
The Challenges and Opportunities With Implementing V2X

Figure 1 V2X integrated sensing and communication application (ISAC). Source: 5GAA.

Vehicle-to-everything (V2X) is a communication method that enables wireless information exchange between vehicles and everything else. This has come to include vehicle-to-infrastructure (V2I), vehicle-to-pedestrian (V2P), vehicle-to-vehicle (V2V) and vehicle-to-network (V2N). Information exchanged includes data about the speed and position of surrounding vehicles and these communications promise to help avoid crashes, ease traffic congestion and improve the environment. Figure 1 shows a representation of the vehicles with the networks for V2V side link (SL) and V2N applications with increasing integrated sensing and communication (ISAC) levels. Table 1 shows more details on the type of network, the objects communicating and the application scenarios.
THE PROBLEM STATEMENT AND THE ORIGINS
The U.S. National Highway Traffic Safety Administration (NHTSA) estimates that safety applications enabled by V2X could eliminate or mitigate the severity of up to 80 percent of non-impaired crashes, including crashes at intersections or while changing lanes. NHTSA estimates that V2X technology can prevent 615,000 vehicle crashes and save 1,366 lives annually. This represents a significant proportion of the 42,939 lives that were lost on U.S. roads in 2021.
By 1999, the U.S. FCC had allocated 75 MHz spectrum in the 5.9 GHz (5.850 to 5.925 GHz) band for V2X. This allocation supported new safety applications. These applications were intended to alert drivers about possible collisions from other vehicles beyond the driver’s sight and the field of view of advanced driver assistance systems (ADAS) sensors.
The Wi-Fi-based dedicated short-range communication (DSRC) standard, also known as ITS-G5/802.11p, WLANp and Wi-Fi-p, was approved in 2010. This has had very few original equipment manufacturer (OEM) vehicle implementations on a limited number of models. The use of cellular technologies has emerged as an alternative to DSRC, with the release of cellular V2X (C-V2X) in the 3GPP Release 14 specification in 2017.
DSRC VERSUS C-V2X
DSRC is a wireless short-range communication technology that uses 802.11p to exchange basic safety messages for collision avoidance. C-V2X is V2X delivered via Uu connectivity or the PC5 interface. Uu is a network communications interface between the user equipment (UE) and an LTE or 5G New Radio (NR) base station. The interface can be used for backhaul and/or long-range communication between the infrastructure and the vehicle. PC5 is a direct-mode communication technology operating in the globally harmonized 5.9 GHz intelligent transportation systems (ITS) band. C-V2X can be deployed as a pure Uu-based system or as a combined solution using PC5.
5G NR-V2X has lower latency, broader bandwidth and better scalability compared to LTE-V2X. From an application point of view, LTE-V2X is mainly designed to support ADAS, improve road safety and improve traffic efficiency. 5G NR-V2X, together with artificial intelligence (AI) and big data are aiming for better support of higher-level autonomous driving, overall traffic management and other new functions. In terms of technical development, 5G NR-V2X, based on the 5G air interface, is an evolutionary improvement of LTE-V2X and the two solutions complement each other.
In the device-to-device PC5 mode (V2V, V2I, V2P) operation, C-V2X does not necessarily require any cellular network infrastructure and can operate without a SIM, without network assistance and uses GNSS as its primary source of time synchronization. By not using cellular network infrastructure for every use case, C-V2X can be a cost-effective safety solution without payment network data usage and V2V and V2I applications built on C-V2X can be launched independently of 5G network rollout. Details of the interfaces in this evolutionary path are shown in Figure 2.

Figure 2 C-V2X communication interfaces. Source: Qualcomm.
C-V2X has the advantage of offering a clear path from 4G LTE to 5G NR. The initial C-V2X standard included in 3GPP Release 14 focused on V2V communications and fundamental modifications to PC5. The expectation was that further enhancements to support additional V2X operational scenarios would follow.
