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V2E Communication Systems Market 2025: 18% CAGR Driven by Smart Mobility & 5G Integration

10 June 2025
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V2E Communication Systems Market 2025: 18% CAGR Driven by Smart Mobility & 5G Integration

Vehicle-to-Everything (V2E) Communication Systems Market Report 2025: In-Depth Analysis of Growth Drivers, Technology Innovations, and Global Opportunities

Executive Summary & Market Overview

Vehicle-to-Everything (V2E) communication systems represent a transformative technology in the automotive and transportation sectors, enabling vehicles to communicate with other vehicles (V2V), infrastructure (V2I), pedestrians (V2P), networks (V2N), and more. This interconnected ecosystem is designed to enhance road safety, optimize traffic flow, and support the deployment of autonomous and connected vehicles. As of 2025, the global V2E market is experiencing robust growth, driven by regulatory mandates, advancements in wireless communication technologies (such as 5G and edge computing), and increasing investments from both public and private sectors.

According to Gartner, the V2E market is projected to reach a valuation of over $15 billion by 2025, with a compound annual growth rate (CAGR) exceeding 20% from 2022 to 2025. This growth is underpinned by the rapid adoption of connected vehicle technologies in North America, Europe, and Asia-Pacific, where governments are actively promoting smart transportation initiatives and mandating the integration of V2E capabilities in new vehicles. For instance, the European Union’s Cooperative Intelligent Transport Systems (C-ITS) strategy and the U.S. Department of Transportation’s Connected Vehicle Pilot Deployment Program are accelerating market adoption and standardization efforts (European Commission; U.S. Department of Transportation).

Key industry players—including Qualcomm, Intel, Huawei, and Bosch—are investing heavily in research and development to enhance V2E platforms, focusing on interoperability, cybersecurity, and low-latency communication. The integration of 5G New Radio (NR) and Cellular-V2X (C-V2X) technologies is expected to further accelerate the deployment of advanced V2E solutions, enabling real-time data exchange and supporting emerging use cases such as cooperative driving, remote vehicle control, and advanced driver-assistance systems (ADAS).

Despite the promising outlook, the V2E market faces challenges related to standardization, data privacy, and the need for substantial infrastructure upgrades. However, ongoing collaborations between automakers, technology providers, and regulatory bodies are expected to address these barriers, paving the way for widespread adoption and the realization of safer, more efficient, and intelligent transportation systems by 2025 and beyond.

Vehicle-to-Everything (V2E) communication systems represent a transformative leap in automotive and transportation technology, enabling vehicles to communicate not only with each other (V2V) but also with infrastructure (V2I), pedestrians (V2P), networks (V2N), and the broader environment. As of 2025, several key technology trends are shaping the evolution and deployment of V2E systems, driven by advancements in wireless communication, edge computing, and artificial intelligence.

  • 5G and Beyond Connectivity: The rollout of 5G networks is a foundational enabler for V2E, offering ultra-low latency, high bandwidth, and massive device connectivity. This allows for real-time data exchange between vehicles and their surroundings, supporting advanced safety features and autonomous driving. Research is already underway for 6G, which promises even greater capabilities for V2E applications (Qualcomm).
  • Edge Computing Integration: To meet the stringent latency requirements of V2E, edge computing is being integrated into communication architectures. By processing data closer to the source—at roadside units or within the vehicle—critical decisions (such as collision avoidance) can be made in milliseconds, reducing reliance on distant cloud servers (Intel).
  • Artificial Intelligence and Machine Learning: AI and ML algorithms are increasingly embedded in V2E systems to interpret complex sensor data, predict traffic patterns, and enable adaptive communication strategies. These technologies enhance situational awareness and support the development of fully autonomous vehicles (NVIDIA).
  • Standardization and Interoperability: Industry-wide efforts are underway to standardize V2E protocols, ensuring interoperability across different manufacturers and infrastructure providers. Organizations such as the European Telecommunications Standards Institute (ETSI) and SAE International are leading the development of communication standards for V2E.
  • Cybersecurity Enhancements: As V2E systems become more pervasive, robust cybersecurity measures are being implemented to protect against data breaches and malicious attacks. This includes secure authentication, encryption, and intrusion detection tailored for vehicular networks (NXP Semiconductors).

These technology trends are collectively accelerating the adoption of V2E communication systems, paving the way for safer, more efficient, and intelligent transportation networks in 2025 and beyond.

