North American sales are estimated to reach US$1.12 billion by 2025, says Frost & Sullivan
SANTA CLARA, California, Oct. 15, 2020 /PRNewswire/ — Frost & Sullivan’s recent analysis, Strategic Analysis of the Global Vehicle-to-Everything (V2X) Market, Forecast to 2025, finds that V2X sales across the globe are projected to rise. In North America, sales are estimated to reach US$1.12 billion by 2025, while Europe and China are forecasted to reach US$3.29 billion and US$6.27 billion, respectively. Most regions prefer cellular vehicle-to-everything (C-V2X) over dedicated short-range communication (DSRC) because the technology will see a commercial launch in 2021 with cellular LTE-based network access as 5G is not yet fully implemented.
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«Although the industry is mature in terms of technology, implementation is in the nascent stage. V2X is gradually gaining momentum across the globe as it offers benefits such as reduced accidents, improved road safety, better traffic management, and co-ordination for autonomous vehicles,» said Suhas Gurumurthy, Automotive & Transportation Research Analyst at Frost & Sullivan. «Currently, C-V2X emerges as the preferred option based on the natural progression of connected cars under current OEM strategies. It helps cut investment costs by utilizing existing infrastructure, while DSRC has matured over the last decade through trials on 802.11p, which has been proving its efficiency. The new 802.11bd can also tackle new challenges and makes DSRC a strong contender in this market.»
Gurumurthy added: «V2X adoption in North America is largely driven by original equipment manufacturers (OEMs), mobile network operators (MNOs), and the 5G Automotive Association (5GAA). Meanwhile, Europe will witness a smooth implementation of V2X on vehicles with a conductive, if not a completely functioning, regulatory framework. In China, on the other hand, revenue will begin for automakers once the 5G infrastructure in the country is implemented and V2X adoption strengthens.»
V2X ecosystem participants with an opportunity to tap into potential revenue streams from data platforms should:
- Partner with MNOs to utilize 5G technology to bring V2X to the masses as the market prepares to shift from 4G to 5G.
- Collaborate with governments, startups, and private participants to leverage each other’s strengths and develop mutually beneficial strategies, resulting in better data infrastructure and support against cyber threats.
- Explore other convenience and comfort-related applications, such as traffic or weather information and electronic tolling collection services, beyond vehicle safety and traffic management to create additional revenue streams from the technology.
- Target fleets and produce hybrid modules to cater to larger and diversified market segments, expanding the application of V2X in the market and widening the revenue source.
Strategic Analysis of the Global Vehicle-to-Everything (V2X) Market, Forecast to 2025 is the latest addition to Frost & Sullivan’s Automotive & Transportation research and analyses available through the Frost & Sullivan Leadership Council, which helps organizations identify a continuous flow of growth opportunities to succeed in an unpredictable future.
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Strategic Analysis of the Global Vehicle-to-Everything (V2X) Market, Forecast to 2025