The development of technologies such as internet of things (IoT) and artificial intelligence (AI) have had a positive impact on the automotive industry, just like many other industries. These technologies are increasingly being utilized in vehicles to make them safer and more efficient in order to provide consumers with enhanced driving experience. In addition to this, the focus on development of autonomous cars has increased significantly as well. Because of strong economic growth and increasing disposable income of people, the demand for autonomous vehicles is predicted to increase considerably in the near future.

Technologies such as big data, AI, and IoT are further being extensively utilized for enhancing the safety on roads for pedestrians as well as drivers. Owing to this, the demand for cooperative vehicle infrastructure system (CVIS) is growing swiftly. This system obtains information regarding roads and vehicles by making use of technologies such as sensing detection and wireless communication. The system further shares and interacts the information by communications between vehicle and road and between vehicles, thereby realizing the intelligent cooperation between infrastructures and vehicles. This way, the system achieves the goal of optimizing the usage of system resources, decreasing traffic congestion, and increasing safety of road traffic.

Ascribed to these factors, the global cooperative vehicle infrastructure system market is expected to grow at a substantial pace in the years to come. CVIS is provides by original equipment manufacturers (OEM) and third-party service providers. This is divided on the basis of solutions and connection hardware that are provided. The data collected via IoT is analyzed and is utilized for taking intelligent decisions regarding policy making and business. In terms of communication, the CVIS is divided into vehicle-to-everything (V2X) and vehicle-to-infrastructure (V2I), between which, the demand for V2I was higher in the past.

This can be ascribed to the need for improved safety of vehicles that are equipped with communication systems and several government regulations. Other than this, the demand for V2X technology is also projected to increase considerably in the near future, which is owing to the rise in realization regarding shortfalls of V2I communications and growing adoption of V2X in several countries. Geographically, Europe has been the major user of CVIS in the past. However, this being said, the demand for these systems is predicted to rise significantly in Asia-Pacific in the coming years, thereby making it the fastest-growing cooperative vehicle infrastructure system market. This is because of increasing penetration of this technology on account of strong economic growth in the region.

Hence, the demand for CVIS is growing due to technological advancements, development of IoT and AI, rising penetration of autonomous and connected cars, and increasing focus on enhancing the safety of drivers and pedestrians.