Competitive Landscape and Leading Players

The competitive landscape of the Vehicle-to-Everything (V2E) communication systems market in 2025 is characterized by rapid technological advancements, strategic partnerships, and a dynamic mix of established automotive OEMs, technology giants, and specialized connectivity providers. The market is witnessing intensified competition as stakeholders race to develop and deploy robust V2E solutions that enable seamless communication between vehicles, infrastructure, pedestrians, and networks.

Leading players in this space include major automotive manufacturers such as Toyota Motor Corporation, Volkswagen AG, and Ford Motor Company, all of which have integrated V2E capabilities into their next-generation vehicles. These OEMs are leveraging both in-house R&D and collaborations with technology firms to accelerate the commercialization of V2E systems.

On the technology front, companies like Qualcomm Technologies, Inc. and Intel Corporation are at the forefront, providing chipsets and communication modules that support Cellular-V2X (C-V2X) and Dedicated Short-Range Communications (DSRC) standards. Qualcomm’s Snapdragon Automotive platforms, for instance, are widely adopted for their advanced telematics and connectivity features, while Intel is investing in edge computing and AI-driven V2E solutions.

Telecommunications providers such as Ericsson and Nokia are also pivotal, offering 5G infrastructure and network slicing capabilities that underpin low-latency, high-reliability V2E communications. These firms are collaborating with automakers and municipalities to pilot smart city and connected vehicle projects globally.

Additionally, specialized connectivity solution providers like Autotalks and NXP Semiconductors are gaining traction by delivering dedicated V2E chipsets and security solutions. Their offerings are critical for ensuring interoperability and cybersecurity in increasingly complex vehicular networks.

The competitive environment is further shaped by regulatory initiatives and standardization efforts led by organizations such as the European Telecommunications Standards Institute (ETSI) and the Society of Automotive Engineers (SAE International). These bodies are driving harmonization of protocols, which is essential for cross-border V2E deployment and market scalability.

Overall, the V2E communication systems market in 2025 is marked by a blend of collaboration and competition, with leading players investing heavily in R&D, ecosystem partnerships, and pilot deployments to secure their positions in this transformative mobility segment.

Market Growth Forecasts (2025–2030): CAGR, Revenue, and Volume Analysis

The global Vehicle-to-Everything (V2E) communication systems market is poised for robust growth between 2025 and 2030, driven by accelerating adoption of connected and autonomous vehicles, advancements in 5G infrastructure, and increasing regulatory support for intelligent transportation systems. According to projections by MarketsandMarkets, the V2E market is expected to register a compound annual growth rate (CAGR) of approximately 18–22% during this period, with global revenues anticipated to surpass $15 billion by 2030, up from an estimated $5.5 billion in 2025.

Volume-wise, the number of V2E-enabled vehicles is forecast to grow significantly, with shipments projected to reach over 60 million units annually by 2030, compared to around 18 million units in 2025, as reported by International Data Corporation (IDC). This surge is attributed to the integration of V2E modules in both new vehicle models and aftermarket solutions, particularly in North America, Europe, and parts of Asia-Pacific.

Regionally, North America is expected to maintain its leadership in V2E adoption, supported by government mandates and large-scale smart city initiatives. The European market is also set for rapid expansion, propelled by the European Union’s focus on road safety and emission reduction targets. Meanwhile, Asia-Pacific, led by China, South Korea, and Japan, is anticipated to witness the fastest CAGR, owing to aggressive investments in 5G and automotive innovation, as highlighted by Gartner.

  • Revenue Growth: Global V2E market revenue is projected to grow from $5.5 billion in 2025 to over $15 billion by 2030.
  • CAGR: The market is expected to expand at a CAGR of 18–22% during 2025–2030.
  • Volume: Annual shipments of V2E-enabled vehicles are forecast to rise from 18 million units in 2025 to over 60 million units by 2030.

Key growth drivers include the proliferation of electric and autonomous vehicles, increasing demand for real-time traffic management, and the rollout of advanced wireless communication standards. However, market expansion may be tempered by challenges such as interoperability issues and cybersecurity concerns, which industry stakeholders are actively addressing through standardization and collaborative initiatives.

Regional Market Analysis: North America, Europe, Asia-Pacific, and Rest of World

The global Vehicle-to-Everything (V2E) communication systems market is experiencing dynamic growth, with regional variations driven by regulatory frameworks, technological adoption, and automotive industry maturity. In 2025, North America, Europe, Asia-Pacific, and the Rest of World (RoW) regions each present distinct market characteristics and growth trajectories.

