PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887147
PUBLISHER: Fortune Business Insights Pvt. Ltd. | PRODUCT CODE: 1887147
The global vehicle-to-infrastructure (V2I) communication market is expanding rapidly as cities worldwide embrace smart mobility, intelligent transportation systems (ITS), and connected vehicle ecosystems. According to the latest report, the market was valued at USD 36.68 billion in 2024, is projected to reach USD 44.16 billion in 2025, and is expected to grow significantly to USD 170.55 billion by 2032, driven by strong advancements in wireless communication, artificial intelligence, and 5G network deployment. In 2024, Asia Pacific dominated the global market with a strong 58.04% share, supported by large-scale government investments in smart city infrastructure, transportation automation, and digital traffic management systems.
V2I communication enables real-time wireless interaction between vehicles and road infrastructure-such as traffic lights, sensors, toll systems, lane controllers, and digital signboards. As congestion worsens in major urban centers, V2I communication improves road safety by delivering real-time warnings, optimizing signal timing, reducing emissions through smoother traffic flow, and supporting autonomous vehicle ecosystems.
Key Market Drivers
One of the strongest market drivers is the global push toward road safety and accident prevention. Governments in the U.S., Europe, Japan, and South Korea are investing in V2I technologies to tackle increasing road fatalities. In 2024, the European Union mandated Intelligent Speed Assistance (ISA) and strengthened ADAS regulations to integrate connected infrastructure with vehicles. The U.S. Department of Transportation has also rolled out nationwide V2X deployment frameworks emphasizing V2I-enabled smart intersections, highway hazard alerts, and emergency vehicle prioritization.
The second major growth driver is the integration of AI and machine learning into V2I platforms. Companies like DENSO and Bosch have developed AI-powered traffic control solutions that analyze real-time vehicle data, predict congestion patterns, and prevent accidents. With AI-driven predictive maintenance, infrastructure systems can detect malfunctioning traffic lights and road sensors before failures occur.
Rapid adoption of 5G-based cellular V2I (C-V2X) is another transformative factor, supporting ultra-low latency and long-range communication. Qualcomm's 5G automotive modems and Audi's communication systems are accelerating global deployment, positioning V2I as a foundational component of connected mobility.
Market Restraints
While V2I offers vast benefits, cybersecurity and data privacy concerns remain major barriers. V2I systems rely heavily on sensitive vehicle data-speed, location, direction-which presents high vulnerability to hacking. Laws such as GDPR in Europe enforce strict compliance requirements, increasing deployment complexity. Infrastructure cost is another challenge, as smart traffic systems require large government investments, making it difficult for emerging regions to scale.
Market Opportunities
Smart city development represents the greatest opportunity for V2I expansion. Cities worldwide-including Detroit, Barcelona, Tokyo, and Seoul-are deploying V2I-enabled traffic management, automated tolling, and smart parking solutions. The rollout of autonomous vehicles further boosts V2I demand, as V2I communication becomes essential for safe navigation. EV charging networks also benefit, with new standards like ISO 15118 enabling automated vehicle-to-charger communication.
Segmental Insights
By Vehicle Type
SUVs dominate the market due to higher adoption of connected technologies in this category. Major manufacturers like Toyota and Ford are equipping SUVs with advanced V2I modules, enabling navigation assistance and congestion alerts. Sedans, LCVs, and HCVs also show strong adoption as governments push V2I adoption in commercial fleets for enhanced safety.
By Technology
Dedicated Short-Range Communication (DSRC) remains the leading technology in 2024 because of its low latency and reliability. U.S. cities including New York have deployed DSRC for adaptive signal control. Cellular V2I (5G-based communication) is the fastest-growing technology segment due to seamless network compatibility and larger application range.
By Application
Traffic Management Systems dominate due to the rising need for congestion mitigation, dynamic signal timing, and hazard alerts. Parking management and electronic toll collection benefit from V2I-linked sensors and real-time data exchange.
By Component
Hardware-including roadside units (RSUs) and onboard units (OBUs)-generates the highest revenue share. Software platforms and integration services also grow strongly as cities transition to cloud-based traffic monitoring.
Regional Highlights
Asia Pacific - USD 21.29 Billion in 2024
Asia Pacific leads the market, supported by investments in smart mobility systems in Japan, South Korea, China, and India. Large automotive manufacturers including Hyundai, Toyota, and Honda accelerate V2I integration.
North America
Strong government backing from the U.S. DOT, 5G rollout, and major connected-car pilot programs fuel North American demand.
Europe
Europe shows the fastest growth, driven by strict safety regulations, ITS mandates, and major automotive OEM participation.
Conclusion
Growing from USD 36.68 billion in 2024 to USD 44.16 billion in 2025, and projected to reach USD 170.55 billion by 2032, the V2I communication market is entering a high-growth phase supported by AI, 5G, autonomous vehicles, and smart city investments. As governments and automakers intensify their focus on road safety and connected mobility, V2I will become a critical foundation of next-generation transportation systems.
Segmentation By Vehicle Type
By Technology
By Application
By Component
By Geography
Fgure 1: Global Vehicle to Infrastructure Communication Market Revenue Breakdown (USD Billion, %) By Region, 2024 & 2032