAA) demonstrated the latest developments in C-V2X to support its goal of achieving ‘Vision Zero,’ specifically focusing on 5G-V2X Direct technology integration. This latest innovation, enabled by multi-access edge-computing (MEC) and precise positioning, leverages sensors, and camera feeds from other vehicles to deliver safety awareness alerts between drivers, pedestrians, and cyclists, enhancing road safety.
In addition, 5G-V2X is expected to be deployed in commercial vehicle models by 2026 to support the 5GAA’s Visionary 2030 Roadmap, delivering the next generation of connected mobility and intelligent transport solutions.
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Advancing Sustainability
C-V2X technology is critical in advancing sustainability efforts. For example, by facilitating vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication, C-V2X reduces traffic congestion and idling, which significantly lowers greenhouse gas (GHG) emissions. Additionally, C-V2X supports the integration of electric vehicles (EVs) and smart charging infrastructure, optimizing energy consumption and promoting the shift to cleaner mobility solutions.
According to telecom vendor giant, Ericsson, shifting to electric vehicles can reduce carbon dioxide emissions of a logistics network by 90%.
Approximately 1.19 million people die each year due to road traffic mishaps, according to the World Health Organization (WHO). Smart vehicle routing will reduce traffic congestion and road mishaps, delivering automated traffic routing and real-time updates on road, bridge, tunnel, and parking availability.
In support of this, the European Commission (EC) introduced its Sustainable and Smart Mobility Strategy and an action plan consisting of 82 initiatives, laying the groundwork for achieving a greener digital transformation. This strategy supports Europe’s transport system which aims to deploy automated mobility at a large scale and establish 100 climate-neutral cities, with at least 30 million zero-emission cars operating across the roads by 2030.
Additionally, the continent aims to present zero-emission large aircraft to the market by 2025. These initiatives are expected to contribute significantly to the European Green Deal’s desire to reduce emissions by 90% by 2050.
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Final Thoughts
The advent of intelligent transport systems, particularly C-V2X technology, marks a significant leap in the evolution of mobility, enabling a safer, more intelligent, and hyper-connected digital future. C-V2X will drive the demand for advanced network infrastructures, including 5G, 5G-Advanced (5G-A), and the upcoming 6G, fundamentally transforming how drivers and vehicles interact with their environment.
The rise of C-V2X is set to accelerate the development and adoption of autonomous mobility. This advancement will redefine global transportation and reshape the future of logistics and urban planning. Furthermore, the global push towards smart cities will accelerate the growth of C-V2X technologies. By integrating this innovation into urban infrastructure, cities can optimize traffic management and safety, reshaping the future of the mobility landscape.
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