  • North America: The North American market, led by the United States, is at the forefront of V2E deployment, propelled by robust investments in smart infrastructure and supportive regulatory initiatives. The U.S. Department of Transportation’s ongoing pilot programs and the National Highway Traffic Safety Administration’s (NHTSA) push for V2X mandates are accelerating adoption. Major automakers and technology firms, such as Ford Motor Company and Qualcomm, are actively collaborating to integrate V2E capabilities into new vehicle models. The region’s market is expected to maintain a high growth rate, with a focus on safety applications and urban mobility solutions.
  • Europe: Europe’s V2E market is characterized by strong regulatory alignment and cross-border collaboration, particularly under the European Commission’s Cooperative Intelligent Transport Systems (C-ITS) strategy. Countries like Germany, France, and the Netherlands are leading in pilot deployments and infrastructure upgrades. The European Union’s push for standardized communication protocols and the involvement of key players such as Volkswagen AG and Ericsson are fostering a competitive and innovative environment. The region is also witnessing increased integration of V2E with electric vehicle (EV) infrastructure and smart city initiatives.
  • Asia-Pacific: Asia-Pacific is emerging as the fastest-growing V2E market, driven by rapid urbanization, government-led smart city projects, and the presence of leading automotive manufacturers. China, Japan, and South Korea are at the forefront, with significant investments in 5G-enabled V2E technologies. The Chinese government’s support for intelligent transportation and the involvement of companies like Toyota Motor Corporation and Huawei Technologies are accelerating market expansion. The region’s focus is on large-scale deployment and integration with public transportation systems.
  • Rest of World (RoW): In regions such as Latin America, the Middle East, and Africa, V2E adoption is in the nascent stage, hindered by infrastructural and regulatory challenges. However, pilot projects and international partnerships are gradually paving the way for future growth. The RoW market is expected to witness incremental adoption, primarily in urban centers and through collaborations with global technology providers.

Overall, regional disparities in regulatory support, infrastructure readiness, and industry collaboration will continue to shape the V2E communication systems market landscape in 2025, with Asia-Pacific and North America leading in terms of scale and innovation.

Challenges, Risks, and Market Entry Barriers

The deployment and commercialization of Vehicle-to-Everything (V2E) communication systems in 2025 face a complex array of challenges, risks, and market entry barriers that could significantly impact adoption rates and industry growth. V2E encompasses technologies enabling vehicles to communicate with other vehicles (V2V), infrastructure (V2I), pedestrians (V2P), networks (V2N), and more, forming the backbone of connected and autonomous mobility ecosystems.

  • Interoperability and Standardization: One of the foremost challenges is the lack of universally adopted standards for V2E protocols and interfaces. Competing standards, such as DSRC and C-V2X, create fragmentation, complicating cross-border and cross-manufacturer compatibility. This fragmentation can delay large-scale deployments and increase costs for OEMs and infrastructure providers (ETSI).
  • Cybersecurity and Data Privacy Risks: V2E systems transmit sensitive data, making them attractive targets for cyberattacks. Ensuring robust encryption, authentication, and intrusion detection is critical, but implementing these measures increases system complexity and cost. Regulatory compliance with data privacy laws, such as GDPR, further complicates deployment, especially for global players (European Union Agency for Cybersecurity (ENISA)).
  • High Capital Expenditure: The rollout of V2E infrastructure—such as roadside units, upgraded traffic signals, and network backbones—requires significant investment from both public and private sectors. The uncertain return on investment, especially in regions with slow regulatory progress or limited vehicle penetration, poses a substantial barrier (International Data Corporation (IDC)).
  • Regulatory and Liability Uncertainties: The regulatory landscape for V2E is still evolving. Unclear liability frameworks in the event of system failures or accidents involving V2E-equipped vehicles deter both manufacturers and insurers from fully embracing the technology (National Highway Traffic Safety Administration (NHTSA)).
  • Market Fragmentation and Ecosystem Complexity: The V2E ecosystem involves automakers, telecom operators, infrastructure providers, and software vendors. Aligning incentives and business models across these stakeholders is challenging, often leading to slow decision-making and delayed market entry (McKinsey & Company).

Overcoming these barriers will require coordinated efforts in standardization, public-private partnerships, and regulatory clarity to unlock the full potential of V2E communication systems in the coming years.

Opportunities and Strategic Recommendations

The Vehicle-to-Everything (V2E) communication systems market is poised for significant growth in 2025, driven by the accelerating adoption of connected and autonomous vehicles, advancements in 5G infrastructure, and increasing regulatory support for intelligent transportation systems. Several key opportunities and strategic recommendations can be identified for stakeholders aiming to capitalize on this evolving landscape.