Further 3GPP releases have addressed a whole host of enhancements. These include a full set of 5G standards, multimedia priority service, V2X application layer services, 5G satellite access, LAN support in 5G, wireless and wireline convergence for 5G, terminal positioning and location, communications in vertical domains, edge computing and network automation, novel radio techniques and increased power efficiency supporting UE devices carried by vulnerable road users (VRUs) including pedestrians and cyclists. Figure 3 shows a timeline for future enhancements.

Figure 3 Expected timelines for mass deployment of C-V2X use cases. Source: 5GAA.
V2X OPPORTUNITIES AND CHALLENGES
There are many opportunities in the C-V2X industry. These include vehicle safety for passengers and VRUs that include pedestrians and cyclists, safety, mapping, vehicle positioning, autonomous vehicle AI and computing technology. For a single vehicle, C-V2X can help collect perception-related information and send it to the vehicle to improve decision-making and route planning. There are inevitable blind spots or missed detections in the single-vehicle perception of intelligent and connected vehicles. The state information of vehicle perception blind spots such as corners and intersections provided by C-V2X roadside units (RSUs) can effectively expand the vehicle’s perception range. This can improve the safety redundancy and enhance the decision-making ability of autonomous driving.
With the support of a V2N-enabled cloud-controlled platform and C-V2X technology, the goal is to achieve “pedestrian-vehicle-road-cloud” collaborative control at the traffic/transportation level. Achieving this means that C-V2X provides effective information for single-vehicle decision-making in addition to achieving autonomous traffic control of all road sections. This control will extend to all weather and traffic conditions for all traffic participants. A challenge to this goal is the mixed-traffic environment with vehicles of different intelligence levels. Achieving this goal will be beneficial to traffic control and management on a local and national level.
However, there are still doubts about V2X and V2I collaboration and business case realities. Continued wireless spectrum regulatory issues and the lack of government mandates for V2X technology adoption on new vehicles have stalled the widespread adoption of V2X outside of China. Some in the industry see V2X networks as a complementary technology to high-level, large-scale autonomous driving and ADAS implemented in onboard, single-vehicle intelligence. Challenges to V2X implementation include:
High cost of deploying new infrastructure: According to the U.S. DOT, the average cost of C-V2X infrastructure construction at a single intersection is $6,000 to $7,000. This includes the cost of mapping the intersection, purchasing RSUs and installing them in the field.
Onboard hardware costs: OEMs currently bear the costs for the onboard unit (OBU) and they face a difficult situation: V2V applications cannot be triggered because very few cars support V2V. Without seeing a benefit, consumers will be unwilling to pay for C-V2X functions. If the OEMs cannot make a profit they may curtail C2V investment and this will stagnate development.
Additional vehicle hardware cost: According to ITS America, the OBU cost for C-V2X within an existing telematics control unit is $160 to $170 per vehicle.
Unclear data ownership: The development of V2X technology relies on making infrastructure data, like traffic light data, open source. However, most countries and regions have not yet formed clear regulations on the ownership of various types of data. This makes it difficult for all demonstrators to obtain data outside their products and there is no unified evaluation standard for data security and credibility.
Multi-department management:V2X is a cross-industry technology involving the automobile, communications, road management, surveying and mapping industries with each having related management departments. Different authorities may have different rules, resulting in inconsistent management and complex processes, creating duplication, crossover and blind spots.
Cybersecurity: The “ISO/SAE21434 Road Vehicles – Cybersecurity Engineering” document specifies requirements for cybersecurity risk management regarding engineering for the concept, development, production, operation, maintenance and decommissioning of road vehicle electrical and electronic systems, including their components and interfaces.
Business model challenges: There is no clear business model for the commercialization of C-V2X. The PC5 transmission mode is now complimentary, meaning all messages that communicate through PC5 are free of charge. The cost of an OBU, which is an important part of C-V2X, includes development costs, testing and hardware and may include validation and certification costs in the future.
