Report Highlights

V2X in the United States: Market Overview

The United States V2X market was valued at USD 1.42 billion in 2024 and is forecast to reach USD 4.86 billion by 2032. Its structure follows a federal-state split: the National Highway Traffic Safety Administration (NHTSA) sets vehicle-level expectations, while state departments of transportation procure roadside units and corridor software. Government has been the dominant force in roadside deployment, with the U.S. Department of Transportation funding the Tampa Connected Vehicle Pilot and the Wyoming I-80 corridor deployment.

The private sector leads onboard hardware and software. Qualcomm and NXP supply the chipsets, Denso, Continental and Aptiv integrate onboard units into vehicle platforms, and Commsignia and Savari sell roadside and onboard systems to public and fleet buyers. NHTSA's 2016 V2V proposal never became a binding mandate, so commercial demand rests on fleet telematics, insurance programmes and automaker-led safety features rather than regulation.

Policy-Driven Growth in US V2X

The Infrastructure Investment and Jobs Act (Public Law 117-58, enacted November 2021) authorised roughly USD 500 million for the Strengthening Mobility and Revolutionizing Transportation (SMART) grant programme, administered by the Federal Highway Administration (FHWA) across fiscal years 2022 to 2026. SMART grants fund roadside unit installation, signal integration and data platforms, converting federal awards into direct procurement orders for integrators. Each award pulls forward hardware purchases by state agencies, creating a pipeline for roadside suppliers independent of automaker production cycles.

The Federal Communications Commission's 2024 Report and Order on the 5.9 GHz band reallocated the lower 45 megahertz for unlicensed use and retained 30 megahertz for intelligent transportation systems, designating cellular V2X for that spectrum. This removed the dual-standard uncertainty that delayed OEM design cycles. Separately, the Bureau of Industry and Security connected vehicle final rule, issued January 2025 under Executive Order 13873, bars Chinese-origin connectivity software from model year 2027 and hardware from model year 2030, accelerating replacement demand.

Regulatory Barriers and Compliance Costs

NHTSA administers the Motor Vehicle Safety Act (49 U.S.C. Chapter 301) and certifies Federal Motor Vehicle Safety Standards, but no V2X-specific standard is final. The December 2016 V2V proposed rule, which would have required dedicated short-range communication radios in light vehicles, remains unfinalised. Manufacturers therefore self-certify connectivity features against voluntary guidance, concentrating compliance cost in cybersecurity documentation and third-party testing.

Spectrum and equipment barriers sit with the Federal Communications Commission, where V2X devices require equipment authorisation under 47 CFR Part 15 and must operate within 5.9 GHz band rules. For federally funded projects, 23 CFR Part 940 requires every ITS project to conform to a regional ITS architecture and complete a systems engineering analysis before funds are released. The BIS rule adds a supplier-by-supplier attestation burden for any Chinese-origin component.

Policy-Created Opportunities in the United States

The SMART grant pipeline creates repeatable demand for roadside unit retrofits at signalised intersections, with the Tampa Connected Vehicle Pilot providing a template for transit signal priority and emergency vehicle preemption. Suppliers delivering NTCIP-compliant roadside units with Security Credential Management System (SCMS) compatibility will qualify for state tenders. Public agencies in Florida, Wyoming and Michigan are the first buyers testing this specification.

The Commercial Vehicle Information Systems and Networks (CVISN) programme, administered by the Federal Motor Carrier Safety Administration, links roadside screening, electronic credentialing and inspection data. Commercial truck V2I links reporting brake status and weight to these systems create demand tied to federal safety compliance rather than discretionary spending. Fleet operators subject to electronic logging rules will specify V2X-enabled telematics to document compliance.

Market at a Glance

Leading Market Participants

• Qualcomm Technologies
• NXP Semiconductors
• Commsignia
• Savari
• Denso Corporation
• Continental AG
• Aptiv
• Harman International
• Kapsch TrafficCom
• Iteris

Regulatory and Policy Environment

The primary legal architecture rests on the Motor Vehicle Safety Act (49 U.S.C. Chapter 301), administered by NHTSA; the Communications Act of 1934, under which the FCC governs the 5.9 GHz intelligent transportation band; the Infrastructure Investment and Jobs Act (Public Law 117-58), administered by FHWA; and Executive Order 13873 with the BIS connected vehicle rule codified at 15 CFR Part 791. Key compliance requirements include FCC equipment authorisation, BIS supplier declarations for Chinese-origin components, and conformity of federally funded ITS projects with regional architectures under 23 CFR Part 940.

Upcoming changes include BIS software prohibitions for model year 2027 vehicles, hardware prohibitions for model year 2030, and implementation of the FCC's 5.9 GHz order through 2026. Relative to peers, the EU's C-ITS Delegated Regulation (EU) 2019/1789 mandated ITS-G5 for European deployment, while China's Ministry of Industry and Information Technology has built a national roadmap around C-V2X. The United States lacks a binding federal vehicle-level V2X mandate, leaving it dependent on procurement policy rather than vehicle rules.

Long-Term Policy Outlook for US V2X

The Infrastructure Investment and Jobs Act expires on 30 September 2026, requiring Congress to reauthorise surface transportation programmes, including SMART and ITS funding lines. The successor authorisation is expected to retain connected vehicle infrastructure as a named programme, extending federal roadside procurement into the 2030s. Funding continuity matters most for rural corridors, where private fleet demand is thinnest.

By 2032, the BIS hardware prohibition will have reshaped the onboard unit supply chain toward Qualcomm, NXP and other non-Chinese vendors, with the 2030 deadline concentrating qualification spending in 2028 and 2029. NHTSA's decision on whether to revive a V2V rule or adopt a voluntary standard will determine whether automakers standardise on C-V2X at scale. Market value will consolidate around integrators delivering certified roadside and onboard systems across federal and state buyers.