Vehicle-to-Vehicle Communication Industry Set to Expand, Projected to Achieve a Value of US$105.8 Billion by 2034

In 2023, Infineon Technologies made significant strides in the Vehicle-to-Vehicle (V2V) communication markets. The German tech company advanced its BRIGHTLANE™ Ethernet solutions, tailoring them for high-performance in-vehicle networking. These solutions support speeds from 100 Mbps to 10 Gbps, while maintaining low power consumption, thereby enabling faster and more reliable V2V and in-vehicle communication architectures.

The importance of V2V communication, particularly in the development of autonomous vehicles, is increasingly being recognised. Collaborations among automotive manufacturers, technology providers, and regulatory bodies are essential to address the challenges and unlock the full potential of V2V communication.

In 2024, the global V2V Communication Market was valued at USD 28.3 billion, with Smart Sensors emerging as the leading segment by type, accounting for 57.3% of the market share. Vehicle-to-Network (V2N) led the connectivity segment with a 40.4% share, while OEM Devices held the largest share in the device type segment, capturing 49.9% of the market.

Traffic Safety was the foremost application area, accounting for 34.6% of the total market. V2V communication is also being integrated with Advanced Driver-Assistance Systems (ADAS). One of the key use cases for V2V communication is Collision Avoidance.

The market is projected to reach USD 105.8 billion by 2034, registering a CAGR of 14.1% during the forecast period. However, the industry faces challenges such as data privacy concerns and the need for standardized communication protocols. Global efforts are underway to address these issues and standardize V2V communication protocols.

In addition, the market is transitioning towards Cellular Vehicle-to-Everything (C-V2X) technology. The Federal Communications Commission (FCC) approved the use of C-V2X technology across the 5.895-5.925 GHz band in 2023.

Notable developments in 2023 included Hyundai Motor Group surpassing 10 million global subscribers to its connected car services and Volkswagen forming a partnership with China's ThunderSoft to build advanced infotainment features for Chinese drivers.

Infrastructure investment, spectrum allocation, and public acceptance are other major challenges in the V2V communication market. Governments worldwide are implementing policies and regulations to promote the adoption of V2V communication technologies. For instance, the U.S. Department of Commerce released a rule in 2025 aimed at securing the connected vehicle supply chain.

V2V communication enables vehicles to interact with traffic signals, optimising traffic flow and reducing congestion. This technology is also being used to integrate vehicles with the wider network, allowing them to communicate with the internet and other networks, a concept known as V2N.

In conclusion, the V2V communication market is witnessing significant growth and is expected to continue its upward trajectory in the coming years. However, addressing the challenges it faces will be crucial to its successful development and widespread adoption.

Vehicle-to-Vehicle Communication Industry Set to Expand, Projected to Achieve a Value of US$105.8 Billion by 2034