V2X DEPLOYMENT PHASES
According to the CAR 2 CAR Communication Consortium,1 V2X will be deployed in three phases:
Day 1 Phase – Awareness Driving: Vehicles and infrastructure transmit information regarding their status information about tolling stations from RSUs, as well as information describing unexpected events like adverse weather conditions and dangerous situations.
Day 2 Phase – Sensing Driving: The V2X system will be extended to permit vehicles and RSUs to share information about objects detected via onboard sensors such as cameras, LiDAR or radar. This phase also includes functional safety in support of semi-automated driving use cases at receiving vehicles.
Day 3+ Phase – Cooperative Driving: This deployment phase will take advantage of vehicles with increasing automated driving capabilities (SAE level 3 and level 4). All the functionalities introduced in the Day 2 Phase will be reused and applied in a stricter way to support highly automated driving use cases including cooperative merging, cooperative lane change and cooperative overtaking functionality.
CHINA LEADS V2X ADOPTION
The China Industry Innovation Alliance for the Intelligent and Connected Vehicles alliance issued the “Technology Roadmap for Intelligent and Connected Vehicles 2.0” in January 2021. The objectives include C-V2X being installed in at least 50 percent of new vehicles assembled in 2025 with a goal of most vehicles having C-V2X installed by 2030. While TechInsights does not believe that the 50 percent goal will be reached by 2025, the addition of V2X in the China New Car Assessment Program (C-NCAP) ratings will promote the adoption of V2X in the region. China has adopted the technical route of C-V2X from the very beginning on a national level. They have allocated the 5905 to 5925 MHz band to C-V2X.
STALLED V2X DEPLOYMENT IN THE U.S., KOREA AND EUROPE
In Europe, ETSI has approved the use of C-V2X as an access layer technology for ITS devices for vehicles and roadside infrastructure. Regulators in the European Union, Japan, South Korea and the U.S. are still finalizing regional and national spectrum allocation details. This will determine how the 5.9 GHz band will be used for V2X.
The NHTSA remains strongly interested in V2X technologies but they are not included in the current NCAP roadmap. They are considering various V2X deployment issues, including technological evolution and regulatory changes to the radio spectrum environment. The lack of an NHTSA mandate, or timeline for a potential mandate, along with the compressed spectrum availability for V2X in the U.S. will likely limit OEM adoption through 2024/2025. There is potential for an uptick in adoption by OEMs post-2024/2025 if wireless spectrum allocations become clearer and waivers are not needed, assuming a supportive regulatory framework is in place.
In December 2019, the U.S. FCC unanimously voted to allocate the lower 45 MHz of the previously dedicated 5.9 GHz automotive safety band to unlicensed uses such as Wi-Fi. They also allocated the upper 30 MHz for C-V2X. The FCC decision made clear that only the remaining 30 MHz would be dedicated to V2X technology and that cellular-based C-V2X was the winning protocol. The FCC’s decision specified a 2024 timeframe for existing DSRC equipment to be removed from the reallocated spectrum. There is concern that the remaining 30 MHz is limited by interference and bandwidth limitations and may be limited to basic safety messaging within 20 MHz of the allocated 30 MHz.
In April of 2023, the FCC granted a waiver that allows proponents of C-V2X to use the upper 30 MHz of the 5.9 GHz band. Waiver applicants will be allowed to deploy C-V2X RSUs and OBUs ahead of the final rules. Waiver applicants include vehicle OEMs Audi, Ford and Jaguar Land Rover.
CHALLENGES FOR V2X
Unfortunately for the global automotive industry, the lifesaving promise of V2X technology remains tangled in regulatory clashes concerning specification and spectrum allocation debates. China is the only region of the world that has a clear deployment strategy for V2X technology. V2X adoption continues to be hampered by wireless spectrum allocation, the lack of government mandates or NCAP rating credits and vehicle OEMs taking a wait-and-see approach to see which protocol gains favor within the industry or through mandate and if other vehicle OEMs will adopt the technology.
