Vehicle-to-everything (V2X) Test Equipment Market Size, Share, Growth, and Industry Analysis, By Types (DSRC Connectivity, Cellular Connectivity), Applications (System Integration, Support & Maintenance, Consulting) and Regional Forecast to 2033

VEHICLE-TO-EVERYTHING (V2X) TEST EQUIPMENT MARKET SIZE

The global Vehicle-to-Everything (V2X) test equipment market was valued at USD 2.31 billion in 2024 and is expected to grow significantly, reaching USD 14.19 billion by 2025. The market is projected to continue its growth trajectory, expanding to USD 27.33 billion by 2033, with a compound annual growth rate (CAGR) of 18.1% during the forecast period from 2025 to 2033.

The U.S. Vehicle-to-Everything (V2X) test equipment market is witnessing rapid growth due to strong government support, the rise of autonomous vehicles, and the expansion of 5G infrastructure, driving demand for advanced V2X testing solutions.

The Vehicle-to-Everything (V2X) test equipment market is witnessing significant growth due to the increasing demand for advanced communication technologies in the automotive sector. V2X communication systems enable vehicles to exchange information with other vehicles, infrastructure, pedestrians, and networks, enhancing safety and driving efficiency. This technology supports autonomous driving and smart city initiatives, creating a need for specialized testing equipment to ensure the proper functioning and reliability of these systems. As regulatory standards for V2X technology continue to evolve, there is a heightened focus on improving test methodologies and equipment to meet these demands.

VEHICLE-TO-EVERYTHING (V2X) TEST EQUIPMENT MARKET TRENDS

The vehicle-to-everything (V2X) test equipment market is rapidly growing, driven by advancements in connected vehicle technologies and the widespread adoption of 5G networks. V2X communication technologies, including vehicle-to-vehicle (V2V), vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), and vehicle-to-network (V2N), are crucial for enhancing road safety, traffic management, and fuel efficiency. The growing focus on autonomous vehicles is fueling the need for effective V2X communication systems and testing solutions to ensure the interoperability and security of these technologies.

Increased demand for connected vehicles, the rollout of 5G connectivity, and a rise in the adoption of intelligent transportation systems (ITS) are some of the key market drivers. Regulatory bodies are also tightening safety standards, necessitating the development of more advanced V2X testing equipment to verify the functionality and compliance of these systems. Moreover, automotive manufacturers are investing heavily in research and development to optimize V2X performance, further driving demand for state-of-the-art test equipment. The need for real-time data transmission and analysis to enhance V2X system performance is also pushing the market towards innovation in test tools and solutions.

With a growing number of partnerships and collaborations between technology providers and automotive manufacturers, the V2X test equipment market is expanding. Several companies are also focusing on the development of integrated platforms to streamline the testing process, making it more efficient and cost-effective. Additionally, the market is witnessing a surge in demand for both hardware and software testing solutions that support various V2X communication standards, ensuring global compatibility.

VEHICLE-TO-EVERYTHING (V2X) TEST EQUIPMENT MARKET DYNAMICS

The vehicle-to-everything (V2X) test equipment market is shaped by a combination of factors that influence growth and development. These dynamics include the rapid adoption of autonomous vehicle technologies, the expansion of smart cities, and the growing importance of 5G networks. Testing of V2X technologies is critical to ensuring the seamless integration of connected vehicles with existing infrastructures. As the automotive industry moves towards the adoption of more autonomous and connected vehicle systems, the need for reliable testing equipment has increased. This has led to the continuous evolution of testing solutions to match the evolving technological landscape.

The market dynamics are also influenced by the regulatory environment, with governments and international organizations setting stringent requirements for V2X communication systems to ensure safety and security. Manufacturers of V2X test equipment must adapt to these regulatory standards, ensuring that their products can test the systems under real-world conditions. Additionally, the increasing complexity of V2X systems, driven by the integration of artificial intelligence and machine learning, is challenging traditional testing methodologies and creating demand for more advanced solutions.

Drivers of Market Growth

"Advancements in Autonomous Vehicle Technology"

One of the primary drivers of the V2X test equipment market is the increasing adoption of autonomous vehicles (AVs). With more manufacturers focusing on self-driving technology, V2X communication systems are essential for ensuring these vehicles can safely interact with each other, pedestrians, and infrastructure. The demand for V2X test equipment to validate these communication systems is rising as companies seek to ensure that AVs meet safety standards and perform reliably under various conditions. As the number of autonomous vehicles on the road grows, so does the need for advanced test equipment to ensure their smooth operation.

