The global automotive industry is undergoing a massive transformation, with intelligent transportation systems playing a central role. One of the most crucial elements in this evolution is Vehicle-to-Infrastructure (V2I) communication market—a technology that enables vehicles to interact seamlessly with road infrastructure like traffic signals, road signs, toll booths, and more.
According to recent data, the global V2I communication market was valued at USD 36.68 billion in 2024. It is projected to expand significantly, reaching USD 170.55 billion by 2032, with a compound annual growth rate (CAGR) of 21.3% during the forecast period. In 2024, Asia Pacific emerged as the dominant region, holding a 58.04% share of the global market.
What is Vehicle-to-Infrastructure (V2I) Communication?
V2I communication refers to the real-time exchange of information between a vehicle and its surrounding infrastructure. This data exchange improves traffic efficiency, reduces emissions, enhances road safety, and supports autonomous vehicle functionality. Examples include:
Vehicles receiving real-time updates on traffic signal status
Dynamic rerouting based on traffic congestion or accidents
Toll and parking payments processed automatically
Hazard warnings issued to vehicles from road sensors
V2I is a critical subset of the broader Vehicle-to-Everything (V2X) technology landscape, which also includes vehicle-to-vehicle (V2V), vehicle-to-network (V2N), and vehicle-to-pedestrian (V2P) communications.
Key Market Drivers
Several transformative trends are contributing to the explosive growth of the V2I communication market:
Governments across the globe, especially in Asia Pacific, are investing heavily in smart city infrastructure. These initiatives focus on traffic automation, digital signage, and intelligent intersections—perfectly suited for V2I integration.
The rise in connected and autonomous vehicle development demands robust communication with the environment. V2I systems allow such vehicles to “sense” traffic and road conditions beyond their line of sight.
By reducing delays and minimizing accidents through advanced alerts and adaptive signaling, V2I plays a key role in building intelligent transport systems (ITS).
Many countries are implementing policies and regulations that mandate V2X-ready infrastructure for new transportation projects, further accelerating adoption.
With the emergence of 5G networks, V2I systems are now capable of ultra-low latency communication, which is critical for real-time traffic management and vehicle control.
Regional Insights: Asia Pacific Leading the Way
In 2024, Asia Pacific held a dominant 58.04% share of the global V2I market. Countries like China, Japan, and South Korea are at the forefront due to:
High penetration of smart mobility programs
Rapid infrastructure digitization
Strong investments in 5G and automotive technology
China, in particular, is aggressively rolling out vehicle-infrastructure cooperative systems across major cities as part of its smart transportation ecosystem.