In the short- to medium-term, both 802.11-based DSRC/ITS-G5 and C-V2X will see market deployment. Near-term deployments of V2X will vary by region with Europe and Japan continuing DSRC efforts while China and the U.S. favor C-V2X solutions. Though DSRC/ITS-G5 and C-V2X share the same wireless spectrum, the technologies are not interoperable.

Figure 4 Global light vehicle V2X forecast. Source: TechInsights.
The continued rollout of 5G networks will undoubtedly help support C-V2X adoption, but applications between two suitably equipped vehicles or a vehicle and an RSU do not require 5G network coverage. V2V and V2I applications built on C-V2X can be launched independently of the 5G network rollout. The 5G Automotive Association (5GAA) foresees an important medium-term (2025 to 2027) objective aimed at confirming the 5.9 GHz spectrum configuration for mass adoption of C-V2X-direct radios for advanced driving in different regions of the world. TechInsights’ latest global light vehicle V2X forecast is shown in Figure 4.
This forecast includes the following assumptions:
China: C-NCAP 2023 includes V2X protocols in its rating system incentivizing OEMs to implement V2X solutions that will be scored as extra points for a five-star rating. Though not a specifically mandated requirement, these protocols can score up to 10 safety-assist points as an incentive award. C-V2X deployments have started mostly on luxury segment vehicles but will continue to gain traction on lower segments, with Ford already deploying C-V2X in the region, as NCAP points are awarded.
- V2X penetration will see more rapid growth from 2024 and reach 60 percent of vehicle production in 2030.
- Stronger points allocation and a potential mandate for V2X is possible by 2030, driving higher V2X adoption rates.
Europe: The EU remains undecided on V2X protocol adoption and a V2X NCAP mandate is stalled due to uncertainty in the industry concerning V2X protocol selection. Though the Volkswagen (VW) Group has deployed V2X, other OEMs are waiting for a clear 5.9 GHz spectrum allocation and a finalized Euro NCAP points allocation plan in 2026, along with the potential for a V2X mandate that is likely in 2029. VW has deployed DSRC-based V2X as standard equipment in its 2020 Golf model and has extended the technology to its ID. electric vehicles. The VW Group had planned to roll the technology out to all VW Group vehicles but this strategy seems to have stalled.
- V2X penetration will begin to expand from 2026 through 2029 due to the Euro NCAP V2X points award incentive.
- The proposed 2029 mandate will likely include a phase-in period, meaning full penetration of V2X will not occur until after 2030, which is beyond the time horizon of our latest forecast report.
North America: V2X is not one of the proposed ADAS technologies in the NHTSA’s NCAP upgrade proposal that was published in March 2022.
- This lack of a mandate, or even a timeline for a potential mandate, along with the compressed spectrum availability for V2X in the U.S. will likely limit OEM adoption through 2025/2026.
- V2X deployments on vehicles produced in North America dipped considerably in 2020 as the DSRC V2X-equipped Cadillac CTS went out of production.
- V2X deployments will begin to rise again in late 2024 as Ford implements C-V2X and other automakers such as GM, Jaguar Land Rover and Toyota likely follow in subsequent years.
- Though there is some OEM interest in V2X deployment, the lack of a mandate and spectrum limitations cap V2X implementation to only 16 percent of vehicles produced in 2030 in North America.
Other regions: Deployments in Japan are mostly implemented from retrofits of 5.8 GHz DSRC OBUs for electronic toll collection (ETC) and ITS applications. The 760 MHz DSRC V2X systems have only been implemented by a handful of Toyota Group models and can only be used in Japan as the frequency band has not been standardized in other market regions.
- Demand in Japan will continue to include DSRC V2X deployment, due to its earlier implementation for ETC and ITS.
- C-V2X has been tested in Japan since 2021, but the technology remains in the experimental stage at this point.
Other emerging market regions like Brazil, India, Russia and Thailand will lag further behind as they lack the public financing to invest in ITS projects and supporting infrastructure, along with consumers not being able to afford the cost of V2X systems.
Reference
- CAR 2 CAR Communication Consortium, www.car-2-car.org.