Market Restraints

"High Costs of Testing Equipment"

Despite the growing demand for V2X test equipment, the high initial investment required for these testing tools can be a significant restraint on the market. Small and medium-sized automotive manufacturers and technology developers often struggle with the high costs of acquiring and maintaining state-of-the-art testing equipment. Furthermore, the complexity of V2X systems requires specialized training and expertise to operate the equipment effectively, adding to the overall cost burden. This can delay the adoption of testing solutions in regions or sectors with budget constraints, slowing down the overall market growth.

Market Opportunities

"Expansion of 5G Infrastructure"

As 5G technology continues to roll out globally, it presents a significant opportunity for the V2X test equipment market. 5G networks offer the high-speed, low-latency connectivity required for real-time V2X communication, enabling smoother integration of connected vehicles into traffic systems. The expansion of 5G infrastructure will boost the demand for V2X test equipment to ensure that vehicles can communicate efficiently and securely in real-time. This opens up new opportunities for test equipment providers to develop solutions that support 5G-enabled V2X systems, tapping into a growing and lucrative market.

Market Challenges

"Complex Integration of V2X Systems"

One of the key challenges facing the V2X test equipment market is the complexity of integrating new V2X communication systems into existing infrastructure. As V2X technology evolves, it often requires modifications to current roadways, traffic management systems, and vehicle designs. The integration of these systems can be time-consuming and costly. Testing equipment must be capable of evaluating the performance of V2X systems across multiple communication standards and technologies, adding further to the challenge. Additionally, ensuring that V2X systems are fully compatible with a wide variety of vehicles and infrastructures across different regions presents logistical and technical hurdles for developers.

SEGMENTATION ANALYSIS

The Vehicle-to-Everything (V2X) test equipment market can be segmented based on type and application. By type, the market is divided into various connectivity options such as Dedicated Short Range Communication (DSRC) and Cellular Connectivity, each of which plays a vital role in enabling V2X systems. By application, V2X test equipment is utilized for system integration, support and maintenance, and consulting services, each with specific demands and requirements. This segmentation allows stakeholders to target specific areas of the market with tailored solutions, addressing the unique challenges and growth potential within each segment. As V2X systems continue to advance, testing methodologies will need to adapt to these specialized needs.

By Type:

• DSRC Connectivity: Dedicated Short Range Communication (DSRC) is one of the primary types of connectivity used in V2X communication systems, and it plays a crucial role in enabling vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication. DSRC operates in the 5.9 GHz frequency band and provides low-latency communication between vehicles and infrastructure for real-time traffic updates, accident alerts, and more. The DSRC segment is critical for ensuring safety and efficiency on the road. As governments implement and enforce safety standards for V2X technologies, the demand for DSRC testing equipment is on the rise to guarantee reliable performance in a variety of driving environments

• Cellular Connectivity: Cellular connectivity for V2X systems, especially through the use of 5G networks, is a rapidly growing segment. Unlike DSRC, which focuses on short-range communication, cellular connectivity can offer broader coverage and supports high-speed data transmission, making it ideal for vehicle-to-network (V2N) and vehicle-to-pedestrian (V2P) applications. The shift toward 5G-enabled V2X systems is driving the demand for testing solutions that can assess performance in diverse environments, from urban areas to highways. Testing equipment that ensures smooth, high-speed data transfer and low-latency communication is essential to ensure the success of these advanced V2X systems.

By Application:

• System Integration: System integration plays a crucial role in the implementation of V2X communication systems. The process involves combining various hardware and software components to ensure that all systems work together seamlessly. V2X test equipment used for system integration is essential for ensuring that the components, such as sensors, communication devices, and infrastructure, communicate effectively across different platforms. With the increasing complexity of V2X technologies, proper system integration testing is critical to ensure that all connected vehicles, infrastructure, and pedestrians are able to communicate efficiently in real time, ensuring safety and system interoperability

• Support & Maintenance: The support and maintenance segment of the V2X test equipment market focuses on the ongoing requirements of V2X systems after installation. As vehicles and infrastructure continue to evolve, it is essential to ensure that V2X communication systems are continuously optimized and maintained for peak performance. Test equipment in this category helps monitor the system’s reliability, identify malfunctions, and perform diagnostics. The growing demand for connected vehicles and the rapid expansion of intelligent transportation systems (ITS) are driving the need for regular support and maintenance, ensuring long-term functionality and safety of V2X systems.

