Vehicle to Infrastructure Communication

Global Vehicle to Infrastructure Communication Market to Reach US$1.0 Billion by 2030

The global market for Vehicle to Infrastructure Communication estimated at US$412.7 Million in the year 2024, is expected to reach US$1.0 Billion by 2030, growing at a CAGR of 15.9% over the analysis period 2024-2030. Hardware Component, one of the segments analyzed in the report, is expected to record a 16.5% CAGR and reach US$612.6 Million by the end of the analysis period. Growth in the Software Component segment is estimated at 14.1% CAGR over the analysis period.

The U.S. Market is Estimated at US$112.4 Million While China is Forecast to Grow at 21.1% CAGR

The Vehicle to Infrastructure Communication market in the U.S. is estimated at US$112.4 Million in the year 2024. China, the world`s second largest economy, is forecast to reach a projected market size of US$219.1 Million by the year 2030 trailing a CAGR of 21.1% over the analysis period 2024-2030. Among the other noteworthy geographic markets are Japan and Canada, each forecast to grow at a CAGR of 11.7% and 14.3% respectively over the analysis period. Within Europe, Germany is forecast to grow at approximately 12.7% CAGR.

Global Vehicle-to-Infrastructure (V2I) Communication Market - Key Trends & Drivers Summarized

Why Is Vehicle-to-Infrastructure Communication Essential to Modern Mobility Systems?

Vehicle-to-Infrastructure (V2I) communication refers to the wireless exchange of data between vehicles and roadside infrastructure, such as traffic signals, toll booths, parking systems, and signage. This connectivity supports real-time traffic management, improves road safety, and enhances energy efficiency by enabling dynamic interaction between vehicles and urban systems. V2I is a fundamental component of intelligent transport systems (ITS) and is crucial for the evolution of connected and autonomous vehicle platforms.

By transmitting data about signal timing, speed limits, lane closures, and congestion zones, V2I allows vehicles to adjust driving behavior and routing decisions in real time. This communication reduces idling time, prevents collisions at intersections, and enables emergency vehicle prioritization. V2I applications are particularly important in urban environments, where high traffic density and infrastructure complexity require coordinated traffic flow and responsive control.

How Are Governments and Infrastructure Agencies Driving V2I Deployment?

Public infrastructure modernization efforts are incorporating V2I technology into smart road and urban planning initiatives. Transportation authorities in several countries are investing in roadside units (RSUs), digital signal controllers, and cloud-connected platforms that facilitate secure data exchange with vehicles. Funding programs for smart city projects, emissions reduction, and congestion management are increasingly tied to implementation of V2I components.

In North America, Europe, and parts of Asia, pilot projects and phased rollouts are testing applications such as red light violation warnings, pedestrian detection, and adaptive traffic signal timing. Regulatory standards for interoperability and communication protocols, including DSRC and C-V2X, are being established to ensure uniform deployment. These initiatives are laying the groundwork for vehicle manufacturers and fleet operators to integrate V2I systems into their connectivity architecture.

What Technologies Are Supporting Reliable and Scalable V2I Communication?

V2I communication relies on a combination of short-range and cellular-based technologies to transmit critical data with minimal latency. Dedicated Short Range Communication (DSRC) has traditionally been used for time-sensitive V2I functions, while Cellular-V2X (C-V2X) is gaining traction for its broader range, scalability, and integration with 5G infrastructure. These systems are supported by multi-access edge computing, which reduces processing delays by managing data close to the network edge.

Sensors, cameras, and LiDAR units embedded in infrastructure work in conjunction with onboard vehicle systems to deliver contextual awareness. Advanced message encoding, cybersecurity layers, and authentication protocols are essential to protect communication integrity and prevent data manipulation. As vehicles become increasingly software-defined, V2I modules are being embedded into central control units, enabling over-the-air updates and seamless integration with navigation, safety, and infotainment systems.

What Are the Key Drivers Supporting Widespread Adoption of V2I Systems?

Growth in the vehicle-to-infrastructure communication market is driven by several factors related to connected vehicle expansion, infrastructure digitization, and traffic efficiency mandates. Deployment of smart road technologies by municipal and national governments is creating a foundational layer for V2I communication. Adoption of ADAS and autonomous driving features in passenger and commercial vehicles is increasing the need for real-time communication with infrastructure. Rising congestion in urban centers and increased prioritization of traffic safety are prompting investment in adaptive signal control, emergency routing, and digital signage systems compatible with V2I standards. Advancements in cellular connectivity and 5G network availability are enabling broader and more scalable V2I applications across diverse geographies. Additionally, collaborative initiatives between telecom providers, automotive OEMs, and public agencies are accelerating standardization efforts, supporting long-term integration of V2I into intelligent transportation ecosystems.

SCOPE OF STUDY:

The report analyzes the Vehicle to Infrastructure Communication market in terms of units by the following Segments, and Geographic Regions/Countries:

Segments:
Component (Hardware Component, Software Component, Services Component); Application (Cellular Application, Wi-Fi Application, DSRC Application, WiMAX Application, Bluetooth Application); End-Use (Passenger Cars End-Use, Commercial Vehicles End-Use, Public Transportation End-Use, Emergency Vehicles End-Use, Other End-Uses)

Geographic Regions/Countries:
World; United States; Canada; Japan; China; Europe (France; Germany; Italy; United Kingdom; Spain; Russia; and Rest of Europe); Asia-Pacific (Australia; India; South Korea; and Rest of Asia-Pacific); Latin America (Argentina; Brazil; Mexico; and Rest of Latin America); Middle East (Iran; Israel; Saudi Arabia; United Arab Emirates; and Rest of Middle East); and Africa.

Select Competitors (Total 34 Featured) -

• AECOM Technology Corporation
• Aptiv PLC
• Autotalks Ltd.
• Cisco Systems Inc.
• Cohda Wireless
• Continental AG
• DENSO Corporation
• Econolite Group Inc.
• Ericsson
• Ford Motor Company
• Hitachi Ltd.
• Infineon Technologies AG
• Iteris Inc.
• Kapsch TrafficCom
• Magna International Inc.
• Nokia Corporation
• NXP Semiconductors
• Qualcomm Technologies Inc.
• Robert Bosch GmbH
• Siemens Mobility

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