Introduction:
Vehicle-to-Everything (V2X) communication is redefining the future of mobility in Europe, serving as a foundational technology for intelligent, connected transportation systems. By enabling seamless data exchange between vehicles, infrastructure, pedestrians, and digital networks, V2X enhances safety, optimizes traffic flow, and supports real-time decision-making. Positioned at the core of the connected and autonomous vehicle (CAV) ecosystem, V2X applications span collision avoidance, traffic signal prioritization, fleet management, and intelligent transportation systems (ITS).

The European V2X communication market is poised for significant expansion, underpinned by strong governmental support for smart mobility, growing investment in autonomous vehicle technologies, and stringent regulatory mandates around road safety. Valued at approximately USD 4.5 billion in 2024, the market is projected to reach USD 20.2 billion by 2030, growing at a robust CAGR of 38.5%. As demand intensifies for safer, more efficient, and environmentally sustainable mobility, V2X adoption across both passenger and commercial vehicle segments is accelerating rapidly.

Market Dynamics:

The Europe V2X communication market is evolving rapidly at the intersection of technology innovation, policy advancement, and infrastructure modernization.

Several key drivers are propelling market growth. Chief among them is the region’s heightened focus on road safety and accident prevention, coupled with the rising adoption of autonomous and connected vehicles. V2X communication—encompassing Vehicle-to-Infrastructure (V2I), Vehicle-to-Vehicle (V2V), and Vehicle-to-Pedestrian (V2P) technologies—enables real-time situational awareness and dynamic interaction between transport elements, reducing collisions and improving traffic efficiency.

The transition to smart transportation systems is further motivated by environmental goals, such as emissions reduction and congestion mitigation. EU-wide strategies like Cooperative Intelligent Transport Systems (C-ITS) and significant investment in 5G infrastructure are accelerating V2X deployment across both urban centers and long-distance corridors.

The market offers substantial opportunities, particularly in the enablement of autonomous driving, intelligent traffic signal control, and the development of cross-border vehicle communication standards. Deployment of roadside units (RSUs) and onboard units (OBUs), alongside the integration of AI and edge computing, is unlocking real-time traffic analysis, fleet optimization, and automated decision-making at scale. Commercial use cases—from smart tolling and logistics to coordinated public transport—are increasingly benefiting from the reliability and automation delivered by V2X systems.

Key industry trends include the convergence of 5G networks with Cellular V2X (C-V2X) protocols, the move toward standardized, interoperable platforms across EU member states, and an intensifying focus on cybersecurity and data governance in vehicular networks. The shift from Dedicated Short-Range Communication (DSRC) to C-V2X is driving improvements in communication range, latency, and reliability—key to supporting more advanced mobility functions.

Industry players such as Vodafone Automotive are advancing the market by integrating sophisticated telematics solutions that enhance real-time vehicle communication and road safety. Simultaneously, Kapsch TrafficCom is at the forefront of deploying intelligent traffic systems that leverage V2X to optimize urban mobility and ease congestion. The rise of AI-powered applications—ranging from predictive traffic modeling to cooperative adaptive cruise control (CACC) and real-time hazard detection—underscores the market’s evolution toward intelligent, proactive, and interconnected mobility ecosystems.

Segment Highlights and Performance Overview:

By Component

Hardware accounts for the largest share in the component segment, comprising approximately 50% to 55% of the market. This dominance is driven by the foundational role physical infrastructure plays in enabling V2X communication. As connected and autonomous vehicle adoption rises across Europe, public and private investments in smart infrastructure are fueling demand for scalable and robust V2X hardware, including roadside units (RSUs), onboard units (OBUs), and advanced sensing systems.

By Vehicle Type

Passenger cars lead the vehicle type segment, representing approximately 60% to 65% of the market. This is attributed to early integration of V2X technologies by major European automotive OEMs and higher adoption rates among consumers. As automakers embed safety and comfort features powered by V2X into new vehicle models, connected functionality is becoming a standard offering in the passenger car segment.