CONSULTING

The consulting segment in the V2X test equipment market involves providing expert advice on how to implement and optimize V2X communication systems. Consultants help automotive manufacturers and infrastructure providers ensure that their systems are compatible with regulatory standards and can perform optimally in real-world scenarios. This includes advice on system integration, testing methodologies, and troubleshooting. With the increasing complexity of V2X systems, the demand for specialized consulting services is on the rise, as companies seek guidance to navigate the challenges of deploying and maintaining advanced communication technologies.

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REGIONAL INSIGHTS

The global V2X test equipment market is experiencing significant growth across various regions. North America, Europe, Asia-Pacific, and the Middle East & Africa each present unique opportunities and challenges. These regions differ in terms of infrastructure, regulatory environments, and adoption rates of V2X technologies, influencing the demand for specialized testing equipment. Regional governments are also playing a crucial role in driving the adoption of V2X technologies by setting up standards, regulations, and incentives to promote safety and efficiency. As V2X technologies evolve, each region’s distinct needs will shape the development of the market.

North America

North America is one of the leading regions in the adoption of V2X technologies. The U.S. government has been proactive in supporting the development and implementation of connected vehicle systems, particularly in the context of intelligent transportation systems (ITS) and autonomous vehicles. Several state and federal initiatives are focused on improving road safety, traffic flow, and environmental sustainability, all of which depend on efficient V2X communication. The U.S. also leads in terms of investment in 5G infrastructure, which will further enhance V2X capabilities. As the market continues to grow, North America remains a key player in shaping the future of V2X technology and testing solutions.

Europe

Europe is another major player in the V2X test equipment market. The European Union has set ambitious goals for smart mobility and connected transportation systems, and many European countries are actively developing smart city initiatives that rely on V2X technologies. The region is also seeing a growing emphasis on autonomous driving, with various regulations and trials aimed at ensuring the safe deployment of connected and self-driving vehicles. Countries like Germany, France, and the U.K. are at the forefront of V2X implementation, creating strong demand for testing solutions to meet regulatory standards and ensure the reliability of these complex communication systems.

Asia-Pacific

The Asia-Pacific region is experiencing rapid growth in the V2X test equipment market, driven by the increasing adoption of connected and autonomous vehicles in countries like China, Japan, and South Korea. China, in particular, is investing heavily in smart city projects and autonomous vehicle development, which are integral to the expansion of V2X technologies. With a large number of vehicle manufacturers and technology providers in the region, Asia-Pacific is a key market for testing equipment. The increasing adoption of 5G networks across the region is further enhancing the demand for advanced V2X testing solutions to ensure seamless communication between vehicles and infrastructure.

Middle East & Africa

The Middle East and Africa region is still in the early stages of V2X technology adoption, but it is showing promising growth potential. Countries like the United Arab Emirates are making strides in the development of smart cities and autonomous vehicle technologies. With ongoing infrastructure projects and the integration of advanced transportation systems, the demand for V2X test equipment is expected to increase. Governments in the region are also exploring regulatory frameworks to support the deployment of connected vehicle systems, further driving the market for testing solutions. As the region continues to modernize its transportation infrastructure, V2X technology will play a vital role in enhancing safety and efficiency on the roads.

LIST OF KEY VEHICLE-TO-EVERYTHING (V2X) TEST EQUIPMENT MARKET COMPANIES PROFILED

• Danlaw
• ROHDE & SCHWARZ
• Spirent Communications
• TATA ELXI
• Autotalks
• Science & Engineering Applications Datentechnik GmbH
• OnBoard Security
• ADAS iiT
• 7layers GmbH
• Anritsu
• Intertek Group

Top Two Companies with Highest Market Share

1. ROHDE & SCHWARZ:ROHDE & SCHWARZ is a global leader in test equipment for V2X communications, with an extensive portfolio of solutions supporting DSRC and cellular V2X technologies. The company holds a significant market share due to its cutting-edge technology and strong customer base in automotive and communications sectors. It is known for offering comprehensive testing solutions that cover vehicle-to-vehicle (V2V) and vehicle-to-infrastructure (V2I) communication systems.

2. Spirent Communications:Spirent Communications is another prominent player in the V2X test equipment market. The company has a substantial market share, driven by its advanced testing solutions for connected vehicle systems, including testing for cellular V2X and 5G applications. Spirent has a strong presence in automotive and telecommunication industries, offering testing solutions that ensure V2X technologies meet stringent safety and performance standards.

