The global market for V2X should grow from $1.0 billion in 2021 to $6.5 billion by 2026, at a compound annual growth rate (CAGR) of 45.0% for the period 2021-2026. For the same forecast period, the North American market should grow at a CAGR of 42.3% while the European market should grow at a CAGR of 48.8%
This year, Dr Helia Jalil, Director of Advanced Materials will be headed to SVC TechCon and delivering a keynote speech on the topic of disruptive technologies. On the run up to her attendance, we’re focusing on some of the topics Helia will cover in her presentation.
What is V2X?
V2X stands for “Vehicle-to-everything” and is an enabling technology for the future of connected cars. V2X encompasses a vehicle’s connected communications, offering real-time, reliable and actionable information to be shared with other vehicles and infrastructure.
Vehicle-to-everything technology offers vehicles real-time information for a city’s whole environment such as infrastructure, other vehicles, transport management systems and navigational sources. The rising demand for connected vehicles due to the safety and reliability of V2X communication technology is one of the major factors elevating market growth during the forecast period.
Moreover, V2X technology improves transportation management efficiency and reduces congestion by alerting drivers to upcoming traffic congestion, suggesting alternative routes. V2X communication guarantees eco-friendly driving, reducing fuel consumption and air pollution, resulting in congestion control and the regulation of traffic flows – particularly in hot spots.
V2X and How it Supports the Intelligent Transport System
The Intelligent Transport System (ITS) has become a critical system being used to manage traffic, as well as to control pollution and environmental impacts. V2X subsequently creates large opportunities for ITS. This is backed up by key players across various car manufacturing companies, as well as the telecommunication and transport industries, fuelling growth across the V2X market.
The ongoing and increasing demand for autonomous driving and safer vehicles has sparked a flurry of investment from leading players across the market. As such, an increased number of collaborations, mergers and acquisitions are taking place, alongside product development and launches that are expected to highlight the environmental and economic advantages of V2X, while also utilizing new and innovative ideas and technologies to improve existing technology.
How Has the Pandemic Affected the V2X Market?
The ongoing COVID-19 pandemic has had an overall negative impact on the V2X market. Declining car sales and a shutdown of manufacturing plants globally has hampered market growth. Lockdowns and social distancing regulations have led to a fall in the sales of vehicles, further impacting the growth of the V2X market.
Equally, with companies now offering the option of working from home, or hybrid working models, the decline in the need for passenger cars and market demand for modern connected vehicle technologies declined. Furthermore, the semiconductor industry has experienced shortages in finished goods, components and materials affecting suppliers globally.
However, the strategies adopted by key manufacturers to overcome the huge losses seen in the last few years are helping recover damages and strengthen the supply chain – this is encouraging growth across the global V2X market. There is also a rapid growth of urbanization and industrialization across developing economies and a rise in disposable income in various developed economies across the globe driving growth.
What does the future look like for the global V2X market?
V2X communication technology is being customized to offer ITS solutions that improve road safety, traffic efficiency and driving experiences. Furthermore, increases in disposable income, rise in employment rates and a surge in overall GDP is encouraging advancements in smart cities with smart infrastructure facilities. This is playing a crucial role in the growth of the V2X market.
As the V2X global market continues to see positive growth, the understanding is that it will support a massive reduction in road related accidents across the world. For example, it is estimated that globally, almost 1.2 million people die in motor vehicle accidents, with an additional 20-50 million being injured each year. Road accidents rank as the ninth leading cause of death and account for 2.2% of overall deaths worldwide.
On average, around 400,000 people under 25 die due to road accidents, with 90% of all accidents occurring in low and middle-income countries.
As well as the massive loss of life each year, these accidents also leave a trail of financial losses. It is estimated that every year, road accidents cost $518 billion globally. Low and middle-income countries account for almost $65 billion annually.
Unless specific measures are taken, road traffic injuries are predicted to become the fifth leading cause of death by 2030. While attempts have been made to reduce road accidents through legislation, V2X technology, improved infrastructure led by innovation and further driver education, supported by autonomous vehicles may help reduce this significantly.
Further reading on V2X in our Information Technology library
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