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V2X Industry Accelerates Maturing in China
COVID-19 and China
Person using white tablet computer displaying location text. Image credit: rawpixel.com/Pexels

As an important part of autonomous driving technology, vehicle to everything (v2x) has been hotly debated over recent years as intelligent driverless vehicles are enthusiastically chased by automotive industry and investment market.

V2x is the passing of information from a vehicle to any entity that may affect the vehicle, and vice versa. It is a vehicular communication system that incorporates other more specific types of communication as vehicle-to-infrastructure, vehicle-to-network, vehicle-to-vehicle and so on.

Chinese government defined v2x as one of the automotive industry’s future development directions in the ‘Made in China 2025’ program, a government initiative to upgrade auto industry. In October 2016, authorities enacted the first v2x document that outlined development targets and plans for the sector. Since then, plenty of related policies have been introduced.

With the support of the government, Chinese v2x sector exhibits huge potentials in the coming years. According to Zhiyan.com, a research company, Chinese automobile electronics market size reached CNY 558.4 billion (approximately USD 78.7 billion) in 2018. The size is estimated to exceed CNY 900 billion in 2020, at a CAGR of over 18% between 2016 and 2020. In the meantime, global market size can hopefully surpass CNY 2 trillion.

Another research company Qianzhan estimated that by 2022 global v2x market size would increase to USD 162.9 billion from USD 52.5 billion in 2017, at a CAGR of 25.4%. In contrast, Chinese market size would surge to USD 53 billion from USD 11.4 billion, at a CAGR of 36%. Chinese v2x market would account for 32.5% of the global market in nearly three years.

 

Sources from IT juzi show that investors have been more prudential towards Chinese v2x market since 2018. Higher investment amount per event indicates that the market is getting more mature and concentrated, therefore investors start to only invest in leading companies with heavier bets.

With the fast deployment of 5G, v2x industry is actually enjoying accelerating development, which brings about higher market penetration.

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