By Communication Type

Vehicle-to-Vehicle (V2V) communication holds the largest share in the communication type segment, accounting for approximately 47% of the market. V2V enables real-time data exchange between vehicles, enhancing situational awareness, preventing collisions, and improving traffic efficiency. Regulatory momentum around road safety and increased deployment of collision avoidance systems are driving this segment’s continued growth.

By Connectivity

Dedicated Short-Range Communication (DSRC) currently leads the connectivity segment, holding an estimated 55% to 60% market share. DSRC’s maturity, low latency, and established regulatory framework across Europe have supported its widespread use in early V2X deployments—particularly in urban traffic control systems and cooperative safety applications.

By Technology

Automated Driver Assistance Systems (ADAS) dominate the technology segment, accounting for approximately 40% to 45% of the market. ADAS utilizes V2X data to enhance vehicle control functions such as adaptive cruise control, emergency braking, and lane-keeping. Rising demand for semi-autonomous features, along with regulatory requirements for vehicle safety, is driving the expansion of V2X-enabled ADAS across both premium and mass-market vehicle segments.

By Vehicle Propulsion

Internal Combustion Engine (ICE) vehicles currently hold the largest share in the propulsion segment, with an estimated 65% to 70% of the market. Despite the accelerating shift toward electric vehicles, ICE vehicles continue to dominate due to their entrenched presence in the existing fleet and a slower rate of replacement, particularly in Central and Eastern European markets.

By End-User

Automotive OEMs lead the end-user segment, capturing approximately 50% to 55% of market share. These manufacturers are at the forefront of V2X technology integration, driving development through in-house R&D and strategic collaborations with telecom operators, infrastructure providers, and software companies. Their efforts are shaping the next generation of connected and autonomous vehicle platforms in Europe.

Geographical Analysis:

The global healthcare AI market is examined across key regions, including Germany, United Kingdom, France, Italy, and the Rest of Europe.

Germany holds the leading position in the European V2X communication market, driven by its globally recognized automotive sector, advanced infrastructure for connected mobility, and early adoption of V2X communication standards. The country’s strong innovation pipeline—supported by both industry leaders and government-backed smart transportation initiatives—continues to reinforce its market dominance.

The United Kingdom and France also represent significant contributors to the regional market. Both countries are actively investing in intelligent transportation systems, urban mobility programs, and digital infrastructure, with a growing policy emphasis on traffic safety and sustainability. These strategic efforts are positioning them as key players in the broader European V2X ecosystem. 

Competition Landscape:

The competitive landscape of the European V2X market is defined by a diverse mix of automotive manufacturers, telecom operators, technology providers, and high-growth startups. These players are competing through advanced product innovation, strategic alliances, and targeted investments in connected vehicle technologies to strengthen their market positions. As the demand for intelligent transportation systems accelerates, market leaders are focusing on end-to-end V2X solutions that integrate hardware, software, and cloud-based platforms for real-time connectivity and safety.

Key players profiled in this report include Vodafone Automotive, Octo Telematics, Gurtam, Kapsch TrafficCom, Hypervisoul, Eloy, Codibly, Promwad, Vector Informatik, and MOXZ.

Key Developments:

• In August 2024, Vodafone Automotive demonstrated its connected car capabilities during the Wimbledon tennis tournament by transforming a Jaguar I-PACE into a mobile Wi-Fi hotspot equipped with up to 1TB of data capacity. The showcase highlighted the real-world potential of 5G in enabling over-the-air updates, real-time GPS, and seamless vehicle-to-vehicle (V2V) communication—positioning Vodafone as a leader in next-generation mobility solutions.

• In March 2025, Kapsch TrafficCom expanded its Cooperative Intelligent Transport Systems (C-ITS) deployment by integrating ITS Roadside Stations into mobile barrier boards across 8,600 kilometers of German highways. This large-scale infrastructure initiative reinforces the practical application of V2X technologies, enhancing road safety and traffic efficiency. It also reflects a growing commitment from both public and private sectors to scale up intelligent transportation across Europe

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