According to a recent study from market research firm Global Market Insights, the Cellular vehicle-to-everything market is set to grow from its current market value of more than $450 million to over $1 billion by 2026, gaining remarkable traction over the 2020 to 2026 period.
Cellular vehicle-to-everything (C-V2X) market is slated to witness considerable growth over the coming years owing to growing development of smart city projects, rising demand for next generation 5G network, and growing need for improving operation efficiency across fleet managers.
Cellular vehicle-to-everything is an LTE-based technology that lets vehicles communicate wirelessly with other vehicles, pedestrians, and smart infrastructure. It allows direct communication among the connected devices. Cellular vehicle-to-everything is basically designed to supplement other ADAS sensors like LIDAR, radar, and cameras.
In comparison to 802.11p or DSRC (dedicated short-range communication), C-V2X delivers an increased communication range, increased cost efficiency, enhanced reliability, and greater non-line-of-sight (NLOS) performance. Presently, most of the automakers are adding in cellular vehicle-to-everything connectivity to their vehicles since it has numerous important advantages over previous technologies designed for enabling V2V (vehicle-to-vehicle) communications.
The cellular vehicle-to-everything (C-V2X) market is bifurcated into numerous segments in terms of type, component, application, vehicle type, and regional landscape.
Based on type, the C-V2X market is classified into vehicle-to-vehicle, vehicle-to-person, vehicle-to-infrastructure, and vehicle-to-network. Among these, vehicle-to-network will witness substantial growth over the coming years. In 2019, the segment held a market share of over 15% owing to growing demand of next generation 5G network.
V2N communication gives vehicle information regarding traffic and road conditions in the area, by utilizing the standard mobile networks.
In terms of application, the overall cellular vehicle-to-everything market is segmented into parking management system, intelligent traffic system, collision avoidance, autonomous driving, fleet management, and others. Among these, fleet management segment will witness a respectable CAGR of around 10% over the forecast time period. This anticipated growth is ascribed to the growing demand for improving operation efficiency across fleet managers.
Meanwhile, in 2019, the parking management system segment accounted for 10% of the overall industry share and will continue to show similar growth in the years to come. This anticipated growth is attributed to the growing emphasis on avoiding long waiting hours for finding proper parking space for vehicles.
V2X has relatively more importance for parking management system across smart cities. It enables enhanced parking enforcement, gives real time details regarding parking availability and occupancy, monitors congestion and air quality control. Overall, it offers better parking experience for parking operators and car users.
From a regional frame of reference, Middle East & Africa C-V2X market will witness a CAGR of more than 10% over the forthcoming time period. The region is expected to witness a substantial business trend owing to growing development of smart city projects.