• The increasing focus on safety and traffic management, along with growing urbanization and adoption of autonomous technologies, will be key drivers for the adoption of C-V2X.
• However, the adoption of C-V2X technology will also depend on multiple factors from regional policies, regulations, and infrastructure investments to ecosystem developments.
• C-V2X global deployment is expected to be uneven across major markets, with significant variations between China and other regions.
  

The rise of connected cars has revolutionized the automotive industry, transforming vehicles into sophisticated, internet-enabled devices that can communicate with other vehicles, infrastructures, and even pedestrians. This connectivity not only enhances safety and convenience but also paves the way for advanced technologies like Cellular Vehicle-to-Everything (C-V2X) communication. C-V2X technology can take connected cars to the next level by enabling direct and network-based communication between vehicles and their surroundings, significantly improving road safety, traffic efficiency, and the overall driving experience.

Although C-V2X has the potential to transform road safety and traffic efficiency, its global deployment is expected to be uneven across major markets. China will be the main market for C-V2X, while the US and Europe will have much smaller deployment levels unless more major automakers decide to adopt it. Achieving widespread adoption will require collaboration, robust business cases, and overcoming significant infrastructure and standardization challenges.

Source: Counterpoint Research

C-V2X is a transformative technology harbouring great potential. However, its adoption hinges on automotive OEMs' willingness to integrate the technology into their vehicles. Current economic uncertainties may temper expectations, as automakers face pressure to balance innovation with cost management. Globally, C-V2X’s adoption rate is expected to rise steadily over the next decade. By 2030, penetration is projected to reach about 10% of new vehicle sales and surpass 45% by 2035, with China potentially accounting for around half of these.

The forecast assumes adoption rates to grow quickly from 2031 once there is a critical mass of vehicles equipped with C-V2X-enabled systems. Despite this promising outlook, challenges such as cybersecurity concerns, high infrastructure costs, interoperability issues, and consumer acceptance remain significant barriers.

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