Discover how this “digital seatbelt” is poised to slash accident rates, ease traffic congestion, and cut emissions, ushering in a new era of automotive innovation.
In a transformative move set to reshape the automotive landscape, China is poised to introduce 30 million new vehicles equipped with Vehicle-to-Everything (V2X) technology annually by 2034, as revealed in IDTechEx’s comprehensive report “Connected and Software-Defined Vehicles 2024-2034: Markets, Forecasts, Technologies.” This initiative is a significant component of a global shift towards integrating V2X technology into the majority of vehicles, marking a new era in automotive safety and connectivity.
V2X technology enables vehicles to communicate with each other and with traffic infrastructure, utilizing Wi-Fi or cellular-based technologies to enhance safety and efficiency on the road. This technology, often referred to as the “digital seatbelt,” aims to significantly reduce accidents, alleviate congestion, and lower emissions worldwide by facilitating real-time communication between vehicle safety systems and urban traffic networks, irrespective of adverse weather conditions or challenging environments such as dense fog and crowded parking lots. The adoption of V2X technology is primarily driven by two competing standards: Dedicated Short-Range Communications (DSRC) and Cellular Vehicle-to-Everything (C-V2X). DSRC relies on Wi-Fi protocols, while C-V2X uses 4G or 5G cellular networks. Presently, the global fleet of V2X-enabled vehicles, estimated at 1 million, is largely concentrated in Europe and China. However, a significant shift towards C-V2X, particularly 5G-based systems, is anticipated, with over 90% of the market expected to adopt this technology by 2034. This transition is largely influenced by regulatory efforts in major automotive markets like the United States and China, which are actively promoting C-V2X adoption and have moved away from DSRC.
Moreover, the inclusion of V2X technology in New Car Assessment Programs (NCAPs), such as China’s announcement to incorporate V2X in the CNCAP from 2024, is anticipated to drive substantial growth in V2X adoption. NCAP scores, which significantly affect vehicle sales, have historically been a catalyst for the widespread adoption of safety technologies. For instance, the inclusion of Automatic Emergency Braking (AEB) in the EU NCAP led to its presence in 71% of new vehicles by 2021, up from just 5% in 2014. V2X technology is particularly crucial for the advancement of autonomous vehicles (AVs), offering a solution to the line-of-sight limitation inherent in traditional vehicle sensors like LiDAR, radar, and cameras. By enabling AVs to communicate directly with each other and with traffic infrastructure, V2X acts as an additional sensor that functions under any weather condition and can penetrate obstacles, thereby enhancing the safety and reliability of autonomous driving. IDTechEx projects that V2X connectivity will become a critical factor for AVs by 2026, potentially becoming mandatory in certain jurisdictions due to regulatory or safety standard requirements.