Vehicle-to-Vehicle (V2V) Communication Market Report 2025

This Vehicle-to-Vehicle (V2V) Communication report covers market characteristics, size and growth, segmentation, regional and country breakdowns, competitive landscape, market shares, trends and strategies for this market. It traces the market’s historic and forecast market growth by geography.

The vehicle-to-vehicle (V2V) communication market size has grown rapidly in recent years. It will grow from $24.28 billion in 2024 to $27.1 billion in 2025 at a compound annual growth rate (CAGR) of 11.6%. The growth in the historic period can be attributed to road safety concerns, government regulations, traffic congestion reduction, telematics and fleet management.

The vehicle-to-vehicle (V2V) communication market size is expected to see rapid growth in the next few years. It will grow to $46.37 billion in 2029 at a compound annual growth rate (CAGR) of 14.4%. The growth in the forecast period can be attributed to consumer awareness and acceptance, dynamic spectrum sharing, data privacy solutions, user-centric mobility services. Major trends in the forecast period include smart contracts for autonomous driving, integration with traffic management systems, cross-industry collaboration, dynamic spectrum management, blockchain for autonomous vehicle fleet management, cross-device authentication.

The increasing concern for road safety is expected to drive the growth of the vehicle-to-vehicle communications market in the future. Road traffic injuries lead to significant damage to infrastructure, loss of human lives, and economic repercussions for individuals, families, and nations. To prevent road accidents, it is essential to enhance vehicle safety features, design safer infrastructure, incorporate road safety measures, implement effective transport planning, enforce laws addressing key risks, and raise public awareness. The prevalence of accidents due to insufficient road safety highlights the urgent need for vehicle-to-vehicle communications to improve safety. For example, a report published in June 2024 by the Department of Transportation, a US-based agency responsible for planning and coordinating federal transportation projects, indicated that traffic fatalities in 2022 increased compared to 2021 across several categories. This included a 2% rise in large-truck crashes, resulting in 115 additional fatalities, an 8.5% increase in large-truck occupant deaths, accounting for 86 more fatalities, and a 0.7% rise in pedestrian fatalities, which resulted in 52 additional deaths. Thus, the growing concern for road safety is driving the expansion of the vehicle-to-vehicle communications market.

The vehicle-to-vehicle (V2V) communication market is also expected to witness growth due to the rising demand for vehicles. As the demand for vehicles increases, V2V communication plays a pivotal role in enhancing road safety. V2V communication enables real-time data exchange among vehicles, including information on location and speed. This facilitates advanced collision avoidance and traffic management systems. For instance, according to MarkLines Co., Ltd., a Japan-based automotive industry portal, new vehicle sales in the US grew by 22. 8% from May 2022 to May 2023, reaching 1,374,910 units, and increased by 1. 39% from April 2023 to May 2023. Therefore, the growing demand for vehicles is a significant factor driving the expansion of the vehicle-to-vehicle (V2V) communication market.

A prominent trend in the vehicle-to-vehicle communications market is the adoption of technological advancements. Major companies in the sector are actively developing innovative technological solutions to strengthen their market position. For instance, Nav Wireless Technologies Pvt. Ltd., an India-based communication technology company, introduced Defense Expo in October 2022. Defense Expo is an advanced vehicle-to-vehicle communication technology designed for armed forces, utilizing optical LiFi-based communication that transfers data securely between vehicles using the light spectrum and LEDs.

Strategic partnerships are a key focus for major companies operating in the vehicle-to-vehicle (V2V) communication market. These partnerships aim to drive revenue, enhance market reach, and foster innovation for seamless connectivity in the automotive industry. For instance, in July 2023, TTTech Auto, a US-based provider of software and hardware for driver assistance and autonomous mobility, and Zettascale Technology Sarl, a France-based software development company. Their extended partnership led to the launch of Zetta Auto, a unified solution for in-vehicle and V2X communication. Zetta Auto combines TTTech Auto's automotive safety software with ZettaScale's pub/sub/query protocol to provide a cohesive communication platform tailored for the automotive sector. This solution ensures secure, high-performance, and reliable communication within a service-oriented architecture framework.

In May 2022, TTTech Auto, an Austria-based company specializing in software and hardware solutions for automated driving and other vehicle technologies, announced a partnership with ZettaScale Technology. This collaboration aims to develop an advanced software solution called MotionWise Cyclone DDS, which enhances communication capabilities for software-defined vehicles, ensuring safe and flexible application development as well as improved vehicle-to-everything (V2X) communication. ZettaScale Technology, based in France, focuses on communication technology for autonomous vehicles and robots, specifically developing vehicle-to-vehicle (V2V) communication through its innovative solutions.

Major companies operating in the vehicle-to-vehicle (V2V) communication market include General Motors Company, Mercedes-Benz Group AG, Toyota Motor Corporation, Volkswagen Group, Harman International Industries, Mobileye Global Inc., Ford Motor Company, Bayerische Motoren Werke AG, Audi AG, QualComm Inc., Cisco Systems Inc., Autotalks Ltd., DENSO Corporation, Arada Systems Inc., Nissan Motor Co. Ltd., Honda Motor Company Ltd., Lear Corporation, Huawei Technologies Co. Ltd., Hyundai Motor Company, Samsung Group, Kapsch TrafficCom AG, Delphi Automotive PLC, Zhejiang Geely Holding Group Co. Ltd., Tata Communications Ltd., Visteon Corporation, Continental AG, Cohda Wireless Pty. Ltd., Ficosa S. A., Panasonic Corporation, Iteris Inc.

North America was the largest region in the vehicle-to-vehicle(V2V) communication market in 2024. The regions covered in the vehicle-to-vehicle (v2v) communication market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East, Africa. The countries covered in the vehicle-to-vehicle (v2v) communication market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Italy, Canada, Spain.

Vehicle-to-vehicle (V2V) communication is a technology utilized in automobiles for dedicated short-range communication (DSRC). This technology facilitates wireless communication between vehicles, creating a Vehicular Ad Hoc Network (VANET) on the road. The primary objective is to prevent vehicle collisions and assist drivers in managing potential risks.

The main types of vehicles in vehicle-to-vehicle (V2V) communication include passenger cars and commercial vehicles. Commercial vehicles are those owned by companies or businesses, such as semi-trucks, taxis, buses, limos, trailers, and tow trucks. Different types of connectivity involve dedicated short-range communication (DSRC) and cellular connectivity in vehicles, utilizing various deployment devices, including original equipment manufacturer (OEM) devices and aftermarket devices. V2V communication is applied in areas such as traffic safety, traffic efficiency, infotainment, payments, and other related applications.

The vehicle-to-vehicle (V2V) communication market research report is one of a series of new reports that provides vehicle-to-vehicle (V2V) communication market statistics, including vehicle-to-vehicle (V2V) communication industry global market size, regional shares, competitors with a vehicle-to-vehicle (V2V) communication market share, detailed vehicle-to-vehicle (V2V) communication market segments, market trends and opportunities, and any further data you may need to thrive in the vehicle-to-vehicle (V2V) communication industry. This vehicle-to-vehicle (V2V) communication market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The Vehicle-to-vehicle (V2V) communication market includes revenues earned by entities by providing technology or software that enables the wireless communication of information regarding the two vehicles' direction, location, and speed. Vehicle-to-vehicle (V2V) communication assists drivers to recognize dangers by providing visual, tactile, and audible indicators to alert drivers to assess the likelihood of crashes. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.

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