  • Integration with 5G and Edge Computing: The rollout of 5G networks is a critical enabler for V2E systems, offering ultra-low latency and high bandwidth necessary for real-time data exchange between vehicles and their environment. Companies should prioritize partnerships with telecom providers and invest in edge computing capabilities to ensure seamless, scalable V2E deployments. According to Ericsson, 5G subscriptions are expected to surpass 1.5 billion globally by 2025, providing a robust foundation for V2E applications.
  • Focus on Urban Mobility and Smart City Initiatives: Urban centers are increasingly investing in smart infrastructure to address congestion, safety, and sustainability. V2E solutions that integrate with traffic management systems, public transportation, and emergency services can unlock new revenue streams. Collaborating with municipal governments and urban planners will be essential for pilot projects and large-scale rollouts, as highlighted by SmartCitiesWorld.
  • Cybersecurity and Data Privacy: As V2E systems handle sensitive data and critical communications, robust cybersecurity frameworks are paramount. Strategic investments in end-to-end encryption, secure authentication, and compliance with evolving data privacy regulations will differentiate market leaders. The National Highway Traffic Safety Administration (NHTSA) emphasizes the importance of cybersecurity in connected vehicle ecosystems.
  • Aftermarket and Retrofitting Solutions: While OEM integration is growing, there is a substantial opportunity in retrofitting existing vehicle fleets with V2E capabilities. Developing modular, cost-effective retrofit kits can accelerate market penetration, especially in commercial and public transportation sectors.
  • Standardization and Interoperability: Active participation in industry consortia and standards bodies, such as the European Telecommunications Standards Institute (ETSI), will be crucial to ensure interoperability and future-proof solutions.

In summary, stakeholders should leverage technological advancements, prioritize security, and engage in cross-sector collaborations to maximize the value proposition of V2E communication systems in 2025 and beyond.

Future Outlook: Emerging Applications and Long-Term Impact

Looking ahead to 2025 and beyond, Vehicle-to-Everything (V2E) communication systems are poised to fundamentally reshape the transportation landscape, with emerging applications extending far beyond basic safety and traffic management. V2E encompasses a broad suite of technologies enabling vehicles to communicate with other vehicles (V2V), infrastructure (V2I), pedestrians (V2P), networks (V2N), and even the grid (V2G), creating a fully interconnected mobility ecosystem.

One of the most promising emerging applications is the integration of V2E with autonomous driving systems. By 2025, the synergy between V2E and advanced driver-assistance systems (ADAS) is expected to accelerate the deployment of higher-level autonomous vehicles, as real-time data exchange enhances situational awareness and decision-making. This is particularly relevant in urban environments, where complex interactions between vehicles, cyclists, and pedestrians demand robust communication frameworks. According to Gartner, V2E technologies will be present in 60% of new vehicles by 2028, underscoring their rapid adoption trajectory.

Another key area of growth is the role of V2E in smart city infrastructure. Municipalities are increasingly investing in connected traffic signals, dynamic signage, and real-time hazard alerts, leveraging V2E to optimize traffic flow, reduce congestion, and lower emissions. The International Data Corporation (IDC) projects that global spending on smart city initiatives, including V2E-enabled infrastructure, will surpass $200 billion by 2025.

Long-term, V2E is expected to drive significant societal and economic impact. Enhanced road safety, reduced accident rates, and improved emergency response times are direct benefits. Additionally, V2E will facilitate new business models, such as mobility-as-a-service (MaaS) and dynamic insurance pricing based on real-time driving data. The McKinsey & Company highlights that V2E could play a pivotal role in achieving transport emission reduction targets, as connected vehicles enable more efficient routing and integration with electric vehicle charging networks.

In summary, the future outlook for V2E communication systems is marked by rapid technological advancement, expanding applications, and profound long-term impacts on safety, efficiency, and sustainability in the mobility sector.

Sources & References

Ángel Hernández

Ángel Hernández is a distinguished author and thought leader in the fields of new technologies and fintech. He holds a Master’s degree in Financial Engineering from Stanford University, where he developed a profound understanding of the intersections between finance and cutting-edge technology. With over a decade of industry experience, Ángel has served as a senior analyst at Nexsys Financial, a company renowned for its innovative solutions in digital banking and financial services. His insights into emerging trends and their implications for the finance sector have made him a sought-after speaker at international conferences. Through his writing, Ángel aims to demystify complex technological concepts, empowering readers to navigate the rapidly evolving landscape of fintech with confidence and clarity.

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