North Carolina's V2X Tolling Breakthrough: A Catalyst for Smart Infrastructure and AI-Driven Mobility Investments

The North Carolina Turnpike Authority's (NCTA) collaboration with Kapsch TrafficCom to deploy the world's first production-level Vehicle-to-Everything (V2X) tolling system on the Triangle Expressway (NC-540) marks a pivotal moment in transportation innovation. This project, announced in August 2025, is not merely a technical milestone but a harbinger of a broader shift in how infrastructure is monetized, managed, and integrated with emerging technologies. For investors, it signals a rare convergence of policy, technological readiness, and market demand that could redefine the smart infrastructure sector.

The V2X Revolution: Merging Legacy and Future-Ready Systems

North Carolina's V2X tolling system integrates two critical technologies: legacy roadside tolling and connected vehicle (CV) data. By merging these into a single, secure transaction, the project addresses a long-standing engineering challenge—unifying disparate data streams from different spectrums. The system uses roadside units (RSUs) to communicate with onboard units (OBUs) in vehicles, enabling real-time toll notifications, precise rate calculations, and instant payment processing. This eliminates the need for traditional in-lane sensors, reducing infrastructure costs by up to 40% and minimizing traffic disruptions during deployment.

The scalability of this model is equally compelling. Kapsch TrafficCom, the project's lead, has demonstrated that a single LTE-V2X RSU can cover an entire toll zone, a stark contrast to the costly, lane-specific infrastructure of the past. This infrastructure-light approach not only lowers capital expenditures but also accelerates deployment timelines, making it an attractive option for states and municipalities grappling with aging infrastructure and funding shortfalls.

Market Dynamics: A $112 Billion Opportunity by 2035

The V2X market is on a meteoric growth trajectory, driven by regulatory tailwinds, 5G expansion, and AI integration. According to recent market analysis, the V2X segment accounted for $39.8 billion in revenue in 2025 and is projected to grow at a 10.9% CAGR, reaching $112 billion by 2035. North Carolina's deployment is a catalyst for this growth, demonstrating the viability of V2X tolling in a real-world, high-traffic environment.

The project's success hinges on its ability to address systemic challenges in transportation funding. The U.S. Highway Trust Fund faces a projected $280 billion shortfall by 2035, and V2X-based tolling offers a scalable solution to reduce revenue leakage while improving operational efficiency. For investors, this translates to a market where infrastructure-as-a-service (IaaS) models and AI-driven analytics can generate recurring revenue streams.

Investment Entry Points: Kapsch TrafficCom and the Ecosystem

Kapsch TrafficCom, with its EUR 530 million revenue in 2024/25 and a global footprint in 50+ countries, is the linchpin of this transformation. Its V2X tolling solution is production-ready, having been tested in pilot programs with the Central Texas Regional Mobility Authority (CTRMA) since 2020. The company's dual expertise in RFID and V2X tolling gives it a unique edge as the market transitions to connected and autonomous vehicles.

For investors, Kapsch represents a high-conviction play in the smart infrastructure space. Its partnerships with NCTA and other U.S. agencies, coupled with its adherence to SAE J3217 interoperability standards, position it to dominate the next phase of tolling modernization. Additionally, Kapsch's infrastructure-light model reduces barriers to adoption, making it a scalable solution for states seeking to modernize without massive upfront costs.

Beyond Kapsch, the broader ecosystem offers diverse entry points:
- 5G-V2X Infrastructure Providers: Companies like Qualcomm and Ericsson are pivotal in enabling low-latency communication for real-time decision-making in autonomous vehicles.
- AI-Driven Telematics Firms: NVIDIA and Intel are leading the charge in edge computing solutions that process V2X data for predictive analytics and safety protocols.
- Smart City Frameworks: Urban mobility platforms integrating V2X with traffic management and energy systems (e.g., Vehicle-to-Grid technologies) are gaining traction in cities like Raleigh and Singapore.

The Bigger Picture: A Platform for Future Mobility

North Carolina's V2X tolling system is more than a payment mechanism—it's a digital hub for real-time vehicle-to-infrastructure (V2I) communication. The same RSUs that handle tolling can deliver traffic alerts, weather warnings, and emergency notifications, enhancing safety and user experience. This dual-purpose infrastructure creates a flywheel effect: the more data the system collects, the more value it generates for stakeholders, from drivers to insurers to urban planners.

For investors, the key is to identify companies that can monetize this data deluge. Kapsch's back-office integration with NCTA's invoicing systems is a case in point, demonstrating how V2X can evolve from a tolling tool to a comprehensive mobility platform. Similarly, AI firms that enable predictive maintenance and route optimization will benefit as V2X networks expand.

Conclusion: A Transformative Inflection Point

North Carolina's V2X tolling deployment is a microcosm of the broader shift toward smart infrastructure. It combines policy foresight, technological innovation, and financial pragmatism to address the twin challenges of funding and efficiency in transportation. For investors, the project underscores the urgency of capitalizing on a market that is not just growing but accelerating.

The entry points are clear: Kapsch TrafficCom for its leadership in V2X tolling, Qualcomm and Ericsson for 5G-V2X infrastructure, and NVIDIA/Intel for AI-driven telematics. As the U.S. Highway Trust Fund's shortfall looms and urbanization intensifies, the demand for scalable, future-proof solutions will only grow. The Triangle Expressway is not just a testbed—it's a blueprint for the next era of mobility.