INVESTMENT ANALYSIS AND OPPORTUNITIES

The Vehicle-to-Everything (V2X) test equipment market is witnessing significant investment from both private and public sectors, as the demand for autonomous vehicles, connected infrastructure, and smart cities grows. Governments across the globe are actively investing in intelligent transportation systems (ITS), which rely heavily on V2X technology. This creates ample opportunities for V2X test equipment providers to expand their operations and offer innovative solutions. The rising focus on 5G technology is also fueling investments in V2X testing, as 5G connectivity is essential for real-time communication between vehicles, infrastructure, and pedestrians.

Private investors are also increasingly directing funds into companies developing advanced V2X test equipment. Several automotive manufacturers are establishing partnerships with technology providers to ensure the integration of V2X communication systems into their vehicles, further encouraging investments in this area. Companies are now focusing on developing integrated testing platforms to make V2X testing more efficient, offering significant growth prospects for both startups and established players.

Additionally, regions like North America and Europe are expected to continue attracting investments due to their supportive regulatory environments and technological advancements. The rising adoption of autonomous vehicles is another investment opportunity, as V2X systems are essential for the safe deployment of these vehicles. With technological advancements and regulatory support, V2X test equipment providers can tap into a growing and lucrative market, contributing to its continued expansion.

NEW PRODUCTS DEVELOPMENT

Product development within the Vehicle-to-Everything (V2X) test equipment market is advancing rapidly, as companies focus on creating cutting-edge solutions to meet the demands of increasingly sophisticated V2X communication systems. Recent developments have focused on enhancing the performance and accuracy of V2X testing tools, particularly in areas such as 5G-enabled V2X, security testing, and real-time data analysis.

In 2023 and 2024, key players have launched products that offer more integrated and scalable solutions, addressing the growing complexity of V2X communication networks. For instance, ROHDE & SCHWARZ introduced an upgraded V2X test platform that supports both DSRC and cellular-based V2X technologies, enabling seamless testing across different communication standards. This product is designed to ensure that V2X systems function efficiently and meet stringent regulatory requirements.

Spirent Communications, another leading player, released a new version of its test equipment specifically tailored for 5G-enabled V2X applications. The solution is designed to test high-speed communication between vehicles and infrastructure, ensuring minimal latency and robust data transmission in real-world conditions. These new developments are helping companies stay ahead in an evolving market by providing testing solutions that cater to the latest advancements in vehicle connectivity and autonomous driving technologies.

RECENT DEVELOPMENTS

• ROHDE & SCHWARZ launched an upgraded V2X test solution in 2023 designed to support both DSRC and cellular V2X technologies. This enhancement allows for more accurate testing of V2X communication systems and ensures their compliance with regulatory standards.

• Spirent Communications introduced a next-generation V2X testing platform in early 2024 that integrates 5G connectivity for real-time communication testing between vehicles and infrastructure. The new platform is designed to offer higher precision and faster results, ensuring that V2X systems meet the demands of modern transportation networks.

• TATA ELXI developed a new simulation tool in 2023 to test the integration of V2X communication systems in autonomous vehicles. The tool helps manufacturers simulate real-world driving conditions, ensuring that their V2X systems operate efficiently under different scenarios.

• 7layers GmbH unveiled a modular V2X test system in 2024 that supports both physical layer and application layer testing. This system is optimized for the growing demands of connected and autonomous vehicles, helping manufacturers ensure that their products meet performance and safety standards.

• Anritsu launched a V2X testing solution that focuses on the security aspects of V2X communications in 2023. The system helps automotive manufacturers verify the robustness of their V2X networks against cyber threats, which is critical for the safety of autonomous vehicles and connected infrastructure.

REPORT COVERAGE

The report on the Vehicle-to-Everything (V2X) test equipment market provides a comprehensive analysis of the current state of the market, including key trends, technological advancements, competitive landscape, and regional outlook. The report covers various segments of the market, such as type, application, and geographic regions, offering insights into the growing demand for V2X testing solutions across different industries. Additionally, the report highlights the challenges, opportunities, and drivers influencing market growth, including the expansion of smart cities, the rollout of 5G networks, and the increasing adoption of autonomous vehicles.

Key players in the V2X test equipment market are profiled, including their market share, product offerings, and recent developments. Furthermore, the report provides an in-depth analysis of the regulatory environment, emphasizing the need for compliance with safety standards in different regions. It also covers investment opportunities in the market, detailing the potential for innovation and product development. The report serves as a valuable resource for stakeholders looking to navigate the evolving landscape of V2X technologies and stay ahead of market trends.