V2X: Connected Vehicles Can Improve Traffic Management, Vehicle Safety, and So Much More

The Internet of Things (IoT) boom truly hasn’t happened yet. That’s because connected vehicles haven’t  fully entered the mainstream. But, the Vehicle to Everything (V2X) revolution is primed for explosive growth. Gartner reports that connected cars will offer the biggest opportunity for 5G IoT in the long term. They predict that by 2023, the automotive industry will represent 53% of overall 5G IoT endpoint opportunities, and connected-car data from embedded modems will account for 39% of automotive IoT activity.

V2X is a nascent technology that is going to change the world as we know it, and the budding industry is fraught with many challenges — and opportunities. So, what is V2X and why does it matter?


V2X is real-time communication between a connected vehicle to the things and people around it. As more cars are equipped with embedded modems, data is able to freely move between cars and automobile manufacturers (OEMs) through cellular networks. V2X would enable vehicles to communicate directly with infrastructure (V2I), pedestrians (V2P), networks (V2N), and other vehicles (V2V)




V2X can increase traffic efficiency and road safety with real-time direct communications between vehicles and the world around them.

Use cases include:

  • V2I – Traffic lights alerting vehicles to adjust their speed due to an impending light change
  • V2V – Warnings issued between vehicles to prevent collisions
  • V2V – Traffic or hazard alerts shared between vehicles
  • V2P – Safety warnings to pedestrians or cyclist
  • V2V- Alerts of Emergency vehicles approaching
  • V2I – Speed limit alerts
  • V2X – Enablement of autonomous vehicles through V2X feedback



One of the main challenges in moving toward the proliferation of V2X is agreeing on a standard technology for communication. There are two main ways that vehicles can communicate with the world around them.

  • Direct communication uses dedicated short range communication (DSRC) and is not significantly dependent on cellular networks. This method is limited to connectivity of around 1KM in distance. The incumbency of this kind of communication provides for easier and quicker implementation, however the spectrum on which it operates is used by many other communication networks, raising concerns over extended use and speed.
  • Cellular communication, known as cellular vehicle to everything communication (C V2X) has a further range of service than DSRC, with increased reliability and lower latency. C V2X provides the added benefit of connecting to networks (V2N), providing for access to cloud-based services and increased security. This system relies on the increased availability of 5G infrastructure and costly telecom services.

V2X relies on standardized communication between OEMs, starting with using the same communication technology. Choosing a technology is complicated due to policy decisions, lack of cohesion among car manufacturers, and cost concerns.


V2X isn’t just about the immediate communication it provides for safety use cases. It is expected to open a treasure trove of opportunities available from the data that connected vehicles provide. By 2030, it is estimated that new services and applications driven by shared mobility, connectivity services, and feature upgrades will expand automotive revenue pools by 30%, creating up to $1.5 trillion in additional revenue. Connected vehicle data derived from V2X will be relayed back to OEMs, and can be used to provide a wealth of insights to improve vehicle safety and customer experience. Additionally, this data can be licensed to third parties for further use cases.

To learn more about the future of mobility, check out our mobility report on consumer attitudes toward shared mobility and autonomous vehicles.

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